Woo-hoo. Fearless Faisal Islam, BBC Economics Editor, mentioning Brexit once in today's attempt to answer the question "Why is the UK struggling more than any other big country?" I hope he's been provided with a safe house.
The first year of the pandemic damaged the UK more than most economies. This was the textbook expectation from many economic experts of the government's approach to post-Brexit policy. It is more difficult for small businesses, especially, to trade with Europe, and the UK, by design, now has more limited access to pools of European workers. As a result the economy is less productive, less resilient, less flexible and less responsive.
As interest rates continue to rise and taxes and spending are squeezed further at next week's Autumn Statement, the economic pressures will only intensify. There are difficult trade-offs for all - the Bank of England, the government and of course households. But they cannot all be blamed on "global factors".
No comments:
Post a Comment