POLITICS CORNER

[Tripps]

It's well known to those that have been keeping up that I'm not Nadhim Zahawi's biggest fan.

Looks like the rest of the world is listening. The vultures are gathering, and I think his days are numbered. Should be fun though, as he is litigious, will be dangerous when cornered, and I guess he knows where the bodies are buried. The outcome will be interesting.

What's a seven figure Inland Revenue penalty conmpared with not wearing a seat belt in the back of a limo though?

[Stanley]

I see Sunak has admitted guilt and will pay £100 fine for the seat belt offence. His political opponents are making the most of it but in truth, it's a minor mistake and far better to attack him for the egregious political acts he commits each day.
At the moment his biggest crime against the country is the fact he is gambling on a reduction in inflation so his ministers can use it as a bargaining chip in the negotiations with the unions that must inevitably come. This is why he is refusing to talk to the unions about the matters they are striking about. Basically this is the historic underpayment year on year which has brought the wages paid down to poverty levels, not capable of supporting a family let alone give some surplus for savings or pleasure.
I ask myself "Where has the money gone?". Some is lost in vanity projects but a lot has been lost by not taking tax on money earned in this country by allowing capital to be exported abroad and taxed there. Apart from the scandal of Non Doms there is the ploy of paying huge interest costs on loans from parent companies registered in another jurisdiction, many of them off-shore tax havens.
One small example is one of the busiest airports in the world, Heathrow. It pays inflated interest to its parent company each year making sure that there is much less to tax in the UK. The Treasury keeps saying it will get a grip of these matters but never does. Ask yourself why....
Financial manipulation of all sorts is the most lucrative business in the UK. Ask Sunak and his wife......

[plaques]

I can think of more than three points where there has been an error of judgement and which costs everybody in the country more than £100 to pay them off.

[Stanley]

Exactly Ken!

[PanBiker]

If you have Netflix, give "Bank of Dave" a watch, a clear indication of how one section of the Lords of the Universe operate. In his case, he won. The first time in 150 years that anyone made chink in the armour.

[Tripps]

I have been aware of Dave Fishwick for a few years now, and it's hard to resist his charismatic personality. I won't be watching the biopic, as it's on Netflix which I don't have. I've read the review of the film in The Spectator. It's subscription, but I think they let you see a few articles free. Give it a try. Bank of Dave

PS Rachel Reeves has just done a comprehensive hatchet job on Zahawi. I doubt he will last much longer. . . .

[PanBiker]

It cost him £12 million to make inroads, because as the banking establishment say, they make the rules and don't we know it.

[Big Kev]

He is still trying to establish it as an official bank, it's currently a loan and savings trust. The Bank of Dave film has embellished the story a fair bit

[Tripps]

From the Financial Times
I may also be a churl for having googled Burnley Savings and Loans, and found the Bank of Dave is still, officially, awaiting regulatory approval as a bank from the Prudential Regulation Authority and Financial Conduct Authority. Then again, I am a Londoner. Everyone knows what we’re like.

I note the their website describes the Company as a Credit Broker - and seems to major on loans to buy his vans. So yes - still not a 'Bank' and no FCA guarantee for any deposits. It seems to be an agent for other 'credit grantors'.

Companies House describes the purpose of the business as -
"Nature of business (SIC) 64921 - Credit granting by non-deposit taking finance houses and other specialist consumer credit grantors

Not saying there is anything wrong with any of this - but better to know the facts rather than the Hollywood feelgood fictional version of the story. They said they would only take deposits from local people when I first took an interest, so I couldn't invest. Seems they will only lend to folk from Lancashire, Yorkshire or Greater Manchester.

Proceed with caution I'd say.

[Stanley]

I think that last remark is probably very good advice David....
"Rachel Reeves has just done a comprehensive hatchet job on Zahawi. I doubt he will last much longer. ."
I see BBC News has been told Mr Sunak is satisfied with Mr Zahawi's account and has confidence in him as chairman of the Conservative Party.
So that's all right then.....
(Once again it looks as though Private Eye was on the money long before anyone else. Well Done Strobes!)

