How come Labour can find money when it wants to?

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  • Опубликовано: 24 дек 2024

Комментарии • 837

  • @timwoodger7896
    @timwoodger7896 2 дня назад +274

    It’s like when you need new shoes as a kid but your dad says he’s got no money but yet spends 4 nights a week in the pub and up grades his car every 3 months but he’s got no money for shoes🤯
    Why does our government act like an abusive parent??
    Because they don’t care about you!!

    • @TheCornish123456
      @TheCornish123456 2 дня назад +20

      Or the people who go to the food bank covered in tattoos in 150 quid trainers and a 200 pound coat.

    • @helenheenan3447
      @helenheenan3447 2 дня назад +3

      ​@@TheCornish123456What an idiotic remark.

    • @ruthguthrie1099
      @ruthguthrie1099 2 дня назад +16

      ​@@TheCornish123456
      How many have you seen that ere like that and do people's circumstances not change?

    • @TheCornish123456
      @TheCornish123456 2 дня назад +4

      @@ruthguthrie1099 more than a few.

    • @MutantNinjaDonut
      @MutantNinjaDonut 2 дня назад +17

      @@TheCornish123456you clearly don’t work at food banks.

  • @stevezodiacXL5
    @stevezodiacXL5 2 дня назад +217

    The fact that PFI deals are expensive for the taxpayer *is the point*!
    They are about a transfer of taxpayer cash to the wealthy, not about some sort of efficient way to fund public projects.

    • @cpcnw
      @cpcnw 2 дня назад +14

      Exactly this.

    • @adamiskandar5107
      @adamiskandar5107 2 дня назад

      We have been brainwashed to accept that the private sector is always more efficient than the public sector. When the facts/statistics proved otherwise, we find excuses or accept illogical explanations for the people representing the interests of the private sector. Are we capable of being rational in the face of continuous Capitalist propaganda?

    • @Tensquaremetreworkshop
      @Tensquaremetreworkshop 2 дня назад +7

      But those 'wealthy' do the same- most large companies sell and lese back their buildings. The difference is that the manage to lease/repair contract. Which government is rubbish at. The civil service cannot fail, so there is no incentive to do a good job.

    • @Zerpentsa6598
      @Zerpentsa6598 2 дня назад

      Used extensively by Bliar to channel taxpayers' money to his cronies.

    • @stevezodiacXL5
      @stevezodiacXL5 2 дня назад +17

      @@Tensquaremetreworkshop
      Where is the incentive for a private water company to do a good job?
      Can we stop purchasing their products? Is there a row of taps in every home that we can choose from?
      If they do a bad job, can the government just shut them down?
      Or do we taxpayers have to pay off the debts and keep things going?
      Same applies to all essential utilities. If they win, they win, and if they fail, they HAVE TO BE bailed out, because their services are essential to life.

  • @asumazilla
    @asumazilla 2 дня назад +84

    It's because the debt on the PFI doesn't go onto the balance book immediately. It makes some numbers look better than they truly are.

    • @paulsoutham2454
      @paulsoutham2454 20 часов назад

      Yeah! A PFI agreement is a contract, it's not a debt, so doesn't appear in the deficit but it still needs paying!

  • @voiceoftreason9212
    @voiceoftreason9212 2 дня назад +59

    Why is Labour still doing bad PFI deals? Corruption. These deals will benefit their rich donors. Simple.

    • @paullegend6798
      @paullegend6798 День назад +3

      Look into the recent wind farm auctions. Guaranteed strike price of double current prices. Those auctions are a licence to print money, with absolutely zero risk involved to the investors. Anything the state runs is broken.... and yet we are increasing the size of the state every year.

    • @voiceoftreason9212
      @voiceoftreason9212 День назад

      @@paullegend6798 State ownership is not the issue. Corruption is. I'm glad we have a state run NHS, albeit underfunded. Look at the US health insurance system run by corporations for profit. It's killing people and bankrupting them at the same time. That's why Luigi Mangione is hailed as a hero. Just look at the privatised industries in this country: they are all f**ked because they put profit before people. There would be no problem with the state running things if they were truly accountable to the people. The fact is they are bought by corporate interests. Hence all the privatisation and weak regulation. Private companies and rich individuals have bought all our politicians (because in capitalism everything is for sale, especially politicians). The people need to take back control from corporations. That means ending capitalism and getting rid of the profit motive in public services. Why auction wind farms? The state could just run them for the benefit of the people, then there's no middle man milking us for profits. Easy.

    • @tonybrett5209
      @tonybrett5209 День назад

      No. The contracts cost more to buy out.

  • @jrphartley
    @jrphartley 2 дня назад +78

    Another question is, why are we buying back rather than simply taking back, given that the pfi rip off merchants have been fleecing taxpayer for 27 years?

    • @mikevolante7663
      @mikevolante7663 2 дня назад +7

      Exactly! Or, could have paid 1 billion, or half billion, said take it or leave it. You know the answer. Because the money goes to line the pockets of the banksters and their mates. Corruption Corruption Corruption

    • @tetraquark2402
      @tetraquark2402 2 дня назад +2

      Under some circumstances, I would agree with that statement but how is that any better than what Putin does.

    • @DaFinkingOrk
      @DaFinkingOrk 2 дня назад

      ​@@tetraquark2402How is it worse than Putin? He is a practical man despite being a violent one. It is better than Putin as long as nobody "falls" out a window and it's all done legally.

    • @gio-oz8gf
      @gio-oz8gf 2 дня назад

      I would say that the most likely reason is that it's illegal. Do you want the government to behave like the Mafia?

    • @badart3204
      @badart3204 2 дня назад

      You are doing that because your nation is not good enough to be an autarky of which the second you start nationalizing any company, every company is gonna shit themself and leave. Your nation cannot survive without the trade with others as you produce insufficient food, manufactured goods, and fuel to support yourself as a service economy. Therefore, just taking stuff will destroy your nation and impoverish millions as capital flight ruins you

  • @dublodave7860
    @dublodave7860 3 дня назад +53

    Those of us working on PFI schemes in the late 1990's/early 2000's were amazed the then Labour Gov't continued with and expanded PFI's when they were known to give poor value for money in the long term.

