Tag Archives: resolution foundation

Indirect and Direct Messages…

It was only as I went out of the door of a local building society that I began to realise that I might have been given at least one powerful message through changes that had been made there!

The changes? Now there was a permanent mini-food bank, a collection bucket for the local food bank and a prominent collecting box for the “Samaritans.”

Previously, every banking place I had ever used only ever had items and notices, etc., to do with direct economics. For the first time, items to do with other aspects of life were there too. No longer was finance being kept separate from ordinary, everyday life, in practice if not in explicit theory. My “bank” was now dealing with socio-economics and so facilitating life-money questions and comments!

Does a bank collecting food and money for local people, in an area with high house prices, especially for sea views, suggests that something may be amiss with our policies for the circulation of money?

The growth of food banks is concrete evidence that some of us are starving.

Are starvation and malnutrition structural parts of current socio-economic policies and practices?

A “yes” answer leads us to question what could be done about it. Some might answer, “Nothing!” Others might answer, “Charity.”

A “no” answer results in the need to seek and apply ways to change our current economic policies so that we do not have starvation etc. as a permanent part of our society.

Answers may depend upon perceptions of “The Market”. Does it function efficiently with minimal to nil government involvement? For whom is it “efficient”?

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Resolution Foundation Report on Autumn Budget

Britain is on course for the longest period of falling living standards since records began in the 1950s, according to a report by the Resolution Foundation.

The think tank found that under plans set out by Philip Hammond in the Budget yesterday, the poorest third of households are set for an average loss of £715 a year by the end of the Parliament, while the richest third will gain an average of £185.

Liberal Democrat Leader Vince Cable commented:

This analysis exposes the reality of Britain’s economic future under this Conservative government.

The squeeze on pay and living standards is set to carry

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The graph which shows why the Lib Dem policy of raising the personal allowance is the wrong priority

Here’s a graph which should make Lib Dems who continue to advocate increasing the personal allowance as an effective way to help low- and middle-income earners sit up and pay attention.

It’s from the Resolution Foundation’s report, Missing the target: tax cuts and low to middle income Britain, published yesterday.

What it shows is which households gain from the party’s policy to increase the threshold at which income tax is payable to £12,500 over the course of the next parliament. As you can see, those households which benefit most are at the wealthier end of the spectrum; the poorest 20% benefit least.

res fdn tax cuts lib dem graph 1

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The Independent View: Will 2015 be the turning point on wage growth?

image001Another Bank of England inflation report, another set of rosy forecasts for earnings next year. Just as 2014 was supposed to be the year of the pay rise, now it seems 2015 will be the year when things turn positive.

And, according to the Bank, wages won’t just creep into positive territory next year, they are going to take something of a jump upwards. In the last quarter of 2015 the Bank expects nominal wage growth of 3.25% at a time of inflation of 1.4% – so a gear shift from the current position of at best flat-lining real pay to healthy growth of roughly 1.8% in a year’s time.

How sceptical should we be?  The Bank’s Chief Economist has been admirably forthright in highlighting his organisation’s own habit of promising sunshine tomorrow, with spring always just around the corner but never coming to pass, as the chart below from his recent speech illustrates. At some point, though, things have to brighten. And every passing month in which unemployment continues its fall and GDP continue to rise makes a degree of optimism about the following year that bit more plausible.

Posted in The Independent View | Also tagged | 17 Comments

How should we share the gain and the pain in the next Parliament?

resolutionfoundationThat was the question the Resolution Foundation posed at a Lib Dem conference fringe meeting in Glasgow last week. Some of what follows was inspired by (ie, copied from) IFS Director Paul Johnson’s excellent LibDemVoice article, Balancing the books: some unpalatable choices, published last week. Some of it I’ve previously rehearsed in my ConservativeHome column, Make no mistake, these are deep and meaningful cuts – and there’s more to come. Anyway, here’s what I said…

“The gain and the pain.” I want to congratulate the Resolution Foundation on taking a glass half-full approach to the next five years. But I also want to challenge the premise of the question. Because – and I don’t want to be too depressing in what follows – I can see quite a lot of pain and I’m at a bit of a loss to see where the gain is likely to come from. Here’s why.

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Making work pay – how taxes should work better for the ‘squeezed middle’

The Resolution Foundation helped give birth to the phrase ‘squeezed middle’: that group of low-income individuals and families just above the threshold to qualify for most welfare help, but only just able to make ends meet, and always in danger of slipping back into poverty.

Today they’ve published a report written by Paul Johnson, Director of the Institute for Fiscal Studies, identifying key reforms that could allow the tax and welfare system to redistribute more efficiently. Here’s the summary-of-the-summary:

Simply making the current system more generous to those on low incomes will not be sustainable in the long run. Reforms to

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Nick Clegg returns to income tax

Later this morning, Nick Clegg will be giving a speech to the Resolution Foundation (word cloud here) in which, after recent talk about wealth taxes, he is returning to the topic of income tax cuts. More specifically, speeding up the progress towards a basic income tax allowance of £10,000 whilst keeping the 50p rate.

This is of course closely linked to wealth taxes as they are a way to raise the funds to pay for the income tax cuts.

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  • User AvatarRoland 19th Mar - 11:25pm
    I see this agreement more in terms of "simply inevitable". It is only a win for the EU in the sense that the UK has...
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