Economy

What was that about Sadiq Khan’s expansion of London’s Ultra Low Emission Zone (Ulez) supposedly helping to reduce our dependence on cars and clean up the air? As well as the stick of charges of non-compliant vehicles, Khan has rolled out a very large carrot: £121 million of funds to help motorists ‘transition to greener alternatives’. That includes £49 million worth of scrappage grants for cars, at £2,000 a time, and £72 million worth of scrappage payments for vans and minibuses. According to City Hall in a press release last October, the whole package has resulted in 80,000 fewer motorists driving around London. So London’s streets are presumably now much less

By abolishing non-dom status, Jeremy Hunt was supposed to have clipped the wings of the shadow chancellor Rachel Reeves. Given that she had already earmarked the extra revenue – or what she hoped would be extra revenue – for free school breakfasts and a few other things, Hunt had suddenly punched a hole in her spending plans. But Reeves now claims to have filled that hole. She claims that she will raise an extra £2.6 billion – on top of what the Chancellor is expecting to raise – by closing a few loopholes. Non-doms will no longer be allowed to escape inheritance tax by placing wealth held overseas into trusts.

‘It would have been ideal not to have so  much poo in the water,’ said Oxford captain Leonard Jenkins after losing the university boat race to Cambridge last Saturday. Thames Water blamed high groundwater levels after weeks of rain for sewage discharges that are a less unpleasant alternative than ‘letting it back up into people’s homes’. But no one’s listening to the excuses – for the failing utility, that is, not the dark-blue crew. Thames Water is the pariah of post-privatisation capitalism, facing a charge sheet of poor service and financial opportunism of which rising tides of river filth are merely pungent symbols. The argument that water should never have

It has finally happened. In trading on Tuesday afternoon, the UK’s FTSE 100 index finally closed in on an all-time high. It hit 8,015 points, itching above the previous record closing level of 8,014 set in February 2023 – even if it was still a whisker below the intra-day trading record of 8,043, also from February last year. With stock markets rising around the world, at some point this week or perhaps next, the FTSE 100 will be setting fresh records daily. We may even be treated to one of those self-congratulatory tweets the Prime Minister, Rishi Sunak, specialises in. The trouble is, there is nothing to celebrate. In reality,

The thing about having three prominent house prices indices, all of which publish monthly figures, is that they are forever telling conflicting stories. Indeed, today’s Nationwide index, itself, nods in two different directions: prices were down 0.2 per cent in March, but the annual gain in prices was up from 1.2 per cent in February to 1.6 per cent in March. So is the housing market up or down? The first thing to note is that the Nationwide index is seasonally-adjusted – a process which is always at risk of giving a perverse outcome because it assumes that the same pattern of housing market activity will be repeated every year.

Given that a fair proportion of the UK public seem to want Martin Lewis to be prime minister, the government might well hesitate to dismiss the Money Saving Expert’s latest grumble: that Ofgem’s cap on standing charges is to be jacked up from today – from 53 pence to 60 pence per day in the case of electricity and from 29 pence to 31 pence in the case of gas. This rise comes in spite of the sharp fall in Ofgem’s energy price cap, which should see average annual dual fuel bills fall from £1928 to £1690. Lewis is not the least bit pleased, tweeting that standing charges are ‘an

Members of Labour’s frontbench have recently fallen over themselves to acclaim Margaret Thatcher. Hot on the heels of Rachel Reeves feting the Iron Lady’s determination to reverse Britain’s decline, David Lammy lauded the woman who defeated his party three times as a ‘visionary leader’. But like Mark Antony’s attitude to Julius Caesar, Reeves and Lammy come to bury Thatcher rather than to praise her. This appropriation of a Conservative icon like Thatcher is highly mischievous Labour’s shadow ministers invoke the ‘Iron Lady’ because they know a certain kind of voter, one Labour needs to help it win power, still goes all of a quiver at the mere mention of her

On Monday, the UK welfare state will expand to cover 15 hours of free childcare for working parents with two-year-olds. In September, this will be extended to infants of nine months or more. Next year, cover doubles to 30 hours. The total cost: £5.3 billion a year. It’s the ‘largest ever expansion of childcare in England’s history,’ says Gillian Keegan, the Education Secretary. This Easter weekend we see the bizarre spectacle of Tories attacking Labour from the left What is conservative about this? Nothing, of course. It pushes up costs and taxes. But the idea, at the time, was to to do this before Labour proposed it. To shoot Labour’s fox.

It was extremely optimistic to think the UK could revise its way out of recession. After the Office for National Statistics (ONS) reported GDP figures for Q4 last year showing a 0.3 per cent economic contraction between October and December, a recession seemed set in stone. Today the ONS reports no revisions to the figures. But even a small revision upwards would not have been enough to shake off the label of a recession. This remains a ‘technical recession’. Britain’s economy fell – just – on the wrong side of the line last year. Had the Q3 figures not been revised downwards in December last year – from no growth

Commentators like me often lament the lack of business experience among leading politicians – but also observe how few business leaders ever make successful transitions into the political arena. Archie Norman tried his hand as an opposition front-bencher, didn’t like it, and returned to the boardroom, latterly to lead the revival of Marks & Spencer; Digby Jones moved on from the CBI to serve uncomfortably as a trade minister under Gordon Brown. But there’s one obvious exception to the rule that politics and corporate life require totally different skill sets: Andy Street, who is campaigning for a third term as Tory mayor of the West Midlands, the UK’s second-most populous

Jeremy Hunt’s promise that the Conservative manifesto will protect the ‘triple lock’ on the state pension is a desperate measure to appeal to the one group of the population whom the Conservatives feel they can rely on. But taxpayers will not be thanking him in a few years’ time. On the contrary, by keeping the triple lock – which increases state pensions by either the Consumer Prices Index (CPI), average earnings or 2.5 per cent, whichever is greatest – Hunt has abdicated any remaining fiscal responsibility and condemned the public finances to further ruin. The triple lock is already costing taxpayers £10 billion a year. Since 2011/12 when the triple

So, is the recession over? The Office for National Statistics’ (ONS) retail sales figures show that sales volumes were flat in February, when many expected them to fall. Moreover, the increase in sales volumes for January was revised upwards from 3.4 per cent to 3.6 per cent, coming on the back of a sharp fall in December (on seasonally-adjusted figures). Clothing stores did better than most with sales volumes up 1.7 per cent in February. Household goods volumes were down 1 per cent – something which retailers apparently blamed on the poor weather – although it doesn’t make a lot of sense why we would feel happy going out in

Mortgage rates will finally start to come down again. Consumers will have a little more money in their pockets. And companies will find it cheaper to invest. Today’s cut in interest rates was a much needed boost for the economy. Oh, but hold on. That was over in Switzerland, where the central bank this morning cut rates by 0.25 per cent. By contrast, the Bank of England has today kept them on hold. This raises the question of whether the Swiss or British central banks have a better record of managing monetary policy. If most people in the markets had to put money on it they would probably place a franc