Money

Thursday

Katy Balls

Labour’s new cabinet divide

There were no civil servants present when ministers gathered for their weekly cabinet meeting on Tuesday. The reason? It was time to talk politics. On the eve of Labour’s first Budget for 14 years, Keir Starmer tried to rally his ministers around a common message: blame the Tories! He spoke of the so-called fiscal black hole bequeathed to Labour before he handed things over to his Chancellor to explain why difficult decisions were required on spending, tax and welfare. Plenty of Labour MPs and aides question the wisdom of an election campaign which has boxed them in For all the attempts to unite against a common enemy, just a glance

The Spectator

Rachel Reeves is taking us back to the 1970s

The first fiscal event to be delivered by a female Chancellor of the Exchequer is a landmark moment, but in every other regard this Budget was a return to the familiar, and failed, approach of Labour governments past. This was the Life on Mars Budget – a journey back to the 1970s, only without the cheap booze and fags. Tax rises, increased borrowing, a bigger state, spending on public services unaccompanied by meaningful reform and additional costs for those businesses which create wealth – we have seen all these before and we know they are the markers of decline. This Budget was a journey back to the 1970s, only without

Wednesday

Martin Vander Weyer

Still hunting for a Trump trade? Gold may have further to rise

Anyone hunting for a ‘Trump trade’ at this late stage has probably missed the US election bus. If you bought gold as a traditional safe-haven asset back in February at £1,600 an ounce, you’d be a smug 33 per cent up by now – though my man in the bullion market tells me the rise is by no means all to do with presidential hopes and fears. There has also been big buying from China possibly linked to moves, with Russia and other unfriendly actors, towards ‘de-dollarisation’ of world trade using a partially gold-backed alternative currency. Which means there could be more upside ahead, my man says, and gold ETFs

Thursday

Martin Vander Weyer

The Murdochs’ next move: Rightmove

Next month’s Budget tax raids on capital have provoked a festival of creative doom-mongering on the fringes of Labour’s conference as well as in the columns of the business press. Most frequently voiced is the prediction that the 2,000 or so denizens of London’s private equity community who benefit from the ‘carried interest’ tax wheeze will pack their Louis Vuitton bags into their Chelsea tractors and form a convoy down the M20 towards continental tax havens. A recent addition to the litany is a warning from the London Stock Exchange chief Dame Julia Hoggett that the ‘ongoing viability’ of the Aim market for smaller companies is at risk if the

Thursday

Matthew Parris

Why people would hate a property tax

My friend Tim Leunig is a cerebral thinker of the best kind. Though not party-political, he has worked for Tory chancellors and would give the same advice to governments of any stripe. Wikipedia calls him a prize-winning economist and that’s right, but he has a gadfly instinct and a remorselessly rational intellect that takes him into the deeps: into first principles, logical consequences and the reductiones ad absurdum of some of our trains of argument. He writes a substack (timleunig.substack.com) and it was his recent summary there of proposals he wrote as chief economist for the Onward thinktank that caught my eye. ‘I bought this house from savings that were

Thursday

Jo Knowsley

How big business pushed up vet bills

I was on my way to a Pilates class when I spotted Paul waving at me urgently from across the road at the bus stop. ‘Can you help, Miss,’ he said. ‘It’s Gladys, she’s in a bad way.’ I looked down at his Staffordshire bull terrier and immediately saw what he meant. The 16-year-old dog was trembling, panting and appeared to be struggling to stand. She’d also lost a lot of weight. I’ve known Paul and Gladys for the past eight years, running into them on the street near my home in east London. Paul is not wealthy and has a couple of disabilities. He always calls me Miss. ‘She’s

Thursday

Kate Andrews

Who’ll be blamed for Rachel Reeves’s tax hikes?

