Showing posts with label Austerity. Show all posts
Showing posts with label Austerity. Show all posts

Sunday, November 30, 2014

Helicopter Money?

Simon Jenkins (The Guardian, Wednesday 26 November, 2014), as he suggests in his article advocating “Helicopter Money” by citing Keynes, is recommending a form of Keynesianism, but the EU and the Tory party want nothing to do with it.

Keynes, together with our rulers’ fear of communism spreading west, gave us the 30 odd years of post war satisfaction with “welfare capitalism”, “one nation Toryism” and “social democracy”. The world’s capitalists did not like it, because their greed makes them resent losing any of “their money” unnecessarily, and they are evidently not bright enough as a group to realise that they were actually doing well themselves out of it. As soon as their fear of communism went, they decided to return to their old authoritarian ways, having followed the US in making suitable preparations for it throughout the Golden Post War Age.

Hitler and then FDR were early to recognise the value of Keynesianism.

Ever since the credit crunch the continent has been suffering what Keynes called a classic liquidity trap. There is too little money around and thus a chronic shortage of demand. People have too little to spend, which means shops close, supplies dry up and no one invests.(S Jenkins)

Hitler solved it and got Germans working again by building infrastructure that would be needed in the war he planned, and the military to effect it. Western capitalists helped him do it, expecting him to show his gratitude by attacking the USSR, not the west. FDR invented the New Deal which also used public works to get people back into employment.

It works. Money need not be put into everyone’s bank accounts, but paid as wages to those being employed rather than out of work. Keynes showed that every pound put in at the grass roots was spent and spent again—there was a multiplier effect. Ian Duncan Smith has exactly the opposite policy in trying to stop people from receiving welfare benefits, forcing down demand from the unemployed and badly paid. The point is, that people need to spend in any form of capitalism that does not exclude a deprived underclass from the social benefits of civilization.

What saved Britain was George Osborne not practising what he preached.

Again, as Jenkins says, the only way that Osborne has given his austerity policy an illusion of success is by furtive Keynesianism. Why this persistent idiocy?

Perhaps they are idiots. Perhaps they are not idiots but are preparing for a society in which a super class will live in luxury, served by robots serviced by a small class of technicians, and everyone else will have to scratch a probably criminal living among the underclass. Or perhaps they want an intermediate state in which most of us are reduced to that underclass which will serve the luxurious rulers by cutting out any form of Keynesianism and making them fight for the few jobs available, while an authoritarian state keeps them in check. Umm! Well that is where we are now.

Yet versions of helicopter money (HM) are now emerging into public debate.

John Muellbauer, professor of economics at Oxford, points out that, as existing policies to revive Europe’s growth have faltered, “proposals for distributing money directly to citizens have been quietly gaining traction among critics of orthodox central banks—QE for the people”.

The commentator Anatole Kaletsky points out that if the £375bn of QE had gone to private bank accounts rather than to buying bonds from banks, it would have meant £24,000 per British family. This would have transformed the demand economy.

Keynes did not propose, so far as I know (but I am not an economist), giving away money to everyone, and even socialists do not expect to get something for nothing. He saw his proposal working by creating public sector jobs, which allow fresh government money to circulate boosting private industry (capitalism) as it circulates. It could not therefore have been seen as a handout and so a “moral hazard”. No one is getting “cash they have not deserved”.

Jenkins rightly says the EU and the ECB “are in a line of descent from those who sealed Europe’s fate with the 1919 Treaty of Versailles, the Great Depression and the 2008 credit crunch”. But presumably they have a plan like those already mentioned, the last of which it seems to be. The real purpose of the austerity brigade is to impoverish ordinary people, making them compete viciously for the limited work available in an increasingly automated society and thereby reducing labour costs, while redistributing wealth via quantitative easing and the booming stock market into the hands of the super rich.

