The problem is that while we have an economic recovery of sorts, so far it looks a like recovery with little prosperity.
We have noted many times before that wage increases still lag behind inflation. Last week official data showed that tax revenues are also not rising as might be hoped, which threatens the Chancellor's objective of cutting the spending deficit.
Tax revenues, of course, are simply the Government's cut in everyone else's earnings and profit. If earnings do not increase it is hard to raise more tax.
Figures last week also showed that consumer spending on food actually fell in July – the first time such a thing has happened since records began.
There may be short-term effects to explain some of these figures, but the general picture is clear. There is economic growth, but prosperity is thin on the ground.
My view is that interest rate rises now or in the near future could be extremely damaging.
A real debate in the Bank of
Over the coming year, rates will eventually rise – by at least 0.25 and possibly by 0.5 percentage points. That will add about
That money will have to come from somewhere. But where?
If the answer is by more scrimping on the grocery bill then the supermarkets are in for yet more tough times ahead.
THE flow of business figures warning of the risks of a Yes vote in the Scottish independence referendum is becoming a flood.
In the last week
It followed a warning from Sir
The Yes campaign is being wilfully blind to the dangers for
The claim that an independent
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