Michael Simmons is The Spectator's economics editor
15 min listen
This afternoon we had Liz Kendall’s long-awaited address in the Commons on Labour’s plans for welfare reform. The prospect of £5 billion worth of cuts to welfare has split the party in two, with fears of a rebellion growing over the weekend and into this week. Her announcement was a mixed bag, including: restricting eligibility
In more bad news for Rachel Reeves as the Chancellor prepares for next week’s Spring Statement, the OECD has downgraded Britain’s growth prospects. The organisation forecast the UK’s economy to grow 1.4 per cent this year and then just 1.2 per cent next year – compared with the 1.7 per cent and 1. 3 per
14 min listen
New figures from the Office for National Statistics show the UK economy unexpectedly shrunk by 0.1% in January. This comes only a few weeks after the Chancellor’s pro-growth speech, and a fortnight ahead of her Spring Statement. Just how much pressure is Rachel Reeves under? And how likely is it that Labour will change their
The economy shrank by 0.1 per cent in January according to figures just published by the Office for National Statistics (ONS). The news will come as a disappointing shock to Rachel Reeves after most economists had predicted the year to have started with growth. In December the economy had grown by 0.4 per cent, but a fall
Markets are not enjoying Donald Trump’s tariffs. Some 125 days have passed since his second election victory and the S&P 500 is on a clear downward trajectory thanks to Trump’s tariff policies and other poor US economic data. After the same number of days following Biden’s election, the S&P was up 13 per cent; for
Donald Trump has refused to rule out an American recession. He ‘hates to predict things like this’, he said yesterday. When asked if a downturn was coming this year, the President responded that a ‘period of transition’ was on the cards. On Thursday last week the Atlanta Fed’s GDP ‘nowcast’ model was forecasting that America’s
The welfare bill currently unsustainably stands at £314 billion. It is forecast to reach nearly £380 billion by the end of the decade. Rumoured Labour cuts, set to be announced as part of the Spring Statement on 26 March, have just been reported by ITV News and include plans for £6 billion of welfare cuts.
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On this week’s Spectator Out Loud: Having returned from Washington D.C., Harry Cole reads his diary for the week (1:16); Zoe Strimpel reports on the Gen Z fliers obsessed with maximalising their air miles (5:37); Michael Simmons argues that Scotland is the worst when it comes to government waste (12:00); reviewing Quentin Skinner’s Liberty as Independence, Nigel
No country in the UK receives more public money per head than Scotland. An extra £2,200 is spent on every person living there than in England – and £1,900 more than the UK average. Yet public services north of the border are falling apart. Take education. Scotland spends more per pupil than anywhere else –
‘He was bad on trade, very bad on trade,’ said Donald Trump ‘with due respect’ to Ronald Reagan in a broadcast from the White House. As the President went on, the Fox News coverage included a ‘Dow Watch’ ticker, which showed the markets in freefall. Trump was speaking to confirm that 25 per cent tariffs
The number of young people not doing anything with their lives has hit its highest level in 11 years. Figures released this morning by the Office for National Statistics (ONS) on 16- to 24-year-olds not in education, employment or training – so-called NEETs – show that the number has reached just under one million in
Average gas and electricity bills will rise by £111 a year in April after the regulator Ofgem announced an increase to the energy price cap. The 6.4 per cent hike means the average dual-fuel household bill will hit £1,849 annually. The rise is more than anticipated, with analysts at Cornwall Insight predicting that bills would
When I was at Edinburgh University a decade ago, a girl with a thick Surrey accent stopped me as I walked back to my room in halls. ‘Rah, have you been to the reeling society?’ she asked. ‘What makes you think that?’ I replied. ‘You’ve acquired a slight limp.’ ‘It’s the cerebral palsy, luv.’ They’re
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On this week’s Spectator Out Loud: Hugh Schofield asks why there is no campaign to free the novelist Boualem Sansal (1:26); The Spectator’s arts editor, Igor Toronyi-Lalic, reacts to the magazine’s campaign against frivolous funding and, continuing the campaign, Michael Simmons wonders if Britain is funding organisations that wish us harm (8:00); Lisa Haseldine reflects on
Rachel Reeves is having to borrow more money than even the worst estimates expected. Figures on the public finances, published this morning by the Office for National Statistics (ONS), show that in the financial year to January we borrowed over £118 billion. This is £11.6 billion more than at the same point in the last
Frivolous state funding isn’t only going to chancers, the plain lucky and the devious, but also to those who would see Britain – and the West – come to harm. Just over a year ago, the National Secular Society (NSS) compiled a dossier for the Charity Commission which called for 44 charities that had ‘fuelled
Britain’s workers have experienced strong pay increases for the third month in a row. Figures on the jobs market, just released by the Office for National Statistics (ONS), reveal that pay rose 6 per cent in the final three months of 2024 – the fastest pace of pay growth in over a year. Strip out
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This week: The Spectator launches SPAFF The civil service does one thing right, writes The Spectator’s data editor Michael Simmons: spaffing money away. The advent of Elon Musk’s DOGE in the US has inspired The Spectator to launch our own war on wasteful spending – the Spectator Project Against Frivolous Funding, or SPAFF. Examples of waste range from
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It’s a double celebration for Rachel Reeves today. Not only is it her birthday, but the UK economy grew by 0.1 per cent in the last three months of 2024, according to the Office for National Statistics’ latest report. December, when the economy expanded by 0.4 per cent (the market consensus had been 0.1 per
All too often, the Prime Minister recently lamented, Britain’s public servants are happy languishing in the ‘tepid bath of managed decline’. There is, however, one area in which Britain’s public servants are dynamic, innovative and world–leading: at spaffing gazillions of pounds of taxpayers’ money on wasteful projects which are variously inane, insane and indefensible. The