It is a plan that is working for them but democracy is a nuisance, so neither the EU nor the USA is democratic, and authoritarianism, fed by bogus fears of “extremists” (extremists are, of course, “terrorists” our rulers surmise!) is on a sharp rise.

The next government could use traditional Keynesianism to stimulate the economy by building houses, restoring the NHS and the civil service, funding it largely by taxes on the rich like stiff income tax, and a wealth tax, together with borrowing in the knowledge that once the economy grows then so will taxation and so a carefully planned stimulation package would pay for itself. Oh, and get out of the EU and its military arm, NATO!

Sunday, March 16, 2014

People’s Assemblies: Norfolk’s Experience

Re-posted from The Morning Star.

Norfolk People’s Assembly has been at the forefront of the battle to beat the Tories. David Peel explains how the group has had such an impact

Look around. Our country is being torn apart. People are suffering and dying. Lives are being wrecked. Public services destroyed. Changes we never believed possible are being forced through against our wishes. They call it "austerity forever"—the idea of a handful of arrogant, aloof Eton public schoolboys and their rich friends.

However, as Karl Marx once said about capitalism, they are creating their own gravediggers. The British people, true to centuries of tradition, are rising like lions. We are on the move and our movement is called the People’s Assembly. Our message is simple—no cuts, no austerity, and if it won’t listen, no coalition government.

Since we launched in June last year around 100 assemblies have sprung up across Britain, rooted in local communities. This is our movement’s great strength, and why we are here to stay. We have united thousands of activists and campaigners with ordinary people, many of whom have never been involved in this kind of “politics” before. And we don’t get together to bemoan austerity. We plan and take action.

In Norfolk, this has been particularly successful—but why? And what drives us?

Here’s one reason. People with severe mental health needs in this county and in Suffolk are taking their own lives in utter despair as a direct result of cuts in services.

When Norfolk People’s Assembly was told about these deaths from comrades in the mental health services we took action straight away and occupied the constituency offices of “Care” Minister and local MP Norman Lamb. We filmed a statement from inside his office, rightly blaming him and his coalition for the deaths, and uploaded it to the internet. The minister was dragged kicking and squirming onto the media to answer the charges. Thousands saw our angry message and witnessed his discomfort. Today the campaign against mental health cuts which have plunged the service into crisis is one of the biggest, most active and successful we have seen in years. Mental health staff, patients and carers have been given the confidence to blow the whistle and fight back. They now have the mental health trust board of directors by the balls, and their campaign is saving lives. It was kick-started by a People’s Assembly initiative.

Here’s another reason. Today in Norfolk, no coalition cabinet minister dares breeze in, make a few sham announcements and breeze out again. They are met with vigorous protests. When Prime Minister David Cameron visited, demonstrators crowded round every entry to the TV studios where he was to be interviewed. Those who later saw the broadcast said he looked rattled. I didn’t see it. I was inside a police station, under arrest for attempted criminal damage to his armoured Jaguar car having thrown a small cardboard placard at it—allegedly. The Crown Prosecution Service recently dropped their case. On local radio, listeners calling a phone-in about the incident backed our action, criticising the media for its craven attitude to coalition ministers. When Chancellor George Osborne came his car was surrounded and stopped by our activists. It disrupted his speaking engagement. We were interviewed by the media, catapulting the People’s Assembly onto news bulletins watched by tens of thousands. No coalition minister—or shadow minister who supports austerity—should be able to visit any People’s Assembly area, anywhere in Britain, without protests.

Here’s a third reason for our success. When Norwich City Council threatened to evict families for bedroom tax arrears, we put down a public question, then turned up the volume with a highly visible Spanish-style pots and pans protest outside. Inside the chamber we were verbally abused by ruling Labour group councillors, but we extracted a precious and very public promise from the deputy leader. No tenant would be evicted for bedroom tax arrears. It put us—and the council pledge—on the front of Norwich evening news.