    • @arthurdixon5890
      @arthurdixon5890 2 дня назад +7

      That’s Labour for you (us) nothing learned. I can’t believe they are back in government after the Blair/Brown years. The Tories badly let us down too. Time for a change methinks.

    • @user-qg2bt2qt9l
      @user-qg2bt2qt9l 2 дня назад +4

      @@arthurdixon5890PFI was a Tory initiative - all parties are going to use it irrespective?

    • @arthurdixon5890
      @arthurdixon5890 2 дня назад +4

      @@user-qg2bt2qt9l Agreed but New Labour used it indiscriminately. I appreciate that lessons have been learned as a result of the pitfalls realised (Kings Fund etc) but there has been talk of using PFI for the planned Thames Crossing. We are still paying tolls for the Dartford Crossing as Gordon Brown would not allow the toll to be lifted after the project had been paid for.

    • @kenstevens5065
      @kenstevens5065 2 дня назад +6

      Spot the clue in the words "long term" and don't just blame the Tories, Labour couldn't wait to spend noth sea oil revenues fast enough. Our sovereign wealth fund went down the welfare state toilet. Now we throw money around that we borrow, £100 billion interest a year isn't it? Don't spend it on Brits though, spend it on foreigners.

    • @johnharvey1786
      @johnharvey1786 2 дня назад

      I was working as a quantity surveyor during the late 1980’s and early 1990’s on Property Services Agency was in charge of maintenance on these type of properties and many other government properties. The system was not perfect but worked reasonably well, although there was some embarrassing financial irregularities that I helped uncover plus any delays or poor work was blamed on the Government. This system had two very important failures as far as Margaret Thatcher was concerned, which was the growing power of the PSA, who as many government departments at the time spent as much time growing their departments as focusing on their remit, and this compounded by the fear of these irregularities and some poor work getting covered in the press. What better way to deal with it than disband the PSA and make the new system very attractive to private companies, both issues resolved at a stroke. I attended many meetings / seminars at the time where it was clear the costs would be significantly higher and the loss of control very damaging but the political benefit was considered much more important. There was an enquiry about the financial issues but it was well known the political issues were the real driver behind much of what took place. The first step in 1998 was making the PSA bid for work against private companies, and eventually in 1993 John Major abolished the PSA and introduced his raft of privatisations and other PFI schemes on the same premise. If the issues had simply been financial irregularities they could have been resolved by prosecutions and court cases but that wouldn’t have resolved the blame game and the political power plays. Its clear this hasn’t worked out well, but the politicians at the time knew it wouldn’t, but it did take the heat off the government for many years, until the problems that were obvious to people in the various industries at the time, have become too serious to cover up any longer.

  • @JSmith19858
    @JSmith19858 2 дня назад +87

    The MOD don't take care of maintenance on their own estate assets. Vivo are the contractor and, guess what, they repair nothing and just take their cash

    • @Zerpentsa6598
      @Zerpentsa6598 2 дня назад +13

      Vivo charges the MOD, i.e. taxpayers over £500 to change a light bulb.

    • @JSmith19858
      @JSmith19858 2 дня назад +13

      @@Zerpentsa6598 you actually got them to come out and change it? I've been waiting 5 months for them to repair two lights. My favourite recently was after the storms some subcontractor tree surgeons had to deal with a fallen tree and there were four Vivo worker in two vans sat watching them. I wonder how much they billed for that.

    • @Tom_Hadler
      @Tom_Hadler 2 дня назад

      ​@@Zerpentsa6598 can that be true?

    • @ONeill01
      @ONeill01 2 дня назад +4

      @@JSmith19858 Sounds like they are waiting for the annual lifecycle charge to the public department so they can charge under that rather than their own pocket similar to another different contractor under PFI that I've dealt with to paint rooms.

    • @malcolmbarnett8470
      @malcolmbarnett8470 День назад

      In other words, another wealth transfer. Western governments are privatising themselves out of existence. Parliament is a sort of Kabuki theatre's, that is all

  • @JupiterThunder
    @JupiterThunder 2 дня назад +27

    Can we have a video on Bliar's PFI deals for new hospitals please. And why he's never been held accountable for wasting hundreds of billions of pounds of taxpeyers' money. Or put on trial in The Hague for war crimes.

    • @chris.bcfc.keeprighton.5685
      @chris.bcfc.keeprighton.5685 2 дня назад

      It is true that Blair embraced PFI financing. However, the tories wasted more money on them than Labour did.

    • @alistairmonro
      @alistairmonro День назад +1

      ​@@chris.bcfc.keeprighton.5685 it's not a competition. They should both be questioned. I think the original point is 'why do we only blame one side' and you kinda proved it because of the stupid 'my team' thing people have fallen into.

    • @bestbehave
      @bestbehave День назад

      @@chris.bcfc.keeprighton.5685so??? You’d expect it from the tories, it’s literally their manifesto
      What next - bent coppers should get a free pass cos they’re not quite as bad as the Mob?

  • @elethio
    @elethio 2 дня назад +33

    Thank you so much, for expressing simply & logically, what so many of us intuitively knew.

  • @juliewake4585
    @juliewake4585 2 дня назад +98

    Thanks Richard. PFI stinks doesn’t it? And always has. Always.

    • @Tensquaremetreworkshop
      @Tensquaremetreworkshop 2 дня назад +3

      Strangely, it is what most companies do. They sell and lease back their buildings. Because they can get better returns on that capital (ROI). Could it be that private companies are much better at managing maintenance contracts? Ahh, there lies the difference...

    • @Zerpentsa6598
      @Zerpentsa6598 2 дня назад

      Used by Bliar to defray taxpayers' money to his friends for decades.

    • @ThatGuyThanus
      @ThatGuyThanus 2 дня назад +2

      And always will

    • @harrisonbergeron9746
      @harrisonbergeron9746 2 дня назад

      @@Tensquaremetreworkshop or maybe they do that to 'avoid' paying tax, maybe?

