The UK economy remains mired in stagnation caused by the crisis of investment. The official forecasts for UK growth point to the weakest expansion in the economy in the modern era, since 1945.
By Tom O’Leary
The certainty that Brexit will push living standards lower is not really a forecast- it is already happening. Immediately following the referendum the pound fell sharply and has more or less stayed at that lower level since. The 13 per cent decline means that CPI inflation is moving remorselessly higher and will continue to do so. Higher inflation means lower wages and incomes in real terms.
The article below by Tom O’Leary provides an analysis of the recent Autumn Statement including the forecasts for growth and living standards that have been revised sharply lower by the Office of Budget Responsibility. A key point is that the OBR is clear: around 60 per cent of the cuts made to those forecasts are a result of the Brexit referendum vote. Brexit will make us poorer.
Introduction
Labour is now carrying out extremely effective campaigning against Tory policies – on tax credits, on the sweetheart Google taxation deal, in support of the junior doctors and pinning the responsibility for the crisis in the NHS squarely on the Tories. This excellent work needs to continue and be strengthened.
There is a concerted effort in the Tory press and beyond to prettify the latest Autumn Statement from George Osborne. There have even been ridiculous claims that it represented ‘An end to austerity’. At the same time the Tories have attempted to seize the political initiative by immediately switching the political agenda to bombing Syria.
The article below, by Michael Burke, demolishes the myth that austerity is over. In fact there is a renewed austerity offensive. The article first appeared on Socialist Economic Bulletin here.
By Nicky Dempsey
The Financial Times has reported that the government’s plans to boost spending on infrastructure have effectively been blocked by the leading banks and investment funds (Infrastructure hopes hit by City stand-off, November 18).
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