What is Gordon Brown’s legacy?
Posted on August 28th, 2009 in Defence, Foreign affairs, Housing, Politics, Unemployment, economics | 3 Comments »

The next election is still a long way from being won. We cannot be complacent. But it is interesting to start reflecting, should the Conservatives win, what Gordon Brown’s legacy will be. What has he achieved? How will history judge him?
All big questions. Historians would say it is too early to judge as Prime Minister’s have to be viewed after a passage of time. But there is no harm looking at what Gordon will potentially bequeath an incoming Conservative Administration.
So let’s do this succinctly and look at the major policy areas.

Economy
- Britain is in a deep recession. It has been savage. Brown claims this is due to Global economic shocks but the IMF has stated in their most recent report: ‘Imbalances and balance sheet strains had emerged even before the recent global shocks triggered a sharp decline in economic activity’. ie we were heading into recession BEFORE the Global shocks took place.
- Changes made by Gordon Brown, as Chancellor, to the way banks regulated, widely credited for the severest banking crisis in the history of the UK.
- Unemployment of nearly 3 million, (official figures), (in reality closer to 6 million).
- Unprecedented National Debt of £2.2 trillion – just under 150pc of gross domestic product. This would be the worst debt total since the 1950s, when Britain was in the process of paying back its war debts.
- Bailing out a banking system. Cost of the bailouts - broken down. Total: £904bn or 63% of GDP. A few highlights:
Northern Rock — £14.6bn.
Bradford & Bingley — £24bn
Kaupthing Singer & Friedlaender — £3.3bn
Landsbanki — £4.5bn
Heritable — £500m
Dunfermline — £1.6bn
All bank recapitalisation — £78.1bn
Credit Guarantee Scheme — £250bn
Working Capital Scheme — £11.5bn
Asset-Backed Securities Guarantee Scheme — £50bn
Asset Protection Scheme — £466bn
TOTAL TAXPAYER EXPOSURE: £904bn or 63% of GDP.
- UK Households severely in debt. In the run-up to the crisis household debt increased to 175 percent of disposable income—one of the highest levels among advanced countries
- House prices have dropped by more than 20 percent from their peak and commercial real estate prices are down by 40 percent.
- Endemic Fraud. HM Customs and Excise looks odds on to miss its stated target of reducing fraud and error to 5% by 2011. It has been revealed that mistakes had risen to 8.6%, (from 7.8), in 2007 – 08, which are the latest figures available. This means that fraud and errors in the tax credit system cost £2 billion last year, which amounts to £1 in every £10 paid out.
- Falling tax receipts… Tax receipts have fallen by £32 billion according to the National Audit Office. This includes a £6.4 billion drop in VAT income following Alastair Darling’s decision to cut the rate to 15% last November.
- The policies that Brown has employed no-one knows if they are working. The IMF cannot make any judgement on the effects of Quantative easing. Is it working? Has it had any effect? Who knows? The IMF don’t
- Lack of support for Small Business. Claim: This Government has offered more support to small businesses in the recession. Reality: Official statistics show that it has guaranteed fewer loans in the year to march 31st. Businesses received 2,360 loan guarantees worth £177.8m under the Small Firms Loan Guarantee (SFLG) scheme and its successor the Enterprise Finance Guarantee (EFG) scheme, launched by Peter Mandolsen. Please remember…….This was a central plank in the Governments economic strategy for the recession. But this total, which includes loans approved before April 3rd is significantly less than the £205 guaranteed in the previous year, (taken from the Department for Business, Innovation and Skills report). This is also far below the scheme’s £360m budget set by the Government in March 2008, which was raised to £1.3bn in January. This lack of lending under the schemes runs contrary to the banks’ pledges to make more use of the SFLG and EFG schemes.

Defence & Afghanistan
- An ongoing war, with no end date in sight. No clear, measurable, objectives.
- A British Army with insufficient resources, including manpower and equipment eg helicopters.
- 207 dead soldiers and rising
- With a stated aim of helping democracy Helmand’s province, a region with a potential electorate of 80,000 voters….only 150 voted. That’s a turnout of 0.18% .

A dis-United Kingdom
- Between 1998 and 2003, for example, economic growth across different local areas of the UK ranged between the drastic extremes of minus 1.2 per cent and 9.6 per cent, expanding the gulf between the poorest and the most prosperous. These marked trends have persisted through the rest of the decade, further aggravating the national divide. The latest data for the 12 principal regions of the country show that total GDP growth from 2004 to 2007 ranged between 13 per cent in the West Midlands and in Wales to more than 20 per cent in London. The divergences of performance become ever greater, too, as one considers smaller localities. The consequence is that the gap between the standard of living in the most affluent parts of the nation and its poorest areas is now wider in Britain than in any other developed economy.

Politics
- Politicians with no respect and distrusted by the electorate following the expenses scandal.
- Brown’s team closely associated with the politics of smear and lying, the Damien McBride affair typifying the lows of Brown’s closest aides.
- Lack of Leadership. Ducks the big issues eg whether he agreed with Megrahi release

Education
- 50,000 A-level students will miss out on a place at university. This year 52,000 more people applied to University but only 13,000 extra places were made available.
- The number of young people not in employment, education or training (Neet) has leapt by more than 100,000 in the past year. Government statistics show there are now almost 960,000 16- to 24-year-old Neets in England, more than 230,000 of whom are aged between 16 and 18.

Welfare dependency
- NEARLY two-thirds of council housing tenants get all their rent paid by the taxpayer. dip their hands in their pocket to pay a total of £10billion a year. That is the equivalent of £476 every year for every privately-owned home in Britain. How do you feel paying £476 of your money to this cause?

Health
- A society ill prepared for Swine Flu. Call centres manned by non medical professionals prescribing Tamiflu to everyone that calls. Children advised not to take Tamiflu. Vaccine in full production but untried and untested.
- Almost 1 in 4 adults in England are currently obese, and if we carry on as we are by 2050, 9 in 10 adults will be overweight or obese. Did you know about 46% of men in England and 32% of women are overweight (a body mass index of 25-30 kg/m2), and an additional 17% of men and 21% of women are obese (a body mass index of more than 30 kg/m2 ). The cost of overweight and obese individuals to the NHS is estimated to be £4.2 billion and is forecasted to more than double by 2050. The cost to the wider economy is £16 billion, and this is predicted to rise to £50 billion per year by 2050 if left unchecked
- Britain has the worst cancer survival rate in Western Europe.


Immigration
- MigrationWatch UK has provided an estimate that the population of the UK, (which is already the most overcrowded country in Europe), will hit………a massive 70 million in the next 20 years, (whoever is in power). Yes that is 9 million more than today.
- Keith Vaz, Chairman of the Home Affairs Committee has announced that tens of thousands of illegal immigrants have entered Britain posing as students at bogus colleges and coupled with this the Government is doing nothing to track them down.

Going Green
- Going Green ….at a cost and massive debt. It is reported that Britain faces a bill of up to £1.2 trillion to meet the agreed target set by G8 nations to cut carbon dioxide emissions in each country by 80% by 2050. This is made up of £600bn from the estimated cost of making all transport low-carbon by switching to electric or furl efficient vehicles. £350bn which is the estimated cost of moving the majority of industrial and domestic energy needs to low carbon electricity. £250bn estimated cost of moving all heating from gas boilers to low carbon equivalent.
I could go on…and on…..please let me know what you would add to this.
Not a great legacy Gordon. How can you sleep at night?