    • @Tensquaremetreworkshop
      @Tensquaremetreworkshop 2 дня назад +1

      @@harrisonbergeron9746 It is normally done for two reasons.
      1) The ROI in the building can drag on their numbers. They can employ that capital more efficiently elsewhere
      2) It is not the focus of their business. Contracting out the elements of your business that is not focused on your products removes distractions. You employ one 'expert' person, the facilities manager, and he manages the contracts for all of this. Something the government (any government) is very bad at.

  • @xueya2188
    @xueya2188 2 дня назад +106

    Because, given modern monetary theory, taxation is primarily a form of social control. Friendly reminder that Labour and Conservative are equally part of the military-pharma-industrial complex establishment who need war and sickness to continue expansion. If you frame government in traditional terms of them trying to benefit the populace, their policies and actions seem bizarrely incompetent, where the reality is that the UK government have already transitioned to become an arm of a system of global stakeholder capitalism. The people are simply not stakeholders in this system and the gloves are off for exploitation. Basically, we are all Africans now.

    • @adamiskandar5107
      @adamiskandar5107 2 дня назад +4

      I love the fact that you equate ordinary UK citizens to Africans. It should provoke people to rethink their priorities.

    • @MrDoyley35
      @MrDoyley35 2 дня назад +12

      I am rather concerned that you might be into something there! However, Africa is a very big place and some African countries are set to do a lot better than we are moving forward.

    • @downshift4503
      @downshift4503 2 дня назад +8

      I agree. To break that IMO requires a government to re-enforce its own control and stop pretending that it is at the mercy of financiers. It isn't. It can achieve that via its central bank or it can use existing process of gilts, but lower bases rates and require institutions to hold those gilts at certain ratios.

    • @jondarbyshire-s7k
      @jondarbyshire-s7k 2 дня назад +15

      Feudalism by another name

    • @timwoodger7896
      @timwoodger7896 2 дня назад

      @xueya2188 exactly 👍 we are being farmed by psychopaths that will ever see you as human beings but rather like cattle to be milked for every penny you can produce for them.

  • @peterteagleteagle9958
    @peterteagleteagle9958 2 дня назад +71

    Sold them for 1.6 billion, bought them back for 6 billion, good job we got people like these ,to look after our money!!!!!!!!!!

    • @ThatGuyThanus
      @ThatGuyThanus 2 дня назад +3

      We were also paying for the maintenance, on top of all the rent. This makes more financial sense than selling them ever did, and more than keeping the rental agreement..

    • @onandon-nq1zw
      @onandon-nq1zw 2 дня назад +7

      The full story to your comment is they were sold by the Tory government to private equity for £1.6 billion who, since 1996, have charged the government a total £6.5 billion in rent under that 1996 PFI contract. Simply closing down a very bad deal.

    • @billB101
      @billB101 2 дня назад

      @@onandon-nq1zw Now now, don't you go ruining a good echo chamber with facts.

    • @william_marshal
      @william_marshal 2 дня назад +2

      Take note ... Sold by the Tories for peanuts !!!

    • @damianbutterworth2434
      @damianbutterworth2434 2 дня назад

      @@onandon-nq1zw And Labour will fill them with illegal migrants so still a bad deal.

  • @shaunmiller7370
    @shaunmiller7370 2 дня назад +32

    I’m right with you Richard 45 years of privatisation has not and will not work. The country is poorer for it, but the powers to be still pursue this line just take water off wall which is a branch of the government has granted the water authorities to raise the bills to pay, and I don’t think it’s to pay for infrastructure projects ring fenced as I said, I think it’s to continuously pay high salaries to CEOs and shareholders. Instead of taking it all back in the house. Privatisation does not work and the proof is there.

    • @adamiskandar5107
      @adamiskandar5107 2 дня назад +1

      It could have worked but for the greed of Capitalists/politicians who thrive on the System which do not hold them accountable. Do we need a revolution to put an end to this?

    • @billB101
      @billB101 2 дня назад +8

      Blame Thatcher for this, she started the ball rolling.

    • @Darren-i1w
      @Darren-i1w 2 дня назад +2

      It wouldn't be any better if thengov owned everything, it would just cost more and still be a crap service

    • @thomaswikstrand8397
      @thomaswikstrand8397 2 дня назад +1

      ​@@adamiskandar5107it could never have worked. The very idea behind privatisation isn't for it to work, it is for the owning class to extract money from the working class.
      ...but as such it's been a roaring success.

    • @misscoutts6193
      @misscoutts6193 2 дня назад

      ​@@billB101the idea was they would have to make a profit if not nationalised. So they put prices up and closed things down making people jobless!

  • @stevefrith9924
    @stevefrith9924 2 дня назад +51

    Mrs Thatcher famously said "there is no government money". Truth is there is only government money. The government can change laws and produce the sovereign currency.

    • @CeriAnnwen
      @CeriAnnwen 2 дня назад

      There is no government money. What there is, is government wealth which brings power
      A pound is worthless to an American in france
      Get euros by selling car part manufacturering to france.
      A trade agreement with an american to give them euros in exchange for dollars is worthwhile

    • @physiocrat7143
      @physiocrat7143 2 дня назад

      Yes but it needs to pull that money back through tax. Because the tax system is fundamentally unfit for purpose, sterling has lost 98% of its value since 1950. Dishonest politicians have been listening to the advice of fools.

    • @stewatparkpark2933
      @stewatparkpark2933 2 дня назад +1

      All tax is derived from the private sector . Public sector jobs effectively pay no tax .

    • @rutessian
      @rutessian 2 дня назад +2

      There is no government money means the government doesn't produce anything, it only takes what private citizens and companies have produced and redistributes it. Money is a commodity used as an intermediary in most transactions which has alternative uses, currency is just a unit of account.

    • @fredforsythe8310
      @fredforsythe8310 2 дня назад

      It is money laundering from public to private pockets.

  • @CooperJames-b4x
    @CooperJames-b4x 2 дня назад +10

    We don't need told in Scotland how bad PFI is and it was Labour who forced it on us.

  • @philwoodfordjjj8928
    @philwoodfordjjj8928 2 дня назад +32

    Your argument and explanation is one that most sane people would agree with, unlike Lamont and Major who started this ripoff.

