Cameron on Inequality

John Rentoul

gini e1383752583311 Cameron on InequalityI have a comment on Prime Minister’s Questions at Independent Voices, which I repeat here so that you can see the graph, of inequality, as measured by the Gini coefficient, from 1977 to 2011/12.

Cameron made a good defence of the Government’s record, for once. He was ably assisted by four supporters: Ed Miliband; John Cryer, the Labour MP for Leyton; David Winnick, the Labour MP for Walsall North; and John Bercow, the Speaker.

The Labour leader asked all his six questions about the NHS, a sure sign that he was on weak ground. It was noted, silently, that he didn’t ask about the shipbuilding redundancies in Portsmouth. Jobs ought to be a Labour subject, but he chose the safety of the national religion.

However, his line of questioning was so formulaic that it had almost no effect, and Cameron, who was well briefed, held his own. I counted the clichés out and I counted them back in again. Miliband said that Cameron’s attitude was, “Crisis? What crisis?” He said Cameron was “out of touch” and he concluded with a flourish by saying that the NHS was “not safe in his hands”.

Cameron waited until after Miliband had finished and could not respond before he hit him with the Falkirk selection. The Prime Minister said that the leader of the opposition was “like the mayor of a Sicilian town: ‘They put me in and I don’t want them to take me out.’”

When John Cryer asked if the Prime Minister were damning people who were proud to be members of trade unions, Cameron easily paid his respects to trade union members before saying how sorry he was that they were “led so badly by bully boys”, and accusing United of intimidating not just witnesses in Falkirk but the leader of the opposition.

At this point the Speaker decided to intervene yet again. Previously he had interrupted the Prime Minister to tell the backbenches off for making too much noise (I get “bucketfuls of letters” from the public about it, he said). This time he told asked Cameron to “remember the essence of the question”.

So when David Winnick asked if the unfairnesses inflicted on a cowed and impoverished nation were what our forebears fought the Second World War for, Cameron replied with a long recitation of what his Government had done for the poor, pausing only to say, “I’m keen to answer the question, Mr Speaker.”

The most startling of the Prime Minister’s claims was that inequality is at its lowest level since 1986. This is absolutely true, as regular readers of this blog will know, and was published by the independent Office for National Statistics in its “The Effect of Taxes and Benefits on Household Income” in July (see graph: the lower the Gini coefficent, the more equal the incomes). Disposable income was more equally distributed in the UK in 2011/12 than at any time since the great increase in inequality under Margaret Thatcher.

When Cameron went on to proclaim “pay day lending regulated for the first time”, which is less true, the Labour benches squawked with indignation, but one suspected self-doubt.

Update: As usual, people find the figures on inequality hard to believe. Some ask, what about inequality of wealth, rather than incomes? There is no evidence that the pattern is very different, as I have written before. Others suggest that the dip is a temporary result of either the recession or Gordon Brown and that the Conservative-led government will grind the faces of the poor from now on. The Institute for Fiscal Studies estimates that inequality will rise again until 2015/16, but that it will still be lower then than before the recession began in 2008. So incomes will be more equal under this government than they were under Labour 1997-2010, but also than under late Thatcher and John Major.

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  • chrishaines47

    There are folks with no electricity in England Mr Rentoul. Not in 1947, not in 1973 but NOW.

  • greggf

    Actually chris, when I lived in Northumberland in the 1990s that was true, but because there were no overhead lines to some farms and dwellings.

  • greggf

    “The most startling of the Prime Minister’s claims was that inequality is at its lowest level since 1986. This is absolutely true…..”

    Nevertheless JR, I fear we are going to import the sentiment just elected in New York and the better off are going to be more taxed.

  • chrishaines47

    When I lived in Belfast 2003 it was true. Poverty. It still exists but La Rentoul does not acknowledge just how crap ZaNuLabour and Camergoon are.

  • porkfright

    “Let them eat cake”, Eh, Mr. Cameron? Oh-and “Lies, damned lies-and statistics”.

  • reformist lickspittle

    This “most equal since 1986″ stat is, quite literally, unbelievable.

    That is why it will not have the effect JR expects (hopes?)

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  • JohnJustice

    Sorry JR but can you explain how Cameron “made a good defence of the government record” by answering questions about the NHS with a dig about the Falkirk selection?

  • Pacificweather

    John, I new you do not understands arithmetic but I didn’t realise your reading skills were impaired. The ONS says:-

    “The late 1980s saw some of the fastest rates of growth of original income during the last 50 years with growth averaging 5.8% per year between 1984 and 1990. There was then another period of stagnation which coincided with the early 1990s recession before income grew strongly again, at an average rate of 5.2%, between 1995/96 and 2001/02. The early to mid 2000s saw a reduction in income growth with an average rate between 2001/02 and 2006/07 of 1.4% per year. Since then, original income has declined at an average rate of 2.1% per year.”

    Simple arithmetic will tell you that the effect of 2.1% decline year on year since 2006/7 with have had a greater impact on the poor than the rich. These figures are only income. The poor are also more impacted by inflation than the rich. Learn to understand what your read before you publish.

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