For the sake of the economy, the UK needs to invest in gas and nuclear power and drop the wind farms and disadvantageous “green policies”.
Economic growth, or rather the lack of growth, is now central to the economic or, indeed, the political debate. The economy has dipped since autumn last year and there are few “green shoots” of growth on the horizon. But, whatever our short-term woes, the British economy needs a really radical growth strategy in order to reverse the competitiveness lost over the last 10-15 years and prepare it for the challenges ahead. Infrastructural spending should be boosted, deregulation should be accelerated, the tax system should be simplified and, last but by no means least, the Government needs to radically re-think its energy policies, where “green policies” are undoubtedly adding to business’s bills, undermining their competitiveness.
Manufacturing, especially energy intensive users including steel, cement and chemicals, are especially vulnerable to high energy costs, not with-standing some Treasury support. At a time when the government is keen for the economy to be “rebalanced” from financial services to manufacturing and from domestic demand to exports (where manufactured goods are still very significant), this is unfortunate to say the least.