    • @GBPaddling
      @GBPaddling День назад

      Ken Clarke the chief Architect apparently 🤩

    • @philwoodfordjjj8928
      @philwoodfordjjj8928 День назад

      @GBPaddling
      Was he now, but it was Lamont and Major who put ppi into operation to keep spending off the books

  • @GlennLeinster
    @GlennLeinster 2 дня назад +34

    Great video Richard;-) The problem is we have Red Tories or Blue Tories both are the same shite

    • @GBPaddling
      @GBPaddling День назад +1

      Blue Labour, Red Tories seems more apt, they park their tanks on each other's lawns and laugh at the dumb Sheeple.

  • @martytrain
    @martytrain 2 дня назад +11

    Yes it stands out a mile, anyone can see the government can get money when ever they need it and waste it on things of no benefit to the public. You have explained the mechanics of how its achieved, great and easy to comprehend explanation, thanks.
    It will be back to business " we got to get the deficit down" and " we just put 6 billion aside for Ukraine " it all makes sense now.

    • @Zerpentsa6598
      @Zerpentsa6598 2 дня назад +1

      Labour just found over £20,000 a day in to pay for the new Labour peers' daily expenses claims.

  • @BarbaraMia60
    @BarbaraMia60 2 дня назад +91

    For the Newbie if you are actually trading in the crypto space and you don't have a sound mentor. Then you are certainly going to get liquidated in 90% of your trades. Yeah that's sad truth. I remember when i just got into crypto back in 2019 but later in 2020 i ended up selling it because i have lost alot trading all by myself without a guide. Got back into crypto early in 2024 with $20k and I'm up with $232k in a short period of time

    • @BarbaraMia60
      @BarbaraMia60 2 дня назад

      Anyone who's not in the financial market space right now is making a huge mistake. Simply get a coach and make your money work for you

    • @EnocksonFerrall
      @EnocksonFerrall 2 дня назад

      What opportunities are there in the market, and how do I profit from it?

    • @BarbaraMia60
      @BarbaraMia60 2 дня назад

      You can make a lot of money from the market regardless of whether it strengthens or crashes. The key is to be well positioned.

    • @Cynthiajoy2050
      @Cynthiajoy2050 2 дня назад +2

      Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $75k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.

    • @AvivaAgnes
      @AvivaAgnes 2 дня назад +1

      How can i reach this Tracy Britt Cool Consulting, I will like to benefit from her good work. How to reach her pls

  • @william_marshal
    @william_marshal 2 дня назад +16

    How come Labour can find money when it wants to?

    • @davideyres955
      @davideyres955 2 дня назад

      But in the video he stated they didn’t, they went to the city of London. Something that will cost us more in the long term.

    • @fiddley
      @fiddley 2 дня назад

      @@davideyres955 But they're making money by doing this: The cost associated with borrowing the money will be less than the money saved by bringing the houses back under government control.

    • @iseenochains-oops7863
      @iseenochains-oops7863 18 часов назад

      They don't need to print money when they pay a rental - stealing from the future.

  • @Retrogamer71
    @Retrogamer71 2 дня назад +4

    Across the board, contractors overcharge on public sector contracts. It's culpable fraud on both parties.

  • @ncooper8438
    @ncooper8438 2 дня назад +5

    They can always find money when they want to, especially for projects in London.

  • @willieckaslike
    @willieckaslike 2 дня назад +5

    Thank you for explaining this so concisely.

  • @Alex-cw3rz
    @Alex-cw3rz 2 дня назад +6

    This needs to be done in the NHS and in military for things like recruiting. For some baffling reason recruiting is done by a private firm and has not once hit it's target for the number of recruits. Simply because they take so lomg to process them more than half drop out of the process. Yet they make hundreds of millions a year for being failures

  • @shaunmiller7370
    @shaunmiller7370 2 дня назад +18

    Nicely done Richard nicely done. If only we could put this to them in a way they cannot wriggle away from it and they have to listen to the people and I would say listen to somebody like you

  • @johncopeland3826
    @johncopeland3826 2 дня назад +12

    How come all governments can always find money for wars ?

  • @robertgraham1088
    @robertgraham1088 2 дня назад +4

    Not only is government managed and owned cheaper because of lower interest rates as you state but also there is no need for profit as is required in the private sector. PFI stinks.

  • @chrisdavis6374
    @chrisdavis6374 2 дня назад +2

    It can create as much money as it needs it doesn’t need to find it we are no longer on the gold standard !!

  • @Mashedpotatoe1000
    @Mashedpotatoe1000 2 дня назад +4

    As you have been repeating many times, the government never has a black hole.

  • @stephendavis5530
    @stephendavis5530 2 дня назад +4

    I could scarcely believe it when Starmer said the quiet part out loud and actually BRAGGED about doing deals with Black Rock; one of the most notorious asset strippers on the planet. Rotten PFI and PPP deals have saddled NHS hospitals, schools and other public projects with billions of pounds worth of debt for years to come. Every one of these needs to be unwound. Will it cost a lot? Very likely, but it needs to be done! These deals are insanity. They're just a ruse to take public debt off the books to make the figures look good, but if these projects were done with public money in the first place, they would have worked out a helluva lot cheaper! Now we have hospitals drowning in debt because of dodgy PFI loans. As I understand it, once the loan is paid off, those that loaned the money effectively owns the hospital, school...whatever! Is that correct? I'm fairly sure it is. Neoliberals have such an aversion to the idea of public funding (at least they pretend to) they come to insane ideas like this.

  • @karlkerr7348
    @karlkerr7348 2 дня назад +16

    PFI, government contracts, rail franchises, etc its easy money 💰 for the corporate donating classes

  • @rogerrees2361
    @rogerrees2361 2 дня назад +3

    Excellent as always Richard.

  • @taipizzalord4463
    @taipizzalord4463 3 дня назад +13

    So the government can spend an unlimited amount of money... If only that was taken to its logical conclusion.

