George osborne

Wednesday

Ryan Bourne

How to defuse Britain’s £1.45 trillion public-debt time-bomb

Last week’s public-finance statistics were truly dreadful. They showed that despite a year of fairly robust economic growth, UK government borrowing since the start of the financial year 2014 to 2015 was actually 10 per cent higher than in the same period in 2013 to 2014. Once again, it seems, our public finances will be in deficit by more than £100 billion this year. Running sustained deficits of this kind adds to the overall debt burden. According to the new ONS figures, public-sector net debt is currently £1.45 trillion (79.9 per cent of GDP) – meaning we are paying just over £50 billion per year in debt-interest payments. Whilst debt

Tuesday

Isabel Hardman

Can George Osborne quibble away shock EU bill?

What’s next for David Cameron’s tussle with Brussels? The Prime Minister made clear yesterday that ‘we are not paying a sum anything like’ the £1.7 billion demanded by the European Commission last week, and now the focus is on how much he can get the bill reduced by. He will have to pay a bill, but to maintain credibility, the Prime Minister must end up paying something much smaller than the original demand. Next week George Osborne and other European finance ministers will hold emergency talks on the bill, and today Number 10 set out what the Chancellor plans to say at those talks. A Downing Street spokeswoman said: ‘What

Thursday

The Spectator

Deal with the debt, George Osborne? You’ve hardly started

George Osborne has declared victory over Ed Balls, the IMF and all the others who warned that his austerity measures would throw Britain back into recession. But his triumphalism obscures a huge failure: his inability to contain the national debt. While the UK economy has been growing strongly (it is currently the fastest-growing of any developed country) the public finances have taken a dramatic and sudden turn for the worse. It emerged this week that, between April and September, the Chancellor borrowed £58 billion — £5.4 billion more than during the same period last year. Osborne’s original plan to eliminate the structural deficit by the election has been off course for

Thursday

Martin Vander Weyer

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

Monday

James Forsyth

Vince Cable accuses George Osborne of lying about tax rises

Vince Cable’s speech today was loyal and funny. Cable was, unlike in some previous years, very much on message. He lavished praise on Clegg for having turned the Liberal Democrats into a party of government. He ended his speech by telling the activists that ‘there is a lot to be proud of and we must be proud of it’ to the delight of Nick Clegg, who was rather distractingly wearing jeans in the conference hall. Cable also attacked both the Tories and Labour. He joked that the Tories were turning into Ukip without the beer and Labour into Hollande-style socialists but without the sex. The most aggressive part of his

Sunday

James Forsyth

Clegg attacks ‘economically extreme’ Tories

The Lib Dem message in Glasgow this week in simple, you can’t trust either Labour or the Tories to run the country on their own. On Marr this morning, Nick Clegg said that the country was being offered a ‘dismal choice’ between ‘sticking your head in the sand’ with Labour or ‘beating up on the poor’ with the Tories. Clegg was determined to get his anti-Tory lines out there. He accused George Osborne of a plan to ‘savage unprotected public services’ and again and again attacked the Tories for being ‘economically extreme’ and supposedly wanting to balance the budget on the backs of the poor. He also drew another red

Friday

Fraser Nelson

Why David Cameron’s tax reform won’t break the bank

It’s odd to see David Cameron’s tax pledge being denounced as profligate, even in publications like the Financial Times. The Prime Minister has always been a moderate on tax, and remains one now. He has astutely positioned his promise to rise the 40p threshold as a giveaway, which makes sense politically. But the truth is a little more complex, and I look at it in my Daily Telegraph column today. Under Labour, every year was a ‘giveaway’ insofar as tax thresholds increased with RPI inflation. David Cameron has, in effect, decided to bring back this policy. If this is a craven tax bribe for Middle England then it is one that Blair

Isabel Hardman Isabel Hardman

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

Thursday

The Spectator

Portrait of the week | 2 October 2014

Home The Commons, having been specially recalled, passed, by 524 votes to 43, a motion supporting ‘the use of UK air strikes to support Iraqi, including Kurdish, security forces’ efforts against Isil in Iraq’. Only after four days did RAF Tornados from Akrotiri in Cyprus find some targets in Iraq to bomb. In support of her contention that Isil’s ‘hateful ideology has nothing to do with Islam’, Theresa May, the Home Secretary, in a well-received speech at the Conservative party conference, quoted the Qu’ran: ‘Let there be no compulsion in religion’ (Sura 2:256). A poster intended for staff was put up by mistake in the window of a Sainsbury’s in

Martin Vander Weyer Martin Vander Weyer

Why the real winner from George Osborne’s ‘Google tax’ could be Nigel Farage

George Osborne’s promise to crack down on multinational companies’ avoidance of UK taxes by the use of impenetrable devices such as the ‘Double Irish’ and the ‘Dutch Sandwich’ certainly has the support of this column. I have long argued that the ‘fiduciary duty’ (identified by Google chairman Eric Schmidt) to minimise tax bills within the law for the benefit of shareholders has to be balanced against a moral duty to pay at least a modicum of tax in every profitable territory. Google, Apple, Amazon and eBay, as well as Starbucks and big names of the pharmaceutical sector, are among those known to use smart schemes which variously involve sales bookings

Wednesday

Hugo Rifkind

Politicians’ pyjamas: Cameron wears satin, Balls prefers a string vest and Hague, a kaftan

Let’s talk pyjamas. Specifically, let’s talk paisley pyjamas. Never mind what poor Mr Newmark had hanging out of his; concentrate on the garment itself. You never think of politicians in pyjamas. Although now I’ve started, and I just can’t stop. David Cameron, I suspect, used to sleep in tracky bottoms and a Smiths T-shirt until really quite recently. These days, though, it’ll be a suit of something expensive and slinky, maybe black satin, or green. While Ed Miliband’s pyjama situation you just know will be chaos. Possibly he still wears the now tight and farcical Thomas the Tank Engine ones he had when he was 11. Keeps meaning to buy

James Forsyth James Forsyth

Why are the Tory party in such a good mood?

