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Britain’s new Labour Government has managed in six short months to reduce an economy growing at the fastest rate in the G7 group of leading economies to falls of -0.1% in both September and October with no growth in the large services sector as fearful consumers reduced spending and business paused investment.
With manufacturing and construction declining at a pace of 0.6% and 0.4% respectively in October, annual inflation has risen to 2.6% and the 10-year government bond interest rate has risen from 3.8% to 4.6% – a massive vote of no confidence in Government debt management.
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Britain: How to Destroy an Economy in Six Months
By Rodney Atkinson as published by Global Research on 20 December 2024
The largesse distributed byPrime Minister Starmer and Chancellor Rachel Reeves to doctors, train drivers and the nationalised sickness service (NHS – £25 billion extra) led to a budget in which the State raised taxes by a staggering £40 billion, increased the minimum wage, increased already crippling business rates and increased employers’ national insurance payments for each worker.
All this was apparently (no joke!) in order to “go for economic growth” but even the Office for Budget Responsibility understandably predicted the budget would make business investment weaker and the Bank of England has reduced its growth forecast – to NIL in the fourth quarter of 2024.
The State-dominated British economy impoverishes everyone. An analysis by the Tax Payers Alliance showed that the average household will pay over £1.2 million in tax in their lifetime, meaning they would have to work for 19.5 years just to pay off the taxman. Even the bottom 20 per cent of households, or families with a household gross income of £19,599, will work for almost 23.4 years to pay off their lifetime tax bill, the longest of any group since taxes long ago stopped taxing income and instead taxed existence, property and jobs.
State Incompetence and Productivity
Since 2020 the State sector has taken on an extra 250,000 employees to add to its appalling low productivity record. Rachel Reeves’ solution is to reduce by a mere 10,000 and ask Departments for 5% savings on their budgets. The international competitiveness of the UK is quite horrific:
Destroying Capital and Investment
The three critical elements in economic growth are capital, income returns and investment optimism. The budget seemed designed to destroy all three.
For decades, as the insatiable appetite of the State grows to meet the ambitions and electoral promises of politicians, taxes have come increasingly from indirect and “upfront’ taxes unrelated to actual earnings or profits and therefore unresponsive to slower or negative economic growth. The State demands its right to spend, unconstrained by the ability of the economy to finance their spending.
Just how unconstrained the parasite State has become was revealed in the purchase by a Government Department of two leather-bound files for £1,200! A small example of a major failure. See THIS.
The degree to which this disastrous government fails to understand the very concept of capital was revealed in their application of Inheritance Tax to family businesses and farms where they actually believe that such businesses can lose 20% of their capital and still function. To tax those families who sell out their capital for a one-off gain, or those who do not farm but buy land as a tax avoidance scheme has a logic but to cripple ongoing businesses as one generation dies is madness.
Just how mad we can see by the fact that the Government will NOT apply inheritance tax every 30 years to the biggest and richest corporations in the country – who are then at liberty to buy up the family firms and farmland which inheritance tax has made unviable. No wonder Bill Gates and British banks are buying up farmland!
The Taxpayers Alliance found that, as the UK is sending farmers abroad over £516m in foreign aid, the inheritance tax changes announced at the Budget will raise £520m for the Treasury.
Just as the previous government sacrificed democratic capitalism for State Corporatism so this Labour government is a State corporatist government – socialism, big State, big corporations and supranational power.
Labour Even Attacks Health and Hospices
In an arbitrary exclusion of the NHS from the rise in National Insurance (“NI”) contributions (typical of the selective targeting of people and institutions in fascist societies) the Labour government forgot that doctors in general practice were technically not in the NHS and would therefore have to pay the rise, hitting doctors’ surgeries hard. Equally hit are the many social and private providers of health support like social care and the hospice movement.
The Chancellor of the Exchequer Rachel Reeves’s budget will cost children’s hospices an additional £5 million a year from the NI rise alone (never mind the rise in the minimum wage). That translates into nearly £140,000 extra per hospice.
Devastating Effect on Businesses
January 2025 will see a devastating series of announcements of business closures and redundancies as businesses of all sizes react to the enormous extra costs piled on them by the economically illiterate spendthrift Rachel Reeves.
The Bank of England’s long-running Decision Maker Panel released its latest business responses to the budget. 2,255 Chief Financial Officers from small, medium and large UK businesses reported:
- 59% of firms expect to lower profit margins.
- 54% expect to raise prices.
- 54% expect lower employment.
- 38% expect to pay lower wages than they otherwise would have done.
The large recruitment agency Reed said vacancies advertised on their website had fallen 13% between October and November, and the vacancy figure was now 26% lower than a year ago, suggesting, on past experience a coming recession. See THIS.
