Recovery not 'firmly rooted' warns Kenneth Clarke
Former chancellor says economy remains ‘fragile’ and vulnerable to shocks
The UK’s economic recovery is not “firmly rooted” warns former Tory chancellor Kenneth Clarke. Describing the economy as “fragile”, he says there is a "long, long way" to go before the British economy is robust enough to deliver sustainable growth and compete with emerging powers such as China and Brazil.
Despite widespread and growing confidence in the economic recovery, Clarke argues that the economy remains "fragile", vulnerable to shocks, and lacks the strong productive base necessary to compete long-term in global markets.
In an interview with The Observer to mark the end of his 40-year political career, he says Britain must break out of the "ludicrous cycle" of house price booms followed by crashes, and needs to focus urgently on creating a productive manufacturing base in tandem with vibrant financial and other service industries.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"It's not firmly enough rooted on a proper balance between manufacturing and a wide range of services and financial services," he argues. "I mean, we have this mystery of why we can't get productivity to start rising again."
The former chancellor also admits there has been tension between him and David Cameron since the 2010 election. He says he has grown frustrated by the Tory press office’s efforts to keep him off the television and radio.
However, he insists he is completely “on message” with the government and a “great fan” of chancellor George Osborne.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Harriet Tubman made a general 161 years after raid
Speed Read She was the first woman to oversee an American military action during a time of war
By Peter Weber, The Week US Published
-
Chappell Roan is a new kind of boundary-setting celebrity
In the Spotlight She's calling out fans and the media for invasive behavior
By Anya Jaremko-Greenwold, The Week US Published
-
Saudi crown prince slams Israeli 'genocide' in Gaza
Speed Read Mohammed bin Salman has condemned Israel’s actions
By Peter Weber, The Week US Published
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right now
Speed Read Britain is currently in the grip of an ‘employment crisis’
By The Week Staff Published
-
Will the energy war hurt Europe more than Russia?
Speed Read European Commission proposes a total ban on Russian oil
By The Week Staff Published
-
Will Elon Musk manage to take over Twitter?
Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
By The Week Staff Last updated
-
Shoppers urged not to buy into dodgy Black Friday deals
Speed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
By The Week Staff Published
-
Ryanair: readying for departure from London
Speed Read Plans to delist Ryanair from the London Stock Exchange could spell ‘another blow’ to the ‘dwindling’ London market
By The Week Staff Published
-
Out of fashion: Asos ‘curse’ has struck again
Speed Read Share price tumbles following the departure of CEO Nick Beighton
By The Week Staff Published
-
Universal Music’s blockbuster listing: don’t stop me now…
Speed Read Investors are betting heavily that the ‘boom in music streaming’, which has transformed Universal’s fortunes, ‘still has a long way to go’
By The Week Staff Published
-
EasyJet/Wizz: battle for air supremacy
Speed Read ‘Wizz’s cheeky takeover bid will have come as a blow to the corporate ego’
By The Week Staff Published