Yesterday Twitter exploded with the #AskYourMP hashtag and it was connected with the 10% pay rise given by IPSA [Independent Parliamentary Standards Authority].
IPSA was setup as a response to the parliamentary expenses scandal of 2009. It establishes and monitors the expenses scheme for Members of the House of Commons, and is responsible for paying their salaries and expenses.
IPSA has been criticised publicly by many MPs, including David Cameron, who told IPSA to "...get a grip on what they are doing and do it fast.". Criticism has been largely centred on the perceived high running costs of IPSA, inability of MPs to get through on the IPSA helpline, emails and letters going largely unanswered, and the length of time taken to reimburse expenses.
It's current faux pas is to award MPs 10% while public sector employees are receiving 1%. In most countries there would be burning barricades in the streets outside Parliament, however here in the UK we debate the issue ;)
Friday, 17 July 2015
Thursday, 16 July 2015
Greece vote
today - Thursday 16th July 2015
The Greek parliament has voted yes to the deal on Greece's worsening debt crisis, but after the announcement by the IMF it now appears that even this deal cannot work. Meanwhile, across Greece, banks are closed and capital controls are in place, forcing citizens who have struggled through years of economic strife to deal with even tougher times.
In lieu of banks operating, Greeks must get their cash through ATMs, but the new capital controls limit withdrawals to 60 euros. The restrictions have led to long lines and some machines running out of funds entirely.
The forced reliance on ATMs causes obvious problems for Greeks who don't own debit cards, many of whom are elderly. Banks temporarily reopened last Wednesday to give those pensioners who lacked cards a 120-euro disbursement for the week, resulting in scenes of desperate seniors crowding into branches to get their funds.
In addition to the daily ATM limits, Greeks are also unable to electronically transfer any money out of the country without government approval. Those who need to send money abroad for emergencies like medical issues may find reprieve, though they face a review process. The measure is intended to prevent a massive flight of capital, but many of the side effects are severe.
The stoppage of transfers has huge implications for businesses that rely on foreign suppliers for their products. Greece imports over half its food and raw materials, but local companies now lack the ability to transfer money abroad to purchase those imports.
In addition to foodstuffs and associated materials, Greece also relies on imports to obtain medical supplies. Pharmacies have reported shortages of drugs, and hospitals are said to be in similar straits. Drug companies have promised to continue to supply Greece, despite being owed more than a billion euros by the government, allegedly.
While increased demand for necessities has caused runs on food and medicine, people seem to have given up on buying nonessential goods. This means many stores have struggled as business slows to a halt, causing further economic woes.
The controls have hit Greeks outside the country as well as those within it. Travellers have had their credit and debit cards declined while abroad because of money transfer restrictions, finding themselves cut off from cash.
Tourists visiting Greece have also faced problems. Although the daily limits don't apply to foreign nationals, closed banks and cash-strapped ATMs still pose obstacles. Greece's tourism industry is a vital part of its economy as well as a huge source of jobs, and any potential damage to the sector would be disastrous.
The debt is so large there is little possibility of paying it back, surely it would be irresponsible to lend them more money?
The Greek parliament has voted yes to the deal on Greece's worsening debt crisis, but after the announcement by the IMF it now appears that even this deal cannot work. Meanwhile, across Greece, banks are closed and capital controls are in place, forcing citizens who have struggled through years of economic strife to deal with even tougher times.
In lieu of banks operating, Greeks must get their cash through ATMs, but the new capital controls limit withdrawals to 60 euros. The restrictions have led to long lines and some machines running out of funds entirely.
The forced reliance on ATMs causes obvious problems for Greeks who don't own debit cards, many of whom are elderly. Banks temporarily reopened last Wednesday to give those pensioners who lacked cards a 120-euro disbursement for the week, resulting in scenes of desperate seniors crowding into branches to get their funds.
