Michela Morizzo warns of UK recession after drop in CCI
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Depending on who you ask, the country is either on its way to a costly recession or is already in one. The National Institute of Economic and Social Research holds the latter view, noting that the number of households living from pay check to pay check will almost double to seven million by 2024.
The Bow Group, the world’s oldest conservative think tank, has now warned a crash worse than that suffered in the early 2000s could be around the corner.
Chairman Ben Harris-Quinney said the Government cannot escape blame for this and, instead, lies at the centre of the problem.
He told Express.co.uk: “The Bow Group has long warned that the Government has been ignoring a very simple economic truth – that you cannot bring, borrow and spend to excess without eventually facing dire economic consequences.
“This has not been solely the result of the pandemic.
“Since the Conservatives came in in 2010 they have tripled the national debt, their policies have been the opposite of fiscal conservatism and responsible economic management.
“The cost of merely paying the interest on the debt is now one of the largest areas of government expenditure.”
Mr Harris-Quinney added: “Because of that the issues of 2008 have merely been deferred rather than solved, and a cataclysmic economic collapse worse than 2008 remains a very real possibility.”
For businessman and former Brexit Party MEP Ben Habib, the scale of the crisis could depend very much on the result of the ongoing Tory leadership competition.
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Should Rishi Sunak be the next to enter Number 10, he would, Mr Habib argued, “do close to nothing”.
The Brexit Watch Chairman told Express.co.uk: “He acknowledges the economy needs rebuilding (a curious admission from the former Chancellor) but his strategy to do so would be to pursue the same policies that landed us in this mess.
“He would maintain his high taxes, increase some of these and not affect supply side reform.
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“It is impossible to conclude, with Sunak in Number 10, that he would do anything other than idly watch as recession took its toll. He would be continuity catastrophe.”
Mr Habib was more hopeful about the chance of current leadership frontrunner Liz Truss doing more to tackle the coming crisis.
Though even here, he caveated that “Truss would have a very small window in which to act”.
He said: “The measures she wants to take should already have been taken.
“Whether or not the UK can avoid a 1979 style winter of discontent and the Tories electoral oblivion would depend on her acting immediately.”
Mr Harris-Quinney stressed that the approach to a future downfall would also be strongly coloured not only by the figure at the top at Downing Street but those employed as advisors, too.
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