What is Britain's growth strategy?


From the Acme newswire: "HSBC is to pull out of London. It announced this morning that four out of five of its business units are to move to Germany, ripping the heart out of the City of London and triggering thousands of job losses.

more than 1,400 jobs are to be lost following the Government"s decision to award a lucrative carriage order for the Thameslink route to Siemens of Germany rather than to Derby-based plant The train maker says more than 1,400 jobs will now be cut at its Derby plant

"All five major broadsheet newspapers called for the chancellor to resign; several junior ministers have resigned; urgent meetings have been scheduled this morning aimed at averting what television commentators are blaming on "long term neglect of banking" by both the coalition and Labour when in power.

"The Treasury was said to be offering immediate tax breaks and regulatory forbearance to the bank. Negotiations are being handled by a junior minister who was once a senior banker."

Now substitute the word Bombardier for HSBC, Derby for London, manufacturing for banking.

And tell me again what Britain's "growth strategy" is?

Paul Mason, Economics editor, Newsnight Article written by Paul Mason Paul Mason Former economics editor, Newsnight

End of an era

After 12 years on Newsnight, Economics editor Paul Mason has moved on to pastures new and this blog is now closed.

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  • rate this

    Comment number 40.

    ...we should be adopting the contractual ways of Germany and France who seem, despite EU rules, to protect their own.

    Nothing in EU rules says not to protect. If you consider value for money then paying your own people to make something is nearly always better. Less unemployment, less benefits, more tax, less crime, more exports... Thats why everyone else buys locally.

  • rate this

    Comment number 39.

    The point no one seems to realise. No politician in the UK gives a monkeys about the UK. They are ONLY interested in garnering favour with their rich and powerful mates in order to gain multiple non-exec director positions and a fortune. That these are all with banks or importers of foreign stuff doesn't matter. They are rich - beyond mamon, you can do what you like, the police will stamp on you

  • rate this

    Comment number 38.

    @4 Tommy
    HSBC paid £236 million in UK tax, not a great deal for a skyscraper full of wheeler dealing parasites. Don't forget banks MAKE NOTHING just leach money from people and business and pretend they are great.
    In Derby they make REAL products that can be exported to provide REAL income in REAL money - not fake bull that evaporates like the morning mist in a financial problem

  • rate this

    Comment number 37.

    Lets consider...
    1 million for a German train built in Germany, 1.5million for a Canadian train built in Britain... which is best value?
    Buy German, we lose the Derby factory (if not straight away within a year as it can't sell anymore). Total cost 1million+2500lots of benefit+local businesses closing+no export+always importing...
    1.5million to Derby, but 30% back in tax, benefits saved...

  • rate this

    Comment number 36.

    Ah Tommy, the stupity of a Thatcherite...
    Bombardier does NOT offer an inferior product (no more than any British product is actually inferior - just something the Japanese, Germans, Americans et al tell you in adverts).
    As they employ British workers who pay tax, when employed don't take benefits, and the company sources stuff here etc. the actual headline price is NOT the cost!


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