Michael Simmons is The Spectator's economics editor
Britain’s welfare crisis may have slipped from the front pages following Liz Kendall’s £4.8 billion worth of cuts announced ahead of the Spring Statement, but the problems haven’t gone away. Figures quietly released by the Department for Work and Pensions (DWP) this week show that, despite Labour’s planned ‘reforms’ to the benefits system, nearly a
The Chancellor will meet America’s top economic official, Treasury secretary Scott Bessent, today as she concludes her trip to the International Monetary Fund’s Spring Meetings in Washington. As discussed on Coffee House this week, Rachel Reeves will use her meeting to attempt to make an Anglo-American trade deal a realistic possibility. Yesterday, the Chancellor put in a surprise appearance on one
The government is on a charm offensive in Washington. Tonight, Britain’s ambassador to the US, Lord Mandelson, will host officials from Donald Trump’s government and American business figures at the British embassy. Tomorrow, the Chancellor will meet her counterpart, Treasury Secretary Scott Bessent. Rachel Reeves is looking to permanently end the punishing 25 per cent
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Chancellor Rachel Reeves has been in Washington D.C. this week at the IMF’s spring meetings, and will meet US Treasury Secretary Scott Bessent tomorrow. Cue the ususal talk of compromising on chlorinated chicken. Not so, reports the Spectator’s economics editor Michael Simmons, who explains that Reeves may offer a reduction in long-standing tariffs already imposed on
Britain borrowed nearly £152 billion in the financial year to March – almost £21 billion more than at the same point in the last financial year, according to the Office for National Statistics (ONS). The latest public finance figures reveal that borrowing in March was the third highest since records began in 1993. Crucially, it’s
The waves from Donald Trump’s tariff upheaval continue to ripple through the global economy. The International Monetary Fund (IMF) has downgraded its forecasts for global growth to 2.8 per cent for this year and 3 per cent for 2026, down from previous estimates of 3.3 per cent for each year. The UK isn’t immune: the
Price rises have unexpectedly eased. The Consumer Price Index rose by just 2.6 per cent in March, down from 2.8 per cent the month before and slightly lower than analysts’ expectations of 2.7 per cent. The figures, just published by the Office for National Statistics, show that the slowdown was driven by falling fuel costs and flat
Much to the concern of the Bank of England, British workers are continuing to bank inflation-busting pay rises. Figures just released by the Office for National Statistics (ONS) show that over the three months to February, the average worker received a pay increase of 5.6 per cent. Remove inflation and that works out as a 2.8 per
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Globalisation’s obituary has been written many times before but, with the turmoil caused over the past few weeks with Donald Trump’s various announcements on tariffs, could this mark the beginning of the end for the economic order as we know it? Tej Parikh from the Financial Times and Kate Andrews, The Spectator‘s deputy US editor, join economics editor
China has retaliated against Donald Trump by raising duties on all American imports to 125 per cent from 84 per cent, declaring that it has no interest in responding further to what it calls a ‘joke’ policy. The higher rate will come into force from tomorrow. The announcement comes after the White House’s clarification that
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Finally, some good news for your Friday: the economy is growing! Just when everyone seems to be revising down expectations of growth, the Office for National Statistics (ONS) estimates that GDP grew by 0.5 per cent in February. It also revised January’s figures upwards to give growth for the last quarter of 0.6 per cent,
China has announced it will impose 84 per cent tariffs on US goods imports from tomorrow, as the war of words and levies between the world’s two largest economies escalates. The new measures – 50 per cent on top of the 34 per cent already imposed by Beijing’s finance ministry – are a like for
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Parliament is about to go into recess for the Easter holiday and so – as is customary – Keir Starmer sat in front of the Liaison Committee this afternoon, where he was grilled on topics including tariffs, defence and welfare. This comes on the day when there has been a momentary reprieve in the markets,
This afternoon, Keir Starmer recommitted to not raising income tax, VAT or employee National Insurance for the duration of this parliament. At the same time, he reiterated his support for Rachel Reeves’s ‘ironclad’ fiscal rules. Are both possible? Answering a question from GB News’s Chris Hope at a visit to the Jaguar Land Rover factory
This week, Donald Trump steered the global economy away from the free trade era that has underpinned growth for decades. Within hours of his announcement of tariffs on what looked like a bookmakers board from Aintree, China had responded with its own: a 34 per cent tax on all US imports starting next Thursday. The
Across the world, markets are plunging as they respond to the global tariffs Donald Trump unleashed from the White House rose garden last night – with the president’s top economist describing the falls as ‘short-term bumps’. The pound passed $1.30 for the first time in six months while stocks in Tokyo fell 4 per cent.
In just a few hours, Donald Trump is set to take his tariff war global. At 9 p.m. UK time (4 p.m. in Washington), the American President will unveil a sweeping set of trade tariffs, on what he’s dubbed ‘Liberation Day’. What exactly Trump plans to announce remains unclear, but reports suggest everything from global
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Britain’s real economic pain starts today. Overnight, the cost of living has jumped once again: energy, water, broadband, public transport, TV licences – all up. So too are council tax bills, capital gains, and vehicle taxes. And that’s before we even get to the slow stealth march of fiscal drag and the impact of World
Britain’s real economic pain starts today. Overnight, the cost of living has jumped once again: energy, water, broadband, public transport, TV licences – all up. So too are council tax bills, capital gains, and vehicle taxes. And that’s before we even get to the slow stealth march of fiscal drag. Last week, the Office for
Britain’s economic outlook may have been skewed by bad data – and it could be costing billions. Wage data pored over by the Bank of England’s Monetary Policy Committee (MPC) is set to be revised in the coming weeks – and the implications could be serious. The nine economists who decide the country’s interest rates