We are not fools. If the council betrays its pledge, we will have a "stop evictions network" of activists around any home threatened by bailiffs. They shall not pass. We have marched, occupied banks like Virgin, shops like Primark, stood on picket lines with firefighters, handed out leaflets at schools supporting striking teachers and hassled local MPs like Brandon Lewis, Chloe Smith and Simon Wright. We are the self-appointed official opposition to austerity in Norfolk where every mainstream political party is implicated in hundreds of millions of pounds of cuts.

Our activism never ceases, as readers of the People’s Assembly house newspaper the Morning Star will know. Every local assembly in Britain planning action should be telling the Morning Star. This is the only daily newspaper on sale round this country which is fighting austerity tooth and nail. In Norfolk, we have a sympathetic newspaper too, the Kett Gazette, named after home-grown rebel leader Robert Kett. We always warn visiting coalition ministers that they will get "a robust Kett county welcome" if they come here.

In just six months Norfolk People’s Assembly has transformed the best activists in the county into a force to be reckoned with. We spoil coalition PR opportunities, put anti-austerity on the agenda and inspire others to join us and fight back. Action is the life of all. People join us because we take action. We have courage and commitment, but don’t get us wrong—we are not hotheads. Our actions are thought through. Campaigners come to us because we have experience. We can organise demonstrations, liaise with police, set up and speak at public meetings, lead occupations, ambush ministers, hold councils to account, lobby charities and churches and build networks which are broad and strong.

Our media profile is strong. We pour out information, shaping the debate and thinking around austerity. We never get defensive when criticised but stay upbeat, positive, and proactive. Our campaigns are creative and imaginative. We cannot be ignored. We have earned respect.

We are led by women, most of our officers are women, the majority at our meetings are women. Women alongside the disabled are hardest hit by this austerity. We are inextricably bound to trades councils and trade unions fund us. We go to union meetings. They come to ours. It gives us a militant, organised edge. For the first time in years, we are bringing members of the public to strikers’ picket lines.

The People’s Assembly is about to step up several gears. Perhaps here in rebellious Norfolk we have blazed a trail. Here might be one strategy for growing this movement in our communities, taking it to a place in our national life where we can turn the tide of austerity, and history, and bring this unelected coalition down.

Thursday, July 4, 2013

PEOPLE'S ASSEMBLY: A call to action

More than 4,000 people from trade unions and community campaigns attended the vibrant and successful People’s Assembly Against Austerity om 22 June in London’s Westminster Central Hall. You can read full detailed reports of sessions on the CPB website and on the Morning Star website, below is the final declaration of the event:

We face a choice that will shape our society for decades to come. It is a choice faced by ordinary people in every part of the globe.

We can defend education, health and welfare provision funded from general taxation and available to all, or we can surrender the gains that have improved the lives of millions of people for over more than 50 years.

We do not accept the need for the government’s austerity programme. Banks and the major corporations should be taxed at a rate which can provide the necessary resources.

  • Austerity does not work. It is a failure in its own terms resulting in neither deficit reduction nor growth.
  • It is not just. The government takes money from the pockets of those who did not cause the crisis and rewards those who did.
  • It is immoral. Our children face a bleaker future if our services and living standards are devastated.
  • It is undemocratic. At the last election a majority voted against the return of a Tory government. The Con-Dem coalition has delivered us into the grip of the Tories’ whose political project is the destruction of a universal welfare state.

We therefore choose to resist. We refuse to be divided against ourselves by stories of those on “golden pensions”, or of “scroungers”, or the “undeserving poor’. We do not blame our neighbours, whatever race or religion they maybe. We are not joining the race to the bottom. We stand with the movement of resistance across Europe.

We are clear in our minds that our stand will require us to defend the people’s right to protest, and so we support the right of unions and campaigns to organise and take such action as their members democratically decide is necessary.

We stand with all those who have made the case against the government so far—in the student movement, in the unions, in the many campaigns to defend services, the NHS, and in the Coalition of Resistance, the People’s Charter, UK Uncut, the environmental movement and the Occupy movement.

