Economy

In a speech given at Tilbury Port in Essex, Chancellor George Osborne hailed cuts to business and personal taxes this week as the ‘biggest in two decades’ – and committed to ‘fight for full employment in Britain’. Here’s what he said:- Thank you for coming here to Tilbury Port, this morning. We’re all here at the start of the most important week of changes to our tax system for a generation. These are the biggest cuts to personal and business taxes for two decades, and we’re making our benefit system more affordable and fairer too. Changes which will affect the lives of millions of people. Whether you are working or

Mark Field, MP for Westminster, has set up a brand new campaign group of Tory backbenchers called Managed Migration – as opposed, you might think, to the unmanaged sort we have at present. But he’s not actually in favour of managing migration in the conventional sense; he wants the PM to drop the party’s commitment to containing overall numbers of net migrants to the ‘tens of thousands’ though there seems fat chance of that just now.  Big increases in net migration, he says, are a tribute to the recovering economy. He’s got a point in one sense. As the economy improves, fewer Brits want to leave, which has an effect on net numbers.

George Osborne was on Andrew Marr this morning announcing support for a new garden city at Ebbsfleet in Kent and the extension of Help to Buy on new build homes until 2020. The Tories hope that these policies will show both that they are planning for the long term and that they are supporting aspiration. But what struck me as most significant was Osborne’s response when told by Marr that he was sounding more like a Liberal Democrat than a Conservative. He instantly replied, ‘Conservatives believe in lower taxes, Liberal Democrats want to put taxes up.’ We already know that Osborne believes that the rest of the deficit can be

Another day, another hole blown in Alex Salmond’s case for breaking up Britain. The IFS has today published its estimates (based on the OBR’s) for Scottish oil and gas revenues, and they’re less than half those of the SNP administration in Edinburgh. Salmond forecast oil and gas revenues of between £6.8 billion and £7.9 billion in 2016-17. The IFS puts it at £3.3 billion. Salmond’s best-case scenario for 2017-18 has Scotland with a deficit of 1.0 per cent of GDP; the IFS’s figures suggest that’ll be closer to 3.6 per cent of GDP. A country like Britain can ride out such fluctuations, but Salmond may find he’s swapping rule from

The latest figures showing a big increase in net migration are a blow to the Conservatives, although it obviously reflects on the relative strength of the British economy; at least in relation to the basket cases of southern Europe, from where large numbers have come. It will almost certainly mean more Tory voters joining Nigel Farage’s purple revolution, especially because it illustrates the impossibility of controlling immigration while Britain is inside the EU; the number of EU citizens arriving went up from 149,000 to 209,000 in a year. But that’s part of the curious 80/20 Rule about the immigration debate; Europeans accounted for only a fifth of migration under New

Today’s borrowing figures are, on the surface, not good for the Tories. The surplus on the public finances in January 2014 was lower than for the same month in 2013, at £4.7 billion compared to last year’s £6.0 billion figure (although it’s worth pointing out that the difference could get even smaller with subsequent revisions). That disappointing figure means that over the year, Osborne has borrowed just £4 billion than at the same point last year:- These figures give Labour the opportunity to remind voters that George Osborne has failed to meet his own targets. But there is an easy way to spin this, which is that there is still

Mark Carney has been a very successful Governor of the Bank of England. Since coming to office in June last year, the British economy has gone from strength to strength. Although Mr Carney can’t take all the credit, on his watch unemployment is falling rapidly and business confidence is at a record high. His appointment and policies have been met with general approval by the UK’s business leaders, which is to be welcomed. So it is a shame that yesterday there were reports that the Governor thinks an EU referendum would be ‘bad for the economy’. The claim stems from the Governor’s comments on the Andrew Marr show on Sunday. In response to a

When things were going pretty badly for the Conservatives, ministers reassured one another that soon they’d be able to start hitting back at Labour with statistics. They’re doing that now – and are hitting as often as possible, even when it’s Labour’s turn to say something. Today the party has released figures to back up David Cameron’s claim at PMQs this week that people are better off, and they show that most people’s earnings are increasing by more than inflation. Now, Labour is quibbling the stats themselves, pointing out that they don’t involve benefit cuts and tax rises. But while Labour is overall losing in the battle of stats, there

listen to ‘Ed Miliband’s ‘One Nation Economy’ banking reform speech’ on Audioboo Today I want to tell you what the next election is about for Labour. It is about those families who work all the hours that God sends and don’t feel they get anything back. It is about the people who go to bed anxious about how they’re going to pay their bills. It is about the parents who turn to each other each night and ask what life their sons and daughters are going to have in the future. It is about those just starting out who can’t imagine they will ever afford a home of their own.

I try to avoid mentioning Owen Jones because he already gets so much attention from people on the Right, including quite a lot of abuse on t’internet; the poor man’s probably blocked more people than have followed me. But his letter to Ukip voters in today’s Independent interested me as a study in what Jonathan Haidt described as the Left’s blind spot. Owen’s argument is that Ukip supporters have Left-wing views on the economy and therefore should desert former City trader Nigel Farage and join him in voting for a socialist party. A lot of Ukippers (horrible word but I can’t think of any other) do have fairly socialistic views