Developments in the UK Economy
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UK families feel burdened by debt - Telegraph

UK families feel burdened by debt - Telegraph | Developments in the UK Economy | Scoop.it
The burden of household debt increased during the recession, and is probably continuing to rise, Government figures show.
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Private sector (household) debt in the UK is higher than most other advanced economies - and this news report reminds us of the constraint that the existing debt burden has on spending power and consumer confidence. Mentions changes in the savings ratio - collectively we are saving more than before, but with real incomes getting squeezed, it is little wonder that consumer demand has been weak recently. There are some signs of a rebound in consumer spending on goods and services - what might be causing it?

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Developments in the UK Economy
Study resources curated for students wanting to keep up to date with key developments in the UK economy for their exams
Curated by Geoff Riley
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Guardian view on austerity economics: it failed

Guardian view on austerity economics: it failed | Developments in the UK Economy | Scoop.it
Editorial: The Treasury says Britain has to save for a rainy day. But the skies are about to open and it’s time to spend
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When Currencies Fall, Export Growth Is Supposed to Follow—Until Now

When Currencies Fall, Export Growth Is Supposed to Follow—Until Now | Developments in the UK Economy | Scoop.it
The U.K. saw substantial currency depreciation during the financial crisis, after the Brexit vote and amid its current political uncertainty. But the predicted economic boom hasn’t arrived, providing a live test of whether globalization has blunted textbook theory.
Geoff Riley's insight:
This article is superbly relevant for any exam question that asks students to evaluate the economic impact of a currency depreciation. The rising level of import content in many manufactured products means that a significant depreciation in a currency often no longer has the expansionary effects on exports, domestic output, profits and jobs that textbooks once supposed. 
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Record number of English and Welsh wine companies launched in 2016

Record number of English and Welsh wine companies launched in 2016 | Developments in the UK Economy | Scoop.it
Industry experts say weak pound is factor in popularity of English and Welsh wines with overseas buyers
Geoff Riley's insight:
Output of wine in the UK now exceeds five million bottles per year according to data from English wine producers. There are 502 vineyards in England and Wales, as well as 133 producers making wine from other people’s grapes. A combination of increasing capacity, growing industry expertise and the benefits of a weaker pound helped the industry to expand further in 2016 although a shortage of grapes is a barrier to the pace of expansion.
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Apple's Italian job for finding top talent - BBC News

Apple's Italian job for finding top talent - BBC News | Developments in the UK Economy | Scoop.it
Apple is expanding its European academy to find the next generation of coding and app creators.
Geoff Riley's insight:
The global battle for talent shows no sign of easing off. Apple's decision to establish a new academy in Naples is welcome news for the Italian economy and one driven by commercial self interest. There are two million apps available on its online store - in Europe alone, the app economy sustains 1.2 million jobs.
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Does raising corporation tax make economic sense?

As Jeremy Corbyn details plans to raise corporation tax if Labour win the election, Tax Research UK's Richard Murphy and the Institute of Economic Affairs
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Labour plans to raise corporation tax to 26% - does this make economic sense? The arguments for and against are relatively predictable, but for top grades, find the subtle nuances in the arguments and think of some "it depends" arguments.
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Underestimating the impact of austerity

Underestimating the impact of austerity | Developments in the UK Economy | Scoop.it
There have been many ideas put forward to explain the low growth in UK productivity, but among mainstream accounts the impact o
Geoff Riley's insight:
Austerity influences supply as well as demand - an important article to read when revising the economics of fiscal austerity and the possible impact on innovation / supply-side capacity.
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Footloose FDI: Nestle moves output from the UK to Poland

Footloose FDI: Nestle moves output from the UK to Poland | Developments in the UK Economy | Scoop.it
Food giant to cut almost 300 jobs and move production of the Blue Riband biscuit to Poland.
Geoff Riley's insight:
When it comes to the crunch capital flows to where the risk-adjusted expected returns are highest. Several hundred jobs are at risk in the UK as Nestle announces that production of the Blue Riband chocolate bar is moving from Britain to Poland. Lower unit labour costs , favourable corporate tax rates and a competitive zloty (a floating currency) are three factors behind the move.
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Friday Flyer: Why Growth Matters

Friday Flyer: Why Growth Matters | Developments in the UK Economy | Scoop.it

Why does long growth or what economists used to call secular trend matter? It is essentially about compound interest. At a growth rate of 2% per year, income will double every 35 years. 