In another part of the Westminster thicket, see THIS BBC report on the call from the Labour Party for Boris Johnson to be investigated because of a loan he is alleged to have received.
Labour is calling for a parliamentary investigation into claims the chairman of the BBC helped Boris Johnson secure a loan - weeks before the then-prime minister recommended him for the role. The Sunday Times says Richard Sharp was involved in arranging a guarantor on a loan of up to £800,000 for Mr Johnson. Mr Sharp said he had "simply connected" people and there was no conflict of interest. Mr Johnson's spokesman said he did not receive financial advice from Mr Sharp. He also dismissed Labour's suggestion Mr Johnson could have breached the code of conduct for MPs "through failing to appropriately declare the arrangement" on his Parliamentary register of interests.

You may remember seeing a report a couple of days ago that Sunak is urging his backbenchers to find reasons for attacking Labour. It may be that Labour is getting their retaliation in first. This is not a minor matter, if true it could have repercussions....

[plaques]

Its a long standing adage the The Tory party were good with money. They knew how money worked and the UK's accounts were safe in their hands.
Then came along Nadhim Zahawi who apparently doesn't know how much money he has and who entered into a tax reduction scheme that was so complicated he didn't understand it with the end result we get ": Tax error was careless and not deliberate". Although qualified accountants are never mentioned he supposedly relied on his father for advice who now he conveniently blames for the cock up. But now we hear that 'his accountants' are in discussion with the Inland Revenue???. Boris Johnson thought Zahawi competent enough to be made Chancellor no doubt with the thinking he could always blame him when things went wrong. Sunak ditched Zahawi but supports his role of Chairman of the Conservative party.

Perhaps its time we reviewed the 'good with money' myth.

[PanBiker]

They are good with money as long as they are making more for their mates.

[Stanley]

I've spent most of the morning listening to improbable explanations and excuses designed to get Boris Johnson and Nadhim Zahawi off their respective hooks.In both cases I don't believe a word of what the apologists are saying. According to them Zahawi, that great entrepreneur forgot he had £27million that was due to be taxed. As for carelessness and not wrongdoing, why did HMRC charge what they regard as the penal rate of 30% when normally, with good behaviour, you can get away with 22.5%?
As for Johnson borrowing $1million and not thinking he needed to declare it, what sort of a world do these shysters inhabit..... If I'd been an applicant for the BBC job and heard that a rival had arranged for the PM (Who is one of the referees for the job) to borrow $1million as he was hard up I would have been shouting foul play!
Who do they think they are kidding with these ludicrous excuses?

[Tripps]

Who do they think they are kidding with these ludicrous excuses?

No one on here I'd say.

Pleased to see the figure £27 million quoted. I thought I'd heard it mentioned. I ponder why Nadhim Zahawi, who is said to be worth about £100 million, wants to be in the bear pit of politics at all. His urge to give public service must be overwhelming. Credit where it's due.

I thought Nadhim Zahawi would have been fired by now - sadly not. He must have 'the black' on someone.

[Stanley]

See THIS BBC report by Chris Mason giving more details about the Nadhim Zahawi tax affairs.
As to why he is still Party Chairman David..... Could the problem be finding someone better to replace him? What advantages would such a post confer? I doubt if there is a queue for the job. (Just been watching Michael Dobbs' 'House of Cards' and my perceptions might be skewed.... But I doubt it.)

[plaques]

As for Johnson borrowing $1million and not thinking he needed to declare it, what sort of a world do these shysters inhabit..... If I'd been an applicant for the BBC job and heard that a rival had arranged for the PM (Who is one of the referees for the job) to borrow $1million as he was hard up I would have been shouting foul play!

Somebody wants to borrow £1M so off they go to a bank. They in turn ask questions like what do want it for? can you pay it back? the interest will be XXXXX% all open and above board. No Boris goes to his pals with shades of Hancock's deals. A deal to be covered up by rolls of wallpaper. No records in the Commons. The money could be used for anything legal or illegal or even to pay off an existing debt. Who knows with Boris.

