Where have we gone so utterly wrong over the last few years? Firstly, we implemented a raft of EU directives that were entirely damaging to our interests. We then failed to roll back some of the more damaging laws, bans and taxes the EU made us impose once we had left. Had Brexit been driven through, we would be reaping the benefits now. Dare I say it, but Boris Johnson, once we were out, gave up and his innate laziness took over. A massive opportunity was missed. Over the period we were IN the EU, there was an ongoing and stultifying legislative programme greatly increasing the costs and complexity of business especially for smaller businesses. The main economies in the EU have experienced similar slow growth issues to ourselves. You only have to look at Volkswagen where diktat has decreed certain policies but which have been diametrically opposed to growing a business. My own view is VW may have to be rescued by the German State. How are the mighty fallen.
Secondly, all political parties in the UK have done everything in their power to cut our carbon footprint and emissions. We got lumbered with these from similar EU policies forcing high energy prices, high carbon taxes, emissions trading, and creeping bans on fossil fuels. The net result is we have killed the North Sea both in terms of production and in employment too. It is only the arrival of Burnham that is making SOME people think maybe that’s a mistake. As I’ve said before only a moron would think it is smart to NOT use our own resources and import them from others, thus handing both jobs and incredible sums of money to those who do not necessarily wish us well.
And finally, we have a large and growing UK public sector, whose productivity has not budged for decades. They are inherently obstructionist and self-serving. Whatever you may think, the numbers have swelled hugely in the last couple of years. Those employed over Covid have never been let go. Not only do they have to be paid, their gold-plated pensions have to be paid and are probably now in the £2 trillion of debt ballpark now. The mantra is always more money from higher taxes rather than smarter working. I’m sick of saying the Americans have an innate belief that ANY economist will applaud, namely doing the most with the least. The shower we have in charge at the moment manage to do the least with the most – and borrow the rest.
The whole problem with Treasury/Political thinking is that “Something must be done”. Inevitably this is wrong. A business deemed essential to the economy almost certainly means it will end up losing even more money and doing no good, whilst hoovering up resources that could be better employed. Just look at whatever British Steel is called at the moment. Any half decent businessman could sort this out in jig-time. But will they be allowed to? No, we poor benighted taxpayers are on the hook for the thick end of £1 billion a year.
The other thing the Cabal don’t consider is the overall economy. Resources diverted from disasters and put to work where they are needed has a much greater effect than hosing money at losing propositions. The disasters themselves in general stop consuming resources whilst engineers, tech people and so on go on to other businesses and create viable alternatives. If all the people we are paying money to NOT work was stopped you would very quickly see how well the economy responded. And someone would come along and buy the disaster business at a price that makes it viable. We have unfortunately lost that perspective as VCs, Hedge Funds and users of other people’s money (all financial engineers) have waded into situations they are uniquely unable to judge properly. It’s all about the money. Yes, it is but not about being clever with it. It’s about making good use of it. And I regret to say we have long lost the Victorian ethos of getting on with things and bettering our compatriots – and ourselves too. The taxes levied on making a profit are such that it is hardly worth it most of the time. I’ve mentioned it before but it is worth stating again. In the last ten years Wetherspoons, an enormous success story that rewards its workers, its customers and its stakeholders, paid nearly £900 million in taxes. That will be more in the next ten years as recent tax rises bite. Their profit, after tax, was only about £250 million. But think on it this way. That’s 10 years of effort and success to cover 1 year of British Steel. Personally, it makes me ill.
But not nearly as ill as our inability to build things for the same amounts as our competitors. Never mind £100 million on bat tunnels, what needs to happen to build a reservoir? If nothing else, surely this summer has made people realise we need to store water from the winter. The average rainfall, despite what you might think, has NOT changed over the last decade. What it has done is concentrate itself into the winter months. Answer: store it! Solution? Erm think about if for another decade until its actually too late. There is one reservoir in “production” called Havant Thicket which (with a bit of luck) will actually be ready in 2031. The next is not due until 2036 and then 2040 after that. By then the UK population will have risen to around 74 million. Sadly, these infrastructure projects will hardly make a dent in the issues. In particular, there is enough water in Scotland to cope with anything a rainless summer throws at it. For years and years there have been discussions about bringing water from the north down south. If we don’t do something soon, it’s entirely possible we will have to tanker it south as London and the Sout East literally dehydrates.
And just there’s no doubt I say again. We build infrastructure slower and at higher cost than any other country in the world. Higher even than the EU. As I said at the beginning how did we get it quite so wrong?
