Michael Simmons is The Spectator's economics editor
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There were extraordinary scenes in PMQs today. Rachel Reeves appeared distraught as the Prime Minister failed to guarantee her security when asked by leader of the opposition Kemi Badenoch. It was brutal to watch, as the iron chancellor’s lip quivered and a tear rolled down her cheek. In many ways, you can’t blame her –
I’m starting to feel a tiny bit sorry for the chancellor. Yes, most of the economic and fiscal problems we’re facing have been exacerbated – if not caused – by current Treasury policy. But Labour’s welfare reforms, flawed and limited as they were, at least acknowledged that the welfare bill is not just fiscally unsustainable but
Labour MPs are obviously going to panic when told their votes might plunge just one person into poverty – let alone 250,000. That was the original estimate for the fallout from Liz Kendall’s reforms to Personal Independence Payments (PIP) and Universal Credit. Yesterday, the DWP released a revised figure after Starmer caved to a rebellion
The Office for National Statistics (ONS) has confirmed the economy grew by 0.7 per cent in the first three months of the year. The figures, released this morning, are the ONS’s second attempt at estimating growth in the first quarter and, unusually, the GDP growth number was unrevised from the initial estimate. The strong growth
As Sir Keir Starmer offers concessions to 126 rebels to water down his welfare reform bill, a scandal that undermines the entire Universal Credit system goes ignored. The Spectator has seen figures revealing that the HMRC data feed which powers Universal Credit payments to low-paid workers may be so error-strewn that as many as one in
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This week: war and peace Despite initial concerns, the ‘Complete and Total CEASEFIRE’ – according to Donald Trump – appears to be holding. Tom Gross writes this week’s cover piece and argues that a weakened Iran offers hope for the whole Middle East. But how? He joined the podcast to discuss further, alongside Gregg Carlstrom,
The poorest Brits now owe £6.6 billion in unpaid council tax – a record high and up some 85 per cent since before the pandemic. That’s according to data released this morning by the Ministry of Housing, Communities and Local Government, which suggests Britain is plunging back into a cost-of-living crisis. What’s more, a report
Britain will lose 16,500 millionaires this year, taking $90 billion of wealth with them. That’s according to a new report from Henley & Partners. If their projections are right, that’s more than double the number of dollar millionaires expected to leave China in 2025. As I wrote for the magazine last month, changes to the non-dom regime –
Interest rates have been held at 4.25 per cent. The Bank of England’s Monetary Policy Committee (MPC) voted by six to three to hold rates after cutting them in May. The move mirrors that of the US Federal Reserve, which yesterday held rates for the fourth time in a row. Their decision came despite badgering
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Westminster waits with bated breath to discover whether Donald Trump will ally with Israel in striking Iranian nuclear sites. The President called for ‘UNCONDITIONAL SURRENDER!’ from Tehran overnight. The day to day of domestic politics appears diminished by comparison with the ever-looming threat of an escalated conflict… But the show must go on: today’s PMQs
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