Money

Yesterday

Martin Vander Weyer

In defence of fat cats’ growing pay packets

News from the High Pay Centre – the revolutionary guard of left-wing thinktanks – that average FTSE100 chief executive pay rose 16 per cent to a record £5.9 million for 2024-25 comes as a double blessing for Rachel Reeves. On the one hand, she can cite executive greed as a pretext for her forthcoming autumn tax raid, while at the same time claiming that if rewards are soaring, then business conditions under Labour can’t be as bad as boardroom whingers say. On the other, she can rejoice that each UK-domiciled boss is contributing to the Exchequer a sum roughly equal to the tax take from 440 average earners. Meanwhile, is

Rory Sutherland Rory Sutherland

My plan for a wealth tax – with a difference

Reading Careless People, an exposé of life within Facebook written by a Kiwi, it occurred to me that one potential advantage that the UK, Australia, Canada and New Zealand have over the US is we do not unthinkingly idolise the very rich. Americans sometimes find this confusing: it always irked transplanted American bankers in London that local employees were eager to make a few million quid, but lost interest beyond a certain threshold. Once they had a rectory in the Cotswolds, an Aga, two labradors and a Range Rover it was game over, you win. This is because the US is more of a money/power economy, whereas the Commonwealth countries

Thursday

Martin Vander Weyer

Was the car finance judgment fair?

I must modestly doubt that the Supreme Court justices took account of my 12 July column in their ruling on the issue of hidden car finance commissions. But the effect, limiting compensation claims to the more egregious cases of overcharging, is to do exactly what I hoped: namely to head off ‘a tsunami of claims that could cripple lenders and provoke a mini banking crisis’. Chancellor Rachel Reeves evidently hoped so too; given that up to 90 per cent of new UK car sales are financed by loans offered through car dealerships, a collapse of that market would have put another ding in an already battered economy. The total claims

John Connolly John Connolly

Britain is hooked on car finance

It’s unnerving to think how close Britain came to financial disaster last Friday, ahead of a Supreme Court ruling on – of all things – car financing. In October, the Court of Appeal found that motor finance firms could be liable for hidden commission payments to car dealers. If the Supreme Court had agreed, the biggest lenders, including Lloyds Banking Group, Santander, Barclays and Close Brothers, would have been on the hook for some £44 billion, with Lloyds already putting aside £1.15 billion for compensation payments and Close Brothers selling off its asset management arm this year. In an unprecedented intervention, Rachel Reeves urged the court to avoid handing out

Thursday

Martin Vander Weyer

Is Len McCluskey a Manchurian candidate for the Tory party?

At Stansted on Monday, a currency kiosk offered me €270 for £300. ‘Wrong way round,’ I said, having swiftly figured €300 for £270 would represent an exchange rate of 1.11, close enough to the current market level of 1.14. ‘Nah, mate, airport rate, innit?’ This week’s first lesson is never buy euros at the airport; but the second lesson is that wherever you buy them – especially if you have, say, a Mediterranean superyacht charter in prospect – you’re in for a painfully expensive summer. Back in March you could have had €1.20 for your pound. Since then sentiment towards sterling has been soured by expectations of bad economic news

Thursday

Martin Vander Weyer

Don’t compensate drivers for mis-sold car loans

Surprisingly big numbers are the theme of this week’s column, several having flashed up to disturb the pleasures of a summer season of parties, music and sport. The first is the 69,000 tally of jobs shed in the UK hospitality industry since the increase in employer’s national insurance contributions in October’s Budget – the most destructive legislative measure for business in recent memory, except perhaps for the Employment Rights Bill that’s expected to receive Royal Assent before parliament’s recess this month. The UKHospitality trade association thinks losses could rise to between 150,000 and 200,000 by the autumn, as 70 per cent of member businesses cut more staff and pub closures

