David Vance SubstackRead More
It might seem an academic question but it has real significance to us all so let’s see if we can work out just economically disastrous the new Labour Government will be.
As you know, Labour came to power promising “Growth” as their clear number one priority. That was what really mattered and now the “adults were back in charge” economic growth was what we would get. Right? Well….
Back in July, Sir Keir Starmer said his plan for government would “take the brakes off Britain” and put the country on the “path of national renewal”. At the heart of his plan to boost the country’s economic growth are changes to the planning system, aimed at making it easier to build houses and infrastructure.
OK, so are things going?
Business leaders have blamed Rachel Reeves’s “gloomy messaging” ahead of the Budget for the sharp slowdown in growth which has left Britain’s economy on the verge of stagnation. Bosses said “uncertainty” ahead of the Chancellor’s tax-raising speech was behind the drop in gross domestic product (GDP) growth, which fell to 0.1pc in the three months to September, according to the Office for National Statistics (ONS). It was worse than the 0.2pc growth that had been expected by analysts and means the economy grew at a slower pace than the 0.5pc growth recorded in the three months to June.
This economic slowdown is PRE-BUDGET and as you know the Budget paved the way for massive tax increases including directly on Business.
Let’s look at UK economic performance under Labour vs the rest of the world!
We are underperforming vs everywhere. This is a reversal of what we saw before Labour got into power and is a foretaste of what lies in store as those swingeing tax increases hit employers, big and small.
How can this be given Rachel Reeves self declared experience as an “Economist”? Turns out that was not QUITE as were told.
Her official biography, often shared at speaking engagements, proudly states that she “worked as an economist at the Bank of England, the British Embassy in Washington DC, and latterly at Halifax Bank of Scotland.”
Wrong.
Turns out that she worked in a modest support department, dealing with administrative tasks, IT matters, and small projects within the bank’s Complaints team. This was a small unit with just three people, entirely detached from the Economics Department that Reeves appears to suggest she was part of.
Here is what an alleged co-worker had to say.
If she cannot get her own CV correct, how on earth will she get our economy right?
Her Budget increases taxes by £40 billion and it will take some time for the full force of that to be reflected in the real economy. Her curious argument is that by taxing the hell out of the wealth-creating sector to hand over the loot to the already bloated public sector, this will magically give us “growth”. Apparently the massive tax raid will encourage business to innovate and drive GDP.
You know it and I know it. She is destined to fail.
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