Economy

Are MPs underpaid? Yes, according to Sir Peter Bottomley, who declared that life on an MP’s salary of £82,000 can be ‘really grim’. In saying so, Bottomley succeeded in uniting his fellow MPs – who would rather not have to deal with a further round of anger at their pay and conditions – and the general public – who resent having to pay for their elected lords and masters in the first place. But the furious backlash doesn’t mean Bottomley isn’t right. In Parliament, as anywhere else, you get what you pay for. If we want a better class of MP, it’s time to splash the cash. Not everyone sees it this way, of

The health secretary has announced more money for the National Health Service. It’s a story we’ve heard time and time again – but this time the details are different. Sajid Javid has committed an additional £250 million for GP health practices to assist them in expanding their hours and upping the number of face-to-face appointments they offer. In-person appointments plummeted during lockdown and have never recovered: they are now hovering around 60 per cent, compared to 80 per cent pre-pandemic. So what’s new? In short, the money comes with more accountability. A league table is being created to rank surgeries on how many in-person appointments they offer. Patients will also

Compared with July, August’s GDP boost looks much healthier — but that’s not saying much. Originally thought to have stagnated at 0.1 per cent, the economy in July actually shrank by 0.1 per cent, according to the latest update from the Office for National Statistics. If inflationary pressures continue to surge, the Bank may have no choice but to act Still, August’s GDP increase of 0.4 per cent puts the economy back on the upwards trajectory, now estimated to sit 0.8 per cent below pre-pandemic levels. Despite so-called ‘freedom day’ arriving halfway through July, people continued to socially distance in order to avoid being mandated back into their homes. A

Now that the Chancellor’s furlough scheme has come to an end, are employers rushing to lay off those workers whose wages have been paid, at least in part, by the government?  The good news for Rishi Sunak – and the taxpayer, who footed the bill for this multi-billion pound scheme – is that the early evidence suggests they are not: in the three months leading up to August, the headline unemployment rate dipped again. It is now down to 4.5 per cent, having peaked just over five per cent last winter. The picture in the labour market isn’t necessarily all rosy Figures from the Office for National Statistics will still take several months

Given the enormous power that Conservative leaders wield within the party, it is not surprising that the party should come to take on the character of its leaders. In the case of Boris Johnson, it is his protean quality that seems to have rubbed off. Where a previous leader might have had a policy agenda or ideology, today’s Tories have cheery slogans which can mean almost anything. Thus in the course of half a dozen recent Tory conference events one will have heard at least that many different definitions of ‘levelling up’, while the big corporate lobbies and third sector groups insist that whatever they normally talk about is absolutely essential

International cooperation is alive and well – at least when it comes to raising taxes. One hundred and thirty six countries have now signed up to a global minimum corporation tax of 15 per cent, proposed by G7 countries in June and pushed heavily by the UK Treasury. This is another step forward for what is thought to be the biggest overhaul to the international tax system in a century. The installation of a corporate tax floor is part of a comprehensive effort to reform how multinational companies are taxed: that is, to more precisely target where profits are being made (instead of where products are being created). ​​Firms with

How is the Prime Minister’s bid to turn Britain into a high-wage economy progressing? It couldn’t be going better just at the moment, to judge by a survey by IHS Markit for KPMG and the Recruitment and Employment Confederation. In September – data was collected between the 13 and 24 September – there was a sharp rise in hiring, while starting salaries were rising at their fastest pace in the 24 years in which the survey has been undertaken. The number of permanent as well as temporary appointments was high, although the latter fell back from a record high in August. The survey suggests that the jobs market turned in

Rishi Sunak always said furlough wouldn’t save every job, especially as the pandemic changed the way we live and spend. Now that the scheme – which paid the salaries of millions of workers across the UK – has come to an end, was Sunak right? Early evidence suggests businesses are bringing their employees back to work, either into their old jobs or repurposing them into new roles. According to the BBC, the 31 companies that took at least £1 million of furlough money last month (including airlines, which are still only running around half as many flights as in 2019) aren’t yet planning on making mass redundancies – even though the scheme has

Until this morning, few people in Britain will have heard of the works of Wilfredo Pareto (1848-1923). Now, thanks to prime ministerial recommendation, his name is suddenly on everyone’s lips. Maybe he was even the inspiration for the name of Boris Johnson’s one-year-old son. Pareto, apparently, is the inspiration behind the whole idea of ‘levelling up’ But was it good idea to raise the memory of the Italian economist and political philosopher? Pareto, apparently, is the inspiration behind the whole idea of ‘levelling up’. The slogan, implied the PM, is derived from the concept of ‘Pareto Improvements’ — improvements, he said, which can raise the quality of one person’s existence

Rishi Sunak didn’t give too much away tonight when he spoke in the ‘ThinkTent’ at Conservative Party Conference. The Chancellor is known for being cautious with his words, and has been increasingly tight-lipped in the weeks leading up to his October Budget. But his presence at the fringe event was telling in itself. Sunak was only billed for one public fringe event this year, co-hosted by the Institute of Economic Affairs and Taxpayers’ Alliance. Their ‘ThinkTent’ boasts some of the most free-market, libertarian events you’ll find at conference: both organisations are strong advocates for a low-tax, smaller state. So, not necessarily an obvious place to find the Chancellor who has overseen record peacetime

There are two Tory conferences simultaneously taking place in Manchester, within the same conference hall and inside the same fringe events. One is attended by elated activists, who are revelling in the December 2019 victory they never got to celebrate at party conference last year. The other is attended by increasingly agitated grass root faithfuls, who are up in arms about their party hiking taxes: especially the National Insurance rise on workers and employers, set to kick in next year. Unsurprisingly, most ministers are tapping into the mood of the first group. They hail the success of the party on fringe panels and at drinks receptions. Yesterday evening, Michael Gove