    • @cpcnw
      @cpcnw 2 дня назад

      I don't think so. But not for the reason you think. It can't do that because it's bad PR. The curtain would be drawn back and the whole truth of the matter would be exposed. The route to that end has to be circuitous and obfuscating so that 'normal' people do not realise what's going on. Especially because the vast majority of people think governments run economies like their own household budget. So, every time the government said "there's no magic money tree" - it was actually lying. Not only is it magic but it's the greatest illusion on earth. Problem is all economies rely on energy. And we are using up the earths resources faster and faster. In fact we are in overshoot. See "Staving Off the Coming Global Collapse"

    • @downshift4503
      @downshift4503 2 дня назад

      they can only use that £ to buy things that are for sale.

    • @taipizzalord4463
      @taipizzalord4463 2 дня назад +3

      @downshift4503 Exactly meaning they can buy all idle labour. So the rate of unemployment is a policy choice. As the British government can buy anything for sale in its own currency. Which is a lot contrary to what you imply with the word only.

    • @downshift4503
      @downshift4503 2 дня назад +1

      @@taipizzalord4463 I agree, but I am sympathetic that the available skilled labour might not be available to achieve their goals. You probably saw recently published how many builders, roofers, etc are required in order for this (I assume) council house building target to be met. The answer is right in front of the governments nose. Housebuilders have already built houses for sale. It doesn't need to compete against the house builders for resources. If the priority is social housing then buy the new build houses that are for sale and rent them out. It can even implement long term "right to buy" if it continues the exercise and drip feed new properties into the private sector via the public sector.

    • @adamiskandar5107
      @adamiskandar5107 2 дня назад +3

      The real truth is what sort of government you wish for. The one that is accountable to the people or the one protecting the rich elites?

  • @roymillsjnr5172
    @roymillsjnr5172 2 дня назад +14

    Because they will have friends in certain institutions doing the work , is my guess , and a little bit of cake may fall off the table .

  • @Tom_Hadler
    @Tom_Hadler 2 дня назад +3

    One can always find any amount necessary when one has a fiat currency system and can create one's own money.
    The cost is borne elsewhere in the system, almost completely unseen.

  • @chilli2043
    @chilli2043 2 дня назад +4

    The original deal was struck in 1996 when the Conservative government sold 55,000 houses for an average of £27,000 per property. The MOD then rented them back in a bid to save money. The 1996 deal is estimated to have cost taxpayers £7.8b with many houses in unliveable conditions. The Conservatives started the buy back process in 2022, labour are just finishing the deal. It will actually save money by not having to pay rent to a private foreign company and will allow housing standards to be raised.

    • @peterjones7303
      @peterjones7303 2 дня назад

      So what your saying is Labour will claim credit for something the tories did and knock a big hole in there claim to have created one and a half million homes in five year

    • @mw01908
      @mw01908 2 дня назад

      selling houses at the bottom of the market, major was as bad as the gordon brown bottom in gold

  • @MartinJG100
    @MartinJG100 2 дня назад +2

    For exactly the same reason politicians can find money when they need to spend it.

  • @DavidFord14
    @DavidFord14 2 дня назад +6

    that money isn't for the people it's for the riches war.

  • @xlp3t3r
    @xlp3t3r 2 дня назад +27

    Could have done this for the WASPI women!

    • @Darren-i1w
      @Darren-i1w 2 дня назад +4

      Why, they was given enough notice,

    • @wildberrygarden
      @wildberrygarden 2 дня назад

      Exactly what I thought...

    • @Orlok1970
      @Orlok1970 2 дня назад

      @@xlp3t3r exactly

    • @MrDryfield
      @MrDryfield 2 дня назад

      ​@@Darren-i1w Then why did Rachel Reeves campaign to do exactly that?

    • @MagicSecretsandMysteries
      @MagicSecretsandMysteries 2 дня назад

      I'm sorry but you can expect labor to undo every injustice commited within this country given they only have a limited budget. They'll try and deliver on their current manifesto and campaign promises and when they run again in the next election cycle they can deliver justice for waspi women.
      Its weird how everyone expects labor to do the impossible with f**k-all finances (especially given they started with 22 billions less that what's they expected). You were complicit when the tories pillaged the country but now act smug when Labour are actually trying to scrape things together

  • @MrDryfield
    @MrDryfield 2 дня назад +3

    They can always go to the City, but what happens when the City loses confidence? Wasnt this the situation in Spain, Greece & Italy and Germany had to bail the whole lot out because the Money Markets said No?

  • @sibutterworth6542
    @sibutterworth6542 2 дня назад +15

    The crime syndicate works in mysterious ways.

  • @leeevans1874
    @leeevans1874 2 дня назад +4

    Becuase politics is full of cronies ? Eg 32 billion track and trace .

  • @ianotimelord
    @ianotimelord 2 дня назад +2

    Yet Wes Streeting said he wants more PFI in the health service.

  • @illomens2766
    @illomens2766 2 дня назад +9

    They always find money when it comes to funding foreign wars

    • @sidsod1616
      @sidsod1616 2 дня назад

      Funding foreigners full stop.

  • @Durnyful
    @Durnyful 2 дня назад +2

    PFI made chaps in the City very rich

  • @JM-jd7yp
    @JM-jd7yp 2 дня назад +8

    If an individual did a deal like that they wouldn't be accused of incompetence they would be accused of corruption.

    • @JibbaJabber
      @JibbaJabber 2 дня назад +2

      Yep. That's exactly what it is: a Kleptocracy!!

  • @paulcliffe8168
    @paulcliffe8168 3 дня назад +11

    I'm sure these will be converted into temporary migration accommodation in quick succession.

    • @Matttski
      @Matttski 2 дня назад +1

      If only people didn’t vote against Brit interests in 2016 we would still be part of a particular group of countries where we wouldn’t have a problem sending those people back to France

    • @tinaj8649
      @tinaj8649 2 дня назад +1

      My thoughts as well

    • @user-qg2bt2qt9l
      @user-qg2bt2qt9l 2 дня назад

      Presumably the City would not have loaned on the building program in Rwanda so this will be cheaper ?

  • @MarciaWilliams-g1d
    @MarciaWilliams-g1d 2 дня назад +2

    Why do journalists not challenge this? Or are they mostly all financially illiterate? Thank you for explaining so clearly.

