Letter to the Knutsford Guardian, 13/4/15.

Osborne's Economic Failure.

I am concerned by the lack of scrutiny to which George Osborne’s performance as Chancellor has been subjected.

GDP has returned to its 2007 level. During recessions, money doesn't disappear – people stop spending it. Sooner or later cars need to be renewed, technology moves on and family circumstances change – thus forcing people to spend and easing up the ‘log-jam’ in the economy. As the world-renowned economist Irwin Stelzer agrees – economic recoveries are rarely the result of government policy.

GDP growth figures on their own are not a good indicator of future performance. Debt-ratios, the Trade Deficit and Productivity are more important. On all these measures George Osborne has failed.

Our debt-ratio has escalated from 67% in 2010 to over 90%.  The UK Trade Deficit, inextricably linked to the value of our currency and future Interest Rates has increased sharply to £34.8bn. But it is the Chancellor’s failure on Productivity that gives most cause for concern. Productivity (or GDP per capita) has collapsed to 2005 levels. In short, we now have more people producing less value. This is due to 3 things;

The placing of Social Polices onto the shoulders of industry for which the government should be responsible. Every minute a Small Business spends administering workplace pensions or cumbersome childcare voucher schemes is a minute it can’t spend generating value for our economy. This also acts as barrier to creating extra employment.

The EU open-door immigration policy has led to an influx of low-skilled workers, whilst high-skilled professionals from the rest of the world have unfairly been kept out. Skilled British workers have left our shores in record numbers.

Excessive regulation such as completing RTI tax submissions or complying with the rafts of EU regulation makes our businesses less competitive. The vast majority of Small Businesses (98%) do no trade in the EU and yet are forced to comply with all its regulations.

Increasing productivity is key to securing sustainable economic growth, securing living standards and ensuring the UK operates at the top of the ‘value-chain’.

Stuart Hutton CEng MIET

UKIP Parliamentary Candidate, Tatton.