Michael Simmons is The Spectator's economics editor
The rate of inflation remained flat at 3.4 per cent in May – still well above the Bank of England’s 2 per cent target. Bizarrely, the Office for National Statistics (ONS), in their figures released this morning, claims this is down from 3.5 per cent the month before, even though just a couple of weeks
Rachel Reeves may finally have seen sense. A report in this morning’s Financial Times suggests she is ‘exploring’ performing a 180 on the changes to inheritance tax rules which meant non doms would have to pay the death tax on their global assets – even on wealth earned before they came to the UK. As I explained in
Donald Trump and Keir Starmer’s transatlantic trade deal has finally been signed. Before making an early exit from the G7, the US president approved an executive order giving legal effect to parts of the US-UK deal. The outline of the agreement was settled weeks earlier during a conference call, with Trump in the White House
If Rachel Reeves is to have any chance of making it to her autumn budget without U-turns or raising taxes, the improved economic forecasts of recent months need to come true. Missiles flying between Israel and Iran may destroy that hope. Things had been getting better for the Chancellor. Look at economic forecasts from the
Rachel Reeves’s spending review was the ‘most incomprehensible speech I’ve ever heard from a chancellor’, according to Paul Johnson of the Institute for Fiscal Studies. He spoke to me on today’s edition of Coffee House Shots. In this special episode, I was also joined by Ruth Curtice, chief executive of the Resolution Foundation, to take a
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The Spectator’s economics editor Michael Simmons is joined by the outgoing boss of the Institute for Fiscal Studies Paul Johnson and the CEO of the Resolution Foundation Ruth Curtice to understand why Britain’s economy is in such a bad place. Given it feels like we are often in a doom loop of discussion about tax
Writing about Britain’s spending plans has started to feel a bit like swimming through treacle. It’s not that there aren’t lots of interesting observations to make about Wednesday’s £300 billion spending announcement. Such as the fact that the NHS sucks up the bulk of the resource spending with a 3 per cent rise in real
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There were clear winners and losers in Rachel Reeves’s spending review yesterday but some of her announcements around capital spending and investment saw her dubbed the ‘Klarna Chancellor’ by LBC’s Nick Ferrari for her ‘buy now, pay later’ approach. Clearly trying to shake off the accusations of being ‘austerity-lite’, Labour point to longer term decisions
Rachel Reeves delivered her spending plans for the next three years less than 24 hours ago, but already the credibility of the Chancellor’s plans are in doubt. GDP fell by 0.3 per cent in April, according to figures released this morning by the Office for National Statistics (ONS). It spells the end of a run
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OnlyFans is giving the Treasury what it wants – but should we be concerned? ‘OnlyFans,’ writes Louise Perry, ‘is the most profitable content subscription service in the world.’ Yet ‘the vast majority of its content creators make very little from it’. So why are around 4 per cent of young British women selling their wares
Fenix International occupies the ninth floor of an innocuous office block on London’s Cheapside. The street’s name comes from the Old English for marketplace, and once upon a time Cheapside was just that: London’s biggest meat market with butcher shops lining either side of the road. Today, the street houses financial institutions and corporate HQs.
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There were few surprises in Rachel Reeves’s spending review today. Health was the big winner, with a £29bn increase in day-to-day spending and £39bn was announced to build social and affordable housing. The main eyebrow-raiser was the announcement that the Home Office will end the use of hotels for asylum seekers within this parliament; this
Rachel Reeves has just taken her seat after delivering the first spending review since the pandemic. The plans outlined today set departmental budgets for the next three years and infrastructure spending for the next four. Total departmental spending will rise by 2.3 per cent – but, predictably, the spoils will not be shared evenly. The
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Rachel Reeves has pledged a ‘new era of nuclear power’ as the government confirms a £14.2 billion investment in the Sizewell C nuclear plant in Suffolk. This comes on the eve of Labour’s spending review, with the government expected to highlight spending pledges designed to give a positive impression of Labour’s handling of the economy.
The unemployment rate has risen to 4.6 per cent, the Office for National Statistics has revealed. This morning’s figures mark the first proper reading of the jobs market since April, when the minimum wage was hiked and the £25 billion raid on employer National Insurance started. It’s not just the joblessness rate rising: the number
When Rachel Reeves last week tried to shift the narrative around her spending review – from one of fiscal restraint to ‘spend, spend, spend’ – she ‘unveiled’ £113 billion in infrastructure investment. But for those in Westminster with more than a short-term memory, they will have felt a distinct sense of déjà vu. That’s because
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James Nation, formerly a special adviser to Rishi Sunak and now an MD at Forefront Advisers, joins the Spectator’s deputy political editor James Heale and economics editor Michael Simmons, to talk through the latest on the government’s spending review, which is due to be announced on Wednesday. The last holdout appears to be Home Secretary Yvette
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Shadow Chancellor Mel Stride delivered a speech today where he attempted to banish the ghost of Liz Truss and improve the Conservatives’ reputation over fiscal credibility. And he compared leader Kemi Badenoch to Thatcher, saying she too struggled at first and will ‘get better’ at the dispatch box. LBC broadcaster Iain Dale and the Spectator’s
‘The ONS apologises for any inconvenience caused’ is becoming an all-too-familiar refrain from Britain’s statisticians. The latest mea culpa came after a blunder involving vehicle tax data led the Office for National Statistics to overstate April’s inflation figure. Initially reported as 3.5 per cent, the true figure was 3.4 per cent – only revealed once
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Rachel Reeves unveiled billions of pounds of investment today for transport and infrastructure projects, as Labour attempts to demonstrate that next week’s spending review is not just about departmental cuts. However, most of the political noise today has centred on her announcement that the winter fuel cut will be reversed by the end of the
