UK double dip recession yet EU demands more funding

25/04/2012

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It has been another funny old week in the UK. It seems nothing will "play ball". The UK drought has become a huge joke, as the heavens open yet again and some regions are put on flood alert. Chancellor George Osborne continues to preach austerity and a reduction in local funding and jobs, whilst offering a further £10bil in loans to the IMF, international monetary fund. This money is on top of £30bil already committed to the same source.

The markets sensed that this week was not going to be good for the UK and shares begun to slide and then tumble. After supposed green shoots of the start of a recovery today the bad news that the UK is in a double-dip recession has been revealed. This is the first such double dip recession in the UK since the 1970s.

Wednesday's Prime Minister's Question time in UK Parliament has been a heated one but one where UK PM Dodgy Dave Cameron has still insisted that this government will stick to its fiscal plan. Whilst that may have made sense if the news was promising today's dire economic news makes it madness.

Added to this we have another EU moment to treasure. One more of those "you have to laugh or else would cry" moments in time. As the Telegraph reported earlier this week "The European Commission is to defy austerity by demanding an EU budget increase of seven per cent meaning extra contributions from British taxpayers to Brussels of £900 million next year."

It was noted that this increase is over four per cent above the rate of EU inflation. The demand was made today, Wednesday 25, 2012. If the demand is met the UK will pay £14bil in 2013 as its part of the EU contribution.

The matter is up for debate in June at a Brussels meeting. No doubt this will be another expensive meeting involving overpaid Ministers jetting off to meet at luxurious places. French President Nicolas Sarkozy and UK PM David Cameron have already stipulated that their country's contributions are frozen and no increases will be paid. Will it be a matter of watch this space, yet again?

If the UK cave in and agree to the increases it will mean more public sector job losses, pay cuts and restraints. All so that a useless body of workers can continue. Sarkozy will have little room for manouvere as a freeze in EU contributions is central to his election campaign. If he does manage to get elected in May woe betide him if he welches on his manifesto.

Chancellor George Osborne has yet again insisted that the UK must stick to its austerity plans. With more and more UK money being sidelined for the EU one has to wonder why? Is it a case of it is his money to do with as he wants? I think not.

How much longer he can expect the people of the UK to tighten their belts whilst money is squandered, heaven only knows. If his austerity measures are not working but he sticks with them one has to assume that he has a hidden agenda such as hitting Labour Councils, reducing public sector jobs and pay and dismantling the NHS. If not what is the point of it?

Today the news revealed by ONS, that GDP shrank by 0.2pc over the first quarter of 2012, and we are now in a double-dip recession is terrible news. Of course it could bet a whole lot worse and unless the UK government get a grip it will do.

Don't forget to make your voice heard in the May local elections.
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Is Cameron's UK Big Society simply BS

04/04/2012

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David Cameron has ambitious plans for s Big Society in the UK. One where we all do our best to help society. Whilst there is nothing wrong with hopes of such a Utopia the reality could be rather different. One burning question of course is who will foot the bill for any expensive changes?
The Big Society is thought by many in the UK to be a different kind of BS. Mr Cameron has already inspired confidence lately, has he? More often that not fancy named changes are more about cost cutting than making positive changes.

Today April 4, 2012, a new financial institution set up by the UK government to finance charities and community groups has been announced. The Big Society Capital. This is ironic as the self same government has cut funding to most UK charities causing those hit to struggle to survive.

The BBC reported"Big Society Capital has £600m, of which the majority comes from unused cash in bank accounts that had been dormant for more than 15 years." Really! Where members of the public consulted on this?

A representative on morning TV claimed that any person wanting to reclaim their funds would still be able to do so. He maintained that this change is still far more generous than in other countries. However we are not interested in other countries, are we? This government is always quick to adopt changes from abroad that suit it, whilst resisting ones that could benefit UK citizens.

The BBC report goes on to say "The fund will back social enterprises that prove they can repay an investment through the income they generate. "This is about supplying capital to help society expand," said Prime Minister David Cameron."Just as finance from the City has been essential to help businesses grow and take on the world, so finance from the City is going to be essential to helping tackle our deepest social problems," the prime minister added.

Venture capitalist Sir Ronald Cohen, who is Big Society Capital's chairman, told the BBC that the fund's aim was to create a "thriving market for social investment".He explained that many not-for-profit organisations relied on donations to finance themselves, and were unable to get a normal loan from a High Street bank because they lacked assets - such as property - that could be offered as a security."

In general it seems that this scheme hopes to offer rewards to those have saved the government money. A former advisor to Gordon Brown said, "I think Big Society Capital is a good thing, but it is a limited amount of money and it is a bit of a drop in the ocean, given what is happening to the sector, with the deficit-reduction programme really hitting the sector" . "It will mask the real problem: voluntary organisations who really do need grants and won't be able to cope with risk capital."

Time will tell if the Big Society Capital works out well or is simply more government BS

Full report here
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UK Coalition advice for fuel strike, panic buy

28/03/2012

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UK Tory Minister Francis Maude advises jerry cans of fuel in event of strike.

