Riots damaged economic recovery, says broker
UK weakest growing of world’s leading nations
The riots which erupted across the UK earlier this month could have “extremely damaging consequences” for the economy.
That is according to Dr Tim Morgan, global head of research at Tullett Prebon, one of the world’s largest inter-dealer brokers.
The top city broker has long been a critic of the rising public and private sector debt , and has criticised the Labour government for the amount that it borrowed. In a new report titled I buy therefore I am: the economic meaning of the riots , he wrote that the unrest highlighted Britain’s need to “change its ethos, recast its role models, encourage saving.”
He added: “If Britain is to progress both economically and socially, the relationship between consumerism, role models, upper echelon accountability and productive investment needs to be understood in a way that it clearly has not been over the last two decades.
“Public and private debts are a charge on the young people of today and tomorrow.”
The statement came as the Organisation for Economic Co-operation and Development (OECD) revealed that the UK is growing at the weakest rate of the world’s leading nations … with the exception of tsunami-hit Japan. The OECD also announced that growth across its 34 member states was just 1.6% in the year to June.
Angela Eagle, the shadow chief secretary to the Treasury said: “These figures show that the British recovery was choked off well before the current global uncertainty. Far from being a safe haven, the Chancellor’s decision to cut too far and too fast has made Britain highly vulnerable to the problem’s we are seeing.”
Ben Broadbent, from the Bank of England’s Monetary Policy Committee said in a BBC Radio 4 interview: “The outlook for growth domestically has weakened in the last three or four months. [It is] certainly lower than one would expect in a, quote, normal economic recovery.”