  • @simchalebovitch6944
    @simchalebovitch6944 День назад

    Thank you, for putting it so clearly.

  • @Tulkash01
    @Tulkash01 2 дня назад +2

    The government always finds a way to help rich people

  • @CHAMUNGER
    @CHAMUNGER 2 дня назад +3

    They take it from their £22Billion Stash!!!!!

  • @caljim01
    @caljim01 19 часов назад

    I worked in Queens Dock, a Government building built by the government at tax payers expense, on a prime river front location. They then SOLD the building and rented it. Eventually HMRC were kicked out of it and it was turned into Riverside apartments.

  • @d1nonlytimcouk
    @d1nonlytimcouk 13 часов назад

    Way back in time I was part of a group being consulted about the proposed PFI deal for the QEHB and we were invited to a presentation at Warwick Uni to have PFI explained to us. The main reason we were given for PFI was to keep the spending off the public borrowing requirement. Taking it off one pot and putting it in another. At the end of the day I was asked what do I think of PFI? I replied it is like paying your mortgage with a credit card. Meaning, just as you point out here, paying a lower cost loan with a more expensive one.
    I heard this repeated back to me on a TV discussion on PFI when I had never heard it before then.
    PFI is and never will be a good way to finance anything.

  • @caljim01
    @caljim01 19 часов назад

    They can ALWAYS find money when they want to. Just NOT for their people - and definitely never for pensioners.

  • @marionmclean185
    @marionmclean185 2 дня назад +1

    To add insult to injury, the MOD will spend vast sums of money for the supposed upkeep of the properties. The MOD knows how to waste vast sums of money!

  • @drscopeify
    @drscopeify 2 дня назад +1

    The reason this 6 billion was possible is because it is backed by the value of the assets purchased. That is a problem of services vs asset. They could use this to buy other assets like rail networks, power companies and so on.

  • @martinholmes-ue9ko
    @martinholmes-ue9ko 2 дня назад +3

    I found 50p down the back of my sofa once.

  • @graemethompson3169
    @graemethompson3169 2 дня назад +4

    Brilliant video. It would be great if the wider population were provided this information in this format. Keep going 👍

  • @alanrumble7238
    @alanrumble7238 День назад

    Well said Richard. I have always said that PFI's are dearer than the government financing projects itself.

  • @januszdelondres
    @januszdelondres 2 дня назад +2

    what about the pfi schools and hospitals, championed by new "labour"?

  • @renatab8293
    @renatab8293 2 дня назад +1

    You are close to the core issue in politics - almost nobody, nobody, knows what money actually is. And if you can't define money, you cannot understand politics. Every time the government says there is no money, it is lying, tricking people into believing money is a resource (it is not) or that a country´s economy is comparable to a household economy (it is not).

  • @chriswilliamson9892
    @chriswilliamson9892 2 дня назад +1

    PFI is indeed bad vfm, although the alternative isn't necessarily "govt borrowing". Govt can engage overt monetary financing because it issues the currency. "Borrowing" is a misnomer because they're simply selling bonds, that can easily be redeemed via a few key strokes on a treasury computer. It's really a form of corporate welfare.

  • @simonroberts9759
    @simonroberts9759 2 дня назад +2

    Follow the money and you will find the answer.

  • @James-tv4pl
    @James-tv4pl 2 дня назад +1

    You've completely missed the obvious point here. The government changed borrowing rules in the budget to include assets as well as liabilities in their calculations. This deal increases government assets while reducing liabilities, so it's actually a net gain in the government's books. That's why their spending rules allow them to open up this £6bn. If they were to spend that £6bn reducing child poverty, they would not increase their assets, but they would take on £6bn of liabilities, making it a net loss for the government under their new rules

    • @RichardJMurphy
      @RichardJMurphy  2 дня назад

      I missed nothing. That was not talked about. And changikng the rule also changed nothing. In itself it just created excuses. I was talking about substance.

    • @Godswill_Akin
      @Godswill_Akin 2 дня назад

      Do you consider investing in your children when they are young and can't take care of themselves a liability in the long run?

    • @downshift4503
      @downshift4503 2 дня назад +1

      The government can create any rules it likes to pretend it has private sector constraints, which it doesn't.

  • @xtc2v
    @xtc2v 2 дня назад +1

    I cannot understand why Labour are going in for PFI and worse its with the most cut throat of American businesses!

  • @hotandsweaty6057
    @hotandsweaty6057 День назад

    What HM Govt has failed to address, is who is going to occupy the newly purchased properties, as if we didn't already know.

  • @TwinPotMan
    @TwinPotMan 2 дня назад +1

    I should imagine that because of the scale of this buy back and borrowing, this whole deal has been in-train for some considerable time and probably before Labour came back into power.

    • @Darren-i1w
      @Darren-i1w 2 дня назад

      Thats doesnt matter its all labours fault, everything is labours fault now, when the tories get back in, it will be there fault

    • @lat1419
      @lat1419 2 дня назад +1

      So was Waspi compensation, and todays scandal the blood products compensation.

  • @dugandav1
    @dugandav1 18 часов назад

    They should never had let these properties into the private sector, shocking waste of money

  • @patrickdegenaar9495
    @patrickdegenaar9495 День назад

    There is a difference between one off investments such as buying our PFI contracts and day to day spending such as child benefits.
    But I fully agree about PFI. It is like putting a mortgage on the credit card - utterly nuts.

  • @doreensoutar5130
    @doreensoutar5130 2 дня назад +1

    Moreover, who is going to fill these houses, and what inferences can be drawn by the comparison between pensioners and military personnel?

