Ian_Wrexham
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- Comrade Lineker's Revolutionary Junta
So the autumn spending review yesterday from Osbourne, in the end looks like a review that wouldn't have looked out of place coming from an Ed Balls Labour chancellorship. Somehow think that basing welfare policy on £20Bn in additional revenue forecast by the OBR to be a little dangerous. OBR forecasts change from quarter to quarter and it's a risk that goes against Osbourne's usual style. But it was convenient timing for Osbourne that he could do rather a U turn on the tax credits issue, and steady the Police budget, theoretically without having to find money from elsewhere. Theoretically. It washes over the complete and utter hash Osbourne made of the tax credit issue.
Somehow think we'll see Osbourne becoming less and less 'Mr Nasty' as this Parliament goes on, and the Conservative leadership election and thus potential future Prime Minstership comes up for debate. Mr Nasty would win favour in some parts of the Tories and less in others, but is less likely to be popular with the electorate. Compared with Boris, would probably offer everyone the moon on a stick including a free space hopper for all.
As for John McDonnell's Chairman Mao book stunt, that was... weird... Almost like he didn't fancy actually debating anything of substance. Totally side tracked and distracted from what was an opportunity for Labour to crow about a statement they actually got some concessions from. Also gave the Tories an easy laugh / comeback. What was going through McDonnell's head?
The spending review is frightening because it shows how little grip Osborne has on economics. It also shows that the Tories are abandoning any commitment even to their own ideological positions.
Scary thing number one: Housing. The Tories are making steps to superheat the London housing bubble even further than it is at the moment. That will inevitably lead to increased rental pressure and further rent increases. Councils are being forced to sell council housing and therefore more and more people will be made homeless.
People will say "move out of London" forgetting that that's not actually an option for many of the poorest Londoners. Moving away from support networks; childcare; jobs - it's simply not sustainable. So there's going to be more pressure on councils' temporary housing provision and that's being slashed. So what's going to happen is slums (this is happening at the moment). Massive over-occupancy. Horrible conditions. Poor states of repair. More and more rough sleeping (also happening at the moment).
The creation of a housing bubble is, of course, Osborne's primary engine of economic growth. Fictional growth driven by a asset bubble. It won't last, and the result of it will be that we'll have gone from slums to universal social housing and back to slums in about one lifetime.