Thursday

Genevieve Gaunt

Marriage, motherhood and money: Show Don’t Tell, by Curtis Sittenfeld, reviewed

Show Don’t Tell, a collection of 12 short stories by the American writer Curtis Sittenfeld, explores marriage, sex, money, racism, literature and friendship from the 1990s to the present. There is a fine line here between memoir and fiction, with many of the female protagonists being Midwestern, bookish Democrats – quite like Sittenfeld herself. In the eponymous story, Ruthie, a writer, dismisses the notion that ‘women’s fiction’ is perceived as giving off ‘the vibe of ten-year-old girls at a slumber party’. She reflects on internalised misogyny: ‘It took a long time, but eventually I stopped seeing women as inherently ridiculous.’ This volume can indeed be described as ‘women’s fiction’, whose

Thursday

Flora Watkins

Beware the £5 coffee

It wasn’t until I received a notification from the Monzo app that I realised I’d spent nearly £10 on two coffees. This wasn’t in the Wolseley or even within the M25, but in Two Magpies, a café in Holt, our local market town in Norfolk – for two regular lattes (admittedly with an extra shot, since it was Monday morning) for myself and a friend. Just last year, I was taken aback when my caffeine fix crossed the £4 threshold, with the barista casually mentioning that coffee prices were rising. But £4.70 feels like it’s firmly in the ‘taking the mickey’ territory. I haven’t been back since (I’m currently writing

Thursday

Rory Sutherland

What’s the point in spending a fortune on a wedding?

I follow the YouTube postings of a maverick young economist called Gary Stevenson, author of The Trading Game. Whatever you think of Gary, he is absolutely right about one thing. Economists, by using what are called ‘Single Representative Agent’ models, have taken a dangerous wrong turn. Such simplistic models, which contain the convenient but absurd assumption that what is good for the average person must be proportionately good for everybody else, have allowed economists to make confident pronouncements on policy while ignoring social and intergenerational inequality completely. In one of the Brexit TV debates, a woman in the audience was derided by the cognoscenti because, on being told that leaving

Thursday

Martin Vander Weyer

BMW’s Oxford retreat signals deep trouble for UK carmaking

Among British car factories, Nissan at Sunderland is the most productive and Jaguar Land Rover at Solihull probably the most advanced. As for industrial landmarks, the former British Leyland complex at Longbridge is reduced to a research and development facility for Chinese-owned MG; but ‘Plant Oxford’ at Cowley, the original home of Morris Motors now owned by BMW of Germany, still produces 1,000 Minis per day. And BMW’s decision to halt a £600 million project to build electric Minis there is, I fear, a moment of destiny for the whole UK auto industry. The truth is that the transition to electric cars has descended into chaos. Total UK car production

Thursday

Michael Simmons

Is Britain funding organisations that wish us harm?

Frivolous state funding isn’t only going to chancers, the plain lucky and the devious, but also to those who would see Britain – and the West – come to harm. Just over a year ago, the National Secular Society (NSS) compiled a dossier for the Charity Commission which called for 44 charities that had ‘fuelled anti-Semitism and division’ and shown support for ‘Hamas and other anti-western actors’ to be investigated. In every case these organisations have kept their charitable status. The charities in the dossier have the stated purpose of ‘the advancement of religion for the public benefit’. In the NSS’s view, this is being used as cover for political

Monday

Ruth Bloomfield

Confessions of a ‘gazunderer’

‘John’ has a dirty little secret – one so shameful that he has insisted on anonymity in order to tell his story. Last year, while in the process of buying a three-bedroom family house in Whitchurch, Hampshire, the 42-year-old office worker committed an act which, while perfectly legal, could kindly be described as ruthless. ‘We made an offer for the house, a bit below the asking price, and it was accepted,’ explains John. ‘But over the weeks that followed we started to have second thoughts. A few friends and family members were surprised at how much we were paying for the property. ‘It got to the point where I was

Thursday

Theodore Agnew

My impossible task as ‘minister for efficiency’

I am delighted that The Spectator is launching a campaign to highlight the grotesque levels of financial waste in government. Of course public sectors worldwide have always defaulted towards profligacy – but we are in different territory now. Our GDP per capita is declining: through immigration, the population is growing faster than the real economy is growing. We have no more capacity to borrow – we are already paying 25 per cent more than the Italian government for ten-year debt. Keir Starmer and Rachel Reeves love to talk bullishly about growth, but they don’t understand that taxing the productive sector more and more and discouraging employment through onerous new regulations

