In response to the march against cuts rally on 26 March, the right have pulled together
their own: Rally Against Debt.
Might not be as popular, but then campaigns aren’t always the political Right’s bread and butter pudding.
Sunny has declared his interest in going, and has urged other lefties to join him. I may just do that, but under the following banner: “The Other Rally Against Debt”.
(You know, like The Other Taxpayers’ Alliance – keep up!).
I’ve drafted a programme (still a work in progress, changes welcome, of course) and it is as follows:
- No to the most vulnerable in society bearing the burden of city risk and failure
Among those likely to suffer most at the hands of the cuts are:
- The homeless and people with complex mental health needs, whose Supporting People services are facing average cuts of 17% next year
- Children and families who, owing to council spending reductions of 25% in 2011-2012, will see early intervention services cut – which can save money in the long term – such as “children’s centres, Sure Start services, youth work, family support, respite care for disabled children, and play services”
- Pensioners, whose winter fuel allowance will go down from £250 to £200 for the over 60s and for the over 80s reduced from £400 to £300.
- No to the cuts which look set to increase household debt over the next four years
The BBC were reporting on Sunday that financial education charity Credit Action have said tax and benefit changes coming into force in the coming week will leave households £200 worse off – which “include a one percentage point rise in the charge for National Insurance and a lower threshold at which the higher rate of tax applies.”
Ignoring for a moment the amount in social capital that degree educated individuals produce (the government clearly has), many prospective students today are obliged to be in debt to the tune of £39,000 (based on £9,000 a year in fees and £4,000 a year for maintenance over three years) for the “right” to a university education.
Though the fee cap was set at £9,000, this charge was only supposed to be for “exceptional circumstances”. The marginally less scary sum of £6,000 was supposed to be the norm. But, according to Eleanor Stanford for the Independent, the government has overlooked the power of Offa (the independent public body that ensures fair access to higher education) to cap fees charged by universities – of which it has none.
No surprises then that an unforeseen amount of universities are choosing to charge the full amount of fees.
- No to national debt fetishization
Many countries run at a budget deficit and survive just fine, including the UK. In fact, the author and economist Dr Noreen Hertz said recently that in the last 20 years Norway has been the only country in the developed world to consistently run on a surplus. The problem is not running at a deficit, but not being able to manage the repayments – and the way in which governments manage this is by investing and growing, not cutting jobs and putting pensioners at risk.
- Yes to a consumer credit act which seeks to roll out more low interest credit unions where legal and illegal loan sharks have profited from high rates of personal debt, particularly since the start of the recession
According to Compass, “the British people owed over £1,460bn in private debt”. This has been exasperated by irresponsible lending, perpetual debt cycles and poverty.
Compass’ End Legal Loan Sharking campaign, and Stella Creasy’s parliamentary work on consumer credit, promotes the roll out of low interest credit unions linked to the post office network, matched with accessible financial advice, with the aim of curbing credit dependency and tackling loan sharks.
As I said on the Guardian‘s Comment is Free section late last year:
Many people who find themselves uncreditworthy turn to high-street alternatives just to get by – a trend that has been rising year on year. A report by Consumer Focus – a watchdog to be abolished by the government in its quango cull – estimated earlier [last] year that the number of people taking out payday loans has quadrupled to 1.2 million over four years. With tighter spending in the public sector, and job losses across the country, loan providers of this sort can expect their services to accelerate [...] for them it’s just a matter of time until the money starts pouring in.
It’s worth quoting the aptly named Peter Crook, chief executive of Provident Financial (the country’s largest home credit business), who said of public spending cuts “We may well see a growth in our target audience”.
- Yes to sensible debt management that rejects the notion that cutting the deficit as quickly as possible, at the expense of jobs, growth and services, is the best thing to do for jobs, growth and services.
If you were not convinced by the reality that many people, including very vulnerable people, will suffer for the coalition government’s risky economics, then perhaps the unabashed words of Paul Krugman will turn you:
… we have a political climate in which self-styled deficit hawks want to punish the unemployed even as they oppose any action that would address our long-run budget problems. And here’s what we know from experience abroad: The confidence fairy won’t save us from the consequences of our folly.
Let’s not be ruled by the confidence fairy any longer. Join The Other Rally Against Debt today.
Update: Times Hugher Education have published details of undergraduate tuition fees for 2012-13, by university – here
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