[PanBiker]

Lords of the bloody Universe again! If he was an accredited accountant, Chancellor? Found guilty of fiddling his taxes he would be struck off. Bent as a nine bob bit.

[Tripps]

The PM has asked his 'ethics advisor' to look into the Zahawi matter. He is one Sir Laurie Magnus. The PM can overrule any of his findings.

I noticed that recently there was also appointed a new Parliamentary Commissioner for Standards one Daniel Greenberg who surely should have a role to play?

I know which one I'd rather have investigating me.

[Stanley]

Quite right Ian, if it had been you or I forgetting to declare £2,700 we would have been hammered. £27million? "No problem Chancellor".
I doubt if it matters David, who is going to rock Sunak's boat when the Party is in such a parlous state? Answer, definitely not a Tory and I think we can assume that both Sir Laurie and Mr Greenberg are both of that ilk...
See THIS BBC report on the news that Sunak has bowed to pressure and ordered an investigation into Zahawi's affairs. I note that at one point Sunak stated that 'he knew nothing about the matter' until the day before. Does this mean that it is possible for a Chancellor of the Exchequer to be found guilty of tax fraud and fined millions of pounds without the PM being informed?
Sorry but that strains my credulity to breaking point.
You might as well have a glance at THIS as well.
"The process of hiring BBC chairman Richard Sharp is to be reviewed by the watchdog that oversees how public appointments are made. It follows claims that shortly before being given the job, Mr Sharp helped the then-prime minister, Boris Johnson, secure a loan guarantee agreement. William Shawcross, the Commissioner for Public Appointments, said the review would ensure the hiring followed rules."
What's the betting he gets a coat of whitewash and remains in post.
Now then.... Let's see.... Who was it said "this government will have integrity, professionalism and accountability at every level."?
Don't you just love it when public figures make impressive statements like that which you just know are going to come back and bite them in the bum! How come we can see that but they can't?

[Stanley]

I think THIS BBC report comes under politics. It concerns how a man with a history of violence was at liberty to sexually assault and murder a law graduate after mistakes were made by probation staff, a report has found. Jordan McSweeney, 29, attacked Zara Aleena in June 2022, nine days after his release on licence from prison. He had been wrongly assessed as "medium risk" by staff who were under "mounting pressure" at the time, Chief Inspector of Probation Justin Russell found."Immediate steps" to address the issues are being taken, the government said.
This is bad enough and had terrible consequences for the young lady but what occurred to me that we are looking at a failure of the probation service. We must not forget who it was who decided that the well regarded Probation Service in London and its training arm could be more economically replaced by outsourced services. The name of this man? That walking disaster area Chris Grayling of course.
Lest we forget!

[plaques]

Not to worry things are better than they seem. The Bank of England says we have turned a corner with interest rates not having to rise as much as they thought. The depression may be deeper but could be only two years long instead of three. Energy prices are on their way down and soon may only be £500 on average than we are paying now. Inflation is showing signs of falling with CPI (the overall basket value) possibly only 5% more than we are paying now. Food prices remain more stubborn. Lending Banks are surprised at the resilience and tenacity of small businesses who are going bankrupt in increasing numbers. Hydrogen will overtake fossil fuels as an energy source providing there is enough green energy and enough clean water. EU red tape is strangling trade to other countries but when we have cancelled all the laws on standards and rights and passed the decisions to the Cabinet who we all know to be the pinnacle of rectitude and propriety countries will be rushing to buy our high standard goods.

Then I woke up.

[Stanley]

I think you have covered most of the main points there Ken.
I went to look at what the Lords are doing in the hop[e of finding anything better. See THIS for what grabbed my attention.
Government legislation offering a conditional amnesty to people accused of killings during the Troubles is a "total disaster", former Church of Ireland Primate Lord Eames has said. He was speaking during a debate on the bill in the House of Lords.
It's worth reading the article to get a clear picture of just how bad this proposed legislation is. This of course is on top of the difficulties being caused by the present impasse in Northern Ireland which has left them without a functioning legislation and the arguments over the government's Protocol designed to solve the problems raised by Brexit which seems to have ground to a halt.
Can someone point out for me something that the government is doing right?