We do not seek to replace any organisations fighting cuts. All are necessary. But we do believe that a single united national movement is required to challenge more effectively a nationally led government austerity programme.

We have a plain and simple goal—to make government abandon its austerity programme. If it will not it must be replaced with one that will.

We will concentrate on action not words. We aim to provide the maximum solidarity for unions and other organisations and others taking action. We support every and all effective forms action and aim to build a united national movement of resistance.

Our case is clear. The government’s austerity programme does not work—it is unjust, immoral and undemocratic. Alternatives exist. Debts can be dropped. Privatisation can be reversed and common ownership embraced. A living wage can begin to combat poverty. Strong trade unions can help redistribute profit. The vast wealth held by corporations and the trillions held by the super rich in tax havens can be tapped. Green technology, alternatives to the arms industries, a rebuilt infrastructure including growth in manufacturing are all desperately needed. We are fighting for an alternative future for this generation and for those that come after us.

Proposed Actions

  • The People’s Assembly will support every genuine movement and action taken against any and all of the cuts. We support all current industrial actions by the unions. We encourage and will help to organise the maximum solidarity action with the PCS and teaching union members taking protest and strike action the week after the People’s Assembly, as well as with other action by unions planned for the autumn.
  • Peoples Assemblies against the cuts should be organised in towns and cities across our nations, bringing all those fighting the cuts together into a broad democratic alliance on a local basis.
  • The national and the local Assemblies, in partnership with Trades Unions, Trades Councils, campaigning and community groups, can unite our movement and strengthen our campaigns. Local Assemblies will help us to organise a recalled National Assembly to review our work in the early spring of 2014.
  • We will work together with leading experts and campaigners both here and abroad, and friendly think tanks, to develop rapidly key policies and an alternative programme for a new anti-austerity government. We will continue to welcome support from all who fight the cuts.
  • We will call a national day of civil disobedience and direct action against austerity on November 5thand a national demonstration in Spring 2014.
  • We will support the call for local demonstrations on 5thJuly, the 65thBirthday of our NHS and specifically, at Trafford Hospital, Manchester, the birthplace of the NHS.
  • We will work with the trade unions, campaign groups and others to organise and mobilise for a national demonstration at Conservative Party Conference in Manchester in support of our NHS on 29thSeptember 2013.

Sunday, June 23, 2013

The People’s Assembly

Report from London 22 June, 2013 by Respect For the Unemployed & Benefit Claimants:

Unemployed activists, disabled campaigners and trade unions warned today of a co-ordinated action against the Government’s spending cuts. Thousands of activists gathered to highlight the impact of the coalition’s controversial austerity measures. The People’s Assembly brought together the unemployed, unions, politicians and campaign groups amid complaints that minsters were “deaf” to the concerns of ordinary people.

Respect For the Unemployed and Benefit Claimants warned:
Today’s People’s Assembly cannot be a one-off rally that brings people together in anger but without focus and practical results. It must serve as the first step towards a broad-based movement that joins communities and established organised forces around a new economic programme to put ordinary people, not the forces of capital, in the driving seat.




Civil disobedience, direct action, protest, and coordinated mass strike action—all will be part of the arsenal. But without clear, achievable goals based around the kind of society we desire such efforts will remain isolated gestures of resistance.

More than 4,000 people packed into the Methodist Central Hall Westminster, cheering speeches from union leaders including Len McCluskey of Unite the Union, Mark Serwotka of the Public and Commercial Services Union, Christine Blower of the National Union of Teachers, politicians including Green Party MP Caroline Lucas, and officials from a number of protest and campaign groups. McCluskey said the UK economy was “dead in the water”, and accused the Government of refusing to consider alternatives to austerity:

Our message is different—make the tax avoiders pay, make the wealthiest put their hands in their pockets to bail us out of the crisis they have caused. If the government spent one tenth of the resources that they do hunting down so-called “welfare fraud” in tackling tax avoidance, in tackling tax dodging then the budget deficit would start to melt away.

