David Vance SubstackRead More
I see that the UK’s economy shrank “unexpectedly” in the lead up to the Budget, according to the latest official figures.
The economy contracted by 0.1% in October, the Office for National Statistics said, whereas economists had been expecting it to grow by 0.1%.
This does not surprise me at all as economists are always wrong. I speak as someone with a degree in Economics. There is NOTHING unexpected about the economy shrinking, in fact it is entirely predicable!
The economy also shrank by 0.1% in the three months to October.
Gosh, I wonder why? The BBC has an excuse …
The cyber-attack at Jaguar Land Rover continued to affect car production, with only a slight recovery in October from the previous month’s fall, while analysts said uncertainty ahead of the Budget had slowed consumer and business spending.
This is truly desperate stuff, they are implying that the UK economy pivots on the fortunes of ONE company.
The weaker-than-expected figures strengthen the case for the Bank of England to cut interest rates at its meeting next week, analysts said.
The Bank of England was always going to cut interest rates – and this will be the sixth cut since Labour came to power! The SIXTH!
Remarkably, Chancellor Reeves thinks that all these interest rate cuts are a good thing, once again demonstrating she doesn’t even UNDERSTAND economics. Cut in Interest Rates risk higher inflation, asset bubbles, financial instability, and weaker long‑term productivity. UK inflation remains stubbornly high and yet she will shortly boast about how she is “helping” people when the Bank does her bidding.
In essence, successive CUTS in Interest Rates are a distress signal. But Reeves seems unable to grasp that simple concept. Oh, and it cruelly punishes savers but then again who cares about the prudent when you want the votes of the feckless?
UK GDP has been in decline all year. 0.7% in Q1, 0.3% in Q2, and 0.1% in Q3. It looks like Q4 will be close to 0%. And this is all BEFORE the impact of her most recent budget.
All Labour Governments end in economic failure but what is remarkable about this one is that is how it has started.
I always like to use that line that if socialists understand economics, they wouldn’t be socialists.
As a final point, this loathsome government has made economic growth one of its key priorities. Economic growth has gone missing and Rachel Reeves can’t quite work out why. Clobbering the British people with a £66bn increase in taxes is a clue!
