Dear John, This week we saw a slew of grim news for the UK economy. It was confirmed that the UK is going through the worst downturn in the G7, with record redundancies in the last quarter and a million people out of work.
At the Spending Review, we needed the Chancellor of the Exchequer to take the responsible choices our country needs. Yet, apart from some welcome
announcements including on coronavirus support next year, his overall package fell short. Economists, such as those at the IMF and IFS, agree that now is not the time for spending cuts and tax rises, and yet that is exactly what the Chancellor announced. Taking a sledgehammer to consumer confidence, the Chancellor chose to freeze pay for police officers, firefighters and many other key workers, and snuck out a council tax bombshell to boot. The Government should be doing all it can to build up confidence in the economy, not choking it off at the worst possible time.
Cutting through the
spin, the Office of Budget Responsibility provided the honest picture of the nation's finances. It put a £12 billion cost to the Chancellor's decision to veto a short, sharp circuit-breaker before the virus got out of control. Meanwhile, Rishi Sunak made no mention of what support would be available once we exit lockdown on 2nd December. Moreover, despite just five weeks to go before we could exit the EU with no deal, not a single mention of Brexit made it into the Chancellor's speech. This in a week where the Conservative-appointed Governor of the Bank of England has said that the long-term economic impact of Brexit could be worse than Covid. It is now clear that the British people will pick up the bill for the Chancellor's mistakes, and the billions of pounds of waste and mismanagement the Conservatives have presided over during this crisis. On Wednesday, I joined Sky News to give my reaction to the Spending Review. Click below to watch. |