Economy

Rachel Reeves’s rather crude strategy is becoming painfully clear. Between now and the Budget she intends to float ideas for so many painful tax rises that, come the day, we will all feel pathetically grateful that only a few of them have come to pass. Her latest suggestion – reported from an anonymous briefing, needless to say – is that the capital gains tax (CGT) exemption on the sale of main homes might be removed for higher-value properties. A threshold of £1.5 million has been suggested. Sell a property for more than that and you would become liable to pay CGT at a rate of 24 per cent on the

The Chancellor Rachel Reeves is threatening a round of tax rises. RMT is on strike over the bank holiday. And something or other is going on with Masterchef. As the summer unfolds, British domestic politics is worrying about all its familiar issues. In the background, however, something far more serious is happening. The country is going quietly broke, and hardly anyone cares.  Very soon the Chancellor will be raising our taxes to pay the interest on our outstanding debt On the bond markets, the yield on the UK’s 30-year gilt rose yesterday to 5.6 per cent, overtaking the equivalent US yield for the first time in a generation, and approaching

Dante’s Beach, Ravenna News that Italians now enjoy a higher standard of living than the British made me think: my God, life must be truly awful in Britain. Yes, the Italians do have much to feel good about in terms of the quality of their lives thanks to the beauty of their country, the splendour of their history, culture and cuisine, and their impressive defence of the traditional family and way of life from the threats to them of the modern world. When I’m drinking, I buy a superb local Sangiovese for €2.60 a litre dispensed into plastic mineral water bottles from a huge cask in a wine shop in

Britain’s is growing, albeit sluggishly. Figures just released by the Office for National Statistics (ONS) show the economy grew by just 0.3 per cent in the second quarter of the year – a sharp slowdown from the first three months, when growth was 0.7 per cent. ‘The economy was weak across April and May,’ the ONS said, blaming consumers and businesses racing to beat tariffs and stamp duty by bringing activity forward. There was, however, a stronger recovery in June, with the economy expanding by 0.4 per cent. Between April and June as a whole, services drove most of the growth, with particular strength in computer programming, healthcare and vehicle

It’s that time of year again: GERS day – when Scotland’s annual fiscal health is laid bare – has come back around and the figures paint a pretty bleak picture for the Scottish government. There is a £26.5 billion black hole in public finances (don’t fall off your chair, Rachel Reeves) while the country’s deficit has grown by more than £5 billion. With a Scottish parliament election just around the corner – and the party of government on track to lose seats – it’s more bad news for First Minister John Swinney’s SNP. Today’s GERS stats raise questions about the SNP’s full fiscal autonomy idea Swinney’s administration appears to have

There really is no hiding place for Rachel Reeves in this morning’s employment figures. The Office of National Statistics (ONS) release shows that 164,000 payrolled positions have been lost in the 12 months to July, Labour’s first year in office. Those figures are still provisional, but the figures for the 12 months to June show pretty much the same picture, with the number of payrolled positions falling by 149,000. In May alone, 26,000 jobs were lost. The unemployment rate rose to 4.7 per cent. For those who are in work, the figures show a healthy rise in real earnings of 0.9 per cent. The Bank of England said last week

From Lord Kinnock’s demand for a wealth tax and VAT on private health fees to Gordon Brown pressing for gambling taxes, it is plain that Labour has run out of ideas other than dreaming up new ways to part us from our money. Even so, Kemi Badenoch is ill-advised to go on an all-out attack on council tax reform, as she did in a Mail on Sunday column yesterday. You don’t have to be a socialist or even a Labour supporter to see that council tax is horribly regressive According to the Conservative leader, Rachel Reeves is plotting to do as Labour have done in Wales: to set up an

Will yesterday’s cut in interest rates bring relief to the government in its economic problems, offering a breather to people who feel that their living standards are declining? That is unlikely for two reasons. Firstly, people buying homes with mortgages – the most obvious beneficiaries of a cut in interest rates – are more likely nowadays to be on fixed rates. Few will benefit from an immediate cut to the Bank of England base rate; in fact, there are still many homebuyers who are coming off five-year fixed rates they took out at the height of Covid, when interest rates were still at near-zero. They will experience a shock, regardless of