Dear Editor
Whatever might be the current apparently unexciting but non-alarming state of our economy, there are nevertheless some disturbing trends that are not being brought to the attention of the public, and are clearly as a direct result of our dire situation with Brexit inducing faltering negotiations and ambiguities. Many UK companies, large and small, are hoarding a war-chest instead of investing in jobs, training and technology, waiting until our future is clearer (whenever that may be!). It is no wonder that our productivity is lagging seriously behind our European neighbours. At the moment any companies exporting seem to be doing OK, but only because of the weak pound, which make our goods look cheap. However, the recent meetings in Downing Street with Japanese car manufacturers showed a rising tide of worry , in that they export so many cars to Europe that even with a weaker pound, these cars will look expensive and uncompetitive once tariffs are added.
Also, another fear not mentioned yet, but will rear its head soon, is that the City is by far the biggest tax generator in the UK and, if all the City firms that have indicated their intention do jump to Frankfurt, Paris and Dublin (who seem to be doing a good job of wooing them) how will this tax void be filled? The burden will then fall on the rest of us. If interest rates continue to rise to cope with slow inflationary trends, then the result will be a serious economic crisis.
Yours faithfully
Carol Ward
Photo: library image
