Category Archives: Economic

Economic, Government, Health, Society

IT systems in the NHS are pitifully weak. It must get on top of cyber-crime

RANSOMWARE

Ransomware

The message that appears if encryption occurs.

Two days ago, the NHS was hit by a major cyber-attack using ransomware. Computer screens suddenly announced that files and data were unavailable unless the user paid a fee. In some Health Board Trusts, phones stopped working, too; patients were advised not to go to A&E, and the full effect of this attack will not be known until this week when many employees may find that their computers will not function. The virus is worming its way through networks that could yet reap much more havoc. While state organisations like the NHS have many questions to answer, including the pitiful support they have given to their IT systems – including the running of out-of-support Windows XP systems – holding the nation’s healthcare hostage in this way is an unconscionable criminal act. It is also a wake-up call to the British state. Our newfound reliance upon electronic communications leaves the country vulnerable to extortion.

Of course, it is important to keep pace with technological change, especially if it promises to save money and streamline record keeping. But putting so many eggs in one basket does incur risk – and there have been many warnings before now that the NHS is struggling to keep things in good order. Last month, Barts Health, England’s largest trust, had to cancel at least 136 operations and “hundreds” of chemotherapy sessions after its IT systems went down; it also suffered a ransomware attack in January. It is feared that some trusts are continuing to use outdated software that might be more exposed to attack.

This is why patients have often expressed nervousness about the reliance upon NHS databases, particularly the notion of a national one. No matter how many assurances are made to the public that such arrangements are airtight, the criminals always seem to find a way to get in. The solution is obviously to tighten security; equally it is imperative that users take care – a system is only as strong as its most fallible point. Either way, it is now up to the security services to act and act fast. Cyber-crime – which has previously hit companies such as TalkTalk – costs the economy billions and puts lives at risk. The Government has to get on top of it. It has failed in its duty of care by taking necessary measures in protecting the most sensitive of information.

Standard
Britain, Economic, Government, Politics, Society

Tax policy and the hidden truths

BRITAIN

Tax Return

For various reasons it has suited both the Labour and Conservative parties not to have tax policy turned into a central issue in the election campaign.

Under a Labour government led by Jeremy Corbyn a significant rise in public spending would be envisaged. The party leadership, too, has made no secret of its intention to raise taxes on the better-off – on those, as the saying goes, ‘who have the broader shoulders’. But, the definition of broad shoulder has, for some time now, been left conveniently undefined, while the resort to higher borrowing, the mantra of any socialist party, is unlikely to assuage voters after the calamitous borrowing and debt of recent years that has necessitated such a lengthy period of austerity and spending constraint.

The Conservative Party have also been markedly reluctant to be drawn into the discussion on tax, having long symbolised itself as the party of low tax. While it may claim to have lower spending commitments than Labour this does not necessarily mean that taxes will not rise. Chancellor Philip Hammond, for one, has made known his desire for greater financial flexibility and for the party to drop the ‘tax lock’ pledge. Ultimately, this begs the question of what Conservative tax policy is now.

Policies of taxation are especially sensitive at this point in time given the background of a slowing economy and forecasts of a deepening downturn. There have been signs over the last few days that the election battle – largely focused till now on the personalities of the respective leaders – is swinging back towards more practical and tangible issues.

Both parties have pledged not to increase the 20 per cent rate of VAT until 2022. As matters stand, though, the total tax burden is set to rise to its highest level in 30 years – even were the tax lock to stay in place. The March Budget stipulated that the tax burden will rise to 37.2 per cent of national income by 2019-20. And with overall government debt approaching 90 per cent of national income, voters deserve more informative answers on future tax policy than the rhetoric currently on offer.

The likelihood is that continuing low growth for the foreseeable future and a worryingly high level of government debt will act as a powerful restraint for whoever wins the election: any increase in government spending will have to be found from improved productivity and efficiency gains. That is not a particularly comfortable message to portray for any party aspiring to be the next government. It is, however, an unavoidable truth whatever the political rhetoric may claim.

Standard
Britain, Economic, European Union, Government, Politics, Society, Terrorism, United States

2017 will be a year of major challenges

CHALLENGES, RISKS & CHANGE

Intro: There is a sense that the unglamorous hard grind will start to bear down on the detailed practicalities of change during 2017

Following the shocks and political reverberations of 2016 it should come as no surprise that relatively few have jumped forth with confident predictions for the year ahead. Yet apprehension over the future is high as the effects of the past 12 months crystallise in the weeks and months ahead.

Identifying the reasons as to why many are fearful will not be difficult. Nonetheless, buoyant financial markets in both America and the UK over the last few days have seen record highs. Businesses are sensing opportunities under a Trump administration that is pledging a boost to federal government spending on infrastructure as well as a major overhaul to the tax code in the United States. This is likely to lead to tax cuts for households and firms alike. Here in the UK, estimates for third-quarter growth have been revised up to 0.6 per cent on quarter, while household and consumer spending has been boosted by high employment and a relatively modest growth in real incomes. Hitherto, while a notable slowdown is expected over 2017, the dire predictions of economic recession in the wake of the EU referendum vote have proved overly pessimistic and we are starting the New Year from a much firmer base than many had predicted.

But major uncertainty persists over Brexit. The calls by the Scottish Government for Scotland to remain in the Single Market, and the issue as to whether beneficial trading relationships can be established with other EU countries, are clear examples of the muddle and disarray. Whilst lack of detail is frustrating, there is a notable mood across the business world to make the best of our situation and by getting on with the job. The depreciation and fall in the value of sterling offers opportunities for UK firms to boost exports and for many firms in the food and drink sector to build a presence in overseas markets. In Scotland, our tourism and events sector, spanning hotels, hospitality and conference catering, stands to benefit.

There is a sense that the unglamorous hard grind will start to bear down on the detailed practicalities of change during 2017. The focus is likely to be upon legislative changes. However, we also face an elevated degree of geo-political risk. Recent terrorist attacks across Europe and elsewhere are indicative of the challenges facing government and the intelligence agencies.

Barbaric attacks such as those in Istanbul cannot but heighten tensions across Europe. Adding further to security precautions in many European capitals, the woes and fears that governments have across Europe for their people is becoming distinctly palpable.

Fear of further such attacks, including the use by Islamic State of chemical weapons, will undoubtedly increase public anxiety and growing voter mood of unease across Europe. The British Government has already warned that ISIS could unleash such devastating weapons on our streets. Voter discontent is also threatening to bring major election upsets in France, Germany and the Netherlands.

Meanwhile, the ever-belligerent North Korea has taken another step towards long-range nuclear strike capability. The country’s leader, Kim Jong-un, has claimed that the country is now close to testing long-range missiles capable of carrying nuclear warheads.

A febrile 2017 seems likely to pose challenges as big as anything we have faced before.

Standard