Would it be beneficial for the UK economy if Mark Carney stayed on as Bank of England governor? Katrina Usita, an economist at OMFIF, says YES. Uncertainty is the UK economy’s greatest problem. Mark Carney’s willingness to extend his term as Bank of England governor for another year assuages some of that, at least in relation to monetary policy. Postponing Carney’s departure allows the central bank to focus on managing financial markets’ response to Brexit, rather than being distracted by a leadership transition. Carney proved his ability to manage turbulence in the aftermath of the June 2016 referendum, clearly communicating what steps the Bank would take to cushion the economic impact. The Bank cut interest rates within the next month, calming volatility, preventing capital flight, and rebuilding confidence in the pound. The threats posed by a no-deal Brexit are same as the ones created by the Leave vote. Whether or not a proper agreement is achieved before 29 … [Read more...] about DEBATE: Would it be beneficial for the UK economy if Mark Carney stayed on as Bank of England governor?
The public does not think the UK economy is working for young people, or those living outside the south of England, a study by Sky Data and the think tank IPPR has revealed. Two in three (67%) think the economy works badly for young people, while 53% believe it works badly for people outside the south. Seven in ten (70%) say the economy does not work for people who do not own a home - and 74% say the same for people born into poor families.Just 22% of people think the way the economy works is fair, with 48% saying it is unfair - rising to 63% among those aged under the age of 35. And 53% think the way the economy works has become less fair over the last decade, with Conservative voters more likely to say the economy has become less fair (38%) than more fair (15%).:: Sky Views: It's not the economy stupidThe findings come as IPPR's Commission on Economic Justice - backed by leading figures including the Archbishop of Canterbury Justin Welby - called for "fundamental reform" of an … [Read more...] about Sky Data poll: Public ‘ready for change’ as UK economy is ‘unfair’ and ‘not working’
Radical changes are needed to reform the UK’s economy, including a higher minimum wage, raising public investment, changes to the way companies are governed, and regulation of tech giants, a new report urges. The 10-year reform plan was published by a commission set up in 2016 by the IPPR think-tank, including the TUC, economists and the Archbishop of Canterbury.More than 70 recommendations were put forward, including a new National Investment Bank, workers on company boards, an increase in corporation tax, higher pay for workers on zero hours contracts, and speeding up of automation.Almost a decade since the financial crisis, it said the living standards of tens of millions of people had “stagnated”, young people had seen life chances deteriorate, and the economic gulf between London and the South East and the rest of the country had widened.Low investment and productivity and an unsustainable trade deficit had developed over the past 40 years, so the economy needed … [Read more...] about Commission calls for radical overhaul of the UK economy
The British economy is already more than 2% smaller than it would have been had voters decided to remain in the EU, a new analysis from UBS shows. Using a “Frankenstein” model, which cobbles together data from other major economies, the bank’s economists worked out the hit to UK growth. Alongside slower GDP growth, UBS said that investment, consumption, and the pound are all substantially lower than they could have been if the leave campaign had not triumphed. You would have to look pretty hard to find an economist who believes Britain’s exit from the EU will be – at least in the short and medium term – anything other than a negative for the UK economy. With the exception of the group Economists for Brexit, every bank, research house and think-tank has modelled a significant decline in British economic output because of the Leave vote, with scenarios where the UK falls out of the EU without a deal showing significantly more economic damage. … [Read more...] about This ‘Frankenstein’ model shows how much damage Brexit has already done to the UK economy
Will new non-EU free trade deals offset the potential costs of Brexit to the UK economy? John Longworth, co-chairman of Leave means Leave and former director general of the British Chambers of Commerce, says YES. Quite apart from the political benefits of Brexit – liberty and self-determination – the economic benefits are vast: better regulation, control over fisheries and farming, the repatriation of our net contribution, and the removal of tariffs which will boost the economy and make food and goods cheaper. With the further advantage of a competitive, post-Brexit currency, exports to the rest of the world will continue to grow. Trade deals covering tariff and – crucially – non-tariff barriers for goods and services will flourish, renewing our relationships with friends old and new, in the Commonwealth, in Africa, in Asia, and in the Americas. Once again, we will be looking to the globe rather than only to the insular and diminishing a EU. This is the icing on … [Read more...] about DEBATE: Will new non-EU free trade deals offset the potential costs of Brexit to the UK economy?