McCluskey said local People’s Assemblies should become a mobilising force against cuts, adding:

We need to demonstrate, protest and lobby, and we need to do more—take direct action to let the elite know we are here. We must all work together to build the fighting spirit which creates the climate for mass industrial action. Let me make it clear to politicians of all parties—if it is right to strike against austerity in Greece, in Spain, in France, then it is right to strike against austerity here.

Delegates attending the conference agreed to mobilise for a day of civil disobedience on 5 November against the Government’s austerity measures. They also agreed to support a union-organised demonstration at the Conservative Party annual conference in the autumn.

Mark Serwotka of the Public and Commercial Services union said:

In the face of a government that is borrowing more for failure and inflicting on us the longest economic slump in living memory, we need to be united. We need unity among our trade unions, in our workplaces and in our communities, and we need to be working together and co-ordinating protests, industrial action and civil disobedience.

He added:

We must also recognise that the People’s Assembly isn’t just a reaction to this government’s policies, it is an opportunity to say that austerity is not the answer now and nor will it be under any government. It is an opportunity to set out an alternative that can inspire people, one where we invest in our communities and our economy for the benefit of the millions, not just the millionaires.

He summed up his speech with a succinct message, saying:

Let our slogan be ’stuff your austerity, we want something different.’

A series of People’s Assembly meetings have been held across the country in recent months, which have been packed with members of the public. A survey of almost 1,500 adults in England for the Unite union revealed two thirds wanted the coalition to concentrate on investing in jobs and growth, even at the expense of deficit reduction. The poll showed two out of three people faced money troubles or job worries, with many voicing concern about soaring energy bills at a time of pay and benefit cuts.

McCluskey said the survey, published ahead of next week’s Government Spending Review, revealed “genuine worries” among the public:

The Government is deaf to the everyday worries of ordinary people struggling to get by in towns across England. These figures remind us that deteriorating living standards, low wages, youth unemployment and job insecurity are now a major part of people’s everyday lives.

He added:

Next week an out of touch Chancellor from an out of touch Government will claim that austerity is delivering the green shoots of recovery. Ordinary people seeing their young people on the dole, food bank queues stretching even longer and the NHS breaking will not buy this.

Green Party of England and Wales MP Caroline Lucas said:

The huge numbers of people here today show that there’s a growing movement supporting alternatives to austerity—alternatives like investment in the green economy, which is far more labour intensive than the fossil fuel economy it replaces, and which would create hundreds of thousands of jobs at the same time as reducing our carbon emissions.




The anti-austerity campaign and the environmental movement have to work together to deliver a safer and fairer society. Our challenge now is to make our voices larger, louder and clearer and build a joined up movement that will stand up for the many not the few.

Tuesday, May 21, 2013

Why a National Debt of 100% of GDP has Never been a Cause of Austerity

We hear all the time that we are deeply in a debt crisis with the national debt at grossly unsustainable levels, and that is why we have austerity and cannot afford the provisions of the People’s Charter. Is that so? Michael Meacher at his blog (michaelmeacher.info/weblog/) has given us some historical data that makes nonsense of those claims:

  • At the end of the Napoleonic wars government debt was over 250% of GDP
  • Just before World War I it was about 30%, rising to 175% by 1918
  • It was still 125% at the start of World War 2, by the end of which it stood at 230%
  • It then fell to no more than 25% by 1990
  • Since then rose to almost 70% by 2010
  • Following the banking bail-out it has risen now to just under 90%.

So the national debt when the welfare state and the national health service was introduced in the period of the post war Labour government under Clement Attlee was over 200%, and now it is less than half that. Now we cannot afford luxuries like welfare, but in the period of genuine austerity after a devastating war, we could. It follows that we can again, and we can afford the provisions of the People’s Charter, especially as we shall be getting rid of useless drains on the UK tax take like a nuclear submarine and absurdly generous taxation terms for the rich. Support the People’s Charter.