    • @CuriousCrow-mp4cx
      @CuriousCrow-mp4cx 2 дня назад

      The Winter Fuel Allowance was not allocated efficiently or effectively. Efficient use of tax receipts doesn't give money to those who don't need it. So any government should ascertain a civilised standard of living for pensioners and people on benefits, and those who are above that standard should not get it. The problem is that the government standard of living for pensioners is too low. And that's an inherited problem, that can't be fixed anytime soon. The Cost of Living in the UK is going up strongly, and pensioners are not all loaded, but some are. And it unfair just to discribute limited funds willy-nilly. The basic living needs for pensioners needs to be addressed in a way that is clear and understandable. Nobody understands pensions at all. That's why the winter fuel allowance was poliiticised and paid as a bribe, but a serious number of pensioners were still needing to choose between heating or eating, whilst those who didn't need it, were getting it anyway. That should not be the case. That the state pension is still to low to live on, is another inherited situation, and pension Credit is still too low. That's the real issue, and for that you can blame a long line of givernment back to Thatcher who fiddled the National Insurance Fund and broke the link with wages. Google 'The Rape of The National Insurance Fund" by the late Tony Lines, and you'll see why pensions and the NHS ended up being squeezed for cash. The report is still online, and it ties into the Waspi Women as well. And the amount lost if adjusted for inflation are eye-watering. The fact is, the problem is too big now for any quick and easy fix, and it's only going to get worse. Political opportunism is only possible where people don't know what's really happened over nearly 5 decades. And labour can't fix it, because the accumulative problems has wrecked the potential for real growth in the UK.

    • @doreensoutar5130
      @doreensoutar5130 2 дня назад

      @CuriousCrow-mp4cx perhaps a little precis would have sufficed...and would have been improved by addressing the question I posed. I will rephrase to see if you catch my drift.
      You granny doesn't charge your mum to look after you.
      Your mum doesn't have to pay a commercial nursery.
      The government benefits bill goes down accordingly.
      With me so far?
      Now, you won't hear that any more than you will hear that your mum was the person putting in the hard labour on your birthday, or that she was Santa.
      The expectation that women will sacrifice their time and effort without thanks is endemic.
      You couldn't afford to pay a granny the hours she has dedicated to get a grandchild, so it is ignored.
      Until now.
      Whilst the money is given to house their grandchildren destined to be used as cannon fodder.
      Five decades my arse.
      Men have been at this patriarchy lark for thousands of years.
      Tickety tock.
      Gen X is retiring.

  • @user-qg2bt2qt9l
    @user-qg2bt2qt9l 2 дня назад +2

    Great video and discussion. Just wondering if there’s a risk reward factor in borrowing too much from the city to mitigate against the government having to print more money to honour its debts which could presumably lead to the value of the pound falling ? Or is it the city are happy to lend against tangible assets like property but not so keen on none tangible assets like winter fuel allowance etc ?

  • @stevelongden7368
    @stevelongden7368 2 дня назад +2

    When I was a young man back in the early 80’s I worked for The Midland Bank, I seem to remember that they lent a lot of money to African and South American governments on the basis that they would always be able to repay the debts, by raising taxes if necessary. It turned out you can only squeeze people so far before they overthrow their governments and default on said debts. One of the main reasons there is no longer a Midland Bank.

    • @downshift4503
      @downshift4503 2 дня назад

      problem there is that those countries are likely borrowing something that they can't create. Not the same here in the UK, USA etc.

    • @stevelongden7368
      @stevelongden7368 2 дня назад

      @ yeah, as I remember (it was a long time ago), they had to repay in Sterling or Dollars so they couldn’t just print that, as I stated the prevailing economic theory at the time was all governments could always increase taxes if necessary. Perhaps there is a moral to this story that our Government should listen to.

    • @downshift4503
      @downshift4503 2 дня назад

      @@stevelongden7368 "The Financial Curse" is an interesting read and I recall covered the Midland Bank of that era. Sounds like you have first hand experience of it.

    • @stevelongden7368
      @stevelongden7368 2 дня назад

      @ unfortunately yes, they also bought an American bank (Crocker?) without seemingly doing any due diligence and it turned into a money pit that they had to sell at a massive loss not long after. The sale to HSBC soon followed

  • @cupra2Jock.
    @cupra2Jock. День назад

    Free free the British people from this 2 straight decades of mess.

  • @Nailnuke
    @Nailnuke 2 дня назад +13

    Because he/they are corrupt

  • @brucehulmes
    @brucehulmes 2 дня назад +1

    Gordon Brown should not have used PFI but he did lots of times.

  • @sextonblake4258
    @sextonblake4258 2 дня назад

    They haven't ended the 2 child cap because people should pay for the children they can afford.
    NOT the children they expect the rest of us to pay for.

  • @Sharpcarbon6
    @Sharpcarbon6 День назад

    Labour are an absolute disgrace!
    Join Reform UK
    Vote Reform UK
    Sign the Four major Petitions!!
    👍🇬🇧🇬🇧🇬🇧

    • @alex.velasco
      @alex.velasco День назад

      Look there! Is that a rubber dinghy full of brown-skinned people?

  • @timothyrussell4445
    @timothyrussell4445 2 дня назад +1

    Great question, but don't forget about all those freebies given to Starmer and his team; neither the BoE nor the City could compete with that.

  • @TechnoMagi-h4r
    @TechnoMagi-h4r 23 часа назад

    £69 billion for Council Reset £59 billion for the national Grid ..a further £300 million to repair pot holes in the roads ...where is all coming from?

  • @barbarapalmer1404
    @barbarapalmer1404 2 дня назад

    Great questions!
    As a forces child, my family lived in a series of RAF houses throughout all my childhood, most on which were in not very good nick. The government did not manage to find the money or the desire to make good.
    Similar with the trains and the utilities.
    Why now privatise Royal Mail, while taking rail companies back into Government control - far more people use the post than can use trains.

    • @misscoutts6193
      @misscoutts6193 2 дня назад

      Railways are part of a wartime infrastructure.

    • @CuriousCrow-mp4cx
      @CuriousCrow-mp4cx 2 дня назад

      Sorry, but where have you been for the las13 years? Royal Mail was privatised in 2011,under the Coalition Government of the Cons and the Lib Dems. Vince Cable, has a lot to answer for.

  • @Ultronmclovin
    @Ultronmclovin 2 дня назад

    Because they tell the bank to print it , why do you think inflation is so high ? The only factor that raises inflation is government spending which lessens the value of pound …in so raising prices and receiving less

  • @nheather
    @nheather 22 часа назад

    One problem is that the government doesn’t have the experience, expertise or skills to do the jobs (like maintaining buildings). So what they will do is to buy the buildings back off the PFI company saying “we can do it cheaper ourselves”, then they will look around their resources and discover that they don’t have any crown servants to do the maintenance and don’t want to recruit any more, so they will then set up a competition inviting private companies to do maintenance. So all that this will achieve in the end is the continuation of the rip-off but in a different way under different contracts.