Thursday

Arabella Byrne

Heaven is a Trad Dad

M y husband earns more than me. A lot more. I am, of course, extremely fortunate to be in such a position and am extremely grateful, especially when a large bill arrives on the doormat. So what, I hear you say. And you’re right – this is hardly a newsflash. According to the Office for National Statistics, the majority of couples in this country operate at a persistent gender pay gap in which the wife earns less than their husband. When we had our first child, the door to economic parity slammed shut behind me and has never opened since In our highly gendered arrangement, my husband – a ‘Trad

The Spectator

How Heathrow went from six runways to two

Chocks away Rachel Reeves backed a third runway for Heathrow, reigniting a debate which has been going on for years. Yet Heathrow, when originally laid out in 1946, had six runways varying in length between 5,300 and 9,200ft: three pairs of parallel runways running east to west, north-west to south-east and north-east to south-west. As aircraft grew larger, there was less need for them to take off and land in alignment with the wind, but there was a need for longer runways. Heathrow gained its current layout in the 1970s when the east to west runways were extended to more than 12,000ft each, and three of the other four runways closed.

Thursday

Theo Hobson

My wife earns more than me – and it doesn’t feel great

This is the article I have thought about writing for years, but I have always ended up asking what would be the point. And how annoying that some people would call it ‘brave’, meaning shameful. I’ve always earned a lot less money than my wife. There, I’ve said it. Is that still a big deal these days, a difficult thing to admit? Yes and no – and the ambiguity is rather interesting. Our culture claims to be liberated from old stereotypes about gender roles. But is it hell. Even its progressive urban elite is ruled by stubborn visceral traditionalism when it comes to gender and money. I’m prompted to share

Tuesday

Martin Gayford

‘Teaching someone to draw is teaching them to look’: the year’s best art books

Colour, the painter Patrick Heron once proclaimed, is a continent that artists have yet to explore. The mammoth two-volume The Book of Colour Concepts (Taschen, £150) catalogues numerous attempts to map this mysterious chromatic domain, from the late 17th century to the mid 20th. It quickly becomes clear that this area is infinitely vast. One only has to glance at the plates of the ‘Viennese Colour Cabinet’ (1794) – a whole column of blue-greens – to realise that. The effect of these technical diagrams is beautiful in the manner of abstract art. The illustrations from Goethe’s On Colour Theory (1810-12) could easily have been produced at the Bauhaus, while the

Thursday

Philip Womack

We’re all caught in the insurance trap

In they pour, one after another, cheerily thudding on to the doormat: ‘Thank you for insuring with us again! Now, pay us more than you earn in a year!’ Yes, it’s insurance premium renewal time – and they’re shooting up once more. Insurance premiums have swollen unstoppably, expanding upwards for all the world like a batch of evil mushrooms. In our household, home insurance alone now comes in at the same size as a monthly mortgage payment. Whack on to this car insurance (necessary), pet insurance (necessary?) and health insurance (in this day and age, yes), and you’d have to be earning the annual equivalent of Andorra’s GDP. What are

Thursday

Rory Sutherland

How to buy a house that isn’t on the market

There are many, mutually reinforcing causes of the property crisis: it is too easy to borrow; there are too many people; there aren’t enough houses; what houses do exist are in the wrong place; and many houses have the wrong people living in them. Solutions exist to all of these, some of which involve building and some of which don’t. In south-east England it is not uncommon to find people living in£1 million homes who are skint Today we are going to focus on the fifth problem. Too many people are living in houses which are too big for them. In south-east England it is not uncommon to find people

Lionel Shriver Lionel Shriver

The real test for the republic

It’s always intimidating to write for a readership more clued up than you are. I file this on the very Tuesday the international commentariat have relentlessly claimed is the most consequential election day in American history. Now, in my ignorance, I suspect this superlative reflects the blinkered vanity of the present, and I’ve braved expressing my trust on the record that the country will ultimately survive either dismaying outcome. Yet only you know if an anti-climactic calm still prevails down thousands of American Main Streets; if, rather, the cities are aflame, armed militias reign, supermarket shelves are bare, and the US army is trying to decide which side to back;