Mr Brightside: Heaven Know’s I’m Miserable Now 

 

“I was looking for a job, and then I found a job 

And heaven knows I’m miserable now” 

 

Correct me if I am wrong but PM Starmer doesn’t seem the laugh-a-minute type. Having said that, Boris Johnson might make great company socially but he was a terrible PM.

 
The reason I found the above lyric so apt, was that for most politicians being PM is their goal. Sir Kier, wanted the job, he fought for it, and now he has it he is full of doom and gloom. And so are we… 
 

‘Correct me if I am wrong but PM Starmer doesn’t seem the laugh-a-minute type’

 
The new school term approaches and, already parents are facing increasing pressure to pay voluntary contributions for books, art supplies and trips. 

Over the coming months, a growing number of schools are expected to ask parents for sums that can range from anywhere between £5 and many hundreds, as they try to balance their books. 

A recent survey from the Association of School and College Leaders (ASCL) found that more than 36% of English school headteachers had asked for voluntary contributions in the last academic year – with more than 42% set to do so over the next 12 months. 

Kirsty Treherne, of schools software company iAM Compliant, says that there is often an expectation that contributions are made. 

“The reality is that there is often significant pressure on parents to pay, especially when these requests are framed in terms of ensuring the best possible education for their children,” says the former headteacher. 

“This can be subtle, such as through repeated reminders in newsletters, or more overt, such as publicly acknowledging those who have contributed. 

“For many parents, particularly those in deprived areas, these requests can create a sense of guilt or obligation, even when they are struggling to make ends meet.” 

By way of background, a report by the National Education Union in June found that a fifth of parents said there was a lack of textbooks, art supplies, sports and musical equipment at their child’s school. 
 

‘more than 36% of English school headteachers had asked for voluntary contributions in the last academic year’

 
Parentkind, a charity aimed at raising parents’ views, says nationally, 38% have been asked to make donations. This rises to 61% in London and 70% in Northern Ireland. 

Paul Whiteman, general secretary of the National Association of Head Teachers (NAHT), says that just 1% of schools have enough money to cover basic costs. 

“Schools should be receiving enough funding to ensure that all children, regardless of background, have the access to the resources they need for a rich education,” he says. “Sadly, 70% of schools receive less funding now than they did in 2010 from the government. 

“We shouldn’t be in a situation where inequalities between different parts of the country are getting worse because some schools are in wealthier areas.” 

In terms of how much, Teherne says; “In more affluent areas, requested donations might range from £20 to £100 a term. Schools in deprived areas might ask for £5 to £20, but this can still be a significant burden for many families. 

“Some schools have asked for as much as £300 a year to cover a broad range of needs, from basic supplies to support for struggling budgets.” 
 

‘inequalities between different parts of the country are getting worse because some schools are in wealthier areas’

 
Parentkind puts the average contribution at £13.44 per month. One in 10 parents gives more than £30 a month, it says. 

“Our research suggests 1.5 million families are collectively donating just under £21m a month (£249m a year) to support school funding, purely through regular donations,” it says. 

But Treherne says that there is often pressure on parents, and that this can lead to inequalities within schools. “[Those] in wealthier areas, where parents can afford to contribute more, are able to provide better resources and opportunities for their students, while those in deprived areas struggle to meet basic needs,” she says. 

“This disparity risks widening the educational gap between different socioeconomic groups, undermining efforts to ensure equal educational opportunities for all children. 

“Additionally, the psychological impact on parents, who may feel ashamed or stressed when they are unable to contribute, should not be underestimated.” 

Really, what hope is there? If schoolchildren are already being placed into “haves” and “have nots”, the latter are already playing catch-up. We aren’t creating a two-tier society we are encouraging one. 
 

‘If schoolchildren are already being placed into “haves” and “have nots”, the latter are already playing catch-up’

 
If the country has a future it will be children who lead it. If our children don’t have the requisite education we will always being playing catch-up with other economies. GDP will naturally suffer meaning that the current downward trend will simply continue. 

State spending on education is an investment in the country’s future. 

Educational inequality and insufficient government spending, are just part of the overall poverty problem that besets the UK, and one that can be clearly levelled at 14-yrs of Tory mis-government 

One of the greatest achievements of their predecessors, the Labour governments in office from 1997 to 2010 was the significant reduction in the levels of poverty in Britain. Over the course of 13 years, a combination of measures took 2.5 million children and 7 million adults out of absolute poverty.  

Today, projection published by the Resolution Foundation last week, show that were existing benefit policies to be maintained during the current parliament, the number of those in absolute poverty could stay constant at 18% of the total population. Relative poverty could soar. The dismal triple lock of the two-child benefit cap, the overall benefit cap and freezes to housing benefit is trapping the poorest people in society in a downward spiral. 
 

‘the rise of an underclass whose members have been humiliated, marginalised and impoverished by punitive policymaking’

 
Other research this week by the Trussell Trust, found that C.66% of working families on universal credit (“UC”), are struggling to buy food or pay for energy and other essentials. Half of those on UC ran out of food during the last month. Bills are being left unpaid, families are going into debt they cannot afford, and the use of food banks continues to rise inexorably. The well-understood yet unresolved problem of the five-week delay in accessing UC payments continues to devastate the finances of families living below the waterline. 

