In Britain, Austerity Is Changing Everything

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Local governments have suffered a roughly one-fifth plunge in revenue since 2010, after adding taxes they collect, according to the Institute for Fiscal Studies in London.

Nationally, spending on police forces has dropped 17 percent since 2010, while the number of police officers has dropped 14 percent, according to an analysis by the Institute for Government. Spending on road maintenance has shrunk more than one-fourth, while support for libraries has fallen nearly a third.

The national court system has eliminated nearly a third of its staff. Spending on prisons has plunged more than a fifth, with violent assaults on prison guards more than doubling. The number of elderly people receiving government-furnished care that enables them to remain in their homes has fallen by roughly a quarter.

In an alternate reality, this nasty stretch of history might now be ending. Austerity measures were imposed in the name of eliminating budget deficits, and last year Britain finally produced a modest budget surplus.

But the reality at hand is dominated by worries that Britain’s pending departure from the European Union — Brexit, as it is known — will depress growth for years to come. Though every major economy on earth has been expanding lately, Britain’s barely grew during the first three months of 2018. The unemployment rate sits just above 4 percent — its lowest level since 1975 — yet most wages remain lower than a decade ago, after accounting for rising prices.

In the blue-collar reaches of northern England, in places like Liverpool, modern history tends to be told in the cadence of lamentation, as the story of one indignity after another. In these communities, Mrs. Thatcher’s name is an epithet, and austerity is the latest villain: London bankers concocted a financial crisis, multiplying their wealth through reckless gambling; then London politicians used budget deficits as an excuse to cut spending on the poor while handing tax cuts to corporations. Robin Hood, reversed.

“It’s clearly an attack on our class,” says Dave Kelly, a retired bricklayer in the town of Kirkby, on the outskirts of Liverpool, where many factories sit empty, broken monuments to another age. “It’s an attack on who we are. The whole fabric of society is breaking down.”



Source : Nytimes