Economy

Could the government be preparing itself for a spending cut which would eclipse the ending of the winter fuel payment? In his mini-reshuffle in response to the resignation of Tulip Siddiq, Keir Starmer has appointed the newly-elected MP for Swansea West, Torsten Bell, as pensions minister. It is an interesting choice because, in his former life as director of the Resolution Foundation, Bell was a loud critic of the triple lock, which he called ‘a messy way of achieving the objective of a higher state pension’. He advocated raising the state pension in line with average earnings instead. The Prime Minister quickly moved to scotch suggestions that the triple lock

The UK economy has grown for the first time in three months. The Office for National Statistics (ONS) reports that the economy expanded by 0.1 per cent in November after it contracted by 0.1 per cent in both September and October. This uptick is largely thanks to an increase in services output, which grew by 0.1 per cent in November 2024, after falling by 0.1 per cent in October (a downward revision from last month’s estimate that there had been no growth. So has the economy turned a corner? It’s very difficult to spin this morning’s news in a wholly positive light. Yes, it’s good that the economy did not

The relief from Downing Street at yesterday’s inflation data – which showed that it dipped to 2.5 per cent in the 12 months to December, down from 2.6 per cent the month before – was palpable. Darren Jones, the Chief Secretary to the Treasury, cast a breezy image as he described his boss, the Chancellor Rachel Reeves, as “brilliant”. The choices facing Reeves and Starmer would be bleak Keir Starmer will now be able to offer his Chancellor more than lukewarm assurances that she is not facing the chop. The news will abate the recent cycle of media criticism and with President Trump’s inauguration next week, focus will soon turn elsewhere.  Her

It’s gilts season at Westminster. This is one of those unpredictable events, like the passing of a comet, that sees the residents of the political village staring at the skies and imputing all sorts of divine causes to the curious flashing lights they see there.   Because of the ongoing excitement in the markets, a lot of political folk have, in the last few days, become authoritative commentators on yield curves. Welcome to the party, guys. A very long time ago, I covered bond markets for a City newswire, and hated pretty much every minute of it. I claim no particular expertise as a result, but I am still confident in

It is half a century since Britain’s native car industry embarked on its long, painful decline, precipitated by Austin Allegros with rear windows falling off, endless strikes over the length of tea breaks and terrible commercial decisions such as to cede the hatchback market to overseas competition. But where Britain led, Germany and France now seem to be following. How much longer before names like Peugeot, Renault, and even Volkswagen, either disappear or become reduced to mere badges affixed to Chinese-designed and produced vehicles? The retreat of the European car industry has cropped up from time to time in recent months. In October, Volkswagen announced, for the first time, its intention to

As Trump Treasury Secretary nominee Scott Bessent rises, full of promise for his confirmation hearing in Washington next week, the UK is still reeling from a plunge in the value of the pound and a sharp rise in borrowing costs, directly tied to Rachel Reeves’s economic policies. The contrast in the approaches of these respective leaders could hardly be more stark. Bessent, a figure whose appointment has Wall Street buzzing with optimism, contrasts sharply with Rachel Reeves, whose policies, compounded by the net zero fanaticism of Ed Miliband, are proving to be the harbinger of economic catastrophe. This comparison isn’t just about individual competence; it’s about the contrasting philosophies of