WEU comments on Philip Hammond’s investment programme
“The Workers of England Union campaigns for the abolition of the Barnett Formula because it leaves the English taxpayer financially worse off. This week’s announcement by the UK Chancellor of investment in English roads and infrastructure we will see the English Taxpayer paying off the SNP government again due to Barnett consequentials
The House of Lords report from 2009 was clear that the English taxpayer finances the UK.. The amount of surplus money that goes to Scotland every year is £10 Billion.
Heathrow expansion under Barnett consequentials gives the SNP at a minimum £500 Million of English taxes.
For every 10 billion spent in England on Capital projects a further billion has to be given to Scotland.
Mr Hammond, the UK Chancellor has already revealed this week’s statement will contain £1.3 billion of improvements to roads, which will mean a Barnett Formula consequential for the Scottish Government of around £130m’.
Regards
Stephen Morris
General Secretary
Workers of England Union
Article in the Guardian
UK investment in tech and transport among world’s worst, says TUC
Study will put pressure on Philip Hammond to boost spending across public and private sectors in autumn statement
New tube carriages. The UK came last out of 34 OECD members for spending on transport equipment.
Phillip Inman Economics correspondent, The Guardian
Wednesday 16 Nove
Britain ranks among the worst performers in the developed world for spending on new technology, industrial machinery and transport equipment, according to a study by the TUC of investment spending in the public and private sectors.
The UK came 34th out of the 34 members of the Organisation for Economic Cooperation & Development (OECD) for spending on transport equipment.
Illustrating the meagre spending in recent years on the latest technology and industrial kit by UK firms, the study also found Britain ranks near the bottom – 20th out of 21 countries for which data is available – in spending on IT systems and 23rd out of 27 countries for investment in other types of machinery.
The report helps explain why the UK’s productivity rate has failed to recover since the 2008 crash, the TUC said, and heaps pressure on the chancellor, Philip Hammond, to boost investment across the public and private sectors in next week’s autumn statement.
Hammond is expected to use his first set-piece statement in parliament to highlight the UK’s persistently low productivity rate, which many analysts have blamed on a reluctance by businesses to invest in new machinery and processes while the outlook remains uncertain.
The EU referendum result has added to business concerns that the economy will slow next year and that investments in new equipment might be wasted.
Hammond has played down the likelihood of extra public spending on new infrastructure projects, preferring to focus on tax allowances and other incentives to encourage business investment.
Last month, following a visit to the International Monetary Fund (IMF) in Washington, he said: “Now is a good time to invest in genuinely productivity-enhancing infrastructure, and to take advantage of low borrowing costs and our ability to borrow.
“But this is not about a fiscal splurge. It is about supporting the economy in a measured and balanced way.”
The OECD and IMF have urged the UK to increase investment spending, arguing that it has the borrowing capacity to boost digital infrastructure and skills training for workers to operate the latest equipment.
The TUC general secretary, Frances O’Grady, said: “We can’t just waltz into Brexit with our fingers crossed. If the government doesn’t invest in Britain, it could go very badly wrong. And working people will pay the price with fewer jobs, lower wages and higher prices.”
She added: “But if the government invests in Britain, we can build an economy strong enough to thrive.”
at constructing new homes and office blocks, but even in these sectors, the UK is still well below the OECD average.
The only area where the UK is ahead of the OECD average is in intellectual property, ranking 13th of 34 countries.
In total, UK capital investment was 16.6% of GDP in 2014, matching Italy’s spending as a proportion of national incomes, while the average across all OECD countries was 20.8%. Germany fell just below the average with a figure of 20%, but France edged higher to register spending equal to 21.8% of GDP.
Only Greece and Portugal invested less than the UK, leaving it to rank 33rd out of 35 countries.
O’Grady said: “We need investment in rail and roads. We need investment in new homes and clean energy. And we need investment in skills, education and fair pay for a world-class workforce.
“It’s the right thing to do for better jobs and higher wages. And it’s the best way to build an economy strong enough to compete in the global marketplace.”