The multi-faceted attack on Jeremy Corbyn’s leadership of the Labour Party continues to include unjustified attacks on his economic policy.
US President Trump seems to be stumbling towards a trade war. At the same time a large section of the current UK government seems intent of crashing out of the EU without a deal.
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.
The following article, by Michael Burke and John Ross, on Labour’s economic policy, was previously published by Socialist Economic Bulletin.
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.