Good news on UK jobs, but we must ditch EU energy policy
There is widespread praise for Britain's economic success, especially in job creation, which puts Euroland to shame. But the UK needs to distance itself from the job destroying dear energy policies of the EU if it wants to keep progressing
The employment figures have been goods news for many months. Yesterday’s figures mean that 2 million new jobs have now been added since 2010. The UK economy is in marked contrast to southern and western Euroland, where high unemployment remains entrenched and where there are precious few new jobs being created.
Yesterday also saw praise for the UK from the IMF boss. The IMF themselves are not immune to making poor forecasts or for giving bad advice on what to do next . This time, they gave a sensible comment on what has happened.
They noted that the UK has been much more successful at achieving growth than the rest of Europe, and agreed that the UK had made some good calls on the pace of deficit reduction and how to reduce it.
The task ahead is to generate still more jobs. It is to generate better paid jobs. It is to raise the skill level, and to resume productivity growth. It is to create a climate for more industrial growth as well as service sector growth
The singe most important change to speed that process has to be a major change to our energy policy. The UK needs to distance itself from the job destroying dear energy policies of the EU, and have a UK policy based on the pursuit of greater self sufficiency in energy provision.
The position in the Euro area is weaker in many ways. Their overdependence on wind energy will become a particular problem, burdening them with much dearer energy than their leading competitors.
Japan and China are putting in large quantities of coal based electricity production, which is presently much cheaper.
As if the disaster of the Euro was not enough, the EU has hit upon another way of destroying jobs and giving the advantage to the competitors.
Mr. Redwood's writing is re-posted here by his kind permission. This and other articles are available at johnredwoodsdiary.com
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