10 March 2023 - Childcare costs are out of control
The economy is losing around twenty-five billion pounds annually from the number of (mostly) women who are unable to return to work due to the cost of childcare. The Chancellor is under mounting pressure from his own MPs to provide further support to this sector of the economy in his forthcoming Budget, which he will deliver to the House of Commons next week. Another area of the economy that is failing, according to Andrew Bailey, is the number of workers who have opted to take early retirement rather than return to work following the recession. According to Bailey, the UK is unique among its G7 partners in experiencing this phenomenon, which is potentially a further source of both lack of output and rising inflation due to the lack of genuine skills that have disappeared from the jobs market This situation is exacerbated by the exodus of foreign workers that has happened since Brexit. The Bank of England has been accused of not being fully committed to using monetary policy to bring inflation under control, as it has steadily raised interest rates close to the level when they will become restrictive on demand. Beyond Currency Market Commentary: Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.