The UK economy under a Conservative Chancellor has performed worse than any other OECD economy besides Greece

According to evidence from Oxford economist, Simon Wren-Lewis, the UK economy under a Conservative Chancellor has performed worse than any other OECD economy besides Greece.

Source: mainly macro: Breaking the ‘strong economy’ narrative

It’s worth speculating on the next five years under another Conservative Government who seem ready to settle on a Hard-Brexit. The years since the 2008 Financial Crisis will probably be remembered fondly. I fear that the outlook is bleak.

After all, until now the Conservatives have been in a coalition or just had a slim majority. With a resounding 100+ majority, the Conservatives will perhaps push the UK to a full-blown Greek disaster? Surely, Theresa May doesn’t have the leadership qualities to achieve radical reform?


One response

  1. Chancellors of the Exchequor can only do so much with the income which they have and up to now the problem has been an even bigger failure by British business to make and sell the things that people want and bring in foreign exchange sufficient to offset what is being lost through corporation tax drain via the Dublin Financial District and sweetheart deals between the former Chief Executive of HRMC, Dave Hartnett and companies like Vodaphone. In that instance (one of a great many), Vodaphone has failed to pay HMRC any corporation tax for 12 years thus costing the country £22 billion GBP plus the use of the money.

    As Dr Alf knows, the country is £5 trillion GBP in debt and has had a balance of trade deficit of £3 billion GBP a month since 1981 when the figures stopped being published.

    However, the Government and the Queen between them have £34 trillion GBP offshore in 40 different tax havens, including BVI which was the one place which refused to co-operate with the anti corruption and anti money laundering initiative started by David Cameron before he left office. This unofficial money does not show up in any Chancellor’s Red Book but when you have the man who wrote Gomorrah (it is a book about the second Italian Mafia), describing the UK as the most corrupt country in the world and other people talking about the country “levitating on a sea of money from drugs, money launderers, criminals, Eastern European oligarchs, corrupt dictators and other people of dubious origin in relation to the source of their funds” you begin to see part of what is going on.

    The UK kept its AAA credit rating until 2012 whilst George Osborne was still Chancellor yet officially the Red Book said we were not paying our way. Even then we were only downgraded to AA.

    Hammond the present Chancellor mucked up the last budget, is about to raise taxes and is doing nothing to curb overseas aid at £16 billion GBP a year, is about to go after people running company cars, has already hammered public sector interims with IR35, is soon to go after small builders, plumbers and contractors, private sector interims and reimpose the massive increases in probate fees.

    Today sees the start of doubled and quadrupled traffic fines for motoring offences with the police being used as tax collectors with power of arrest and seizure.

    Mrs May and Hammond did nothing about the pay of underperforming top bosses, nothing to reign in the pay of unnecessary local authority Chief Executives, nothing to properly control the welfare state and nothing to stop the misuse and abuse of the NHS by malingerers, abusive pensioners, recreational drug users, hypochondriacs, fraudsters, ambulance chasing lawyers and unnecessary managers being fired on Friday and reappearing on Monday having received a huge payoff. They have both failed to do anything about obesity and productivity (the two are linked) or about diet, exercise, variable taxes on foods (all linked to lack of worker productivity).

    The problems are fixable and we are not yet like Greece but we do need some straight talking, firm action and measures to fix the top line and the waste and financial irregularity which bedevils the bottom line.

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