Economics newsletter
Rachel Reeves should focus on cutting welfare
Rachel Reeves is reportedly considering a 2p increase in income tax, taking the basic rate from 20 to 22 per cent. That might seem modest by historic standards, yet it would be a clear breach of Labour’s manifesto promise, made just over a year ago, not to raise any of the big three taxes. More
It won’t be long before pensioners are out-earning workers
Oh, the horrid injustice of it all! By the skin of their teeth, pensioners on the state pension and with no other income, are going to avoid paying income tax next year. With September’s inflation figures now in, it can be confirmed that, thanks to the Triple Lock, the state pension will be rising to
What an overpriced glass of champagne taught me about Trump’s tariffs
An American in London, I frequently have occasion to return to my hometown of Los Angeles. In my latest trip this week, I changed my drink of choice because of President Trump. I passed over a French champagne in favour of a California red, and, in effect, became a case study on the transformative might
Who’s to blame for Britain’s slowing economy?
The economy is slowing down. GDP grew 0.3 per cent in the three months to August. As ever, services propped up Britain, growing by 0.4 per cent, while the production sector shrank by 0.3 per cent, according to Office for National Statistics data. We could have news of a stagnating economy confirmed just in time
It’s ridiculous for Labour to blame tax rises on Farage
It is day three of Labour’s latest strategy: to try to blame Nigel Farage for the forthcoming tax rises in the Budget. After Health Secretary Wes Streeting had a go on Monday, Rachel Reeves this morning has made a similar point. The reason she is looking to raise taxes in the Budget, the Chancellor says,
Polanski is talking nonsense about wealth taxes
On Question Time last week, Zack Polanski, the Green Party leader and erstwhile boob-whisperer, declared that there is no evidence that the wealthy leave Britain because of wealth taxes. A bold claim, and a wrong one. It’s also revealing, symptomatic of a growing belief on the populist left that Britain’s problems could be solved if
Workers are paying the price for Labour’s National Insurance hike
Wasn’t Labour supposed to be tackling the scourge of insecure employment, doing away with exploitative zero hours contracts and giving employees protection against unfair dismissal from the first day they start their jobs? How odd then that so far it seems to have achieved the exact opposite. The latest labour market figures released by the
Reform is right to give up on ‘fag packet economics’
As Nigel Farage prepares to abandon pledges of up to £90 billion in tax cuts, there will be plenty of people arguing that his Reform party is giving up on its free market, small state roots. Other critics may say this is proof that Reform is shifting further to the left and pandering to its
Who killed the London Stock Exchange?
Stock exchanges around the world compete with each other to entice the most exciting companies to sell their shares on their markets, via Initial Public Offerings (IPOs). London was once the financial capital of the world, and a leader in IPOs. Now it has fallen to number 23 in the global IPO rankings, having been surpassed
Britain’s steel industry must die
It already faced tariffs in the United States, and it has been struggling to cope with some of the highest industrial energy prices in the world. Now what remains of the British steel industry faces what could well be a terminal blow. The European Union is about to impose tariffs of 50 per cent on