Michael Simmons is The Spectator's economics editor
‘We are becoming a welfare state with an economy attached,’ said Kemi Badenoch in a speech on sickness benefits today. She’s right, though anyone who read the Office for Budget Responsibility’s (OBR) dire report this week knows we’re past becoming: we already are. The figures are staggering. The bill for sickness benefits is heading towards £100
The public won’t forgive and nor will I, said Health Secretary Wes Streeting of plans by junior doctors to strike over his refusal to cave to demands for 29 per cent pay rises. Speaking to the Times he said: ‘There are no grounds for strike action now. Resident doctors have just received the highest pay award across the
Britain is in trouble. That’s the judgement of the Office for Budget Responsibility (OBR) in their ‘fiscal risks and sustainability’ document released this morning. The language is polite, matter of fact and bureaucratic. But read between the lines, look at the numbers and it paints a damning picture of the risks we face as a country.
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Keir Starmer will have been hoping for a more relaxed week – but he certainly won’t be getting one. He is facing a fresh rebellion over support for children with special educational needs (SEND), which threatens to become welfare 2.0. The plan involves overhauling the SEND system and it’s another case of Labour MPs exclaiming
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Some sore heads on Coffee House Shots this morning, after last night’s Spectator summer party. But while we were having fun, a drama was brewing in the Labour party after it was finally confirmed that Jeremy Corbyn is starting a new left-wing party… or is he? The news was broken last night by another MP:
The Home Office opened Britain’s doors to record numbers of migrants without properly assessing the risks or consequences, according to a damning new report from parliament’s Public Accounts Committee. The report, released overnight, finds that the department ‘made changes to the Skilled Worker Visa route without a full assessment of the risks or potential impacts,
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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
