Much to do if Britain is to manufacture its way out of trouble

The City had hoped that Britain would export its way out of trouble. Dream on City Boys: Britain’s trade deficit is £7.3bn. It is perverse that the Thatcher government is blamed for manufacturing’s decline. Certainly, deficits were a feature of the Thatcher years but Labour came to power with a £1.8bn trade surplus and the gap has widened every year thereafter; Britain was £56bn in the red by 2006. With a possible inflation crisis louring in the distance, precipitated in part by weak sterling and a dependency on imports, British manufacturing needs to be stimulated. John Redwood has a typically incisive post:      

‘It is quite possible to make things in Britain, make them well and make a profit. The fact that so few do these days tells us something else. For all the fine politicians’ words about manufacturing, government often does not want industry. Planning controls, regulations and tax regimes are hardly encouraging.