Tuesday, 25 March 2014
Britain's Damp Squib Economy.
The Tories are so pleased with the unimagined strength of their economic "recovery" that they are planning to raise the threshold for Inheritance Tax from £325,000 to £1 million handing the richest people in Britain a nice little bonus for all the hardships they've had to endure. Inflation, the Tories are boasting, is at its lowest level for four years while wages are poised to bounce upwards sometime after the 2015 election as their austerity measures begin to take effect. You might be forgiven, however, if you've failed to notice any improvement yourself. The idea that wages will soon begin to rise remains a vague and improbable prediction based largely on wishful thinking - yours not theirs - while inflation remains stubbornly high in terms of the necessities that families need with food prices set to soar and no end in sight as far as rising energy prices are concerned. Meanwhile the idea that an economic boom is at hand is undermined by the latest batch of redundancies with 900 jobs lost as Solway Foods in Corby closes, Clydesdale and Yorkshire Bank close 28 branches and Royal Mail plans to cut 1,600 jobs. Meanwhile Honda has cut production in Britain by 15% citing the country's weak growth outlook and is looking to shed at least 340 jobs. There can be little doubt that Osborne's policy of austerity is working as planned with money being shovelled out of the pockets of the poor and into the offshore bank accounts of the rich. The news is also good if you happen to have a nice property portfolio as house price inflation continues unabated. For the rest of us, unfortunately, it's yet another round of "we're all in this together" - the smug, selfish and self-serving rich in clover with rest of is in it up to our necks.