The government has been supporting both economic and employment growth over the last year, while private sector activity has been weak and private sector employment has fallen. But this isn't the government stepping in to support the economy when the private sector is on its knees. Instead, the government raised government spending and public investment and funded it by raising taxes. The weakness of private sector activity and employment is therefore a result of the government’s actions. This is not a sustainable growth model.
We’re hosting a special in-person roundtable event at our London office on Tuesday 24th February to discuss whether the UK economy can weather more fiscal and political changes. Click here to request a space.
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