Mike Baldwin, of Jericho Street, Thorverton, writes:
In his article ‘Business and Trade are looking up’ (Mid-Devon Advertiser, February 2) Mel Stride stated with regard to the economy that ‘All in all we appear to be doing well and with increasing signs that we may do rather better going forward than many recently have predicted’.
As Financial Secretary to the Treasury one might be forgiven for thinking that he knew what he was talking about. Sadly this is not true.
The recent news that the last three months’ UK growth slumped to 0.1 per cent, the lowest rate for five years, proves this to be the case. Most economists consider that the stagnant growth in the British economy is due to the uncertainty surrounding Brexit. The present annual growth in British GDP is 1.2 per cent; this compares with the average EU countries’ rate of 2.7 per cent. Our inflation rate is 2.5 per cent, almost twice that of the EU at 1.3 per cent.
It is considered that due to the fall in the value of the pound following the referendum the Exchequer last year lost about £9bn; this is greater than the net annual cost of our membership of the EU.
The Office of Budget Responsibility predicts that over the next three years the Exchequer will lose annually £15bn due to Brexit. The Government are spending more than £3bn to organise Brexit and are to pay the EU over £39bn to leave. This is money which could have been spent saving lives in the NHS.
Using the Government’s own figures and based on leaving the EU on the terms set out by Theresa May it has been estimated that in 15 years’ time the UK Exchequer will lose £40bn annually. This is £615 million weekly in present day values and represents a loss of almost a quarter of what we spend on the NHS. A loss of this size is staggering, and will have a devastating effect on our GP surgeries, hospitals, schools and local services.
Mel Stride voted to ‘Remain’ in the referendum. Just after that, on July 1, 2016 he wrote in the Mid-Devon Advertiser ‘Over the coming months we’ll be served up with some good old fashioned facts. I suspect many will find them hard to swallow’.
It is sad that he is now part of a Government responsible for taking us down this disastrous path.