Recession likely say leading economists

BRITAIN is on course for recession as the coronavirus plays havoc with the global economy, top economists warn, writes Davidwilliamson.

Roger Bootle, of Capital Economics, expects the UK will be hit with negative growth in the second and third quarters.

He said: “I suspect the economic impact is going to be pretty serious.”

The Government faces challenges that were “unbelievable” if not “overwhelming” said Mr Bootle as he called for strategic tax cuts. Mr Bootle supports cuts to National Insurance to make it less expensive to employ people and also called for reductions in income tax and corporation tax.

But the economist is not anxious about extra borrowing and debt as thetreasury scrambles to respond to the coronavirus. He said: “I’d worry more about boosting the economy and making sure that we get through this all right.”

David Paton, Professor of Industrial Economics at Nottingham University Business School, also says a recession is highly likely.

He argues costly climate change policies need to be scaled down by “looking at lower carbon alternatives such as gas rather than talking about consumers having to pay for completely new heating systems in their homes”.

Professor Patrick Minford of Cardiff University, who was a leading champion of Margaret Thatcher’s economic policies, said tax cuts would boost the UK.

He said: “We don’t want to be in a world of high tax rates when we are trying to rebuild the competitiveness of the economy.”