More Job Losses
by Philip
Job losses in retail and financial services have not come as too much of a surprise. The housing market is shot to pieces and you would expect a knock on effect on consumer spending and housing related sectors.
However Rolls Royce announcing 2000 job losses suggests that the downturn (as the BBC euphemistically call it) is international and very deep seated. Rolls Royce order book is international and not reliant on national demand.
Here at PJH Law we are seeing many Companies battening down the hatches and now starting to shed labour at a quicker rate. This is no surprise.
Economic policy has now taken on an Alice in Wonderland type quality with Alistair Darling poised to announce unfunded tax cuts in the upcoming budget review and David Cameron announcing his opposition to these cuts and his abandonment of Labour spending plans.
Monetary policy has also turned a complete circle with some members who were calling for a rate increase as recently as August now advocating a 2% rate.
The question is what do the MPC know that we don’t?
If one of the car makers like Vauxhall at Luton and Ellesmere Port pull out of the UK the meeting between the brown stuff and the cooling system will be truely ugly. A run on the pound could result in “Life on the Mars” not being the only 70s re-run we are witnessing - a begging bowl to the IMF would be national humiliation.
If you are running a business it’s not an easy time to be making long term decisions with the air heavy with doom and gloom and the future at best uncertain and at worst downright scary.
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