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A good overview here of the significance of small changes in compound growth rates on how living standards can improve from one generation to another. 
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Rethinking GDP

Rethinking GDP | Developments in the UK Economy | Scoop.it
Diane Coyle
Geoff Riley's insight:
Diane Coyle has an article on new measures of economic welfare in the March 2017 edition of Finance and Development from the IMF. Strongly recommended for students and teachers wanting an updated resource to strengthen your teaching / class notes on this important topic. 

"Public conversation about economic policy is largely conducted in terms of GDP growth, so the erosion of GDP’s status as a reasonable measure of economic welfare is a serious matter indeed."
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Depreciation in £ makes UK firms attractive M&A targets

Depreciation in £ makes UK firms attractive M&A targets | Developments in the UK Economy | Scoop.it
The fall in the pound against the dollar has made it easier for Kraft Heinz to make an approach for Unilever, and made UK carmaking unattractive to GM
Geoff Riley's insight:
One of the possible fall-outs from the Brexit vote - the 20% depreciation in sterling might be a factor behind some high profile takeover bids announced/rumoured in recent weeks.
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Cars and Brexit: The view from Germany 

During the EU referendum campaign, prominent Leavers were confident that the German car industry would call on Angela Merkel to give the UK a favourabl
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The skills shortage pushing Dyson to Asia

The skills shortage pushing Dyson to Asia | Developments in the UK Economy | Scoop.it
UK tech firm Dyson has opened a new $400m research centre in Singapore - partly because of a lack of engineers in Britain
Geoff Riley's insight:
Here is a good contextual example of supply-side weaknesses in the UK labour market. 
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Tax burden to be highest in 30 years

Tax burden to be highest in 30 years | Developments in the UK Economy | Scoop.it
Low growth and higher tax income will combine for the highest tax burden since 1986, a think tank says.
Geoff Riley's insight:
There is a wealth of background information on the UK economy in general and the government's fiscal challenges in particular from the IFS web site. Here is the link to presentations delivered at the 2017 Green Budget. https://www.ifs.org.uk/publications/8825
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Free trade area, single market, customs union - what's the difference?

Free trade area, single market, customs union - what's the difference? | Developments in the UK Economy | Scoop.it
What is the difference between a free trade area, a single market and a customs union?
Geoff Riley's insight:
As the chances of a soft-Brexit harden (!) Jony Bloom looks at the options. Breturn not yet making an appearance!
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The Economic Consequences of a Hung Parliament

The Economic Consequences of a Hung Parliament | Developments in the UK Economy | Scoop.it
Britain's just-completed election will produce a weak government and considerable uncertainty – and not only about the UK's withdrawal from the EU. The greater the political instability, the more acute is the need for a framework that will finally start to address the deep divisions and challenges facing the British economy.
Geoff Riley's insight:
A timely piece from Diane Coyle on prospects for an active regional / industrial strategy to address deep-rooted inequalities and the persistent productivity gap.
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Britain’s farmers get £3bn a year from the inefficient CAP. That has to change

Britain’s farmers get £3bn a year from the inefficient CAP. That has to change | Developments in the UK Economy | Scoop.it
The Common Agricultural Policy is inefficient, and much of British food production is uncompetitive in the absence of tariffs. And free trade deals of the kind the UK plans to pursue outside the Si…
Geoff Riley's insight:
The distinguished Oxford economist Dieter Helm writes here about the opportunity in a post-Brexit environment to fundamentally reform the subsidies offered to the UK farming industry. 
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Why are so many young Greeks turning to farming?