Rishi Sunak and Jeremy Hunt entered Downing Street with one mission: to clean up the public finances after Liz Truss’s mini-Budget debacle. They posed as the fiscally credible option. All bills would need to be covered, even if the tax burden had to rise. If the Tories were to lose power for being disciplined and truthful, then so be it. Reeves would like to pin any rise on the Conservatives: an extension of ‘Tory austerity’ rather than her own Rachel Reeves has sought to demolish their responsible reputation in her first weeks as Chancellor by announcing that she has discovered a £21.9 billion ‘black hole’ in the public finances this

Tuesday

Max Jeffery

Meet the techno-optimists hoping to save the world

Future House is a weird private members’ club. There’s a mattress on the floor for napping, a bathtub designed to hold ice and bottled beers, a robot dog imported from China and a purple neon sign that reads: ‘Just F***ing Build Something.’ Around 9 p.m. on a Wednesday, the place is rammed. ‘I missed the dotcom era, I’m not missing this one,’ someone says. ‘People need to stop moaning about artificial intelligence,’ says another. Future House, in an old coaching house in Hackney, is described on its website as ‘London’s techno-optimist members’ club’. Techno-optimism? Adherents believe that technological progress is the best way to fix the world’s problems. Techno-optimism is

Benjamin Benton

How chefs cut costs in the kitchen

My grandmother, and many like her, kept an account book for household spending. This was not the product of an overbearing marriage or mistrust on anyone’s behalf – it was simply how things were done at a time when habits had been formed during rationing after the second world war, and banking was manual and slow. I spent a lot of time observing her kitchen on childhood visits. It was where my lifelong obsession with cooking began, and I can still recall a sense of balance in how she shopped and cooked; she was fond of naughty treats and lavish cuts, but she kept a stock pot, knew her way

Tuesday

Christopher Bray

Abba’s genius was never to write a happy love song

Memories. Good days. Bad days. In 1992, U2 mounted their Zoo TV tour. U2 being U2, the gigs were over-earnest affairs, their showbiz razzmatazz never emulsifying with their agitprop posturing. But disbelief was colloidally suspended the night the show hit Stockholm – and U2 were joined on stage by Benny Andersson and Björn Ulväeus for a cover of ‘Dancing Queen’. In truth, that evening’s take on one of Abba’s meisterwerke was a lumpen affair. Bono had to drop his voice an octave for what ought to be the song’s soaring refrain. And while Björn looked happy enough strumming a few chords on an acoustic guitar, Benny, at a keyboard the

Thursday

Martin Vander Weyer

China is set for a serious economic fall

 The future trajectory of the Chinese economy is a subject for doctoral theses rather than casual column items. But the advent of the Year of the Dragon, at last weekend’s Lunar New Year, was greeted with such pessimistic commentaries that the natural contrarian should ask whether the consensualists are getting it wrong: maybe the dragon is merely marking a pause before martialling its mighty resources for the next transglobal burst of fire? The negative narrative goes like this. In spite of deflation in consumer prices, Chinese shoppers are frightened of spending. Despite central bank interventions aimed at boosting asset prices, the property market is crashing after the collapse of the

Wednesday

Robin Oakley

In praise of Harry Cobden

For the past two years anybody who has asked Harry Cobden, Paul Nicholls’s stable jockey, which horse in the yard he was most looking forward to partnering, the answer has always been the same: Bravemansgame. But when declarations were made for the Grade 1 Betfair Chase at Haydock last weekend, the rider’s name attached to King George winner Bravemansgame was that of Daryl Jacob. Jacob was thus in line for the jockey’s share of the £112,000 prize. Cobden, said Nicholls, would be riding the yard’s entrants at Ascot instead. Although it was rapidly announced that Cobden was happy about the arrangement, a few eyebrows were raised and tails swished, particularly

Wednesday

Robin Oakley

My top tips for the racing season

The cockerels of jump racing had better look out: the Hen is back. At 76, Henrietta Knight, whose feat of training Best Mate to win three consecutive Cheltenham Gold Cups will probably never be equalled, is to renew the licence she relinquished 11 years ago to care for her late husband, Terry Biddlecombe. Racing fans will be delighted; perhaps a few of the 27 trainers interviewed in depth by a ‘retired’ Henrietta for her revealing book The Jumping Game: How National Hunt Trainers Work and What Makes Them Tick slightly less so. Henrietta, who has continued pre-training and advising owners looking for future stars, is known as the best judge

