Recently the ONS produced a long-term forecast for spending and taxation. It makes for grim reading. Assuming policy doesn’t change, they forecast UK debt will rise to levels last seen in the Napoleonic Wars. This forecast also assumes there are no external shocks like Covid or the Ukraine war. At the same time, bond investors …
A record number of young people are giving up on work. Nearly a third of young people are either studying or dropping out of the labour market completely. In 2012 youth inactivity due to poor health was just 8%, now it is 23%, with poor mental health being the largest cause. Amongst all age groups, …
We Can’t Afford a Trump Trade WarWatch this video on YouTube In 1930, the US economy entered a deep recession and President Hoover responded by passing the Smoot Hawley tariff bill which saw average US tariffs almost double. The aim was to help US manufacturers from foreign competition. But, the bill was a disaster, …
Is American Economy Now Set to Decline?Watch this video on YouTube The US economy has been outperforming the rest of the world. It has left the European economy in the dust. In the 1990s with everyone buying a Sony Walkman, it was Japan which was going to overtake the US, but it never did. The …
Labour's Big Budget GambleWatch this video on YouTube It was one of the biggest budgets in decades – Higher tax, higher spending, and more borrowing. Rachel’s Reeves hopes it will boost economic growth, avoid austerity and restore public services. But it is a gamble because if it fails to increase growth the UK will need …
A frequently asked question is – Who does the UK borrow from? Who owns the UK’s government debt? (Asset Purchase Facility = Bank of England) UK government debt is primarily held by: Private financial institutions – banks, pension funds, investment trusts and also private households. 28% is held by overseas investors (e.g. American investment trusts/Japanese …
Hampshire is one of the more prosperous parts of England, average house prices are over £400,000, but Hampshire County Council has the largest deficit in the UK. Like many local councils, it is at risk of bankruptcy. The council is spending more, but residents appear to be getting less. In 2011, the council spent 52% …
Definitions of Unemployment Unemployment Rate. This is the % of people in the labour force without a job but registered as being willing and available for work Labour Force Those people holding a job or registered as willing and able to work Therefore this is the number employed plus number unemployed (but actively seeking work) …