Portrait of the week | 19 February 2011

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Inflation rose to an annual rate of 4 per cent in January from 3.7 per cent in December, far above the Bank of England’s target of 2 per cent. The rate according to the Retail Prices Index rose to 5.1 per cent from 4.8 per cent. David Cameron, the Prime Minister, defended his idea of the Big Society and the government’s economic policy, saying: ‘We have to make these cuts, we have to raise those taxes,’ even though ‘it will make me unpopular’. Unemployment rose to 7.9 per cent, with 965,000 16- to 24-year-olds without jobs. Vince Cable, the Business Secretary, said that big banks should be split up to prevent them making too much profit and developing a bonus culture. Barclays announced profits of £6.1 billion for 2010. A pilot review of incapacity benefit in Burnley and Aberdeen found 30 per cent of claimants fit to work immediately and that 39 per cent could consider working with the right help.