Wednesday

Rory Sutherland

The beauty of mid-range products

Once or twice, when on a crowded overnight flight, I have taken a sneaky stroll through the different cabins for the purpose of comparison. My reaction on first peering into each cabin goes like this. First class: ‘Gosh, this is fabulous. It’s like a restaurant in the air.’ Business class: ‘Ooh, this is nice; they get flat beds and everything.’ Premium economy: ‘Well this is OK; the seats seem comfy and it’s all pretty civilised.’ Economy: ‘It’s the “Raft of the Medusa”.’ Now here’s the thing. In terms of comfort, the biggest gap between two adjacent flight classes is between economy and premium economy. This improvement is simply achieved with

Wednesday

Matthew Parris

Britain has an entitlement problem

An Institute for Fiscal Studies paper, published at the end of last month, makes grim reading. Through the prism of the media reports it generated (‘One in 11 workers in England could be NHS staff by 2036,’ said the Guardian; ‘NHS staff will make up 49 per cent of the public sector workforce in 2036,’ said the Times), the most sensational finding was that our health service will be eating up an ever-increasing share of public spending. But, as so often, this particular cuckoo in the nest of public provision is only the most newsworthy of so many indications of Britain’s long, slow slide into insolvency. The gap grows between

Monday

Liz Rowlinson

What’s behind the bungalow boom?

‘Bungalows are almost perfect,’ as the old gag goes. ‘They only have one floor.’ But these once unfashionable properties are rapidly becoming anything but a joke. While the mortgage crisis is cooling most sectors of the housing market, demand for bungalows is growing. Estate agents report the properties receiving dozens of offers, selling for tens of thousands over the asking price or being snapped up before officially going on the market. The usual breed of downsizers and retirees looking to replace large family homes with something all on one level are facing stiff competition from budget-conscious purchasers seeking to renovate single-storey homes – and often turn them into family homes

Wednesday

The Spectator

Portrait of the week: BBC presenter scandal, EasyJet cancellations and a baby boy for Boris

Home The government pondered whether to accept pay-review bodies’ recommendations on rises in public sector salaries. ‘Delivering sound money is our number one focus,’ Jeremy Hunt, the Chancellor of the Exchequer, said in his Mansion House speech. ‘That means taking responsible decisions on public finances, including public sector pay.’ Regular pay in the March to May period was 7.3 per cent higher than a year earlier, although it rose less than inflation. Unemployment rose from 3.8 per cent to 4 per cent; vacancies fell by 85,000 to 1,034,000. The average two-year fixed-rate mortgage rose to 6.7 per cent. Jeremy Hunt confirmed that he was refused a bank account with Monzo last year on the

Martin Vander Weyer Martin Vander Weyer

Would a German takeover of BT be so bad?

To the Mansion House, on an unbearably humid evening, for the Lord Mayor’s annual ‘Financial and Professional Services’ dinner. It’s a big night for the City, with the formal unveiling of reforms designed to channel pension money into unlisted equities, creating by 2030 a £50 billion pool of capital for high-growth UK companies that might otherwise list in New York or sell themselves elsewhere. Simplified London listing rules, favourable to founder-entrepreneurs, will be another part of a wider reform package, much of which has been foreshadowed in this column over recent months. But what a way to put out a major policy announcement. ‘No wonder the tech kids don’t want

Wednesday

Matthew Parris

Price caps are a slippery slope

Sometimes it’s the little things that depress most. I groaned last week to hear the news item. The government is contemplating a ‘price cap’ on ‘basic items’ in ‘supermarkets’. Forgive the quotation marks, but each of these terms is so horribly problematic that one has to start by asking what they even mean. Has Conservatism in the 2020s lost its ideological moorings? Or perhaps one should start with a quick recapitulation of the history of this idiotic idea, because price control has been tried before, first by a Labour government, and then by their Tory successors who went on to consolidate the folly. The background to those repeated attempts to

Tuesday

Alec Marsh

Is it time for the £100 note?

Thanks to the recent spike in inflation, never have indisputable luxuries such as Sharwood’s mango chutney or Anchor butter quite so tested the domestic purse strings. The sad truth is, however, that it’s much worse than you think. Because unlike the watched kettle, the frog of devaluation hasn’t just arrived at a nice simmer, it’s begun to boil over. And mango chutney at £4.10 a jar is but the tip of the iceberg. For the long view consider the BBC’s new drama, Ten Pound Poms, about Brits who emigrated to Australia in the 1950s for the princely sum of a £10 processing fee. These days the closest you’ll get to