In addition to the daily ATM limits, Greeks are also unable to electronically transfer any money out of the country without government approval. Those who need to send money abroad for emergencies like medical issues may find reprieve, though they face a review process. The measure is intended to prevent a massive flight of capital, but many of the side effects are severe.
The stoppage of transfers has huge implications for businesses that rely on foreign suppliers for their products. Greece imports over half its food and raw materials, but local companies now lack the ability to transfer money abroad to purchase those imports.
In addition to foodstuffs and associated materials, Greece also relies on imports to obtain medical supplies. Pharmacies have reported shortages of drugs, and hospitals are said to be in similar straits. Drug companies have promised to continue to supply Greece, despite being owed more than a billion euros by the government, allegedly.
While increased demand for necessities has caused runs on food and medicine, people seem to have given up on buying nonessential goods. This means many stores have struggled as business slows to a halt, causing further economic woes.
The controls have hit Greeks outside the country as well as those within it. Travellers have had their credit and debit cards declined while abroad because of money transfer restrictions, finding themselves cut off from cash.
Tourists visiting Greece have also faced problems. Although the daily limits don't apply to foreign nationals, closed banks and cash-strapped ATMs still pose obstacles. Greece's tourism industry is a vital part of its economy as well as a huge source of jobs, and any potential damage to the sector would be disastrous.
The debt is so large there is little possibility of paying it back, surely it would be irresponsible to lend them more money?
Wednesday, 15 July 2015
Financial situation today
Yesterday [Tuesday 14th July] the ONS announced that inflation in the UK was at 0% once again.
What does this mean?
Firstly the figure means that the cost of living is the same as it was a year earlier, but that does not really help us understand the meaning of 0% inflation.
We have to look at the reason why inflation has fallen. At least part of the fall in UK inflation is due to temporary short term factors, such as falling oil and petrol prices. These temporary factors are unlikely to continue, and could be reversed. It is more important to look at underlying inflationary pressures – core inflation, which excludes volatile prices like food and oil.
Falling prices could boost real incomes. One of the fears of deflation is that it depresses consumer spending. However, with a fall in the price of basic necessities like petrol and food, consumers find their discretionary income / spending power has increased, this could actually lead to higher spending in the short-term.
The big concern over 0% inflation are the long-term expectations and I have no idea what could happen over the long term especially with what is happening in Greece and Europe.
Of course the next step down is deflation, and we do not want to go there.
What does this mean?
Firstly the figure means that the cost of living is the same as it was a year earlier, but that does not really help us understand the meaning of 0% inflation.
We have to look at the reason why inflation has fallen. At least part of the fall in UK inflation is due to temporary short term factors, such as falling oil and petrol prices. These temporary factors are unlikely to continue, and could be reversed. It is more important to look at underlying inflationary pressures – core inflation, which excludes volatile prices like food and oil.
Falling prices could boost real incomes. One of the fears of deflation is that it depresses consumer spending. However, with a fall in the price of basic necessities like petrol and food, consumers find their discretionary income / spending power has increased, this could actually lead to higher spending in the short-term.
The big concern over 0% inflation are the long-term expectations and I have no idea what could happen over the long term especially with what is happening in Greece and Europe.
Of course the next step down is deflation, and we do not want to go there.
Tuesday, 14 July 2015
Housing
Yesterday on the BBC [Victoria Derbyshire] there was another labour leader Q & A and in two hours housing was only mentioned once and for less than a minute. Now I am not saying that it is Labours problem to deal with, but it shows the lack of interest which is shown by all political parties today. When the parties are asked about housing, they seem to have a whole host of ideas, but nothing ever gets done.
It has been clear for some time that housing supply is not keeping up with demand. Reasons for rising demand include improved life expectancy rates and a growing number of one-person households. There are almost 1.8 million households on English local authority housing registers and significant levels of overcrowding in the private and social housing stock. Poor housing impacts directly on residents’ health and educational attainment, while difficulties in accessing affordable housing can also limit the ability of people to move to find work. The need to increase the supply of housing and tackle affordability issues is a key housing policy issue. Yet despite the critical social and economic role that housing plays, it has tended not to have the same political profile as, say, health and education.
