Thursday, 23 July 2015

The Jeremy Corbyn economic plan

Corbyn's economic manifesto is pretty good, much better on being clear and free of jargon than almost any other politician. But I think it can be shorter, simpler, comfier without losing its information. So here's my rewrite, very close to the original which you can get HERE.

In a nutshell Corbyn proposes an economics of investment, a ‘National Investment Bank.’
This is aimed to invigorate hi-tech and innovative industries, and train necessary skills.
The view that taxes are a burden must shift to taxes as a subscription we pay to live in a civilised society, and one which can support a strong economy.
Corbyn aims at a modern, rebalanced economy based on growth and high quality jobs.
He says Labour must become the party of economic justice AND economic credibility.

Corbyn’s economics for Labour:

Wealth creation is a shared process between workers, public investment and services, and innovative and creative individuals.
Corbyn aims at a modern, rebalanced economy based on growth and high quality jobs.
Our current tax on corporations (20%) is already the lowest in the G7.
It’s lower than China (25%), and half USA (40%).
At the same time we offer £93 billion in huge tax reliefs and subsidies to the corporations.

Osborne’s giveaways will lose £5 billion revenue for the Goverment: £2.5 billion in inheritance tax on the 4% richest households, and £2.5 billion in corporation tax, by 20120.
This is twice as much as the benefits cap will raise.

There is money available.
Instead of getting money from those that have lots of it Osborne is running down public services, slashing the welfare state, selling off public assets.

We see that austerity is about political choices, not economic necessities.

Osborne promised he would reduce the deficit by 2015 but he was wrong. He only halved it.
He is now promising again to remove the deficit by 2020.

People are still worse off today than they were in 2008.
The average household is still awaiting recovery.

Britain has had the longest period of falling real wages since the 19thC,
– a disastrous investment and productivity record.
– a swelling balance of payments deficit,
– a new army of low-paid, low skilled, insecure, zero hours, and bogus self-employment jobs.

The deficit does not need an artificial plan of 5 or even 10 years.
Labour will close the current budget deficit through building a strong growing economy that works for all. We will not do it by increasing poverty.

Instead of removing spending power from the economy which damages growth and prosperity, Britain needs an expansion led by the public sector to rebuild the economy.

Faster growth and higher wages are key to bringing down the deficit.
Increased tax receipts and lower benefit demand are a better way forward.
In a tough choice we will always protect public services and support for the most vulnerable. We will ask those who have been fortunate to contribute a little more, and fund a sustainable investment plan.

Large parts of our country have been neglected for decades, with no real industrial strategy.
The Northern Powerhouse is largely southern hot air:
It devolves only slashed budgets, leaving the real power at the centre.

Our infrastructure, our economic basis, is about modern housing, transport, digital and energy networks. We need to ensure they are among the best in the world for a strong economy.

But UK infrastructure (energy, housing, transport, digital) lags behind other developed economies. Britain’s economy is outdated.
Privatised markets are failing and holding back the economy.
Osborne’s Budget will actually cut investment further.
You cannot cut your way to prosperity. We need to invest in our future.

We need to drive investment and lending to rebuild the economy.
We need to promote hi-tech and innovation to generate customers for private companies.
We need to move away from finance towards high-growth, sustainable sectors of the future.


The Bank of England can be given a new mandate to invest in new large scale housing, energy, transport and digital projects.
Richard Murphy and many other economists have been making a case for quantitative easing serving people instead of banks.
The huge £93 billion in tax reliefs and subsidies offered to the corporations can be reduced, and the funds raised used to establish a ‘National Investment Bank.’
This would be invested into hi-tech and innovative industries.

Construction, manufacturing, and engineering skills are required to support this plan.
We will invest in adult education and further education to get the high skill, high pay, high productivity workforce.

Richard Murphy has estimated that nearly £120 billion in tax revenues is not paid.
Enough to double the NHS budget.
There is £20bn in uncollected tax debt, £20bn in tax avoidance, £80bn in tax evasion.
This is money taken from us all.

We need to shift the view that taxes are a burden, to tax as a subscription we pay to live in a civilised society.
We all benefit from schools, hospitals, libraries, street lights, pensions etc.
Labour must make the tax system more progressive.
Those with the most must pay the most, not just in monetary terms, but proportionally too.

We will:
– Introduce proper anti-avoidance rule into UK tax law.
– Ensure country-by-country reporting for multinational corporations.
– Reform small business tax to discourage avoidance and tackle tax evasion.
– Enforce proper regulation of companies in the UK so they file their tax returns, and pay tax they owe.
Reverse the cuts to HMRC and Companies House staff, taking on more staff so taxes can be collected which the UK badly needs.

Ordinary people can’t ask to be paid in fine art or vintage wines to avoid tax.
Ordinary people can’t pay accountants to put their income through foreign banks to avoid tax.
How can a small local coffee shop which pays proper taxes compete with the big chains that use these avoidances?

We have a deeply unbalanced society, and a deeply unbalanced economy.
The state plays a vital role in that to increase it or reduce it. It cannot opt out.
Without a responsible government we suffer the chaos of debt bubbles, underinvestment, grotesque inequality between rich and poor, and a widening regional inequality.

Our vision is of an economy that works for all,
provides opportunity for all, and invests in all
– rich and poor, north, south, east and west.
Billionaires are not the sign of a healthy economy: fairness and equality is.
Labour must become the party of economic justice AND economic credibility.


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