Category: United Kingdom

A Panel of Experts Weigh in on the U.K. Chancellor’s Fifth Budget


Chancellor George Osborne has unveiled his fifth budget. Fifty days before the general election, it was a more optimistic set of announcements than the UK public has become used to, and Osborne made strong claims about the economic recovery, claiming a Tory government would take Britain “from austerity to prosperity”.

Here our panelists give their take on what this budget means for the economy, business, healthcare, education and the environment.

Economy

Tony Yates, Reader in Economics, University of Bristol

UK’s Debt-Fueled Recovery Could Prove Fragile


Challenging the dangerous imbalances in the UK economy, where the banking sector contributes 450% of nominal GDP, is imperative. But weeks ahead of a general election, no one wants to redefine the rules of the game.

Checking in on the Value of the UK’s Creative Set


Despite recent success in generating jobs and overcoming the stresses caused by the financial crisis better than many other countries, the UK economy still has many problems. The economy faces a large balance of trade deficit, £34.8 billion in 2014, as well of course as a large amount of government debt.

A U.K. Budget Deficit Primer


The final Budget before the general election is fast approaching. Separated from the election by just 50 days, it is not likely to lack political content. But the key issue remains the deficit – and how successful George Osborne can claim the government has been at tackling it.

Austerity’s Lingering Effects on the UK Economic Recovery


The British economy has not been a pretty sight in recent years. GDP per capita was 15.8% lower in 2014 than we would expect from historical pre-2008 trends. Austerity has certainly played a role in this poor performance, but is George Osborne right to say that things would have been even worse if the pace of fiscal consolidation had been slower? And can we expect a different fiscal policy if a new chancellor comes into office following May’s general election?

Austerity past and present

Can Britain Overcome Sluggish Growth in Real Wages and Productivity?


Two things stand out about the economic recovery in Britain. One is the sluggish growth in real wages. The other is the sluggish growth in productivity.

That the two phenomena have coincided is no accident. Low real wages, by eroding the incentive to work and the morale of workers, have fed low productivity. At least we can cling to the thought that the solution to this might offer a genuine recovery with sturdy roots.

U.K. Implications with $50 Oil


Predicting oil price movements is as risky as exploring for oil itself. The average price for crude fell 10.3% from the start of 2014 to the date of the Scottish independence referendum on September 18. It fluctuated over this period – but few, if any, were predicting any major move in either direction in the months to follow.

October UK Trade Deficit reaches a 7 Month Low


In a positive turn of events for the recovering UK economy, the trade deficit fell to a 7-month low at the end of October. The goods deficit decreased from £2.8bn in September to £2bn in September, while exports rose £200mln to £24.3bln in October. The increase in exports and the decrease in oil imports were major factors.

OECD Estimates UK Economy Recovery to Extend until 2016


A revival in consumer spending and business investments point to a UK recovery extending into 2016, predicts the Organization for Economic Co-operation and Development (OCED). The recent growth experienced by recently stagnant UK economy expects to clock a decent 3% growth by the end of this financial year, and OCED has forecast an optimistic future couple of years.

The World Economy’s Sluggishness Pulls Down UK Manufacturing and Exports


The UK’s massive export industry is seeing dicey times, with minor periods of apparent revivals quickly dampened by a pessimistic outlook from foreign and domestic economic bodies. The Confederation of British Industry (CBI) dragged the skeleton out of the cupboard and asserted that the weak global economic outlook is pulling down UK exports, and the situation is likely to persist.