Economy

Just like fuel duty, George Osborne can’t shake off the fury and discontent over the 50p tax rate. This morning, in a letter to the Telegraph, 537 bosses of small-to-medium-size businesses have called on the Chancellor to drop the rate. ‘The tax, which is in effect a 58p tax after national insurance is taken into account,’ they note, ‘puts wealth creators like us in a very awkward position.’   Usually, it’s easy to be both sceptical and dismissive of these mass-signed letters. They tend to be party political constructs, such that another group of ‘experts’ will soon reply to profess the opposite. But this one is different, and could help

The government’s official advisers on immigration, the Migration Advisory Committee, have today published a report into the restrictions on skilled migrant workers from outside the EU. Turns out that the much-vaunted ‘cap’ on skilled workers has only been half taken up — with numbers likely to be around 10,000 against the cap of 20,700 — and that this is offset by the high numbers of workers, around 30,000, coming to the UK on ‘intra-company transfers’. (These transfers are designed for multinational companies wanting the flexibility to move their employees around the world: the example used by the Committee’s chairman today was of ‘Japanese auto-engineers testing cylinder-heads made in Japan’ for

One quirk of the welfare reform debate is that many of the reforms won’t automatically apply in one of the parts of the United Kingdom with the worst welfare problems: Ulster. As Owen Paterson, the Northern Ireland Secretary, points out in a speech tonight, ‘Northern Ireland has proportionately one third more households living on out of work benefits as the rest of the UK’. He also notes that 1 in 10 of the population there are on Disability Living Allowance, double the UK average. But the Work Programme doesn’t apply in Northern Ireland and any welfare reform there will have to be done by the Executive. Paterson is now campaigning

Ah, there he is! With the coalition — and David Cameron — dominating the political news on every day of this half-term week, Ed Miliband has finally caused a ripple in the national consciousness. He’s appearing before nurses in Bolton today to make a pledge: ‘Before he became Prime Minister, David Cameron concealed his plans for creeping privatisation of our National Health Service. So people didn’t get a vote on these plans at the last election. But I give you my word that if he goes ahead, they will be a defining issue at the next.’ Put aside the rhetoric about ‘creeping privatisation’ (which would surely make Tony Blair shudder),

Moody’s doubts might not be making much difference to the actual economy, but they could make a good deal of difference to the political battle being waged over it. George Osborne, of course, is citing this as further proof of the need for fiscal consolidation. Ed Balls, meanwhile, is redoubling his call for a ‘change of course’ — and somewhat misleadingly too. But what does Mervyn King think? Thanks to his comments in a press conference this morning, we don’t have to guess. Here’s how Bloomberg reported them earlier: ‘“It’s a reminder that we are facing a very challenging path to reduce the scale of our deficit so that, at