More evidence that the Tories ‘economic doom-loop’ has ‘sucked the life’ out of the UK
The Trades Union Congress (TUC) has slammed the Tory government over what it calls its “economic doom loop” that has “sucked the life out of the UK economy”. It comes as the number of businesses going bust via insolvencies has hit a 30-year high.
Insolvencies: through the roof
As the Financial Times (FT) reported:
Corporate insolvencies in England and Wales rose to their highest level since 1993 last year, according to official figures that lay bare the challenges facing companies amid slowing demand and high production costs.
There were 25,158 registered company insolvencies in 2023, up 13.7 per cent from the previous year — the highest number for 30 years, the Insolvency Service said on Tuesday.
The figures included 20,577 voluntary liquidations, 9 per cent higher than in 2022 and the highest number since the series began in 1960.
Of course, the warning signs over businesses going bust were already there. In December 2023 alone, usually a quieter month for insolvencies, figures were up 2% year-on-year. At the time, investment manager at the Wealth Club Nicholas Hyett said:
December is a seasonal low point in terms of insolvencies – with the smaller number of working days affecting the number of insolvencies that are registered. However, a 2% increase year-on-year suggests that companies are struggling with the higher interest rate environment.
Where’s the proper plan?
Hyett was correct. Moreover, at a time when houses are desperately needed, it’s construction companies which top the table of insolvent companies. The Construction Index noted that:
According to an analysis by accountancy firm Mazars, 17% of all insolvencies were construction companies last year.
The construction sector is experiencing the highest number of insolvencies of any industry in the UK, it says, with 4,370 companies failing in the year to 30th November 2023. This was a 7% increase on the previous year and a 76% rise from 2,481 in the year to November 2021.
The TUC has slammed the Tories over the figures. Its general secretary Paul Nowak said:
Businesses are struggling because the Conservative government has sucked the life out of our economy. We can’t afford to stay in this doom loop of cuts, falling living standards and stagnation. We need a proper plan for jobs and growth that can get living standards rising again.
A “proper plan” from this government seems like a long way off. With the Bank of England expected to keep interest rates at 5.25% until at least the autumn, the economic outlet for businesses – and therefore, workers – is unlikely to improve any time soon.
Featured image via UK parliament/Maria Unger
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The bank of england, by not quickly reducing the intrest rate, wants and will get a ressesion so brace your selves. This will be compounded by the government reducing expenditure.
If the government cuts employees, in say the NHS, they will loose employment tax, have to pay the exworkers unemployment benefit and the low benifit will reduce the VAT from their expenditure. This is why they can not reduce the debt (in fact it may increase the debt).
The tories has spent over 10 years trying to reduce the debt and failing because they do not take into account the loss of tax and incease payments.
More evidence that the Tories ‘economic doom-loop’ has ‘sucked the life’ out of the UK CORRECT-COORECT.
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Just a small list of Tory Govt wasting U.K. taxpayer money
LIST
1–On immigration mess they did not address fully Lied about!!
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2–Ukraine war with Putin lying Boris dragged us into.
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3– war ongoing now with other counties D-Camaron a dodgy X Tory P.M. that run off from U.K. funding this new world war 3 why?
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4–H.S.2. C**p rail link dropped but billions of taxpayer money already wasted on it by my Tory Pendle =Colne M.P. that was Transport minister underlying Boris rules yet failed our area transport needs why?
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5–failing to sort out N.H.S. & public sector wages that is costing U.K. taxpayer millions in solicitors fees Govt use.
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6—Rwanda dodgy deal that as already cost taxpayer too much cash for nothing in return Sunak-Hunt why?
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7—The illegal Boat people that has and still is costing us U.K. taxpayer money just because the Tory Govt want cheap slave worker in the U.K. to keep their rich business people happy that live outside the U.K. areas of U.K. that fund the Tory party area bye elections now and next G.E.
FOOTNOTE
Just a few above of Tory Govt wasting of our U.K. taxpayer money on their Tory party problems they made for themself voter not us, so just to save our taxpayer money next G.E. DO-NOT vote for any Tory M.P. standing next G.E. as they all voted to spend our taxpayer money.