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Starmer will need a miracle to boost his ‘AI growth zones’

The government has unveiled its new ‘AI Opportunities Action Plan’ – a ten-syllable, fifty-point proposal to grow the UK’s AI industry. Among the only memorable points of the fifty unveiled last month was the creation of ‘AI growth zones’, clusters of AI expertise dotted around the country. The only growth zone named in the plan was Culham, a sleepy village in Oxfordshire. I went to pay it a visit. Culham and its nearby sister village Harwell were among the top sites in the world for scientific research in the mid-20th century and were run by what’s now called the UK Atomic Energy Authority, which conducts nuclear experiments. Rumour has it, the area

Spotlight

Featured economics news and data.

Ross Clark

Ed Miliband doesn’t understand how energy pricing works

Are we about to find out the full foolishness of Ed Miliband’s policy of blocking licences for new oil and gas extraction in the North Sea? While it may come as a surprise to some, until New Year’s Eve Europe was still receiving gas supplies from Russia – not through the Nord Stream 1 pipeline which was sabotaged in 2022, but via an unlikely route through Ukraine. These taps have now been turned off, after an agreement for Russia to supply gas to Europe came to an end. That leaves the continent facing a similar situation, if less acute, to that which it faced in 2022. It must look elsewhere

Revealed: ONS blames Ring doorbells for dodgy jobs data

What caused the Office for National Statistics (ONS) to lose faith in its own jobs figures? After the pandemic, the ONS asked for the ‘national statistic’ quality mark to be taken off its estimates of whether Brits are working when response rates to its labour force survey collapsed. Fewer and fewer people were willing to invite an interviewer into their home to give them the 45-minute questionnaire. Bank of England governor Andrew Bailey said ‘it is a problem’ to not have accurate unemployment numbers when setting interest rates, while Lord Bridges, chair of the House of Lords eco­nomic affairs com­mit­tee, asked: ‘How are the Treasury and the bank to make

Ian Williams

Trump’s tariff war with China is just getting started

Over the weekend, Donald Trump described his sweeping 10 per cent tariffs against Chinese goods as an ‘opening salvo’. Within minutes of them taking effect at midnight last night, Beijing retaliated with targeted tariffs of its own against US coal, liquified natural gas (LNG), farm equipment and cars. It also announced export controls on a string of critical minerals to ‘safeguard national security’, and what it described as an ‘anti-trust’ investigation into Google. Like most Western internet and social media firms, Google is already banned from China, but earns money from Chinese businesses advertising abroad. The US President has described tariffs as ‘the most beautiful word’ In spite of the

Ross Clark

Asda and the absurdity of ‘work of equal value’ 

At last, some news of an industry in Britain that is flourishing. Unfortunately, it is one that is helping to suppress growth in every other sector of the economy. I am sure that the lawyers who have brought a case involving 60,000 female workers at Asda think they have won a famous victory after an employment tribunal ruled that most of them were victims of sex discrimination for being paid up to £3.74 per hour less than the company’s warehouse staff. But all they have really achieved, other than lining their own pockets and those of their backers, is to impose vast bills on hard-pressed retailers which, in some cases,

Who cares about the cold old?

When I was a child, we lived in a two-up, two-down terraced slum in Walthamstow, East London with bombsites at the back. My father made me a doll’s house by dividing a box into four for the rooms. One year when we hadn’t any coal, I watched my doll’s house, disassembled, burning in the living room grate. I couldn’t grumble. I had asthma and for the first couple of years of my life there was no NHS. Just being alive was a bloody miracle. I rather admired the glittering ice patterns on the inside of my bedroom window.  I was cold then, and I am cold now. I had hoped things might improve in the

Freddy Gray

Are Trump’s tariffs really that bad?

34 min listen

The Spectator’s economics editor Kate Andrews and Social Democratic Party leader William Clouston join Freddy Gray to try and make sense of Donald Trump’s decision to impose tariffs on Canada, Mexico and China. He has since threatened the European Union, and has warned the UK. Is this a negotiation tactic or something more? What political philosophy underpins the decision? And what will the impact be? Produced by Patrick Gibbons and Megan McElroy.

