Money

‘If young Americans knew what was good for them’ the historian Niall Ferguson once remarked, ‘they would all be in the Tea party’. In his first Reith Lecture, Ferguson argued that austerity would be a boon for the young; public debt merely allowed ‘the current generation of voters to live at the expense of those as yet too young to vote or as yet unborn.’ It is certainly true that successive generations in Britain have run up an almighty tab while assuming the next group along will be able to foot the bill. The problem Ferguson neglected to account for was which voters would end up delivering a pro-austerity government into

He intervened decisively. He showed the ability of the state to make a difference. And he demonstrated that greedy, self-interested corporations should not be allowed to exploit ordinary consumers. Only a few weeks ago, the French President Emmanuel Macron was being celebrated by left-leaning economists and pundits for forcing the French energy giant EDF to slash the cost of power. But hold on. Now, the government has had to bail-out the company from the inevitable financial hit. It turns out that the government can’t dictate the price of energy after all – and it just creates a bigger mess when it tries to. Even by the standards of French industrial

OK, I finally watched Netflix’s Don’t Look Up. Surprisingly, I enjoyed it — especially before its effective subtitle for us thickos, THIS IS A METAPHOR FOR CLIMATE CHANGE, YOU F-ING MORONS. Otherwise, the film might have playfully dramatised the more general phenom of fiddling with celebrity bodices while Rome burns. The comet at which I’m looking up could arrive far more immediately than perilous global warming. Money is in trouble. I’m not only referring to a cost-of-living crisis. Money itself is in trouble. Let’s contemplate, to coin a phrase, a basket of deplorables. US inflation just hit 7.5 per cent, the highest in 40 years. UK inflation, now 5.5 per

Who runs the NHS? With a £136 billion budget for NHS England and NHS Improvement eating up 17.5 per cent of tax revenue, there should be a clear answer to this. But ministers were left wondering when the time came to announce what the health service would achieve with its extra £12 billion from the tax rise. I write in this week’s magazine about the row over waiting lists and how ministers thought the extra cash would cut it to 5.5 million — only to be told it could possibly hit close to 11 million. But there was a row over another point too: the timeline for cancer care. It’s

The last time that US inflation hit 7.5 per cent, Ronald Reagan was a recently-elected president. And he, older readers might recall, partly owed his election to inflation. He memorably said during his campaign: ‘inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hitman.’ But what of Britain? Bank of England chief economist Huw Pill gave a speech this morning in which he revealed that the Monetary Policy Committee (MPC) very nearly raised the bank’s base rate to 0.75 per cent this month rather than to 0.5 per cent — there was only one vote in it. Should this, along with the news from

Before the pandemic hit, NHS England waiting lists were at a record high of 4.4 million. Three lockdowns later, they’ve risen to six million: an unacceptable figure for a Tory government that has spent years trying to rebrand itself as the ‘party of the NHS’. Boris Johnson’s decision to break his manifesto pledge and raise taxes was directly linked to the idea that the money would first be funnelled into the health service to fix the backlog. So can he now deliver for patients? When Health Secretary Sajid Javid announced his ‘elective recovery plan’ in the House of Commons on Tuesday, he said that the waiting list would start shrinking

Look up this year’s performance of the shares and bonds which make up your pension fund and you will see that BP and Shell are the rare chinks of light. BP is up 15 per cent and Shell up 20 per cent, with both enjoying bumper profits on the back of high oil and gas prices. Cue, then, for Labour and the Lib Dems to demand a windfall tax in order to confiscate some of these profits. The money ought to be used, Eds Miliband and Davey have said this morning, to help people pay their heating bills. In both their minds ‘dividends’ and ‘shareholders’ are rude words – whereas in

The emergence of Covid provoked a worldwide economic crash. That lasted a mere four weeks. By the time western countries were locking down, a bull market had begun afresh. Through months of lockdowns, soaring case rates and death rates, shares were not just rebounding but marking new highs – firstly involving tech shares and online retailers which had done well from social distancing, but then pretty much anything. The arrival of the first vaccine phase 3 trial results in November 2020 sent shares spinning upwards, yet the emergence of the Alpha and Delta strains didn’t seem to do any harm. And now that economies seem finally to be putting Covid

When it comes to addressing the cost of living crisis, the government has, so far, responded with a range of bad solutions. The energy price cap is being increased by £700 per household, interest rates have gone up for a second month in a row and the Bank of England is forecasting a two per cent drop in household incomes in real terms, the worst since records began in 1990. In response, the Government has announced a package of confusing and ill-targeted measures. This includes council tax rebates, that will extend to some homes valued over £1 million, and a £200 discount on energy bills through loans to energy firms –

In recent weeks alleged lockdown parties and suitcases full of wine have been the biggest threat to Boris Johnson’s premiership. But throughout the winter months, another threat has been brewing — one that could, in the longer term, determine the government’s fate. Britain’s cost of living crisis has been steadily worsening as price hikes for essential goods and services (food, transport) continue to outpace predictions. But the worst is still to come, with Ofgem’s announcement this morning that energy bills for the average household will be rising by nearly £700, as the energy price cap is lifted by 54 per cent come April. Enter Rishi Sunak with an emergency package

Regional agencies pumping money into research and development. Targets for education and healthcare. Another layer of meddling local government, and possibly a new bus route or two. The government plans for ‘levelling up’ unveiled today are a mixture of 1960s statism, which could have been taken straight from Harold Wilson’s government, mixed up with some wishful thinking. But don’t despair: there is a far better strategy. The Tories should simply offer some meaningful tax breaks and incentives and let the private sector do the hard work for us. That approach can’t be worse than what has been offered up by the government. Even by the recent dismal standards of the Johnson administration the ‘levelling

As the partygate furore rages on, Boris Johnson is retreating towards familiar territory: Brexit. A policy blitz is underway this week and the issue that guided him to power in 2019 has come first, with the announcement of a new Brexit Freedoms Bill. It will be brought forward to mark the two-year anniversary since we parted ways with the European Union. There are two flaws with Boris’s plan, however. First, recent polling found 46 per cent of Leave voters who backed the Tories in 2019 say he should resign, suggesting that Brexit doesn’t resonate in quite the same way as it did before the pandemic. Post-Brexit regulations are not inherently