The Joseph Rowntree Foundation has revealed that disposable household incomes are around £1500 lower today than they were expected to be had the Brexit referendum not occurred.
This comes in the same week in which it was confirmed that economic growth in the United Kingdom was sluggish, at just 1.3% in 2018, which by the OBR’s predictions makes the U.K. economy £23 billion smaller than the pre-referendum forecast. It comes amidst a global slowdown, as Germany narrowly avoided a technical recession, as exports slowed, one of the fundamental flaws of export-led growth.
As the economy comes stuttering to a halt, the party of supposed prosperity is being tested, the supposed trickle-down effect has failed to materialise, once again, fuelling the belief that neoliberal economics do not work. Unless your measure of success is increased inequality, low investment and increased poverty.
John McDonnell had the following to say,
“The evidence is mounting that the combination of the Government’s shambolic handling of Brexit and nine years of austerity is causing real damage to our economy.
“Business investment has been falling for months now, as uncertainty and the fear of No Deal cause immediate damage to confidence.
More concerning is how household debt is fuelling the little growth that exists, in March 2012, total household debt stood at £1,518.5bn in today’s prices compared with £1,630.1bn in 2017. This implies that U.K. households are having to borrow to fund spending, this is closely linked with the fact that
All competing scenarios of how the political parties envision Brexit to be delivered will cost U.K. households, further still, it is yet to be revealed how May’s deal would affect economic growth. Though a no-deal scenario as envisioned by the extremist European Research Group would mean that the British economy would retract by 8% in comparison to staying in the EU.
Project Fear this, Project Fear that, the numbers are there for all to see, it is time for the people of Britain to do the maths.