Economy

Bridget Phillipson was appointed Labour’s shadow education secretary in November 2021. After 18 months in the role, she has now finally unveiled Labour’s ambitious new idea to help tackle the teacher retention and recruitment crisis: use the tax raid on private school fees to fund a £2,400 welcome bonus to every teacher who has completed their two years of training. This is a classic case of copying someone’s homework, except – no surprises – it wasn’t very good the first time round. The Conservatives have already increased the starting salaries of newly-qualified teachers to £30,000. Teaching unions have already overwhelmingly voted to reject a one-off payment. The government has already tried giving bonuses to maths teachers,

The Bank of England was made independent to take monetary policy away from flighty politicians who are slaves to expediency and fashionable sound bites. Instead, central bankers imbued with objectivity, prudence and, most of all, economic expertise would be in charge. But when it comes to climate change and net zero, the Bank has shown that poor judgment is certainly not exclusive to elected officials. Only a month ago, Andrew Bailey, Governor of the Bank of England was touting net zero as a growth elixir. ‘The transition to net zero is a major structural change that needs substantial investment and can over quite a prolonged transition period help to raise

Thames Water appears to be in trouble. The company, which has billions in debt, is in talks with the Treasury about a possible bailout. We may soon be adding the firm, which serves one in four Brits, to the list of victims of rising interest rates. ‘Victim,’ in this case, is perhaps the wrong word. It’s hard to feel sorry for a company that has been relying on ultra-low rates to keep itself afloat, racking up £14 billion worth of debt and now severely struggling to service it. Financial mismanagement is just one of a series of accusations levelled against the company. Its problems have been in the spotlight for years, especially

With every passing week it becomes clearer that the British economy is in crisis. Not the ‘here today, gone tomorrow’ sort of crisis that bedevils the financial markets, but rather the deep-seated, slow-burning crisis of a progressive, life-threatening disease. ‘I am totally 100 per cent on it, and it is going to be okay and we are going to get through this,’ the Prime Minister promised last week. If so, he’s got his work cut out. The economic performance of the UK economy has deteriorated sharply over the last decade-and-a-half compared to its performance beforehand. On key measures, such as output per hour worked, the UK was a poor performer even before the

After a bruising week, perhaps Andrew Bailey could take some solace in Rishi Sunak’s interview with Laura Kuenssberg this weekend. For a start, the Prime Minister threw his support behind the Bank of England governor, after senior figures within the Conservative party accused Bailey of being ‘asleep at the wheel’. But it was also a reminder that, no matter how bad things may seem at Threadneedle Street, they’re probably worse in No. 10. When Bailey hits out at wages, it looks like another desperate attempt to deflect blame away from his own institution Sunak is facing demands for proof that his plan for our economic recovery will work at a

The Monetary Policy Committee has voted seven to two to take interest rates to 5 per cent, a 0.5 point increase. Its thirteenth rise in a row takes rates to their highest level in 15 years, and is being described as a ‘shock’ increase, brought in as a response to the rise in core inflation on the year in May, which has hit 7.1 per cent. The horror of inflation is that it gobbles up your income and your savings After this week’s dire inflation update, the question wasn’t whether the Monetary Policy Committee would raise interest rates, but by how much. After last week’s labour market update, which saw nominal wages

The Supreme Court is hearing a case today that, if successful, could mean the end of new fossil fuel projects in the UK on climate grounds.  The justices will decide whether to reverse approval for oil extraction at Horse Hill based on downstream emissions from the use of the oil. Whatever the outcome, this case is a damning indictment of the UK’s absurd climate laws.  This is a long-running affair. Horse Hill was first test drilled in 2012 and permitted by Surrey County Council to expand to a commercial scale in 2019. This is the teeth of opposition from local campaigners, including the Weald Action Group, Friends of the Earth, and

Is Mark Zuckerberg losing his touch? Having just thrown tens of billions at his weird virtual-reality ‘metaverse’, only to see it flop with users, the Meta CEO and co-founder of Facebook appears to be spying another questionable new venture. It’s reportedly called Threads, a cloying techspeak name for what is essentially a rip-off of Twitter. You might think that the last thing the world needs is another Twitter, den of sanctimony and cancellation that it is. But not our Zuck. Threads appears to be an attempt to capitalise on the unease over at Twitter Towers, as advertisers and high-profile users alike have been rattled by Elon Musk’s unpredictable new leadership

The average two-year fixed mortgage now sits at 6 per cent, according to financial data group Moneyfacts – just below the 6.65 per cent reached in December last year, after the fallout from Liz Truss’s mini-Budget. Five-year fixed rates aren’t too far behind, at 5.7 per cent. For many of the 2.4 million homeowners whose mortgages are up for renewal between now and the end of next year, this is, at best, cause for alarm. At worst, it’s an alert to a crisis. Later this week, we’ll get last month’s inflation data – and the next rate update from the Bank of England. Threadneedle Street’s dilemma is only getting worse. Between

The waiters can sometimes be a little surly. That holiday villa you booked in the Loire may not always be as desirable as it looked in the pictures. And you can never be entirely sure which side they will be on in a major war. Still, despite occasional inconsistencies, there is one thing you could always rely on the French for. They will insist forever that leaving the EU has been a catastrophe for the British economy, and by far the stupidest decision any major country has ever made. But hold on. What’s this? In a note this morning BNP Paribas, a bank right at the heart of the French

There are plenty of reasons for viewing today’s huge merger deal between the UK mobile networks of Vodafone and Three with suspicion. It could reduce choice for consumers. It may lead to job losses. And it is possible that they will downgrade their service even more than they already have, cut back on investment, and squeeze more money out of a captive market. Yet that is not quite the whole story. In fact, done right, the merger could even turn out to be a rare Brexit win.  Today’s tie-up between Vodafone and Three was widely expected. The two companies will combine their British networks, and will have 27 million users