How red tape is strangling the UK economy

The booming world economy has never had it so good, and yet the UK is struggling. Rising taxes and political interference are to blame.

During last month's budget, Gordon Brown portrayed Britain as "performing manfully in a tough global environment", as David Smith points out in The Sunday Times. Yet according to the IMF's chief economist, Raghuram Rajan, the world has "never had it so good". It is enjoying its most protracted boom for over 30 years: global growth should reach 4.9% in 2006, eclipsing 4% for the fourth successive year.

Growth is continuing in America, major emerging economies are exceeding expectations and even the eurozone has been recovering. Indeed, against this backdrop, Britain's recent performance is hardly inspiring, with growth slumping to 1.8% last year and tipped to make a mild recovery to 2.5% this year. Given the global boom, why aren't we doing better?

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Annunziata Rees-Mogg

Annunziata was a deputy editor at MoneyWeek, covering financial markets, politics, economics and comment pieces. She then went on to the Daily Telegraph as a lead writer where she wrote a column on young women’s financial issues. She was briefly a member of the European Parliament for the East Midlands region in the UK as part of the Conservative Party.  Annunziata continues to write  as a freelance journalist.