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James Moore: EU stance deters investors who could aid recovery

 

James Moore
Tuesday 21 October 2014 19:32 BST
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Outlook Welcome to the tax-free recovery. There were hopes that public sector borrowing would at least remain steady this month. Instead, it’s risen by 10 per cent to nearly £12bn.

This underlines the problem with the recent jobless figures. The fall in unemployment to below £2bn was driven by low paid and part-time work. As such, income tax receipts haven’t recovered, and the deficit reduction programme has been driven even further off course.

What might help is an improvement in business confidence and investment, and the attraction of more big companies with good well-paying jobs to these shores.

Unfortunately that’s not going to happen. Thanks to the risk and uncertainty created over Britain’s position in Europe, companies are understandably reluctant to make any commitment.

Thanks to the Conservative Party’s continuing difficulties with Europe when it comes to paying down that deficit it looks like we’re on our own.

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