We face a future of no growth, warns top economist Patrick Minford
MARGARET Thatcher’s former economic advisor has said the country is facing a future of no economic growth.
Speaking on GB News Prof Patrick Minford said: “We’re in a terrible situation where Labour have ramped up taxes, particularly on entrepreneurs, and the bringing in of this inheritance tax on farms and businesses has been disastrous.
“Adding on to the fact that top rates are up at over 45% and in cases, much higher than marginal rates. Generally, we’re in a situation where business is in despair, really, and particularly smaller entrepreneurial classes of smaller businesses are being treated dreadfully by this government.
“It’s not surprising we face a future of no growth at all, really.
“It’s government policy, fundamentally. We saw under Mrs Thatcher the way in which we restored growth after the dreadful 70s by cutting top rates of tax and bringing down the tax burden generally.
“That led to a big speed up in growth, productivity growing, and growth settling at over 2%. We overtook France and Germany in per capita income. All these things happened as a result of the Thatcher reforms to tax and, of course, regulation – all the union laws.
“All that’s been reversed since, since by weak Conservative governments, and now this disastrous Labour government that is putting the lid on it all. I mean, it’s quite appalling watching it.
“Mrs Thatcher brought in a benefit system to help those who are willing to work, and if you were in work, you are better off with the result of having benefits that brought you above poverty levels and so forth.
“And there’s nothing wrong with that. It got people back into work, it helped to get people back into work and that’s all good.
“But it is possible to keep it under control. The trouble is, it all went south after Covid, when people got used to these huge handouts, and getting people back into the habit of working has been very hard.
“And of course, this government had given up on it altogether, which is most disappointing, because you’d have thought that Labour could have applied tough love, to keep the benefit system under control.
“But it’s spiralling out of control because of their unwillingness to administer tough love, which is what Mrs Thatcher did.”
