Sources in Whitehall are reportedly looking into the re-introduction of the Window Tax 162 years after it was repealed. With the UK government hell-bent on austerity, it has positioned itself as the proverbial ‘canary in the coal mine’, and is in dire need of ways to balance its books. However, the canary died long ago. It seems that other countries have taken note, moving away from austerity to more growth-focused measures, while the UK ploughs ever deeper in to the gas-filled mine. The resurrection of the Window Tax – along with other draconian measures – are back on the table as the UK tries to galvanize its economy and return the fiscal situation to a sustainable path.
Posts Tagged ‘UK’
Sterling remains one of our least favourite currencies. We have frequently highlighted the terrible state of the UK economy, and the baleful effects the heavy private and public debt loads are having on its long-term health. This places the burden on the external sector, eg exports and earnings from overseas investments, to revitalize the UK economy. A weaker currency is the easiest and quickest way to increase the competitiveness of the external sector.
In the aftermath of the Lehman bankruptcy, the Bank of England helped engineer a 25% weakening of sterling. But this was not enough, and the current account and trade deficit have shown no signs of a sustainable pick-up.
Today’s blog is an excerpt from our forthcoming May HindeSight, Eyes Wide Shut, which we will release later this week. The report discusses the UK, its soaring debt burden, how it is impacting the economy, and how the government is moving towards financial repression in order to deal with the problem. The following excerpt is about the parlous state of UK property, and the growing likelihood of another sharp dive in UK house prices.