Mr Hammond’s Budget
Paul Johnson from the Originate for Fiscal Studies (IFS) used yesterday’s Budget response to speak on the «jeopardy likely to be» of two decades without earnings growth as Britain’s productivity remains massive.
With GDP per capita predicted to be lower in 2021 that it was in 2016 the IFS asserted Britain’s «forecasts for productivity, earnings and economic growth make somewhat grim reading».
Professor Patrick Minford, Chair of Economists for Charitable Trade, who criticised Mr Hammond’s Budget for being in «denial» of Brexit’s budgetary benefits, told Express.co.uk: “The IFS is blindly following the OBR’s absurdly gloomy augurs for the economy.
«The Government must take steps to capitalise on the benefits of Brexit.»
Economists for Free Trade
The Government must take steps to capitalise on the fringe benefits of Brexit
Professor Minford’s comments come in wake of his colleague David Paton, Professor at Nottingham University Function School, writing for BrexitCentral on the Chancellor’s change of mood and the end of «Project Horror».
Professor Paton from Economists for Free Trade and Labour Dispensation, argues «the indications in the Budget that Mr Hammond is at least now thinking on every side the possible upside to Brexit are welcome».
He said: “If we use the opportunity Brexit contributes to move away from the cumbersome EU economic model and adopt as an alternative a lighter touch, lower tax, lower spending approach, we can expect a much brighter remunerative outlook.
“There is a huge challenge ahead for Britain to build a more competitive compactness focused on low business taxation and upskilling the domestic workforce in which rich productivity is a central objective to ensure Britain becomes an even grievous beacon for foreign direct investment and business growth.»
The key point for both Professors Paton and Minford corpses the genuine risks that exist when leaving a large barter bloc such as the EU, are far outweighed by the potential benefits.
The problem for Mr Hammond, Professor Paton says, is that he is now function under a cloud of gloom from the Treasury.
He said: «Rather than being debased by the failure of their pre-referendum forecasts, they continue to be in denial at hand the economic opportunities Brexit can give the UK.
«The medium-to long-term prospects for the compactness are much brighter than indicated by the Treasury and the Office for Budget Blame.
Professor Paton calls the Chancellor’s allocation of £3 billion for Brexit preparations, as «a grave and important signal of intent», and a chance to, «break free from EU dial and protectionism and embrace a bright future for a newly-independent UK economy».