  • @MyMyian
    @MyMyian 22 часа назад

    You omit to consider the effect of efficiency driven by the motivation for profit and the inefficiency once it is publicly owned! Also there is not a single PFI type of contract, as with all contracts there are good and bad versions written and administered.

  • @michaelrch
    @michaelrch 2 дня назад +2

    Excellent video. I would love to see you on Navarra media or Owen Jones's channel. Your content would be really useful in educating those audience.

  • @victorvasylenko
    @victorvasylenko 2 дня назад

    PFI is privatization for rentiers and conveniently does away with overheads and capital outlay, or, privatization of profits, nationalization of costs.

  • @safirahmed
    @safirahmed 2 дня назад

    PFI Schemes are the equivalent of taking out a mortgage to buy a single meal.
    PFI Schemes need to scrapped with existing PFI Schemes converted to design, cost and build only with maintenance, running the buildings and ownership transferred to the public sector.

  • @cpcnw
    @cpcnw 2 дня назад +6

    UK National Debt in 1998 [Brown] £350Bn by 2020 [Sunak] £2.10Tn - it's accelerated under all Tory chancellors. Tories always borrow more and pay back less. In 1997 Labour inherited a deficit of 3.9% of GDP (not a balanced budget) and by 2008 it had fallen to 2.1% nearly 50% reduction. The Tories last administration increased the national debt more than every Labour government combined. What is also conveniently forgotten is that Labour ran a surplus between 1998-2002 an achievement almost unparalleled in modern history in the UK.

    • @helenheenan3447
      @helenheenan3447 2 дня назад +2

      But the government doesn't need to balance the books, and certainly doesn't need a surplus.

    • @cpcnw
      @cpcnw 2 дня назад +1

      @@helenheenan3447 Where did I say it *needed to* ?

    • @cpcnw
      @cpcnw 2 дня назад +2

      @@helenheenan3447 My point is that there is a popular misconception that the Tories are good for business. Only if you are in their club.

    • @william_marshal
      @william_marshal 2 дня назад +3

      People have short memories, you willl always pay more tax when the Tories are in power, don't swallow the tory propaganda that Labour are the party of high taxes !!!

  • @Focal_Paradox
    @Focal_Paradox 17 часов назад

    In my very early twenties I learnt the important lessons.
    #1. Don't live on credit.
    #2. Treat people the way you want to be treated.
    #3. You can forgive a person you know for a transgression against you, once and only once. Everyone else had best behave, or else.
    #4. Never get involved in a land war in Asia.
    #5. Never go in against a Sicilian when death is on the line.

  • @piccalillipit9211
    @piccalillipit9211 2 дня назад +1

    *BAN PRIVATE LANDLORDS* do exactly the same with every privately rented house over the next 10 years...!!! Freez rents and let the money go INTO the economy and not INTO the bank accounts of PE and wealthy pensioners...!!!

  • @JacVobar
    @JacVobar 2 дня назад +2

    It was borrowing that was seen as unsustainable that made investors nervous causing the pound to crash that brought the Truss government down. Perhaps Starmer sees this as a necessary evil and are holding back from borrowing in order to prevent a similar outcome. After all, if the Tories gets back in, they're just going to sell assets off again. Is what I think.

  • @dddddbbb
    @dddddbbb 2 дня назад

    Borrowing to invest vs borrowing to spend. If it is one off costs it is much more sensible than costs that will occur every year.

  • @davideyres955
    @davideyres955 2 дня назад

    They long term borrowing cost for the UK is now above what Liz Truss’s budget caused (plus the Bank of Englands actions)

  • @jurgensplurgen8972
    @jurgensplurgen8972 17 часов назад

    Private sector should be nowhere near public services. They are poor value for money with low quality outcomes.

  • @truthseeker5911
    @truthseeker5911 2 дня назад

    Richard makes it sound as though the financial markets are financing the governments spending but that is not what happens at all when the government borrows. Borrowing is only an accounting procedure inside the Bank of England. The government cannot borrow back its own currency and then spend it again, it always has to spend new currency.

  • @elizabethyneztulsen
    @elizabethyneztulsen 2 дня назад

    Will that be them buying back the MoD houses they flogged off cheap ten years ago for a vastly inflated price? I wonder who sits on those boards. Follow the money.

  • @QuazMyster
    @QuazMyster 2 дня назад

    Rachel Reeves has been quite clear that borrowing is reserved for investment and that taxes should pay for ongoing costs. If you borrow x billion this year to pay for things like the winter fuel allowance, you will need to borrow that every year, while still paying back last year's loan. Now the houses have the been bought, they don't need to be bought again, and the proposed savings for owning them directly will be offset against the cost of the loan repayment (in principle anyway, I am sure its all a lot more complicated.)

  • @raymooney-k4t
    @raymooney-k4t 2 дня назад

    Excellent clarity of message , now it would be very interesting to put actual names with these deals , you have named the defence minister who has done a sensible thing and we know Starmer comes over all giggling girl when dealing with Blackrock etc . When ghoul’s like Mandelshon get yet another chance to knoble the UK , I think how masochistic can the British people be. Keep up the important work.

  • @June-d3c
    @June-d3c 21 час назад

    It's because they just say any old thing when asked about budgeting- 22 billion black hole, 200 billion black hole, 2 trillion black hole

  • @spotontheroad1
    @spotontheroad1 22 часа назад

    If we had any investigative reporters left with a shred of integrity, they would be all over this. They would also be asking why the Chagos Islands deal was so important to Labour, so soon after gaining power when there were so many more important problems to address. There is a whiff of rodent rising in the Indian Ocean. Come on ICIJ pull your fingers out.

  • @gordonmackenzie4512
    @gordonmackenzie4512 2 дня назад

    The Skye Bridge was a ridiculous PFI contract. £5.20 to cross each way until the Scottish Government came along and bought it from Bank of America.