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Stephen Daisley

Do Palestinians want Hamas gone?

Discussion of Donald Trump’s peace proposal for Gaza revolves around one question: who is for it and who is against it? Israel is for it, though mostly because it is backed into a corner and has no choice. The Arab states are for it, which is to be expected since they wrote it. The European Union is for it, which is to be expected since the Arabs are for it. Palestinian Islamic Jihad and the Houthis are against it, and Hamas is expected to be too. I don’t know what the UK government has said and, in concert with the rest of the world, I don’t really care. This is

Spotlight

Featured economics news and data.

Ross Clark

No, Ed Miliband: zonal pricing won’t cut energy bills

Is Ed Miliband going to announce a move towards a zonal electricity market, where wholesale prices would vary between regions of Britain? It would appear to be on cards following the Energy and Climate Secretary’s interview on the Today programme in which he said he was considering the idea. Miliband’s apparent support for the plan follows intense lobbying by Greg Jackson, CEO of Octopus Energy as well as support from the National Energy System Operator (NESO), the new government-owned company which oversees the grid. However, zonal pricing is bitterly opposed by others in the energy industry, including Chris O’Shea, the generously-moustached CEO of Centrica, and Dale Vince, CEO of Electrocity

The real reason the Treasury can’t find the fiscal ‘black hole’

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

We all know the NHS is broken – but can Labour fix it?

There are few surprises in Lord Darzi’s review of the National Health Service, not least because much of it has already leaked out. Health Secretary Wes Streeting declared immediately after Labour won the election that the NHS was ‘broken’. Darzi, a surgeon and former Labour health minister whom Streeting commissioned to undertake the probe, appears to have reached a similar conclusion in today’s report, though not in as few words. ‘We have crumbling buildings…and parts of the NHS operating in decrepit portacabins,’ Darzi says ‘We have crumbling buildings, mental health patients being accommodated in Victorian-era cells . . . and parts of the NHS operating in decrepit portacabins,’ Darzi says. His diagnosis is that Britain

Kate Andrews

Britain’s GDP has stagnated – again

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

Brendan O’Neill

The EU’s Apple tax ruling is a bleak day for Ireland

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

James Kirkup

The state pension system is unfair. Reeves is right to change it

Rachel Reeves is cutting £1.4 billion of pensioner welfare payments with her winter fuel payment means-test. It sounds like a big number, but it’s not. £152 billion is a big number. That’s the total value of welfare payments to pensioners in 2024/25. It’s more than we spend on the NHS. Taking the £1.4 billion annual cut into account, by 2027, that total bill will be around £166 billion. Relative to the wider economy, pensioner benefits are currently around 5.4 per cent of GDP. That will rise next year to an all-time high of 5.6 per cent, before dropping back to 5.4 per cent in 2027/28 – unless policies like the

Kate Andrews

Can Labour get young people back to work?

The UK still looks set to get another interest rate cut (or two) by the end of the year, but is that now the main indicator of a healthy labour market? This morning’s update from the Office for National Statistics shows average wage growth slowed to 4 per cent in the three months leading up to July. Wage growth is still outpacing inflation, but it is moving in the right direction – for the Bank of England anyway, which is watching closely to see if its first rate cut is going to have any major impact on wages, risking a secondary round of inflation spikes. Adjusting for inflation, overall wages

This could be far worse than axing the winter fuel payment

You won’t find me mounting the barricades in defence of the winter fuel payment, though I’ll miss the pleasant surprise when it landed in my bank account sometime before Christmas. I do, though, have a bit of a bone to pick with those well-heeled and often still lucratively-employed pensioners who dusted off their metaphorical loud-hailers (in the form of letters to newspapers and social media posts) every autumn to protest that they didn’t need it, that it was a waste of taxpayers’ money, and that they a) gave it to charity, b) spent it on Christmas presents or c) ordered another case of good wine.  Ending the single occupier discount

The sneaky way that Russia is still evading western sanctions

The leaders of the European Union can give themselves a pat on the back. They have, on the face of it, delivered on a promise made following Vladimir Putin’s invasion of Ukraine to end the export of European goods, machinery and parts critical to Russia’s war effort. Yet things are not quite as straightforward as they seem. Exports from the bloc to Russia in June plummeted to a mere €2.4 billion (£2 billion) – a third of the €7.5 billion (£6.3 billion) shipped during the last peacetime June of 2021 before the war, according to data from the EU’s statistical body Eurostat. The figure for June this year is the lowest

Why the SNP keeps failing in its war on child poverty

The poor are always with us, Jesus said, and that has never been more true than in Scotland over the past 25 years. One in four children is still languishing in poverty, according to the Scottish government’s own statistics. This ratio never seems to change, whoever is in power and however much is spent on it. First Minister John Swinney recommitted himself to the Quixotic objective of eradicating poverty in his programme for government this week. He said ending child poverty will be the ‘single greatest priority’ of his government – just as it was for Humza Yousaf and Nicola Sturgeon and all first ministers since the dawn of devolution. The only certainty is that he will fail – even though

Fraser Nelson

Coffee House Shots live: the Starmer supremacy

47 min listen

Join Fraser Nelson, Katy Balls and Kate Andrews, along with special guest Jonathan Ashworth, for a live edition of Coffee House Shots recorded earlier this week. They dissect the first few weeks of the new Labour government and look ahead to the policies autumn, and the budget, might bring. Having surprisingly lost his seat at the election, how blunt will Ashworth be? The team also answer a range of audience questions, including: how big of a welfare crisis is the government facing? Would – and should – they reform the NHS? And could the challenge Reform UK poses to traditional parties continue to grow?  Produced by Patrick Gibbons and Megan McElroy. 

