THE BANK OF ENGLAND has issued a warning that not only will the bankrupted UK economy not grow in the wake of the Rachel Reeves Labour Party bosses budget, but that the near bankrupted capitalist industries will respond to it by raising prices and slashing hundreds of thousands of jobs!
In fact, the UK economy shrank in October while economists expect zero growth in the final months of 2024.
The Bank of England Governor, Andrew Bailey said that the Bank could not commit to future interest rate cuts, while bourgeois analysts warned that the UK capitalist economy faced a number of further ‘cost shocks’ in 2025, that would push the UK into slower growth and even higher inflationary prices.
The Bank of England then proceeded to read the last rights for the UK Labour leader Sir Keir Starmer’s pledge to raise living standards across the UK, by stating that: ‘There was a common view that the UK was moving from a cost of living crisis period, to a much higher cost of living, with lower living standards being the ongoing norm.’
The Bank’s poll also warned that the bosses were increasingly responding to to Chancellor Reeves’ £25 billion increase in employer National Insurance contributions by raising prices, ‘signalling that interest rates may well remain higher for longer to prevent the economy from over heating.’
It added: ‘Higher prices and lower employment were both cited more frequently than lower wages’ the Bank said.
Businesses were said to be reacting to the Budget with a ‘lower head count, lower hours and pay and higher prices than otherwise.’
Labour PM Starmer yesterday conceded that his pledge to raise living standards across the country ‘would take some time’ and would not be ‘fixed by Christmas’.
Starmer added to the House of Commons Liaison Committee that ‘families were already feeling the benefit of a Labour government through what we did in the Budget.’
In fact, another poll that was conducted by Threadneedle Street’s agents said that a growing number of working class families felt that the Chancellor and PM Starmer were out of touch with the pressures facing working class families who had to pay their bills and feed their children.
Economists at HSBC said that the market has started to see the UK in particular as a stagflationary story – an outlook that would keep rates higher, see growth grind to a halt and unemployment rapidly rise in the period directly ahead.
The truth is that the world wide capitalist economy is in its greatest crisis ever and knows no other way to go forward than to make the working class pay for its crisis, by smashing up its trade union organisations, to the point of making trade unionism illegal, with new draconian anti-union laws designed to keep the bankrupt capitalist system going at the expense of the living standards and the basic rights of the working class and the youth of the world.
There is only one way forward for the working class as it faces the greatest ever crisis and collapse of the capitalist system.
This is to build revolutionary parties, sections of the International Committee of the Fourth International, with strong youth sections that will be able to mobilise millions of workers and the masses of the youth to organise and and lead socialist revolutions in all the the major capitalist countries.
The World Revolution began with the 1917 Bolshevik Revolution, that erupted as the world capitalist system collapsed during the First World War.
Today capitalism is in its death agony. The way forward is to build sections of the International Committee of the Fourth International and mass youth sections of the Young Socialists in every country to lead the working class to complete the World Socialist Revolution, that was began by Lenin and Trotsky in 1917, when the Bolsheviks overthrew Tsarsim and began the worldwide socialist revolution.
In the UK, now is the time to build up the WRP and a mass Young Socialist movement to lead the successful British Socialist revolution, as part of the world socialist revolution.
There is not a moment to lose. Join the WRP today!