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Monday, October 05, 2009 

The shape of the Tories to come.

You wouldn't normally consider Manchester to be natural Conservative territory - there is only one Tory MP in the entire Greater Manchester area - but perhaps the journey of the party faithful to the city is meant to be a statement of intent. You still get the feeling that there'd be much more at home in Bournemouth, which was this year's location for the Liberal Democrats, who also you'd presume would be happier in Brighton, where Labour last week held their wake, but for a party that is clearly gearing up for their return to their rightful place as the natural party of government, such details are hardly going to bother them too much. It clearly didn't concern Chris Grayling, who only a few weeks back declared that Moss Side was reminiscent of the Baltimore portrayed in the Wire, who responded to criticism of his view from a real member of the public by saying that he hadn't done anything of the sort, while directing him to read what he did say in his speech.

Still, such minor squabbles with those unlikely to vote for Cameron's new Tories are nothing more than a distraction from the main work of this week, which more than anything else is trying not to be appear too triumphalist. That can wait; you can be sure that there'll be no declarations from Cameron of everything being all right, nor that his underlings should return to their constituencies and prepare to reign. No, the main theme of this week instead had to preferably be something that the Conservatives are not renowned for, with the natural choice being "Getting Britain Working". Perhaps not that unknown for, for those old enough to remember the Saatchi classic which helped kick start the Thatcherite revolution, but as Dave Osler reminds us, few now can recall the irony of such a campaign when the following years lead to more than 3 million unemployed.

Fair enough, New Labour might yet have the dishonour of breaking that record, but looking at the Conservative proposals, especially on benefit reform, supposedly meant to be both "tough and tender" without becoming oxymoronic, you can't help but notice the contradictions. As always, while the Tories themselves are trying to dress up the proposed reforms in the warm, kind rhetoric of compassion and help, the exact same policy is instead sold to the Telegraph as cracking down on cheats, while in the Sun the ubiquitous skivers are about to routed. When it comes down to it, the differences between this radical proposed programme of welfare reform and the government's own recent changes are slighter than you might think. For instance, the Conservative proposal that everyone on incapacity benefit be reassessed is already being carried out; whether the Tories would do it all over again should they come to power is unclear, although doubtless they will attempt to do it faster.

The main change though is that the charities and private sector companies currently carrying out the medical checks and reassessments, should they after deciding that someone should be on jobseeker's allowance and not incapacity benefit manage by some kind of alchemy to get them into a job, they'll be paid the savings that the government would have made for at least a year. Hence not only will there be little to no savings straight off, but there's a huge great conflict of interest. Which company is going to actively reduce the scope for making a profit by deciding that someone on IB genuinely is sick when they can instead find any number of inconsistencies or conflicting evidence that suggests they in fact are capable of work?

Indeed, the more you think about it the more staggering it becomes. Based supposedly on government estimates, the Conservatives believe that anything up to 500,000 could be moved from IB onto JSA, although that figure seems ludicrously high to me. At a stroke that increases the number of unemployed by, err, half a million. This, in case it had escaped anyone's attention, is at a time when jobs are in rather short supply. Many of those moved from IB to JSA will not have been employed in years, some even potentially for 10 or more years; do the Conservatives seriously think that those in that position are going to find a job any time soon? The stigma against anyone with a record of sickness, whether mental or physical is always high; the TUC blog points out a survey which found 33% of employers would actively exclude someone with a long-record of sickness, while 45% thought that disabled workers would be less reliable. If anything, it quickly becomes clear what the real motivation behind this policy seems to be: the Tories' other welfare reform proposals involve losing the right to benefits if someone refuses to go on a return to work training programme, while those who refuse "reasonable" job offers could lose the right to claim for three years. Finally, those who fail to find a job within two years will find themselves having to work for their benefit; yes, the Tories are seriously proposing bringing back the workhouse. This isn't just wage slavery, this is dole slavery, working for a pittance well below the minimum wage. The obvious result will be those unlucky enough to find themselves in this position relying not on the state, but on charity handouts, something which has already become the norm in some American states.

Even more perplexing is the savings from this are likely to be negligible. At the same time, the promises of extra apprenticeships and training places, if they materialise, will further reduce the pot. This is before you consider the also tabled, supposedly funded, tax cut for new businesses with no tax needing to be paid for the first ten employees for two years which is to be introduced, meant to create up to 60,000 jobs. Even if it did, that would still leave a net increase of those on JSA of 440,000.

For a party so committed to tackling the deficit, or at least so they tell us, there's little yet announced on where the pain is going to fall, and especially on where tax is going to rise, as it almost certainly will. As the above illustrates, the priority still seems to be to find cuts where possible, whether it be on inheritance or council tax. The announced proposals on tackling NHS bureaucracy will doubtless as usual fail to meet up with reality, and although the proposed reforms on putting all major spending online are welcome, they're undermined by the dubious and short-sighted pledge to reduce the number of MPs to around 500, leaving an average constituency MP with 77,000 individuals to work with. Can one person honestly provide a decent service to such a number and over such an area? There's also some cowardice involved in this: what's the point of reducing the number of MPs without approaching the West Lothian question head on first? The sad fact of the matter seems to be that the Conservatives are going to win power not because they're a better alternative to Labour, but simply because it's time for a change. If Labour could only rouse itself from its stupor and actually attempt to communicate their policies, as well as adopting some better ones, they could still make a fight of this. Instead we seem doomed to a party entering government just because it's their time again.

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There's another couple of buckets of cold water to throw over the Tory plans to get folk off IB and JSA into jobs.

1. Look at where the highest numbers are on both benefits and there's a close match to a shortage of jobs, let alone suitable jobs because the high concentrations are in the de-industrialised areas where in the 1980s industry, mining and the support jobs were eliminated to be replaced by call centres and retail parks. Add to that the contracting out of public sector support workers to statutory minimum wage paying contractors (if you'relucky) and ask just where are all these jobs to be found.

2. If the statutory retirement age is to be raised then presumably all the vacancies arising from retirements will be delayed for a year.

The effect is of course to cut the benefits without providing work. Such well thought out policy from Lord Snooty and his pals. Britain isn't working eh?

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