Why are so many young Greeks turning to farming? | Developments in the UK Economy | Scoop.it
Eight years into an economic crisis, a shortage of jobs is leading many young Greeks to turn to the land.
Geoff Riley's insight:
I have put this into the UK economy scoop it but realistically it belongs to either an EU or a development category! There is a tremendous amount of economics here - labour mobility, value added, government failure, recovery from depression and much else besides. 
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The boss of a popular burger chain supports plans for 'barista visas' to avoid a post-Brexit staffing crisis

The boss of a popular burger chain supports plans for 'barista visas' to avoid a post-Brexit staffing crisis | Developments in the UK Economy | Scoop.it
The new managing director of popular burger chain Byron has thrown his support behind the introduction of “barista visas” to avoid labour shortages in café and restaurants following Brexit. The Home Office is reportedly looking at plans to introduce the special visas to ensure the hospitality sector is fully staffed after Brexit.
Geoff Riley's insight:
Pret, Byron, Five Guys, Eat... these brands are an increasingly ubiquitous presence on the high street - but there are concerns about staffing in a post Brexit environment. Will we end up with a complex and complicated system of work visas to address potential labour shortages in key areas of the labour market?
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GDP ‘not fit for purpose’ in digital age, says Google

GDP ‘not fit for purpose’  in digital age, says Google | Developments in the UK Economy | Scoop.it
The rise of the smartphone and apps such as Instagram and Snapchat mean traditional measures of growth are no longer fit for purpose, according to Google’s chief economist.
Geoff Riley's insight:
Superbly relevant article on the challenges of measuring GDP in a digital age and also the flaws in relying too heavily on measured national income and output when tracking progress in lifting economic and social welfare.
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The economists’ manifesto

The economists’ manifesto | Developments in the UK Economy | Scoop.it
The economists’ manifesto
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As relevant now in 2017 as it was in 2015 when first published
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UK CPI Inflation Surges to 2.3% - Brexit Impact Mounts

UK CPI Inflation Surges to 2.3% - Brexit Impact Mounts | Developments in the UK Economy | Scoop.it
The jump in the annual rate of CPI inflation from 1.8% last month to 2.3% this month is a strong indication of the lagged effects of the post-Brexit…
Geoff Riley's insight:
The jump in the annual rate of CPI inflation from 1.8% last month to 2.3% this month is a strong indication of the lagged effects of the post-Brexit depreciation of sterling. Some economists including Ed Conway at Sky are suggesting that real-time measures of inflation have prices in the UK already rising year-on-year at a rate of 3% or more. Here is some of the reaction to the steep increase in inflation.
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Who are the UK’s trading partners? 

This is a superb interactive graphic produced by the ONS on the value of the UK's trade flows with different countries around the world.
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This is a superb interactive graphic produced by the ONS on the value of the UK's trade flows with different countries around the world.
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UK inflation in the Brexit years

► Subscribe to FT.com here: http://on.ft.com/2eZZoLI ► Subscribe to the Financial Times on YouTube: http://bit.ly/FTimeSubs For more video content from th
Geoff Riley's insight:
George Buckley has been a good friend of Tutor2u over the years. He explains things really clearly for A level students - this is a good example as he explores some of the factors that will affect inflationary pressures in the UK up to and beyond the date of formally leaving the EU. 
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Toshiba: Why troubled Japanese firms survive

Toshiba: Why troubled Japanese firms survive | Developments in the UK Economy | Scoop.it
Why are so many Japanese firms in such a mess - and why don't they fail?
Geoff Riley's insight:
Zombie businesses in Japan as a barrier to the success of Abenomics? Zombie businesses are not just UK phenomena!
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Germany first! America fumes

The world’s largest current-account surplus will be announced today: Germany’s exports of goods
Geoff Riley's insight:
I've put this in the UK economy board because trade imbalances and our relationship with the EU post Brexit are inextricably linked to this story. The Germany economy is set to record then highest current account surplus ever!
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