David Blanchflower, a former member of the Bank of England’s monetary policy committee, and Simon Wren-Lewis, a professor at Oxford University, who have been members of Labour’s economic advisory committee but are now expressing reservations about Corbyn’s leadership. The committee was convened by the shadow chancellor, #John McDonnell, and reported directly to Corbyn.
Blanchflower walked away from the advisory committee in June and has now decided to publicly back Smith after coming to the conclusion that Corbyn is “absolutely, completely unelectable”. He said Corbyn was unable to form a strong opposition when the economy appeared to be “going down very fast” after the vote to leave the EU.
The academic, who teaches at Dartmouth College in the US and is known for predicting the 2008 recession, said consumer confidence had collapsed and it appeared the economy was in serious trouble, with “horrible” economic indicators emerging.
Blanchflower, who is advocating a 5% cut in VAT, also said Smith had been better at consulting businesses and economists in three weeks than Corbyn’s leadership had over the last nine months.
Two economic advisers to Jeremy Corbyn have said they do not believe he can win the next election and the party would have a better chance under #Owen Smith.