The UK has the highest government debt (97% of GDP) since the 1960s. In October 2024 Debt Interest alone was £9.1bn with annual debt interest (expected before the catastrophic budget to be £89 billion) now expected to be £120 billion (more than twice the Defence budget as the British government pursues war with the largest country in the world with the biggest nuclear arsenal). The increase in debt interest is more than the budget tax rise from employers’ National Insurance payments.
One would think it could get no worse – but the Government seems determined to wipe out major industries like oil and gas, cars, petrochemicals, steel and plastics on the altar of “net zero.” The implications for unemployment, the resulting welfare needs and the fall in taxes are dire.
No wonder company start-ups are the lowest for 13 years and the London Stock Market is losing company quotations to Wall Street.
After 27 years of State corporatist and socialist policies under Labour and Conservative governments, what was needed was a radical, democratic capitalist, free trading, entrepreneurial, socially emancipatory (as opposed to State controlling) Government. Instead since 4th July, we have had the same social decadence, political authoritarianism, financial bankruptcy and business ignorance as before – but in spades!
About the Author
Rodney Atkinson is a British author, political economist, occasional Ministerial adviser, Parliamentary candidate and businessman. He is one of Britain’s most successful political economists, an expert on the constitutional effects of British membership of the European Union and a former occasional advisor to ministers. He has a track record of successful prediction of economic and political crisis. He was formerly a lecturer at the University of Mainz, Germany and a merchant banker in the City of London.
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Categories: Breaking News, World News
starving people are obedient people,,,, that;s democracy for you….. starve the working people EQUALLY
They are taking you to your knees BY DESIGN. Poor and fearful people are also easier to CONTROL, and that’s what this is really all about. Starmer is a fully signed-up globalist puppet, because he has a LOT of very nasty skeletons in his closet and he can therefore be BLACKMAILED into doing whatever the Davos Crowd and other deep state parasites want him to do.
It seems I correctly predicted that things would only go from bad to MUCH worse under Labour if you guys elected them – although, I have to say, your last election in particular appeared to me to be RIGGED.
This rather looks like the 16-year plan to destroy America that I got hold of around 10 years ago. It will be happening all over the West, wherever you have a PUPPET GOVERNMENT, which MANY of us still have.
These criminal parasites need to be TAKEN DOWN. That’s all there is to it.
EVERYONE who is awake or at least partially awake should be voting for REFORM by now. Your system of elections almost certainly needs a look also. And, how outdated is it to still have your upper house of Parliament filled with UNELECTED people!
The people need to rise up before it is too late and you wake up in the SLAVERY SYSTEM they have PLANNED for you.
And I genuinely hope you do it.
Starmer is like, “Shut up & be a serf.”
What else would you expect from a fully paid-up DEEP STATE PUPPET who was likely SELECTED; not ELECTED. They don’t care about the people, especially now they have the technology and set-up to CHEAT elections. They don’t have to even care what you think anymore. These are purely self-serving parasites you are dealing with now.
I also read the other day, that much like had occurred to a greater degree in America, now one fifth of British politicians are now effective OWNED by the Js.
All part of the agenda.
They were ready to destroy as soon as they got in , the tidied (sunak) deliberately lost the election , 2 puppets starmer and sunak 2 sides of the same globalist WEF coin.
Hi Paul,
You are totally correct.
Look who is waiting in the wings.
https://tapnewswire.com/2024/12/20/nigel-farage-is-the-real-uk-prime-minister/
https://www.rumormillnews.com/cgi-bin/forum.cgi?read=249632
How labour is increasing the price of food.
And thank God for that!
Stop giving your votes to the BLUE team and the RED team – ALL of you. Then, you MAY actually start to improve your lives, but ONLY if you stand up, speak out, protest (peacefully) in numbers and hold your representatives accountable.
Politicians are one of the ONLY jobs you can have where there is no real measurement of THEIR performance, because they simply grant themselves huge pay rises!
The entire system needs a massive review and radical change.
Indeed. In fact, this is an old MASONIC concept called “the red and the blue.” You MAY have noticed that MOST western countries have only 2 major parties and they are ALL represented by the colour blue for one side and red for the other. “The red and the blue” literally means 2 sides of the SAME coin, also known as CONTROLLED OPPOSITION, And THIS is why you never manage to achieve REAL POSITIVE CHANGE.
[…] – How the Labour government has destroyed the UK economy in six months […]
You will own nothing and be happy
Not this little black duck won’t! I’m determined to remain FREE.
I can only guess that the “be happy” part may be achieved via some form of chemical lobotomy with what the DS has planned for us all!
Hi Phillis Stein,
If 80% of our UK MP’s are ‘ Friends of Israel ‘, how come they are not bothered about the massive Chemtrailing, that has been carried out over the UK.
We have no idea what we are being sprayed with.
[…] Source: https://expose-news.com/2024/12/22/how-labour-has-destroyed-the-uk-economy/ […]
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