The Resolution Foundation (RF) says any post-Brexit downturn needs active fiscal and monetary policies to alleviate large impact.
The IMF’s revised outlook for GDP growth in the UK would mean the tax falling of around £150m a week, presenting a huge challenge to the new Chancellor, the Resolution Foundation said yesterday (Tuesday) in response to the latest IMF World Economic Update.
The IMF has downgraded UK GDP growth by 0.2 percentage points to 1.7 per cent in 2016, and by 0.9 percentage points to 1.3 per cent in 2017. This would shrink the size of the economy by £21bn by next year. Should tax revenues as a share of GDP remain constant this would reduce the annual tax take by £7.8bn, or by £150m a week.
Matt Whittaker, Chief Economist at the Resolution Foundation, said, “there is huge uncertainty around the UK’s economic prospects in the wake of the decision to leave the EU, though most agree there will be a short-term hit to growth.
“The IMF outlook today, while less pessimistic than many of the projections we’ve had from the City, reiterates the scale of the task facing the new Chancellor when he sets out his Brexit Budget this Autumn. A £21bn reduction in the size of the economy alone would reduce the tax take by £150m a week.
“With living standards still showing the effects of the 2008 financial crisis, any reduction in growth in will have profound implications for Britain’s households.
Those on low to middle incomes face the double hit of slower wage growth and a tighter benefit squeeze in the face of an inflation spike.
“Younger citizens too look vulnerable. Those in their 20’s have fared particularly badly over recent years and face the prospect of earning less over their lifetime than their parents did – the first time any generation has experienced such a reverse.
“The precise scale of the Brexit fall-out remains highly uncertain at this stage – especially over the longer-term – but it’s clear that the government will need to put those on low and middle incomes at the heart of its response if is to achieve the new Prime Minister’s mission of ensuring that Britain is a ‘country that works for everyone’.”
A Good Look At How Homes Will Become More Energy Efficient Soon
Everyone always talks about ways they can save energy at home, but the tactics are old school. They’re only tweaking the way they do things at the moment. Sealing holes in your home isn’t exactly the next scientific breakthrough we’ve been waiting for.
There is some good news because technology is progressing quickly. Some tactics might not be brand new, but they’re becoming more popular. Here are a few things you should expect to see in homes all around the country within a few years.
1. The Rise Of Smart Windows
When you look at a window right now it’s just a pane of glass. In the future they’ll be controlled by microprocessors and sensors. They’ll change depending on the specific weather conditions directly outside.
If the sun disappears the shade will automatically adjust to let in more light. The exact opposite will happen when it’s sunny. These energy efficient windows will save everyone a huge amount of money.
2. A Better Way To Cool Roofs
If you wanted to cool a roof down today you would coat it with a material full of specialized pigments. This would allow roofs to deflect the sun and they’d absorb less heat in the process too.
Soon we’ll see the same thing being done, but it will be four times more effective. Roofs will never get too hot again. Anyone with a large roof is going to see a sharp decrease in their energy bills.
3. Low-E Windows Taking Over
It’s a mystery why these aren’t already extremely popular, but things are starting to change. Read low-E window replacement reviews and you’ll see everyone loves them because they’re extremely effective.
They’ll keep heat outside in summer or inside in winter. People don’t even have to buy new windows to enjoy the technology. All they’ll need is a low-E film to place over their current ones.
4. Magnets Will Cool Fridges
Refrigerators haven’t changed much in a very long time. They’re still using a vapor compression process that wastes energy while harming the environment. It won’t be long until they’ll be cooled using magnets instead.
The magnetocaloric effect is going to revolutionize cold food storage. The fluid these fridges are going to use will be water-based, which means the environment can rest easy and energy bills will drop.
5. Improving Our Current LEDs
Everyone who spent a lot of money on energy must have been very happy when LEDs became mainstream. Incandescent light bulbs belong in museums today because the new tech cut costs by up to 85 percent.
That doesn’t mean someone isn’t always trying to improve on an already great invention. The amount of lumens LEDs produce per watt isn’t great, but we’ve already found a way to increase it by 25 percent.
Maybe Homes Will Look Different Too
Do you think we’ll come up with new styles of homes that will take off? Surely it’s not out of the question. Everything inside homes seems to be changing for the better with each passing year. It’s going to continue doing so thanks to amazing inventors.
ShutterStock – Stock photo ID: 613912244
IEMA Urge Government’s Industrial Strategy Skills Overhaul To Adopt A “Long View Approach”
IEMA, in response to the launch of the Government’s Industrial Strategy Green Paper, have welcomed the focus on technical skills and education to boost “competence and capability” of tomorrow’s workforce.
Policy experts at the world’s leading professional association of Environment and Sustainability professionals has today welcomed Prime Minister Teresa May’s confirmation that an overhaul of technical education and skills will form a central part of the Plan for Britain – but warns the strategy must be one for the long term.
Martin Baxter, Chief Policy Advisor at IEMA said this morning that the approach and predicted investment in building a stronger technical skills portfolio to boost the UK’s productivity and economic resilience is positive, and presents an opportunity to drive the UK’s skills profile and commitment to sustainability outside of the EU.
Commenting on the launch of the Government’s Industrial Strategy Green Paper, Baxter said today:
“Government must use the Industrial Strategy as an opportunity to accelerate the UK’s transition to a low-carbon, resource efficient economy – one that is flexible and agile and which gives a progressive outlook for the UK’s future outside the EU.
We welcome the focus on skills and education, as it is vital that tomorrow’s workforce has the competence and capability to innovate and compete globally in high-value manufacturing and leading technology.
There is a real opportunity with the Industrial Strategy, and forthcoming 25 year Environment Plan and Carbon Emissions Reduction Plan, to set long-term economic and environmental outcomes which set the conditions to unlock investment, enhance natural capital and provide employment and export opportunities for UK business.
We will ensure that the Environment and Sustainability profession makes a positive contribution in responding to the Green Paper.”