Saturday, May 18, 2013

People's Charter joins call for a People's assembly


Anti-cuts activists from across Britain announced that they'll come together in June for a historic assembly against austerity. MPs, the unemployed and trade unionists are expected to flood Westminster Central Hall in a bid to show that the cozy pro-cuts consensus doesn't exist outside parliament.

Dozens of trade unionists, MPs and grass-roots activists including the People's Charter called on those angered by public-sector cuts and privatisation to rally at a "national forum for anti-austerity views which, while increasingly popular, are barely represented in Parliament". Their launch statement said:

"This is a call to all those millions of people in Britain who face an impoverished and uncertain year as their wages, jobs, conditions and welfare provision come under renewed attack by the government. A people's assembly can play a key role in ensuring that this uncaring government faces a movement of opposition broad enough and powerful enough to generate successful co-ordinated action, including strike action. The assembly will be ready to support co-ordinated industrial action and national demonstrations against austerity, if possible synchronising with mobilisations across Europe."

Coalition of Resistance chairwoman, Romayne Pheonix, said the event was inspired by the mass grass-roots fight against austerity in Greece and across Europe.

"I think what we have is an exciting opportunity to bring together official delegates from the whole of the trade union movement with campaign leaders from across the country."

The conference—scheduled for Saturday, 22 June—will follow a swathe of welfare cuts effective from April. Funding for council tax subsidies will be cut by 10 per cent, while increases in housing benefit and a raft of other benefits will be capped at half the current rate of inflation. And the launch of the Tories' Universal Credit will give bosses the power to stop workers' benefits if they go on strike.

To register for the assembly visit www.coalitionofresistance.org.uk.

The signatories:

Katy Clark, Labour MP, Jeremy Corbyn, Labour MP, John McDonnell, Labour MP, Murad Qureshi, Labour London Assembly, Dawn Butler, ex-Labour MP, Caroline Lucas, Green MP, Natalie Bennett, Green Party England and Wales leader, Robert Griffiths, Communist Party of Britain general secretary, Bill Greenshields, Communist Party of Britain chair, Fred Leplat, Socialist Resistance, Richard Bagley, Morning Star editor, Bob Crow, RMT general secretary, Mark Serwotka, PCS general secretary, Len McCluskey, Unite general secretary, Christine Blower, NUT general secretary, Kevin Courtney, NUT deputy general secretary, Michelle Stanistreet, NUJ general secretary, Manuel Cortez, TSSA, Billy Hayes, CWU general secretary, Mick Whelan, Aslef general secretary, Paul Mackney, Natfhe (now UCU) ex-general secretary, Vicki Baars, NUS VP union development, Kevin Donnelly, Trade Union Council, Tariq Ali, author, John Pilger, journalist, Ken Loach, filmmaker, Owen Jones, writer, James Meadway, New Economics Foundation senior economist, Lee Hall, playwright, Roger Lloyd Pack, actor, Josie Long, comedian, Francesca Martinez, comedian, Iain Banks, author, Arthur Smith, comedian, Roy Bailey, folk singer, John Rees, Counterfire editorial board, Wendy Savage and John Lipetz, Keep Our NHS Public, John Hendy QC, People's Charter vice-chairman, Imran Khan, People's Charter co-chair, Rachael Newton,People's Charter, Zita Holbourne, Co-chair, Black Activists Rising Against Cuts, Anita Wright, Secretary, National Association of Women, Joginder Bains, Association of Indian Women, Shang Gahonia, Indian Workers Association, Colin Hampton, Co-ordinator, National Unemployed Workers Centres Combine, Carolin Jones, Director, Institute of Employment Rights, John Hilary, Director, War on Want, Romayne Phoenix, Coalition of Resistance chair, Sam Fairbairn, Coalition of Resistance co-chair, Clare Solomon, Coalition of Resistance vice-chair, Andrew Burgin, Coalition of Resistance vice-chair, Lindsey German, Stop the War Coalition convener, Kate Hudson, CND senior economist, Bruce Kent, peace campaigner.

