Economy

The OECD’s interim Economic Outlook report has landed this morning and its forecast for the UK has been revised significantly upwards. Having predicted in May that the economy would grow by 0.4 per cent this year, the policy organisation now expects the economy to grow by 1.1 per cent. This lifts the UK from the bottom of the pack of advanced economies and ties it in second place – alongside France and Canada – for the fastest growth in the G7. The news comes as the OECD declares that the global economy is ‘turning a corner’ (the name of today’s report), as global GDP looks set to ‘stabilise’ at 3.2 per

Keir Starmer gave a formidable speech to the Labour conference today. It was easily good enough to inspire the party’s natural supporters to cut him some slack over the bumpy months ahead. In doing so, the Prime Minister also clawed back some of the ground lost through the needless mistakes that have afflicted his rookie administration and shifted the dial just a bit from doom-mongering and towards hope for the future. Starmer’s spirit of doggedness may be the key to explaining how far he has got in life without exhibiting any sign of natural brilliance While he will never be a Boris Johnson-level natural communicator, Starmer nonetheless has improved his

It is not hard to imagine what will be in Rachel Reeves’ ‘industrial strategy’. There will be lots of ‘green industries’, along with plenty of ‘cutting-edge technologies’, all designed to nurture ‘national champions’ in the ‘sectors of the future’. And presumably Lord Alli, the Labour donor who has been footing the bill for Keir Starmer’s wardrobe, will be put in charge of overseeing all the details. Alongside the tax rises in the Budget planned for next month, the Chancellor’s promise of a full-blown industrial strategy is a troubling prospect. ‘Around the time of the Budget we will publish a green paper on a new industrial strategy focused on driving and

Smart meters were meant to make our lives easier. They were designed to help us reduce energy consumption and cut bills. Over the last five years, the government has been pushing energy firms to install these meters as quickly as possible. Millions of homes have been fitted with one. The flashing screen monitoring how much power is being used has become a ubiquitous feature in households across Britain. We’re constantly nudged to switch off a couple of lights, or skip a load in the washing machine, as we see what this energy use is costing us. But there’s a big problem with smart meters: millions of them don’t work properly.

With the Huw Edwards court case complete – and the disgraced BBC News presenter given a six-month prison sentence, suspended for two years, after he admitted charges of making indecent images of children – attention has returned to the fact that he could still receive a £300,000-a-year BBC pension. Many are horrified by this. There have been demands that some way should be found to withhold payment from Edwards. I disagree. Imagine if we did decide that those convicted of crimes such as Edwards’ have no property rights A pension is part of the remuneration we receive for work done. It isn’t some extra perk or discretionary bonus handed to

The Bank of England has held interest rates at 5 per cent. This was the expected outcome of the Monetary Policy Committee’s latest meeting, which saw members vote 8-1 to maintain the base rate.  Was it a mistake not to cut rates? The latest economic data appears to have persuaded the MPC to lean into their (now) hawkish tendencies and keep rates steady. The headline inflation rate is almost on target but the rise in core inflation in August (which excludes more volatile prices like food and energy) and in services inflation – as well as mixed signals from the labour market – gave the Bank good reasons to wait until later in the Autumn

Inflation was 2.2 per cent in the 12 months to August, unchanged from the month before, today’s update from the Office for National Statistics reveals. This is ever so slightly above the Bank of England’s target of 2 per cent, but it’s in the ballpark of where it’s supposed to be. And while the Bank expects inflation to rise slightly by the end of the year – to just under 3 per cent – it is due to fall again in 2025 and remain around target for the years to come. These figures are good news for Labour, but they raise question marks over how long the government can continue the

Labour might relax the ban on the sale of new petrol cars that is scheduled to come into force in six years’ time, according to reports today. The government will reportedly allow hybrids to still be sold until 2035, on the grounds that they are proving far more popular with consumers than the entirely battery driven cars. In truth, this tinkering doesn’t really matter: government targets for electric vehicles are completely meaningless anyway. By definition, it is impossible to know what technical breakthroughs may be made over the next few years The 2030 ban already looks ambitious. The European Union is only aiming for 2035, with the German auto-makers putting

The Chancellor was so shocked when she received the briefings from Treasury officials that she had no choice but to scrap her election commitments. It was so serious that it was about to crash the markets. It had to be fixed so urgently that the winter fuel allowance had to be cut, and we will need huge tax rises in a ‘Horror Budget’ next month. The Chancellor Rachel Reeves and the Prime Minister Sir Keir Starmer have made the ‘black hole’ in the public finances central to their government agenda. But hold on. In the kind of twist that would puzzle even the most distinguished astro-physicist, when you look closely

There was no economic growth in July, according to the Office for National Statistics. The latest GDP figures show that a boost in services output – 0.1 per cent – was offset by a tumble in production and construction output – 0.8 per cent and 0.4 per cent, respectively – leading to no overall growth in the month of the election.  It’s surprisingly bad news, as markets had expected a modest 0.2 per cent increase in July. Instead, Britain had two consecutive months of no growth.  There is also growing concern that the improvement in services output in July won’t necessarily carry into the latter half of the summer. The

For those of us who grew up singing songs about Irish nationhood, today is a depressing day. As youths we crooned about how Ireland, ‘long a province’, will one day be ‘a nation once again’. We stood in stiff attention to the Irish national anthem with its promise that Ireland will never again ‘shelter the despot or the slave’. Now we switch on the news and what do we see? A foreign court bossing Ireland around. Ireland must now go after Apple and demand billions of euros from it Today, the European Court of Justice (ECJ) ruled that Ireland granted Apple ‘unlawful aid’ and must now badger Apple for £11