Economy

David Cameron and George Osborne still the most trusted on the economy

Good news for the Tories: a new ComRes poll confirms that David Cameron and George Osborne are the most trusted pair to ‘see the country through the current economic situation’. As the chart above shows, Labour’s two Eds are lagging significantly behind the present Tory leadership in the trust stakes, even coming in below Ukip’s Nigel Farage. These numbers reinforce the Conservatives’ strategy of talking up the economy (instead of say immigration) as the key to winning the next election. As Rachel Sylvester said in her Times column (£), the favourite phrase of Tory strategist Jim Messina is to say that ‘every day spent talking about Ukip issues such as Europe and immigration is

Portrait of the week | 20 November 2014

Home David Cameron, the Prime Minister, said: ‘Red warning lights are once again flashing on the dashboard of the global economy.’ He then offered £650 million to a ‘green climate fund’. In a speech in Singapore, Mark Carney, the Governor of the Bank of England, said that fines for banks over rigging foreign exchange rates showed that ‘it is simply untenable now to argue that the problem is one of a few bad apples. The issue is with the barrels in which they are stored.’ Official figures showed that the number of British Army reservists has been boosted by a recruitment drive in the past year from 19,290 to 19,310. Friends of the

What Tory MPs remember from their away day

Two things have stuck in Tory MPs’ minds from their away. The first, that painting of George Osborne. The second, Jim Messina’s presentation and his confidence that the Tories would win.   Messina managed Barack Obama’s 2012 re-election effort and last year, the Tories announced that they had signed him up to advise them. At the time, most people—including several senior Cabinet ministers—regarded it as a press release hire, a good way of tweaking Labour but not much more. But Messina has, perhaps prompted by his great rival from the Obama campaign David Axelrod joining up with Ed Miliband, got more involved in recent months. He was over for Tory

PMQs: Immigration arguments mean Ukip won the session without asking a question

Ed Miliband chose one of his medleys of things that have gone wrong for today’s Prime Minister’s Questions. There were plenty of those to choose from, and the Labour leader started with the almighty row in the Tory party over the European Arrest Warrant. He accused David Cameron of delaying the vote because of the Rochester and Strood by-election, and offered the Prime Minister next week’s Opposition Day debate to hold it, where he said Labour would support him to get the measure through. Cameron was having none of that, though, and pledged that the vote would be held before Rochester. He claimed Miliband’s questions had collapsed. listen to ‘PMQs:

David Cameron and Ken Clarke clash over Ukip and immigration

Ken Clarke is one of the biggest beasts left in the Tory jungle. He had been a fixture in every Tory government since Ted Heaths time until Cameron retired him at the last reshuffle. But Clarke is clearly deeply concerned with Cameron’s strategy at the moment.   On Tuesday night, at a meeting of the Tory parliamentary party, Clarke warned Cameron that by talking up immigration so much, he was only helping Ukip. He argued that the public have an ‘insatiable appetite’ for clampdowns on immigration and so the Tories could never match Ukip on this. He said that, instead, the Tories should be talking about their strongest suit, the

Labour’s NHS strategy – tax tobacco, save the cancer patients

Labour wants the next election to be about the NHS, one of their strongest issues. Party strategists have been struck by how it has been rising up voters’ list of concerns and now want to keep it there. Ed Miliband’s pledge today that Labour will ensure that people who fear they have cancer are seen and tested for within a week is astute politics. It keeps the NHS near the top of the political agenda. It is also paid for by a levy on the tobacco companies, which have few friends and little public sympathy. Meanwhile Labour can claim that this is a prudent use of £150 million as cancer

The European market hangover – bad news is bad news again

In the latest Spectator, Liam Halligan takes a sobering look at European markets bearing the brunt of sanctions against Russia. ‘The western economy that’s suffered most, by far, is the largest one in the eurozone. Germany’s manufacturing thoroughbreds have sunk tens of billions of euros into Russian production facilities in recent years. . . . ‘This helps explain why, having grown 0.8 per cent during the first three months of 2014, German GDP shrank 0.2 per cent in the second quarter. The eurozone’s powerhouse is now on the brink of recession. Industrial production dropped 4 per cent in August, the biggest monthly fall since early 2009. Exports were down 5.8

Yes, Wonga lent at shocking rates – but it was customers who lied

‘Payday Lady is not trading at this time,’ says her website, sounding a little like La Dame aux camélias. Indeed (since I could not find her anywhere) the message may indicate that Payday Lady is not just temporarily indisposed, but has given up the game altogether. I’ll be glad to hear from her if she hasn’t. Meanwhile I can report that her rival Cash Lady (who promises she’ll be ‘here to help you’ within three minutes) was still out there — despite having her television ads banned last year — and so were Purple Payday, Pounds to Pocket, Peachy Loans, PayDay Pig and CashCowNow, all at colossal ‘representative APRs’ that look

Danny Alexander indicates that the Lib Dems wants £5 billion in tax rises

In a sign of his enhanced status in the party, Danny Alexander has been one of the main attractions on the conference fringe this year. This evening, it was standing room only when he was interviewed by The Independent’s Steve Richards. Alexander was on feisty form. He declared that ‘both the other parties are pretty useless’ and that the Liberal Democrats had ‘done a bloody good job for this country’. Marking his own homework, he gave the party 10 out of 10 for being credible and effective. But he said that the Lib Dems had to shout louder to get their share of the credit for the economic recovery. He

People trust the Tories with their money – that’s why they can promise unfunded tax cuts

