Advice for George Osborne and Stock Market Regrets

THE WEEK: Morningstar columnist Rodney Hobson provides two pieces of advice to George Osborne, and explains why he's a fan of WH Smith but not Premier Foods

Rodney Hobson 24 August, 2012 | 3:05PM

Cash for Votes
It is becoming increasingly difficult to believe that Chancellor George Osborne has much idea how to get the economy back on track. Or should one say that he has not got the faintest idea?

No-one can seriously suggest that he caused the nation's economic difficulties—I think even Gordon Brown must have worked that one out by now—but it was a great pity that Alistair Darling got thrown out with the Brown bath water. Darling had some clues as to how to improve the situation without making it worse, a paradox that is baffling Osborne.

Osborne's problem is that government spending is still rising despite his protestations that reducing the deficit was the top priority. His idea of cuts is to reduce the rate at which government spending rises, not to make real cuts. Unfortunately the spending increases are not feeding through into stimulating the wider economy, so taxation is failing to keep pace and the deficit is rising.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Premier Foods PLC26.52 GBX2.21
WH Smith PLC1,334.00 GBX12.20

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, most recently The Dividend Investor.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites