British Economy to Suffer Worse Because of Pandemic Say the Organisation for Economic Cooperation and Development

Friday 20 November, 2020 Written by  Simon Collyer/BBC
British Economy to Suffer Worse Because of Pandemic Say the Organisation for Economic Cooperation and Development

ECONOMIC PROSPECTS - A report by the Organisation for Economic Cooperation and Development, said that Britain’s economy is likely to suffer  the worst damage from the Covid-19 crisis of any country in the developed world,”. A slump in the UK’s national income of 11.5% during 2020 will outstrip the falls in France, Italy, Spain, Germany and the US.

The announcement of funding for the millitary came yesterday: 

A "once-in-a-generation modernisation" of the armed forces is required to extend British influence and protect the public, Boris Johnson has said.

The prime minister told MPs a new four-year funding deal would protect "hundreds of thousands" of jobs and create 40,000 new roles.

"I have decided that the era of cutting our defence budget must end, and it ends now," he said.

There has been a 30% increase in applications to join the Royal Navy and an increase in millitary spending may be used to mop up very high youth unemployment. It is obvious that young people do not see the pandemic as a threat in the way that older people do. 

Royal Navy Aircraft Carrier

Borrowing skyrockets: 

From the BBC - The Office for National Statistics (ONS) said borrowing hit £22.3bn last month, the highest October figure since monthly records began in 1993.

It underlines that the pandemic is having a "substantial effect" on the public finances, the ONS said.

But the figure - the difference between spending and tax income - was not as high as some economists had forecast.

Since the beginning of the financial year in April, government borrowing has reached £214.9bn, £169.1bn more than a year ago.

The independent Office for Budget Responsibility (OBR) has estimated it could reach £372.2bn by the end of the financial year in March.

Ahead of the Spending Review, the SNP’s Shadow Chancellor has said the UK government must invest to put money in people’s pockets to stimulate an economic recovery – not short-change them by slashing incomes and social security payments.

 Alison Thewliss MP has urged Rishi Sunak to announce that he will do three things in next week’s mini-budget:

 -        Make the £20 Universal Credit increase permanent and extend it to legacy benefits

 -        Increase Statutory Sick Pay in line with a Real Living Wage and make it available to everyone - whether they are self-employed or below the threshold – for 52 weeks instead of 28

 -        Bring forward a financial package for the 3 million people who have been excluded from available coronavirus support since the beginning of the pandemic

 The Joseph Rowntree Foundation (JRF) has called for social security to be recognised as an effective tool to stimulate the economy and said that plans to axe the Universal Credit uplift in April would weaken the social security lifeline when it is needed most, as well as take money out of the economy at a time when it is far from recovered.

 The call comes after UK government sources briefed yesterday that the Chancellor intends to impose a pay freeze on millions of public sector workers. The SNP has said this has set "alarm bells ringing" that the Tories will impose another decade of cuts, which would be a triple whammy for families and public services after the pandemic and Brexit – and warned that the only way to protect Scotland from this is by becoming an independent country.

ABC Note: No one wants a return to austerity. 

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