Thursday, November 17, 2005

Second Thoughts On Gordon

I opined earlier that Brown is the only non-moron in Blair's cabinet. I was wrong - he thinks that raising taxes doesn't cut consumption!

The Brit economy is declining towards German growth levels and the £ is sliding. Here's the Governor of the Bank of England:

Higher taxes introduced by Gordon Brown have contributed to a slowdown in the economy, Mervyn King, the governor of the Bank of England, said yesterday.

Shoppers had stayed away from the high street because higher taxes had left less money in their pockets. "There was a sharp rise in the ratio of taxes to household income. There has been a two percentage point rise in the last couple of years," he said.

Mr King said that consumers had also been hit by the cost of paying off debts, and that council tax, rent, insurance and utility bills had risen much faster than inflation.

The collapse in high-street the main reason for the weakness of the economy.

Mr King's comments will be highly embarrassing for the Chancellor.

Mr Brown has sought to blame higher oil prices and a slowdown in demand from Britain's trade partners for having to downgrade his growth forecasts. This year, the economy is expected to grow by about 1.6 per cent.