Does it matter that the Tories can’t spell out how they’d fund the tax cuts they announced at their party conference this week? Labour has launched a clock which monitors how long it’s been since David Cameron promised these cuts without any detail on how they’d pay for them. But last night on BBC This Week, Tom Watson summed up why the Tories feel they can make this attack: ‘I don’t think we can be more austere than the Tories now: I thought those freezes were cruel last week and will have very bad social consequences and the Labour party doesn’t believe in that, and so we’ve got to make

Cameron’s speech show us why he is still the Tories’ greatest single asset

David Cameron has yet again delivered a belter of a party conference speech, peppered with announcements. His performance is a reminder of why, even now, he remains the Tory Party’s greatest single asset. His speech was a powerful invocation of the strengths of Conservatism, perhaps the clearest he has given from a conference stage. It was passionate, eloquent and, overall, the speech of a Prime Minister. What a contrast with the Ed Miliband’s attempt last week. There were promises galore. The advantage of holding a party conference before the Liberal Democrats is that you can scoop their policies – in his case, announcing another increase to the tax-free income tax threshold from £10,500 to £12,500. And

Europe’s leaders worship Mario Draghi. They should listen to him instead

European Central Bank President Mario Draghi secured a place in history by his demonstration, on 26 July 2012, of the power of words in a financial crisis. Not long in office, he had already shown willingness to act firmly, averting a liquidity crunch by providing three-year lending facilities for European banks. That day, he told a conference in London: ‘Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.’ While the rest of the speech was an opaque metaphor about the euro as a bumblebee — ‘a mystery of nature because it shouldn’t fly but instead it

If you want a lesson in how not to run an economy, take the Eurostar

For the last five years, politicians of all shades have been banging on about how we should adopt this or that aspect of German economic policy. George Osborne argued in 2011: ‘We want to learn the lessons of the successful Mittelstand model, which has operated in Germany for many decades.’ Only a few weeks ago, Vince Cable argued: ‘Britain has not been as good as competitors like Germany in turning ideas into wealth creation.’ The German economy seems to be widely admired, despite lagging behind Britain’s for nearly a generation. It is true that Germany had a better post-crash period than the UK, but its financial sector was smaller and many of

Steerpike

Up the workers!

Mr S was interested to read that Mark Carney has sounded the alarm on low wage growth. In light of yesterday’s announcements, the Times’s business commentator Andrew Clark calls for bosses to ‘display a modicum of largesse’ to sustain the economic recovery. Mr S hears on the grapevine that business leaders are planning to open their pockets at the end of this year, if only to stop Ed Miliband, who is regarded with a certain amount of distrust. The thinking is that a wage rise will undermine Labour’s (increasingly successful) rhetoric on the cost of living. Mr S wonders: will a prominent Tory use the party conference, the last before

Team Boris vs Team Osborne — the first skirmish

Today was set to be a boring day in Westminster. Sajid Javid, a courtier to George Osborne, was billed to give (yet another) speech about how the economy is going ‘gangbusters’ and why evil Labour would trash the recovery. Dutiful hacks were pottering off to the Centre for Policy Studies, the venue for Javid’s speech, when news broke of Boris Johnson’s ‘off the cuff’ announcement that he might stand in 2015 after all. This political hand grenade blew the government’s media plan completely apart. Javid was spotted calling CCHQ for a line to take on the Boris comeback. He duly took to the podium and prepared for questions that would

David Cameron’s voteless recovery

The economy has recovered, and is steadily growing. That much is now clear. It has long been assumed that this will help the Conservative Party’s electoral fortunes. The logic goes that, having steered the country through difficult economic times, a grateful public will come out in their droves to thank them for it. But politics is never that simple, and the public are rarely so willing to give credit to politicians. While it may seem perverse to suggest that economic growth is harming the Tories’ electoral chances, continuing good news about the economy is making it less of an electoral issue. Voters are beginning to ask: ‘what next?’ David Cameron

Ed Miliband’s union bosses would change Britain for the worse

Trade unions have an important role in any decent society, but their stranglehold on the Labour Party is something we must fight against. I will never forget walking the streets of Poland back in 1981, when martial law was in force, and there were armed soldiers on almost every street corner. There it was a trade union, Solidarity, which brought authoritarian Communism to its knees. In the UK Margaret Thatcher recognised the importance of trade unions in society. Indeed one of her first roles in politics was as chairman of Dartford Conservative Trade Unionists. But the battle in British politics today is nothing to do with the work done by

Martin Vander Weyer

These latest sanctions against Putin might just work

‘Sanctions,’ said Kofi Annan, ‘are a necessary middle ground between war and words.’ Neither the EU nor the US will deploy troops or missiles to defend Ukraine against Russian-backed separatists, while Vladimir Putin basks in hostile Western words and turns them to domestic advantage. That leaves sanctions as the only means of seeking to influence him. But do they work? Evidence is not persuasive: in 200 cases studied by academics in Washington, from the League of Nations action against Italy’s aggression in Abyssinia in the mid-1930s to Russia’s assault on Georgia in 2008, sanctions were judged successful in one third of cases; in many of those, success was ‘partial’. In

The state should send many more poor children to private schools

Better capital makes us richer. That’s uncontroversial when it comes to fixed capital like machine tools and computers, but it’s also true of human capital. Better educated workers create more productive jobs, increasing the total amount of wealth in an economy. In a new Adam Smith Institute report released today, Incentive to Invest: How education affects economic growth, we found a very significant relationship between improvements in education and growth. In our model, a 10 per cent increase in TIMSS Advanced test scores generates a long-term 0.85 per cent increase in annual economic growth. We argue that getting more children into independent schools through vouchers may be the easiest way