Economy

We won’t know the economic impact of the Olympics until the GDP figures for the third quarter of this year are released, but today both Boris Johnson and Downing Street tried to strike an upbeat note. In his Telegraph column, the Mayor of London writes: ‘As we marvel at what they have done, and the general success of the Games so far, I want to issue a general word of caution to the Olympo-sceptics, who will be itching to return to their gripes. They will say there will be no increase in sporting participation, and no economic benefits, and that we will not succeed in regenerating east London. Well, just

The Chinese have excelled at London 2012, much to the annoyance of their Western rivals. In this week’s issue of the Spectator, Ross Clark argues that the claims against swimmer Ye Shiwen reflect irrational suspicion of her country. Here is an edited version of Ross’s article (you can read the full version here): The story of London 2012 has been that of a country which was once an underachiever in the Olympics but which, through sheer hard work on the part of its athletes, has hauled itself to the top of the medals tables, producing in the process one of the most dramatic world records in Olympic history. I refer,

Mitt Romney has broken the habit of a lifetime and taken a risk. But it’s an intelligent risk. That at least is the view of some commentators on hearing confirmation that Romney has appointed Paul Ryan as his running mate. Niall Ferguson tweeted earlier: ‘Romney gets it right with Ryan. Now this election gets serious. It’s a straight fight between radical fiscal reform and Europeanization.’ David Frum makes a similar point (albeit with a clear note of scepticism) in a blog post for the Daily Beast: ‘This election—which Romney once intended to make a referendum on Obama’s record—will now become a referendum on Paul Ryan’s bold budget ideas.’ Frum provides

Sir Mervyn King’s sporting jokes are almost as bad as the Bank of England’s ability to publish accurate economic forecasts. As he unveiled the August Inflation Report this morning, the Governor said: ‘Unlike the Olympians who have thrilled us over the past fortnight, our economy has not yet reached full fitness, but it is slowly healing. Many of the conditions necessary for a recovery are in place, and the MPC will continue to do all it can to bring about that recovery. As I have said many times, the recovery and rebalancing of our economy will be a long, slow process. It is to our Olympic team that we should

‘Desperate Treasury to water down planning laws,’ blasts the Telegraph today, making it quite clear that it’ll oppose any effort by the government to return to planning reform. Those Tories who were uncomfortable with the original proposals are also making clear that they haven’t changed their position. The new national planning policy framework was announced this spring. Those who helped craft this compromise are privately stressing that it is simply too early to tell whether further changes are needed. But I still think there is a good chance that the Treasury will push for more planning reform this autumn. First, it is something that it genuinely believes would help the

Today’s round of public finance statistics bring mixed news for the government. The headlines have focused on the fact that borrowing last month — at £14.4 billion — was £0.5 billion higher than in June 2011. But considering that the monthly borrowing figures end up being revised by an average of £1.7 billion (usually downwards), we shouldn’t get too fixated on a difference of a few hundred million. What is perhaps more worrying is the trend in the financial year so far. Superficially, the numbers look pretty good: a total of £14.9 billion in borrowing since April, compared to £38.4 billion in the same three months of last year. But this year’s

It suits a great many people to blame the banks. The ministers (like Ed Balls) who oversaw the debt-fuelled credit bubble; the Tories (like George Osborne) who signed up to Labour’s debt-fuelled spending binge; the regulators who failed so appallingly (a global crisis but how many collapsed banks in Australia and Canada?); and Mervyn King, who oversaw this hideous asset bubble and didn’t sound the alarm. When George Osborne told the Commons that banks ‘brought our economy to its knees’ he suggested that, even now, he has not worked out what caused the crisis. The theory that wicked, greedy bonus-seeking bankers caused the crisis has been repeatedly debunked, but it’s

Hardly a day goes by without more bad news on youth unemployment. The latest figures on NEETs (a horrible de-humanising term for school leavers who are not in education, employment or training) show that the numbers rose between 2010 and 2011 to over eight per cent. The release of these statistics coincided with new polling which showed a near-complete collapse of support for the government among young people. Does this government hate young people? Probably not. Does it belatedly realise it has a massive problem with youth unemployment? Yes it does. The Youth Contract was introduced by Nick Clegg because he and those around him recognised that the Work Programme

As Isabel reported earlier, today’s public finance statistics contained a double dose of bad news for George Osborne. Not only did borrowing in May come in higher than expected at £17.9 billion — £2.7 billion higher than May last year — but the borrowing figures for the last two years were revised up as well. Before today, we thought the government had borrowed £136.8 billion in 2010/11 and £124.4 billion in 2011/12. Today, we learn it was in fact £140.6 billion and £127.6 billion respectively. That means we borrowed £3.2 billion more than we thought last year, and £11.6 billion more than the £116 billion Osborne told us we would