[plaques]

Concern is being raised about the rise in poverty and fuel poverty. The forecasts are that things will get worse by April this year. As usual the government quotes the sums of money being made available and miraculously how some areas of poverty have improved .

The government said latest figures showed there were 200,000 fewer children in "absolute poverty", after housing costs, compared to 2019/20.

The original definition of absolute poverty meant people couldn't afford housing costs so in effect they have created another definition where there is already several to chose from.

There are multiple types of poverty.
Situational poverty. Generational poverty. Absolute poverty. Relative poverty. Urban poverty. Rural poverty.


Along side areas of poverty we also get 'highly deprived' areas where 64% of them are located in 8 local authorities
Blackpool, Liverpool, Birmingham and Leeds, Bradford, Perhaps not surprisingly Blackpool and Burnley have proportionately more neighbourhoods ranked as highly deprived on six of the seven domains:

Poverty is a complex subject which isn't helped by using selective statistics to imply it isn't as bad as it seems. The government is trying to ignore it while the media concentrates on Harry and Megan poor soles.

[Tripps]

I'm surprised Nadhim Zahawi is still in his post.
Now you know I'm not one for conspiracy theories - but - Perhaps this is a clue as to why?

" The press secretary refused to say whether Sunak had ever paid a tax penalty. Asked about this, she said:
You wouldn’t expect me to get into the prime minister’s tax affairs, they are confidential. The tax affairs of an individual, irrespective of who they are, are confidential. But she confirmed that Sunak would publish his tax return “in due course”.

PS - Looks like No 10 read this board.

They have just 'clarified' the situation and say that Mr Sunak has never paid a penalty to HMRC.

[Stanley]

That depends on what your definition of 'penalty' is doesn't it David. Hard information is thin on the ground but my understanding is that after not declaring an asset of £27miiion Zahawi and his advisers were less than helpful to HMRC and so instead of the normal 22.5% surcharge he was charged the higher rate of 30% on what he owed which brought the total extra charge up to about a million Pounds. If that isn't a penalty I don't know what is.....
Also, I don't understand how how an adverse tax decision against the Chancellor of the Exchequer can be 'private'. This is the person we trust to manage the nation's (OUR!) money and we are entitled to know if he is trying to pull a fast one over the Revenue. (I would apply this equally to the Prime Minister.)
There is also the matter of the solicitor's letters threatening legal action that were sent to journalists who were reporting on this matter as it happened.
I don't understand why No 10 is allowing these matters to drag on. The obvious and sensible thing to do is to say to both Zahawi and Green, "Your credibility is destroyed while these matters hang over you, take leave of absence until the situation is cleared up".
I have a suspicion that there is a reason for allowing this distraction. The dreadful state of the economy and the numbers that are coming in. Yesterday it was on borrowing levels, the recent GDP figures are appalling and today see THIS BBC report on the car industry.
"The number of new cars made in the UK fell again sharply last year plummeting to its lowest level since 1956.
The drop marks a 10% fall from the year before which itself was a historic low. A continuing global shortage in semiconductor chips hit production lines, industry body the Society of Motor Manufacturers and Traders said. But car makers are concerned the UK has not yet got a strategy to make the country competitive as a destination for manufacturing investment. The government said it was "determined" to ensure the country remains a top global location for car manufacturing. Manufacturers hope that they will hit one million vehicles again in 2025 but getting to pre-pandemic levels would require major investment and new makers to come to the UK. Firms are worried that the UK is falling behind the US and the EU when it comes to offering state aid to manufacturers. A very significant bit of US legislation - the Inflation Reduction Act - will offer billions in subsidies to car makers who create electric vehicle supply chains in the US."
All this as Hunt cobbles together an economic strategy as a framework for a budget. The only certainty I can see is that austerity will be tightened yet again. Forget talk about inflation easing. Our economy is going down the tube, get used to it. This is the nasty little truth that Sunak and his minions want to keep off the agenda and Green and Zahawi are a useful distraction.