Much to do if Britain is to manufacture its way out of trouble
The City had hoped that Britain would export its way out of trouble. Dream on City Boys: Britain’s trade deficit is £7.3bn. It is perverse that the Thatcher government is blamed for manufacturing’s decline. Certainly, deficits were a feature of the Thatcher years but Labour came to power with a £1.8bn trade surplus and the gap has widened every year thereafter; Britain was £56bn in the red by 2006. With a possible inflation crisis louring in the distance, precipitated in part by weak sterling and a dependency on imports, British manufacturing needs to be stimulated. John Redwood has a typically incisive post: ‘It is quite possible to make things