As the Trussell Trust highlights, these families are in no-position to wait for Labour’s long-term economic plan to deliver growth. Since food bank usage began to soar in the 2010s, such organisations’ reports have chronicled the rise of an underclass whose members have been humiliated, marginalised and impoverished by punitive policymaking.  

The entire ethos of the Labour party was based on helping just such people, but there was never any mention on it being contingent upon percentage point upticks in productivity and GDP. 

In that context, the decision this week to extend the household support fund – allowing councils to help those struggling to pay for essentials this winter – is welcome, but much more will be needed on housing costs and energy in the months and years ahead. A child poverty strategy is promised for 2025, but, to date, chancellor Reeves seems more interested in apportioning the blame for the problem rather than taking positive steps to overcome it. 
 

‘isn’t helped by their dour demeanour, or the fact that chancellor Reeves, more and more resembles, Siouxsie Sioux’

 
What still seems to continually escape government thinking is the notion that people should be entitled to enjoy food, warmth and shelter which are the basics to a civilised society. Benefit caps simply mean that the state abdicates any responsibility to people’s needs once an arbitrary threshold has been crossed. 

We have short memories, especially, in the Labour party. Perhaps isn’t helped by their dour demeanour, or the fact that chancellor Reeves, more and more resembles, Siouxsie Sioux, the Goth Queen. 

In 1946, when Labour’s new prime minister, Clement Attlee, was challenged over whether Britain could afford the welfare state his government was building, he cited an obligation to provide all citizens with at least a “very modest standard of living”. Eighty years later, as the Trussell Trust’s latest research underlines that remains a pipe dream for a significant number of people – many of whom are working.  As the Guardian wrote, the Starmer government must start making “tough choices”” on behalf of those people, rather than at their expense.” 

One myth that was laid to rest this week was the financial markets confidence in the new government. The UK Debt Management Office, (“DMO”), launched a new UK Government Bond, a Gilt. The issue attracted £110 bln in orders for the £8 bln of the 4.375% Jan 2040 Gilt from global investors.  

The deal confirms the strength of not only the UK Gilts Markets, but also the rising degree of confidence global investors have in the new UK government and the UK as an investment destination.  

This should, but more likely could be a watershed moment, as the government should understand by factoring the strength of the Gilts market into its plans: the rising confidence of the market in the UK gives them a wider range of options for the October Budget. 

This could provide an opportunity to fill the £22 bln black hole in the national finances left by the discredited Conservative government of Rishi Sunak, as well as overcome the need for such swingeing spending cuts. 

As I wrote about in “There is a light”, the Goth Queen should look to Modern Monetary Theory, as proposed by Stephanie Kelton. This is based on the belief that there is no financial constraint on government spending; money can be created and invested so long as there is capacity in the economy to absorb the cash. If not, inflation will follow. This is little different to what John Maynard Keynes wrote in his 1940 book, “How to Pay for the War”. 

Only, she won’t! 

“Personality changes behind her red smile 

Every new problem brings a stranger inside” 

‘This is a somewhat strange piece that feels like it’s a relic left over from the Tory times. In reality it’s a timely reminder that Labour have much to do.

A decent education is simply a must that has to be available to all irrespective of their background and financial circumstances. Unfortunately, 14-yrs of Tory austerity mis-government meant that, like much else in the country, the best goes to those who can pay. A situation where schools are having to go round with the collecting bowl to pay for basics is unacceptable.

The same will be true of poverty. Taking people out of poverty was one of the great successes of the Blair years, although it took less time for Messrs Cameron and Osborne to return many to that state.

These are exactly the situations that Labour will rightly be judged on. I fear they may disappoint. Both Starmer and Reeves are fixated with the £22bn blackhole they have inherited, something they never seem to tire of reminding us about. Reeves, who seems as unimaginative as she appears dull, seems neither to have the wit nor the imagination to do anything other than increase taxes and make cuts to balance out the blackhole.

I suspect people are already tired of listening to the “look at what we inherited”, and when the next cost-of-living crisis occurs this winter the blame will land clearly on Labour’s doorstep.

The almost unprecedented success of the last Gilt auction shows that there is scope to raise funds in the markets.

If you want to fix the country the first requirement is to provide decent living conditions for the population.

Adrian Ramsay, the Green Party’s co-leader, was 100% right this week when he said that  Labour “knows the price of everything and the value of nothing”.

Lyrically, we start with the Smiths and “Heavan Knows I’m Miserable Now”, which, as I explained in the text, suits PM Starmer perfectly. We finish with Siouxsie and the Banshees “Christine”, especially dedicated to chancellor Reeves, “the Goth Queen”. Enjoy! Philip.

 

@coldwarsteve

Philip Gilbert is a city-based corporate financier, and former investment banker.

Philip is a great believer in meritocracy, and in the belief that if you want something enough you can make it happen. These beliefs were formed in his formative years, of the late 1970s and 80s

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