Kate Andrews

Expanding the sugar tax won’t save any lives

Labour may not have been forthcoming about most of their tax and spend plans during the election. But on one topic the party was crystal clear: a Labour government would beef up the nanny state. Politicians weren’t shy about this. It was Wes Streeting’s idea to adopt New Zealand’s (now abandoned) plans for a generational smoking ban, picked up months later by Rishi Sunak. Keir Starmer kicked off the year embracing the nanny state, saying he was ‘up for that fight’.  It’s no surprise then that health campaigners and groups are flocking towards new government aides to discuss what can be taxed or banned next. According to reports today, an extension of

Fraser Nelson

Does Rachel Reeves need an ‘escape route’ on winter fuel?

14 min listen

Fraser Nelson and Katy Balls join James Heale to look ahead to a crucial week for Labour. On Tuesday, Parliament will hold a binding vote on the changes to winter fuel allowance – how are Labour expected to deal with this? Former shadow chancellor Ed Balls, and husband of the current home secretary Yvette Cooper, has argued that Labour need an ‘escape route’ from the policy. What can we read from this intervention? And how influenced are the government by the spectres of George Osborne and Liz Truss? Also on the podcast, Fraser talks about both the problems facing Germany, and the surprisingly successful measure that Sweden has introduced, to

Starmer could regret trying to woo trade unions

The last two and a half years have seen a dramatic revival in trade union militancy, with working days lost through strikes reaching their highest level for more than thirty years. The arrival of a Labour government has already seen markedly more generous settlements than the Conservatives offered – and the new administration has committed to legislation intended to boost union power. It’s a situation that is unlikely to end well – for businesses and for workers. If the government is not careful, we could end up with a situation like that of France Keir Starmer has vowed to repeal the Conservatives’ 2016 Trade Union Act (which imposed voting hurdles

Will Angela Rayner really water down the right-to-buy scheme?

Housing Secretary Angela Rayner is said to be planning on watering down the right-to-buy scheme which enables council tenants to purchase their homes from local authorities at a significantly reduced price. The policy, famously introduced by Margaret Thatcher in 1980, has helped many thousands of families become home-owners, giving them greater security and a stake in their local communities. But councils are keen to cut the cost of Thatcher’s flagship policy. As a result, Rayner – who once blasted her opponents as Tory ‘scum’ – is considering axing the scheme for newly built council houses and cutting the discount offered to existing tenants. While Downing Street has insisted the policy won’t

Martin Vander Weyer

Why is no one marching against VAT on school fees?

How passively we respond to revelations of Labour’s real direction of travel. As millions of pensioners brace for the confiscation of winter fuel payments and other Budget tax raids, shouldn’t they be pinning on their medals, raising their banners and marching down Whitehall – alongside columns of private school parents, furious at the imposition of VAT on fees? Yet so far barely a whimper of protest, as though those affected are racked with guilt at having kept the Tories in power for so long. In response to the school-fee fait accompli, Eton with its mile-long waiting list will hit parents with a full 20 per cent VAT hike from January,

Why London must get back to work

The commute is often unreliable, expensive and crowded. It is easy enough to understand why so many of London’s 5 million strong workforce are so reluctant to go back to the office. There is a catch, however. Working from home is costing the British economy a huge amount of lost output. In reality, the UK can’t afford for Londoners to carry on WFH for much longer.  According to a study just published by the Centre for Cities, London is one of the slowest major cities in the world to go back to the office full-time. Of the six cities it studied, London had the second lowest attendance rate, with full-time

Labour’s flirtation with price fixing won’t end well

Almost everyone is aware of the concept of peak hours pricing. If you buy a train ticket to travel during rush hour it costs more than at other times. Few people object to this. Indeed, most of us think it helps. It means that people who don’t need to travel in that period will pick another time instead, so there’s space on the train for the people that do need to travel then. Peak hours pricing is just one very simple example of what economists call ‘dynamic pricing’ or ‘surge pricing’ – a system in which the prices paid vary according to how much demand there is. Dynamic pricing has

Ross Clark

Why is it so hard to buy a petrol car?

Is it really any surprise that car manufacturers have started refusing to sell us petrol cars? According to Robert Forrester, chief executive of dealership Vertu Motors, anyone trying to buy a petrol car at the moment is likely to be quoted a delivery date into next year. As I wrote here last December, unless electric vehicles (EVs) enjoyed a sudden rush of popularity, the inevitable result of the Zero Emission Vehicle (ZEV) mandate would be that car manufacturers would be forced to withdraw from the UK market. The reason was coming down the road at us like a three-ton electric SUV. Under ZEV, which began on 1 January this year,

Ross Clark

Labour want to Frenchify the economy

It is not that long ago that the new Prime Minister Sir Keir Starmer announced that his would be the government of ‘growth, growth, growth’. What has he done in that time to try to realise that ambition? It is hard to think of a single measure that will genuinely do anything to improve the fortunes of wealth-creating businesses – other than promised planning reforms which seem destined to fail as they are based on the faulty premise that it is only Nimbys who hold up house-building and other development, and not reams of environmental regulations which Labour has shown no interest in reforming. We have a government which poses

Labour must beware crying wolf about a run on the pound

As winter approaches, and fuel prices go up, Keir Starmer’s honeymoon period is well and truly over. The Labour government is clearly getting a little nervous about Chancellor Rachel Reeves’s decision to scrap the £300 given to millions of pensioners to help keep warm over the winter. It is now claiming that it had no choice but to save some money somewhere. ‘If we hadn’t taken some of these tough decisions we could have seen a run on the pound, interest rates going up and crashing the economy,’ argued Commons Leader Lucy Powell over the weekend. ‘It’s something we were left with no alternative but to do.’ ‘If we hadn’t