The onset of the credit crunch in 2008 put the achievement of housing targets under serious pressure. Despite rising demand, the collapse in mortgage advances meant that private builders reduced the supply of new housing. Put simply, house-builders will not build houses that they cannot sell.
Pressure is continuing within the housing industry to amend borrowing rules so that, in line with the rest of the EU, investment by public corporations is no longer counted as part of the public sector debt, thus removing a constraint on investment in council housing and creating more of a level playing field between the providers of social housing.
I would hope that last weeks budget has improved the situation for housing in this country because until we start building houses little else will change.
It has been clear for some time that housing supply is not keeping up with demand. Reasons for rising demand include improved life expectancy rates and a growing number of one-person households. There are almost 1.8 million households on English local authority housing registers and significant levels of overcrowding in the private and social housing stock. Poor housing impacts directly on residents’ health and educational attainment, while difficulties in accessing affordable housing can also limit the ability of people to move to find work. The need to increase the supply of housing and tackle affordability issues is a key housing policy issue. Yet despite the critical social and economic role that housing plays, it has tended not to have the same political profile as, say, health and education.
The onset of the credit crunch in 2008 put the achievement of housing targets under serious pressure. Despite rising demand, the collapse in mortgage advances meant that private builders reduced the supply of new housing. Put simply, house-builders will not build houses that they cannot sell.
Pressure is continuing within the housing industry to amend borrowing rules so that, in line with the rest of the EU, investment by public corporations is no longer counted as part of the public sector debt, thus removing a constraint on investment in council housing and creating more of a level playing field between the providers of social housing.
I would hope that last weeks budget has improved the situation for housing in this country because until we start building houses little else will change.
Monday, 13 July 2015
Stirling incident
Lamara Bell has now died.
Police Scotland confirmed late last Wednesday 8th July that it was investigating an accident [which occurred on Sunday 5th July] in which a man was pronounced dead at the scene and a woman was left in a critical condition in hospital.
It has since emerged that a call was made to police late on Sunday morning reporting that a car had left the road on the M9 slip road southbound near junction nine at Bannockburn. The report was not followed up at the time, a failure that has now been referred to Scotland’s police investigations and review commissioner [PIRC].
According to the ONS [Office of National Statistics] this road sees approximately 1000 cars a day, so while the police are investigated, the guilt has to be shared round the public in this area for such a tragic end.
John Yuill and Lemara Bell cannot be brought back, however, incidents like this must never happen again.
Police Scotland confirmed late last Wednesday 8th July that it was investigating an accident [which occurred on Sunday 5th July] in which a man was pronounced dead at the scene and a woman was left in a critical condition in hospital.
It has since emerged that a call was made to police late on Sunday morning reporting that a car had left the road on the M9 slip road southbound near junction nine at Bannockburn. The report was not followed up at the time, a failure that has now been referred to Scotland’s police investigations and review commissioner [PIRC].
According to the ONS [Office of National Statistics] this road sees approximately 1000 cars a day, so while the police are investigated, the guilt has to be shared round the public in this area for such a tragic end.
John Yuill and Lemara Bell cannot be brought back, however, incidents like this must never happen again.
Friday, 10 July 2015
Greek update
It appears that the six page proposal presented last night [Thursday 9th July] by Alexis Tsipras is very close to what the creditors wanted and a deal might be likely. I am curious to wonder what the 61% who voted 'NO' last Sunday will think?
Fox Hunting
It appears that the figures available from YouGov show every region of Britain supports the fox hunting ban. David Cameron PM has said that next weeks vote is on technicalities only and the ban will remain, if he was to bring in an open policy through the back door, would he be trampled on by the country?
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