Starmer has much to gain from cosying up to Donald Trump

Donald Trump loves giving two fingers to the world’s great political brains. Before the US election, for example, Rory Stewart predicted that Kamala Harris would strut to victory. The sage of the centrist dads had egg on his face when the Donald won with 77 million votes. But now he’s in power, there’s a less likely – and considerably more impressive – commentator Trump is posthumously contradicting: Immanuel Kant. In his 1795 essay ‘Perpetual Peace’ (which any undergraduate student of politics will be painfully familiar with), Kant posited that a world made up of constitutional republics is the only possible precondition for a lasting global peace. It is this principle that

Kate Andrews

Donald Trump kicks off the tariff wars

He did it, Joe! Following on from the $79 billion worth of tariffs he implemented in his first term – which went largely untouched by Joe Biden’s Administration –  last night Donald Trump made good on his election promise to opt for another round of tariffs: this time, a 25 per cent tax on imports from Canada and Mexico, with China facing an additional 10 per cent levy on its goods. Despite whispers that the President might water down his plans in the last hours, he carved out very few exceptions for his new tax orders, which include Canadian oil and energy supply. It is now expected that America will

Ross Clark

Liz Kendall’s benefits crusade could make or break Labour’s fortunes

Could Liz Kendall turn out to be the most significant figure of Keir Starmer’s government, and a Chancellor in the making? When I wrote on the Work and Pensions Secretary’s proposed reforms here in November, I was sceptical that Labour really had much intention of pushing through benefits cuts, not least because the party had spent the past 14 years shouting ‘austerity’ every time the Tories so much as proposed to cut a bean from the benefits bill. Starmer himself has accused the previous government of “turning on the poorest in our society” when it proposed to end the temporary £20 weekly bonus added to benefits during Covid. Kendall has gained

Ross Clark

Sacrificing farmland for net zero is a big mistake

Yesterday it was a court ruling to invalidate licences for oil and gas extraction in the Rosebank and Jackdaw fields. This morning comes another perverse consequence of Britain’s legally-binding net zero target. Environment Secretary Steve Reed is to announce that he intends 9 per cent of farmland in England to be taken out of production in order to help achieve net zero carbon emissions by 2050. This continues a rewilding programme set up by the last government. From the point of view of achieving the net zero target it makes perfect sense; in fact it would make even more sense to take 100 per cent of farmland out of production

Ross Clark

Britain is not ready to give up North Sea oil and gas

Ed Miliband seems to have gone missing since Rachel Reeves announced her ambition for a third runway at Heathrow yesterday. Just before he disappeared, he mumbled that ‘of course’ he wouldn’t be resigning over the issue – in spite of threatening to do just that when he was climate secretary in Gordon Brown’s government. But then who needs Ed Miliband to thwart government growth plans when we have the courts to do it for him? This morning, Lord Ericht in the Scottish Court of Session hammered another great brass nail into the coffin of the North Sea. He ruled that licences granted to extract oil and gas from the Rosebank

Ross Clark

Is Rachel Reeves right that there is no trade-off between growth and net zero?

Why is it that some lies get endlessly repeated without ever being challenged, even though they are quite obviously wrong? In her pro-growth speech today, the Chancellor Rachel Reeves asserted: ‘There is no trade-off between economic growth and net zero’. Government ministers, advisers and many others have been saying such things for years – and hardly ever do they get properly challenged. To pretend that no such trade-off exists is foolish It is easy to see why, for political reasons, you might want to argue that committing Britain to achieve net zero carbon emissions by 2050 will not make us poorer and indeed might make us wealthier. You want to

Kate Andrews

Do Rachel Reeves’s growth plans go far enough?

Has Rachel Reeves got her growth? Today’s speech from the Chancellor in Oxfordshire was not this government’s first attempt to pivot towards a more business-friendly, growth-generating narrative. But it was its best effort yet.  Starting with the highlights. Reeves threw her unabashed support behind a third runway at Heathrow, insisting that the expansion was ‘badly needed’ and that the case had never been stronger for boosting trade; the airport ‘connects us to emerging markets all over the world, opening up new opportunities for growth’. Let’s not get carried away She called on proposals to be submitted by the summer, to start a process that would ensure the fastest and best-value

Why Britain needs growth

‘Growth’ – the focus of the Chancellor Rachel Reeves’ speech this morning – can be a confusing word. It’s intangible, obscure, hard to visualise. It happens slowly, often imperceptibly, over a political cycle – when it happens at all. The changes needed to achieve it can be tough and involve trade-offs. Often voters feel those changes will not directly benefit them, or may even make their lives worse – whether it’s new housing developments, HS2, a new runway at Heathrow (which Reeves backed) or new nuclear power stations. For anyone who stood on the doorstep during the last election, we know that making and doing more things can be a hard

Why Rachel Reeves’ growth plan is doomed

The wait is over. After six months in government, Chancellor Rachel Reeves has decided that today is the day to step forward and pull the big lever marked ‘growth’. In a widely-trailed speech, she has outlined all the different ways her government is going to get the economy moving again. There is just one snag. The lever isn’t attached to anything. In reality, Reeves doesn’t have a clue where growth comes from – and that means her big speech this morning won’t change anything.  Reeves has, at least, finally got round to detailing how she plans to make the UK the fastest-growing economy in the G7. Cynics might wonder why