Reasons to be negative about the UK’s growth prospects

On the IEA blog, Professor Tim Congdon has listed five reasons why the future trend rate of growth might be closer to 1.5%pa than the 2.5%pa that has been typical of the post-war period:

1. Slower labour force growth and the steady retirement of the baby boom generation.
2. The bigger role played by the public sector in the UK economy and its weaker productivity record.
3. Higher taxation - particularly on high earners and capital.
4. The "apparent rush for high-cost and wasteful renewable energy sources".
5. "Regulatory pressure on the banking industry will increase the cost of bank finance".

Read the full post.