Hammond bullish on economy but failed to provide actual analysis of problems, says UKIP

Published Mar 13, 2018

Chancellor Phillip Hammond was very bullish about the economy, but Professor Bush says that Mr Hammond's statement was big on boasts but very short on actual analysis of our problems.

“Productivity is what allows people's real wages to rise and Hammond betrayed no sign of understanding what needs to be done to match the figures in our principal competitor countries.

“The number one way to do this is first stopping adding unskilled labour to the economy from home and abroad so that employers have to invest in productive equipment and the training of British workers to work it efficiently. There's plenty of loose cash in the economy for productive investment (now at historically low levels as a share of GDP). On past performance, of the half million extra jobs Hammond boasted will be created by 2022 half at least will go to foreign labour to
do jobs which productive investment here in Britain should replace.

“Chancellor Philip Hammond's statement was big on boasts but very short on actual analysis of our problems. So nothing on the effects of continued EU immigration on the housing shortages which he boasted about solving. It is well known that Hammond personally wants to keep things unchanged after Brexit Day next year and seems incapable, along with most of his Cabinet colleagues, of absorbing the simple fact that 244,000 net immigration last year corresponds to another 100,000 homes to be built in one year alone. All the signs are that this number will rise again not fall as the government fervently hopes. Over the last five years, three-quarters, yes three-quarters of the heads of new households formed in Britain were born abroad. Getting the net flow of settlers below 100,000 which is supposedly this government's target to be realised by leaving the EU, is the single biggest way to reduce the strain not only on the housing supply for British citizens, but the strain on our schools and the NHS.

“Likewise the boasting (again) about 7 years continuous "growth" is based on GDP figures which go up automatically with immigration and inflation. The only thing which matters is GDP per person with inflation taken out. This is what is known as productivity and as Hammond didn't mention, this has only just in Q4 2017 crawled above the 2012 figure.”

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