55. 3rd March 2020

This evening I attended the Chartered Accountants’ Hall for the Chartered Accountants True and Fair Lecture , which this year was given by Paul Johnson , Director of The Institute of Fiscal Studies.

Paul Johnson delivered a most interesting Lecture focusing on five macro trends in the economy. On the subject of Wages , Growth and Productivity, he pointed out that productivity and wages have been flat-lining since 2008.

The second trend was In-Work Poverty. Here Paul Johnson pointed out that in 1997/8, 41% of those working were in In Work Poverty, whereas in 2017/18 the figure was 58%.

On home ownership, homes were owned by 55% of 25 to 34 year olds in 1997. Whereas in 2017, the figures of home ownership for 25 to 34 year olds was 35%.

His fourth point was Lack of Fiscal Headroom . in this connection, he pointed out that Health Pensioner benefits and long term care costs will continue to rise.  Taking a view to 2066/67, other spending by Government will need to decrease from approximately two thirds of total government spending to nearer one third in order to accommodate the increase in long term care costs unless taxation rises.

The fifth point that Paul Johnson made is that the Net Zero Greenhouse Gas Target for 2050 will be enormously challenging.

It was a thought provoking lecture!