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Labour, according to Rachel Reeves, is now the party of low taxes. She has said she won’t raise income tax, National Insurance, capital gains tax and corporation tax, as well as ruling out a wealth tax. But that still leaves a few options for jacking up taxes, as one of Reeves’ advisers, Sir Edward Troup has hinted. Last week, Troup, a former head of HMRC, was appointed by Reeves to look at efforts to reduce tax avoidance. This is a slightly ill-timed initiative given that Labour is simultaneously trying to play down the case of a particular taxpayer who stands accused of failing to pay capital gains tax on a

Interest rate cuts are beginning to look like a mirage: the closer we seem to get to them the more they seem to recede into the distance. Bank of England governor Andrew Bailey may have hinted this week that UK rates could soon be cut regardless of what happens in the United States, where strong jobs data is putting off the Federal Reserve from cutting rates, but this morning’s inflation data will not encourage an early cut. While the Consumer Prices Index (CPI) did fall in March, from 3.4 per cent to 3.2 per cent, this was less than the fall which was expected. The rise in road fuel prices

Britain already has the worst post-pandemic workforce recovery in Europe. New figures out today show the problem is getting even worse. The number of those ‘economically inactive’ (not in work or looking for it) rose by a remarkable 150,000 in the last three months to 9.4 million – equivalent to the adult population of Portsmouth and some 850,000 since the first lockdown. Taken as a share of the working-age population, it’s now at an eight-year high – and significantly worse than it was during Covid or its aftermath. What’s driving the worklessness? The biggest single factor is long-term sickness, also at an all-time high. Is this just economic long-Covid, the

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.

He’s only gone and done it again. Mark Blyth, born in Dundee but now professor of international economics at the prestigious Brown University in the United States – the man who was wooed by the Scottish government to join its economic advisory council in 2021 in the obvious hope he would lend credibility (and maybe a touch of stardust) to its case for secession – has eviscerated the economic arguments for splitting from the UK. What was meant to be a PR triumph for the SNP completely backfired As a quick recap, not long before Blyth took up his role formally advising the Scottish government, video emerged of him criticising

When people talk about the ways the Conservatives have squandered this parliament, and with it their first and best opportunity to demonstrate to voters the benefits of Brexit, they often focus on domestic concerns: the failure to tackle legacy EU red tape, or the lack of progress on levelling up. But one of the biggest disappointments of the past few years must be the United Kingdom’s dismal record on international trade. Time and again the UK has walked away from transformative deals over trivial domestic hang-ups Outside the bloc, Britain ought to have been in a good position to bolster our commercial relationships across the globe, losing the sheer mass

Will Jeremy Hunt have scope to deliver more tax cuts before the next election? Tory MPs certainly hope so, as cuts to employee National Insurance in last year’s Autumn Statement and this month’s Budget have yet to move the polls. Something like an income tax cut, they think, would be preferable. But this morning’s update from the Office for National Statistics is an uncomfortable reminder that those kinds of tax cuts are hard to deliver: for as much as the government insists it wants to bring down the tax burden, it likes to spend money too. Public sector net borrowing in February was £8.4 billion – significantly higher than the

We live in an age of stunts and soundbites so it was refreshing to hear a politician stand up and, for the best part of an hour, explain their political philosophy to an audience savvy enough to shred it. That’s what Labour’s Rachel Reeves did at last night’s Mais lecture.  She summoned the ghosts of heterodox leftists Karl Polanyi, Joan Robinson and Marie Curie to explain that Britain stands on the brink of a global economic regime change just as big as the one begun in 1979, that the Tories have left us bystanders, and that Labour is the only party that can make it happen.  Though she didn’t mention

Rachel Reeves has a busy day: the shadow chancellor is giving her big speech tonight, where she is expected to outline the broad brush of her economic policy and claim there is a ‘new chapter in Britain’s economic history’ just waiting to start under a Labour government. Reeves was in the Commons this morning for Treasury Questions, and her focus there was on whether the Tories had a sequel planned for their own National Insurance policy. Labour has decided that it’s worth exploiting the suggestion As I reported from the Commons yesterday, Labour has decided that it’s worth exploiting the suggestion from senior Conservative figures that they would like to

A curious attack from Labour in the Commons this afternoon: shadow work and pensions secretary Liz Kendall used her slot at the regular departmental questions to ask how a policy that the government doesn’t yet have would work. She referred to the statements made by the Chancellor and the Prime Minister about their ambition over the long term to scrap National Insurance as a ‘double taxation’, pointing out: Labour obviously thinks that talk of abolishing national insurance is a way into the pensioner vote ‘Your NICs record helps determine your entitlement to the state pension. So if that’s scrapped, how will people know what pension they will get?’  Work and

It’s official: weight-loss wonder drug Wegovy (also marketed as Ozempic) makes US celebrities shrink but makes the Danish economy grow. This week, the most amusing Oscars clickbait featured not the typical best- and worst-dressed actors, but instead celebrities who have experienced recent miraculous weight loss. The Daily Mail helpfully split this award category between those confirmed to have taken Wegovy, and others who have merely inexplicably and rapidly shrunk. Their collective weight loss is Denmark’s economic gain: this week, Denmark’s statistics agency confirmed the Danish economy grew 1.8 per cent in 2023 – but without the contribution of Wegovy’s owner, Novo Nordisk, it would instead have shrunk 0.1 per cent. Free market

Is the UK already out of recession? It’s a question that won’t be confirmed for months, but this morning’s update from the Office for National Statistics offers a positive hint that Britain’s economic contraction will be confined to 2023. According to the ONS, the economy grew by 0.2 per cent in January – thanks largely to improved services output, which rose by 0.2 per cent, and a bounceback in wholesale and retail trade. Construction output also turned a corner, growing by 1.1 per cent after three consecutive months of contractions. Is this the spectacular economic turnaround that Britain has been waiting for? GDP still fell 0.1 per cent in the

Inflation and the cost-of-living crisis dominates the agenda in Turkey, ahead of local elections at the end of March. Year-on-year inflation reached 67 per cent in February, according to the Turkish Statistical Institute, breaking a 15-month record and puncturing hopes that high interest rates would put a lid on rapidly increasing prices. For years, president Recep Tayyip Erdogan was a bitter opponent of high interest rates. ‘Interest rates are the reasons, inflation is the result,’ he roared regularly at political rallies, defying traditional economists. He cites Islamic traditions whereby high interest rates amount to usury, to justify his unorthodox monetary policies. Erdogan was a bitter opponent of high interest rates