Michael Simmons is The Spectator's economics editor. Contact him here.
The Bank of England has held interest rates at four per cent. The Monetary Policy Committee (MPC) voted five to four in favour of maintaining the rate. There had been some speculation that the Bank might consider a cut to pre-empt some of the harshest measures expected in this month’s Budget, but the rate-setting committee
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It is three weeks until the Budget – and Rachel Reeves wants to get her narrative out there. The Chancellor held an early morning press conference today to, in her words, ‘set out the circumstances and the principles’ guiding her thinking on 26 November. Her speech followed a familiar pattern. First, there was the evisceration
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Rachel Reeves is preparing for her first major Budget – but is Brexit really to blame for Britain’s black hole? Host Michael Simmons speaks to independent economist Julian Jessop about the OBR’s productivity downgrade, Labour’s tax plans, and whether Reeves is right to point the finger at Brexit.
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With Reform leading in the polls, Nigel Farage is determined to ensure that nothing can impede its growth. This morning he sought to bolster his credibility on an area that the Tories think could be his Achilles heel: the economy. Reform’s £90 billion programme of tax cuts promised at the last election has been constantly
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Happy All Hallows’ Eve, everyone – and there is something spooky going on with Rachel Reeves and a property in Dulwich. Yesterday she was leading the news after admitting to renting out her family home following the move into No. 11 without getting the required licence from Southwark Council. There are a number of mitigating
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On this week’s Spectator Out Loud: Luke Coppen looks at a new musical subgenre of Roman Catholic black metal; Mary Wakefield celebrates cartoonist Michael Heath as he turns 90 – meaning he has drawn for the Spectator for 75 years; looking to Venezuela, Daniel McCarthy warns Trump about the perils of regime change; Michael Simmons
Are the rich fleeing Britain? That’s what the numbers suggest, but some activist groups have hit back saying that the data is dodgy. For the second episode of Reality Check, The Spectator’s economics editor Michael Simmons explains why the data shows that the wealthy are leaving Britain, and why this matters for everyone else.
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There are a few sore heads at 22 Old Queen Street this morning because it was The Spectator’s Parliamentarian of the Year Awards last night. From Lucy Powell’s jibe at Morgan McSweeney (and Tim Shipman, for that matter) to Robert Jenrick’s jokes falling flat, it was an eventful evening of good-natured hazing, naval-gazing and –
There were cheers in the Treasury last month as the nation’s statisticians discovered a spare £3 billion down the back of the sofa. The Office for National Statistics (ONS) admitted that VAT receipts had been under-reported by £1 billion last year and £2 billion this year. The newly found cash will go some way to
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Kemi Badenoch continues to look more confident at PMQs – although there are always going to be some easy goals when you lead on the economy. Today she pressed the Prime Minister on Labour’s manifesto pledge not to raise income tax, VAT or national insurance – which he dodged – as well as repeating her
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There are reports that the OBR will downgrade Britain’s productivity growth forecasts, increasing the size of the black hole facing the Chancellor at the end of the month. This continues the spate of bad news for the Chancellor on the economy – but can we trust the figures? James Heale and Michael Simmons join Patrick
Rachel Reeves is reportedly looking at a 2p increase in income tax. The hike to the basic rate – paid on earnings between £12,571 and £50,270 – would take it from 20 per cent to 22 per cent. That’s still quite low by historic standards, despite the overall tax burden heading towards record highs. But
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Reality Check, The Spectator’s new data-driven show hosted by economics editor Michael Simmons, kicks off with a big name: Arthur Laffer. The man who taught Reagan to cut taxes tells Michael why Britain’s economy is ‘disappearing’, why the Bank of England shouldn’t exist, and why he still believes low taxes – and a little optimism
I’m delighted to announce the launch of my new podcast and newsletter Reality Check. In each episode I’ll cut through the spin and explain the numbers behind the noise. For the first installment I sat down with the American economist Arthur Laffer. ‘Course you would,’ is not the answer I expect when I ask tax-cutting
Prices are still rising fast. The Consumer Prices Index rose by 3.8 per cent in September – the same pace as in August but nearly double the Bank of England’s 2 per cent target. Markets, and the Bank itself, had expected inflation to reach 4 per cent, so the fact it has remained flat will
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Rachel Reeves is hosting an investment summit in Birmingham, trying to turn the narrative away from Britain’s economic ‘doom loop’ ahead of next month’s budget. But the harbinger of bad economic news Michael Simmons – who joins James Heale and Patrick Gibbons on the podcast – points to the news today of soaring government borrowing
Britain continues to be consumed by debt. Figures just released by the Office for National Statistics (ONS) show that last month the state had to borrow £20.2 billion to stay afloat. That was £1.6bn more than in September last year and the highest September borrowing total for five years. ‘Debt interest, the cost of providing
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It’s been a rough week for the government: the row over the collapsed Chinese spy trial has rolled on, all while the Chancellor has been trying to lay the groundwork ahead of next month’s budget. Then, overnight, another issue has emerged as fans of the Maccabi Tel Aviv football team have been banned from attending
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
Rachel Reeves is trapped in an economic ‘doom loop’: high debt, low growth and higher debt again. But, as pessimists’ eyes turn to the Chancellor’s Budget next month, there is a way she can turn that loop into a ‘virtuous circle’. The doom loop theory of Reeves’s economy has so far gone like this: But
