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A difficult hand played well

The Autumn Statement was today. There are some innovative proposals in it (such as using QE for smaller businesses). I was concerned that we continued to protect the poorest in society. The cost of living has gone up substantially. I was concerned to ensure that the full inflation increase of 5.2% occurred for the poorest who find it hardest to make ends meet.

Life is getting harder for many people across the world. However, we need to always remember the effect on the least well off who find it hardest to protect themselves against economic shifts.

To that extent the government has been dealt a difficult hand, but is managing to play to well.

The best test of the economy is to compare it to other similar countries. We are now doing better than countries which suffered from a similar deficit (according to OECD predictions - Italy, Greece, Portugal, Spain) and the Eurozone average.

There will always be international pressures on the country. Those are the major cause of our current difficulties. However, we are pulling through.

Comments

John O'Shea said…
An extra 310,000 public sector employees to go, working tax credit freezes will hurt those families trying to work their way, scrapping the child tax credit increase will push 100,000 more children into poverty. While the top 10% of households are hit hardest, the bottom 20% are next in line. Claiming that you have protected the poorest in society is not even vaguely credible.

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