Two things have been puzzling Tory high-ups in Birmingham this week: does Nigel Farage have another defector in his back pocket, and why is the Tory party in such a good mood? Many expected that a second MP defecting to Ukip would have plunged the party into the slough of despond. One influential Tory, though, has an explanation for what’s going on. ‘The mood here is so upbeat because people think we’ve got Labour beat.’ He is, however, quick to add, ‘It is Ukip that is the problem.’ This is the paradox of British politics at the moment: it is easier to explain why either main party shouldn’t win the

Tuesday

Isabel Hardman

Tory nerves over Osborne welfare gamble

Will George Osborne get away with his conference gamble that hits working families? The Chancellor’s speech would have received a far worse reception on the front pages of today’s newspapers had it not been for the announcement on GPs offering a seven-day service. But it remains a topic of debate in the party. Today at a lunchtime fringe, the Chancellor tried to defend his two-year freeze on working-age benefits by arguing that he had taken uncomfortable decisions for a Conservative, such as raising corporation tax. He also was careful not to appear to be gleeful about cutting welfare, an impression he has given in the past. Instead, he told the

Fraser Nelson Fraser Nelson

Oops! The ONS admits the UK economy is far stronger than it had thought

Why do economists use decimal points? To show that they have a sense of humour. Never was this old gag more relevant than when considering the data on Britain’s economic output, or GDP. A couple of months ago, the ONS announced that the economy had returned to its pre-crash levels – the FT splashed the news. Today, the Office for National Statistics admits that after improvements to its methodology this actually happened last year. The old picture, compared to the new, is above – produced by Michael Saunders at Citi (pdf here). The ONS has not made an error, it is simply applying new methodology under instruction. But it suggests Osborne has been making more

Monday

The Spectator

Podcast: George Osborne’s conference speech

Isabel Hardman and James Forsyth were both at George Osborne’s speech this afternoon. Here’s a special podcast, with analysis of the speech and a look at what else we might expect from this year’s conference: listen to ‘Podcast special: George Osborne’s speech’ on audioBoom

James Forsyth James Forsyth

Osborne’s speech gambled on voters accepting more austerity

George Osborne’s speech to Conservative conference was politically brave. He is gambling that the voting public will applaud his candour about the tough choices that the country is still facing, rather than chafing at the fact that five million working households will lose money from the freeze in working age benefits he announced today. When questioned about the politics of this move, those close to Osborne make three arguments: listen to ‘Podcast special: George Osborne’s speech’ on audioBoom

Steerpike Steerpike

Did Osborne’s speech just finish with an ode to Trainspotting?

George Osborne has just finished delivering his speech at the Tory party conference. More analysis to come, but Mr Steerpike couldn’t help noticing a distinct flavour to it. Edinburgh. Drugs. Irvine Welsh. Ringing any bells? The final part – ‘choose the future’, ‘choose David Cameron’ – felt very much like a re-run from the opening scene of Trainspotting. Who knew Welsh’s cult film about Scottish junkies was so close to Osborne’s heart…

Fraser Nelson Fraser Nelson

George Osborne’s speech in six graphs

George Osborne normally shines at Tory conferences. A historian by training, Osborne knows the power of narrative and he had a clear one for the activists today: the recovery started when he took office and its progress has been extraordinary. Many of his claims were well-founded, some less so. Here’s my selection. Let’s start with his statement that ‘Britain is the fastest-growing most job-creating most deficit-reducing country on earth. Britain we did this together.’ listen to ‘George Osborne’s speech to the Tory conference’ on audioBoom

Fraser Nelson Fraser Nelson

What George Osborne should learn from the Scottish ‘yes’ campaign

George Osborne will give his speech in a few minutes, and we’ll analyse it straight after. But I’d like to pick up on something he said this morning on Radio 4. It was an aside, a claim that For the first time in my lifetime, the march of the separatists in Scotland has been reversed This is, of course, not quite true – the SNP have been pushed into reverse many times. Depressingly they tend to bounce back, stronger than ever. After devolution, it looked as if their fox had been shot. After Salmond quit the first time, they looked like a quaint irrelevance. Yet just eleven days ago the ‘yes’ campaign won 45pc

Isabel Hardman Isabel Hardman

George Osborne’s task: to make his party enthusiastic about government

There’s a funny mood at this Tory conference. It has more energy than the Labour conference, but partly that energy is anger at Mark Reckless’ defection, rather than enthusiasm. MPs and advisers are jittery that another defection will come at another terribly inconvenient moment. A third MP leaving the party will suggest real momentum. So George Osborne’s task when he speaks a little later this morning is to turn the energy that’s buzzing about the hall into enthusiasm for government. The Labour conference, for all its desire to get the Tories out of office, lacked that sincere excitement about the idea of the party being in charge. The Tories need