Morning Star, Wednesday 6 February 2013

Saturday, September 1, 2012

New Actors Can Challenge Austerity With Equality: Lessons from the Fawcett Society Legal Challenge

Fawcett Society Protesting Against Unfair Austerity Measures

A study by Dr Hazel Conley, from the School of Business and Management at Queen Mary College, University of London and a member of the Centre for Research in Equality and Diversity (CRED) analyses the 2010 Fawcett Case. It finds the UK government has failed to apply laws that protect working women in the wake of the economic crisis. The paper also shows that equality legislation has created opportunities for women’s rights groups besides trades unions to influence industrial relations.

A legal challenge to the 2010 emergency budget was made by the Fawcett Society—an old established feminist organization which campaigns and lobbies for equality for women—on the grounds that it would have a disproportionately negative impact on them. It attempted to get a judicial review of the ConDem coalition’s new austerity drive.

It argued that 72 per cent of public sector cuts announced would be met from women’s income, as would £6bn of the £8bn savings generated in one year. Dr Conley explains:

In addition to these measures on public sector employees, the majority of whom are women, child welfare benefits were frozen, Sure Start maternity grants limited to one child and child tax credits significantly reduced. Poor mothers and women from black and ethnic minorities were the main financial losers.

The overlapping roles of the state as legislator, employer and paymaster, all seem to have had a bearing on the Fawcett Society challenge and its outcome. Before the budget was unveiled, gender equality duties were introduced as part of the Equality Act 2006. These duties were regulations that required public authorities actively to remove unlawful discrimination and inequality from their practices and processes. Failure to enforce could have resulted in a judicial review.

The article draws on documentary evidence, including the Fawcett case judgment produced by the Royal Courts. In the transcript’s opening sections there is a government admission that it had not undertaken the duties’ legally required equality impact assessment of the budget. Despite this legal compliance failure, the Fawcett challenge did not secure a judicial review. Dr Conley says:

The state is the UK’s largest single employer and the judiciary is not class-neutral. Being armed with reflexive equality legislation did not provide Fawcett with any additional powers to challenge the state machinery. The enactment of equality duties and the provisions for enforcement would seem to suggest the government’s commitment to change. In the aftermath of the banking crisis, however, the coalition unleashed a political zeal for economic austerity that has been unrelenting since it took office. If the Fawcett challenge had succeeded the impact would have been momentous. The emergency budget would have been declared unlawful and the new and fragile coalition government would have been rendered virtually paralysed. The government and the judiciary appear to have moved to protect the interests of capital at the expense of working women. There is a clear gap between rhetoric and compliance in this specific but crucial case.

In spite of the High Court ruling, the Fawcett challenge fuelled an intense media debate on the inequality of the budget, particularly in relation to the loss of jobs in the public sector and the ensuing impact on women’s working lives. One tangible outcome of the challenge was that the government produced an equality impact assessment of sorts for the 2011 comprehensive spending review and budget. Another is that, because the Fawcett case failed, the problem is being pushed down to local government and, as the public sector budget cuts continue to bite, equality groups are applying for judicial reviews against several local authorities axing services.

The actions of the Fawcett Society, says Dr Conley, provide empirical evidence that challenging the loss of thousands of public sector jobs need not lie solely with trade unions. Although in the Fawcett case this is likely to complement rather than compete with the role of the unions in industrial relations. Dr Conley warned that equality duties have opened up important ways for “new actors” such as Fawcett to use the law to challenge inequality at work, but “they do not meet their potential if the enforcement mechanisms can be undermined and weakened to suit political and economic objectives”.