It’s time for the government to rediscover free enterprise

Instead of throwing money at a shaky labour market, the government should foster entrepreneurship, says Matthew Lynn.

Hydroponics worker with lettuce plants
Vertical farming is one of an array of industries about to emerge
(Image credit: © Jonas Gratzer/LightRocket via Getty Images)

In his spending review last week, the chancellor, Rishi Sunak, was once again spraying money around. He launched a raft of new initiatives to get people back into work and added extra funding to a few things that were already in place. You can see why. With an expected 10% drop in GDP this year the Covid-19 crisis has created one of the worst recessions ever recorded.

We have not yet seen that translate into a huge surge in joblessness, but it is only a matter of time. So far the furlough scheme and cheap loans to companies have softened the blow. Over the next year that will start to change. We are starting to see that this week, with Arcadia group going into administration. We will see many more redundancies in the months to come.

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Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.