After business in the UK slowed for a second month in a row This Writer has to say: don’t blame the Budget for October’s economic failure.
The initial figures for that month show that the economy shrank by 0.1 per cent for the second month in a row, with pubs, restaurants and shops reporting stalled or declining activity.
Some, like private consultancy KPMG’s chief economist Yael Selfin, consider the decline to be due to uncertainty about the Budget, which was announced by Rachel Reeves [pictured] on October 30.
Others, like Capital’s chief economist Paul Dales, say the drag from high interest rates that were imposed by the Bank of England may have lasted longer than expected.
Buy Cruel Britannia in print here. Buy the Cruel Britannia ebook here. Or just click on the image!
And of course this is only an initial estimate, that could be subject to heavy revision – as HSBC’s chief European economist Simon Wells pointed out.
For This Writer, these elements may have played a part – but mostly I think people simply haven’t had the spending money.
The Tory governments of 2010-24 spent 14 years sucking money out of the economy – most particularly from working- and middle-class people – and giving it all to the super-rich.
But working- and middle-class people comprise the vast majority of the UK population; if they don’t have money to spend into the economy, then of course it is going to stall.
The Labour government has tried to turn that around with above-inflation pay rises for doctors, nurses, teachers and probably other public sector workers who are less well-publicised, shortly after it came into office.
And Rachel Reeves has insisted that her Budget is intended to stoke economic growth so that more people will have more spending power.
If successful, these measures should help hugely – but only if they are successful.
And if they are successful, then it may be possible to say we had a Labour government in the nick of time.
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Don’t blame the Budget for October’s economic failure
After business in the UK slowed for a second month in a row This Writer has to say: don’t blame the Budget for October’s economic failure.
The initial figures for that month show that the economy shrank by 0.1 per cent for the second month in a row, with pubs, restaurants and shops reporting stalled or declining activity.
Some, like private consultancy KPMG’s chief economist Yael Selfin, consider the decline to be due to uncertainty about the Budget, which was announced by Rachel Reeves [pictured] on October 30.
Others, like Capital’s chief economist Paul Dales, say the drag from high interest rates that were imposed by the Bank of England may have lasted longer than expected.
Buy Cruel Britannia in print here. Buy the Cruel Britannia ebook here. Or just click on the image!
And of course this is only an initial estimate, that could be subject to heavy revision – as HSBC’s chief European economist Simon Wells pointed out.
For This Writer, these elements may have played a part – but mostly I think people simply haven’t had the spending money.
The Tory governments of 2010-24 spent 14 years sucking money out of the economy – most particularly from working- and middle-class people – and giving it all to the super-rich.
But working- and middle-class people comprise the vast majority of the UK population; if they don’t have money to spend into the economy, then of course it is going to stall.
The Labour government has tried to turn that around with above-inflation pay rises for doctors, nurses, teachers and probably other public sector workers who are less well-publicised, shortly after it came into office.
And Rachel Reeves has insisted that her Budget is intended to stoke economic growth so that more people will have more spending power.
If successful, these measures should help hugely – but only if they are successful.
And if they are successful, then it may be possible to say we had a Labour government in the nick of time.
Vox Political needs your help!
If you want to support this site
(but don’t want to give your money to advertisers)
you can make a one-off donation here:
Be among the first to know what’s going on! Here are the ways to manage it:
1) Register with us by clicking on ‘Subscribe’ (bottom right of the home page). You can then receive notifications of every new article that is posted here.
2) Follow VP on Twitter @VoxPolitical
3) Like the Facebook page at https://www.facebook.com/VoxPolitical/
Join the Vox Political Facebook page.
4) You could even make Vox Political your homepage at http://voxpoliticalonline.com
5) Follow Vox Political writer Mike Sivier on BlueSky
6) Join the MeWe page at https://mewe.com/p-front/voxpolitical
7) Feel free to comment!
And do share with your family and friends – so they don’t miss out!
If you have appreciated this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!
Buy Vox Political books so we can continue
fighting for the facts.
Cruel Britannia is available
in either print or eBook format here:
The Livingstone Presumption is available
in either print or eBook format here:
Health Warning: Government! is now available
in either print or eBook format here:
The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:
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