It looks like Easter weekend 2012 in the UK will be a time of strike action. Good Friday falls on April 6 and unless the strike action is averted, filling up at the pumps could prove difficult. For those who like to enjoy this first long Bank Holiday weekend of the year with a few days away from home, it could be disastrous.

Timed for maximum impact the strike, over terms, conditions and safety, by fuel tanker delivery drivers could leave many people seething. The UK Coalition government is hoping, probably against hope, that the strike will be called off or settled. As the dispute is not simple, nor about one issue, an early settlement could prove elusive. However there is still time and therefore hope, that a strike can be averted.

A previous fuel tanker driver strike quickly lead to depleted fuel stocks and empty grocery shelves in the supermarket. Both of these were down to selfishness and panic buying by customers rather than the strike itself.

This time the government has been making some preparations. Members of the UK armed forces have been undergoing training to deliver the fuel supplies if and when it become vital. Today Coalition Minister Francis Maude has weighed in with advise to consumers. 

Hold on to your hats. It's not rocket science.

His advice is to be sensible. To buy a jerry can and fill it up at the pumps. Put a little extra fuel in your tank before Easter too and you should have enough to take you where you want to go over the Easter break.

According to Mr Maude, "When it makes sense, a bit of extra fuel in a jerry can in the garage is a sensible precaution to take. People need to be aware that there is a risk to fuel supplies. It's not for us to give advice on what people should do. It is our obligation to tell them what is going on so that they can make their own decisions." 

Whilst Maude did go on to say that there is no need for panic buying, in those few short sentences he may have instigated just that. 

UK groups such as the Motoring Association have accused the government of increasing the risk of panic buying.  A spokesperson for the AA said, "It’s the height of irresponsibility for Downing Street to give the impression that people should be panic-buying. They should be using all their efforts to get a settlement." The AA went on to say, "It's totally inappropriate for people to panic-buy. No strikes have yet been announced and there is enough fuel out there as long as people do not fill up unnecessarily."
 
Labour was quick to brand the latest comments from Mr Maude as the "height of irresponsibility part 2" and the shadow minister without portfolio Michael Dugher asked: "Has Francis Maude gone mad?!" Could be.

Labour leader Ed Miliband is hoping for a more sensible outcome and he has said, "They should get round a table, and I think this strike can be avoided and it must be avoided." 

David Cameron was quickly challenged regarding Maude's scaremongering and he said, "I absolutely do not want to raise the temperature on this any more than is necessary. I do not want a strike to take place."I hope the talks will be successful but in government you always have to prepare for any eventuality. The British people would expect that. "To the British people themselves I would say look, there is no imminent strike. The unions would have to give seven days notice of any strike so there is no need to to queue to buy petrol. "If there is an opportunity to top up your tank if a strike is potentially on the way, then it is a sensible thing if you are able to do that."

Opinion: In her lifetime in the UK this blogger has experienced a previous fuel shortage, empty supermarket shelve, a sugar shortage, a potato shortage and more. All were made worse by panic buyers.

Those people who have the money to stock up indefinitely. Those consumers who care not one iota about any person but themselves. Often the greedy of society. Today Francis Maude has, perhaps intentionally, given these people a free reign. His carefully chosen words will guarantee maximum impact on UK motorists and consumers and also ensure that fuel stocks are quickly depleted. Already some petrol stations have announced they have empty pumps.

What a way for a Government to do business.
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Chris Huhne UK MP - Hell hath no fury

03/02/2012

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Perhaps a friend should have made UK Liberal Democrat MP Chris Huhne aware of that famous old saying, Hell hath no fury like a woman scorned. You might claim that it is sexist is some ways but time and time again it has been proved to be true. This time though the revenge looks to have backfired somewhat on the lady in question.

Huhne was a leading light in the Liberal Democrat Party. He had stood for election as party leader on more than one occasion and many people felt he would eventually take over from current Party leader Nick Clegg. Any such plans and political ambitions have now been put on long term hold.

Today, February 3, 2012, Chris Huhne was told that he was facing prosecution and he has quickly resigned from the Coalition Government. His crime? The alleged offence dates back almost ten years. An acrimonious divorce from his wife, economist Vicky Pryce, directly led to this case. In an apparent fit of anger she claimed that Chris had asked someone to take his penalty speeding points, on his behalf. This would leave Huhne with an unblemished driving licence. In the end it seemed that it was now former wife Vicky who Huhne asked.

For a while now the allegations have been under investigation and as the news, that he and former wife Vicky were to face criminal charges, was announced, he has resigned. The last laugh for him will be that she too is facing court action.

Many enemies of the now former energy and climate change secretary may join in the laughter.

Over the years Mr Hune has been happy to rise above the crowd as far as his political ambitions went. He was renowned for pushing all in his path unceremoniously out the way. He is a self made millionaire who some may claim is ruthless. For these people today will be a little poetic justice.

Although Huhne has resigned from Cabinet Office he remains an MP. He has vowed to keep working hard to represent his constituency. Nick Clegg has already said that he will welcome him back into the political fold as soon as the case is over. That is assuming that he is proved innocent.

Huhne and his former wife are charged with perverting the course of justice.

More here - Chris Huhne
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