Unemployment doesn't avoid poverty in the UK
A report published on Monday, December 8th states a growth of the poverty across the Channel, while the unemployment rate reaches a historically low level. One bad news for the coalition Conservatives/Liberal Democrats in the power.
The British upturn, where the austerity would be source of growth, reduction of the public deficit, the unemployment, the disparities, is it justified? The report "Feeding Britain", published on Monday, December 8th, joins in an awkward position with regard to this angelic vision of the British economy, told by Mainstream. This report, made by Conservative and Labour MPs indicates an increase of the poverty at Albion.
Increase in wages lower than that of the prices
Without saying it explicitly, the report shows a loss in consumer purchasing power for British households, maybe more important than in other developed countries. Between 2003 (Labour government of Tony Blair) and on 2013 (Tory/LibDem government of David Cameron), salaries grew of 28% in the United Kingdom. What is more than in France and in Germany incidentally. Nevertheless, it does not compensate for the increase of the level of the prices of certain goods and services. For the same interval, the United Kingdom is the developed country, according to the authors of the report, which knew the strongest inflation about the general level (30%), inflation marked for products such the food (47%), the energy (153.6%), or the rents in the real estate (35.6%).
Besides, the 20% of the poorest British households would earn hardly 9.530 dollars on average annual, what makes British poor households the poorest ones, in comparison with other countries of the OECD, according to the report. Finally, the report indicates a greater dependence of the poorest households for housing, food and energy because the part dedicated to these 3 expenses (that we can consider absolutely essential) passed from 31 % in 2003 to 40 % in 2013 in the budget of the 10% of Albion's poorest households.
A deficit which is not reduced (easily)
This report falls at a moment when David Cameron has difficulty in sugaring the pill to force more budget cuts for a public deficit which is weakly reduced. It is still planned about 6 % of the Gross domestic product for 2014, knowing that the growth is even lower than 2 % of the GDP for 2014. In the sight of the Tories, the National health service (NHS), with job losses in this public service. Problem, it is because this deletion could aim mainly at England, and not Scotland, because the latter plans to check the centers of the NHS on its ground, thanks to transfers of sovereignty which are guarantees for the N.10 further to the Pyrrhic victory of the "No" in the independence of Scotland at the time of the referendum in September 18th.
Besides, this deficit is linked to a problem of fiscal receipts which augment no masses, in spite of the reduction in the unemployment. But it is just that jobs found by former unemployed persons are jobs with low level of salary. As a result, quite a lot of working poor cannot be taxable, and it is a loss of income for the public finances.
The coalition in the power can allow with difficulty to crash on the economic questions, in this election year seen that next May, they will be the general elections. Elections which seem promised to the Labour opposition but the latter, in particular their leader Ed Miliband, are far from having majority according to the polls, and even less being in the lead. Will they pay a high price their policy "of Holy alliance" with the coalition at the time of the Scottish referendum? If that was the case, many traditionally Labour voters could refrain, vote for parties in the left of the Labour (the Green party for example), even for the ultraconservative party Ukip, led by the member of the European Parliament Nigel Farage, which also gives a headache to the governmental majority.