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Apathy endangers economic recovery

CHRISTOPHER TAYLOR, CHIEF EXECUTIVE OFFICER, LONDON & EUROPEAN
CHRISTOPHER TAYLOR, CHIEF EXECUTIVE OFFICER, LONDON & EUROPEAN

An opinion poll recently revealed that a hung parliament is thought to be the most likely outcome of the general election by a third of voters.

But I side with veteran Tory Kenneth Clarke when I say a Labour victory would be preferable to a hung parliament.

The opinion poll result is not surprising given that none of the main parties seem to want to spell out their method for cutting the deficit for fear of sounding unpopular or derailing the recovery. No wonder voters are confused and apathetic.

But apathy is the biggest threat to the economy. It will guarantee a hung parliament which would spell disaster for our industry as well as the economy.

A hung parliament would see the pound weaken and risk our credit rating being downgraded.

And a Citigroup economist has warned that if inflation remains a threat gilt yields will have to rise to about 4.75% or higher.

Gilts, or government bonds, are used to price mortgages so mortgage payments tend to rise in line with their cost.

Election debates are focussing on tax and this is a battleground that is relevant to every individual and business in the UK. Cuts are inevitable and when they come they’ll hit hard.

So whether you are on the political team that barks ’down with taxes on jobs’ or the one that cat calls ’higher taxes on the rich’, one thing is certain – if you don’t vote you’ve got no right to complain when the axe doesn’t fall in your favour.

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