One billion pounds for bigots but not for everyone else

After seven years of brutal cuts, the Conservatives have found one billion pounds from their magic money tree to buy votes from the DUP leaving the rest of the UK at the mercy of savage cuts.

The DUP leader, Arlene Foster, stood beaming in front of the cameras last week when it was formally announced her party had come to an agreement with the Tories. She is delighted over the current status her party now occupies of enabling a functioning government. She also understands the wafer thin majority of the Conservative party can easily snap without DUP support, especially after the agreement that her party will enable a Tory-led government on a confidence and supply basis. This deal-breaking role affords the DUP the position of extracting significant demands from the Tories, including a sizable cash injection into the Northern Irish economy. Whilst Theresa May has accepted this proposal, it has attracted widespread criticism from across the political spectrum.

Jeremy Corbyn – Labour leader:  “Where is the money for the Tory-DUP deal coming from? And, will all parts of the UK receive the much needed additional funding that Northern Ireland will get as part of the deal?”

Nicola Sturgeon – SNP leader: “In concluding this grubby, shameless deal the Tories have shown that they will stop at nothing to hold on to power.”

Tim Farron – Lib Dem former leader: “The nasty party is back, propped up by the DUP. While our schools are crumbling and our NHS is in crisis, Theresa May chooses to throw cash at 10 MPs in a grubby attempt to keep her cabinet squatting in No 10.”

Political leaders are correct to criticise the unfairness of May’s deal with the DUP. The Tories have bleated for seven years claiming austerity measures are necessary in order for the population to ‘live within its means.’ It now rings hollow when Northern Ireland is set to receive one billion pounds and more but the rest of the UK is expected to sit back and absorb severe cuts to public services, the NHS, education, income, jobs and welfare benefits.

The magic money tree trotted out by the Conservatives during the General Election campaign, was an attempt to discredit Labour’s anti-austerity pledges by falsely claiming there is no money for investment. The Tories’ magic money tree can provide money for shady deals with the DUP but not for social care, free school meals or a commitment to end the public sector pay cap.

Is austerity working?

The purpose of austerity measures is to drive up big business’ profit rates. In theory, this supposedly provides companies with the incentive to invest back into the economy. However, austerity has only succeeded in driving down living standards without the subsequent increase in business profits.

The Conservatives have presided over a dramatic increase in the cost of living that has largely been driven by a fall in wages. The Office of National Statistics has reported that regular pay in the UK is running below the 2.3% increase in prices of goods and services. The Resolution Foundation has called this decade the worst for falling pay in over 200 years and the chief economist at Capital Economics Jonathan Loynes has written, “we expect a squeeze on income growth over the next few years.”

The fracturing of the labour market in terms of the increase in ‘self-employed’ workers and zero-hours contracts, accompanied by the depression of real wages and the rolling back of collective bargaining in the workplace has paved the way for an

Whilst the economy experienced some growth in 2016, this was primarily driven by consumption. Consumption led growth is not sustainable in the long-run. The true motors of economic growth come from investment in key sectors

The primary objective in the next General Election is to ensure an anti-austerity government is elected to parliament. Given the weaknesses in Theresa May’s position of leading a minority government whose majority on important policies rests on DUP support, there is scope for a Corbyn-led Labour government who promises investment in jobs, education, public services and a strong commitment to fighting climate change to be elected in the next election. Let’s make it happen.