Economy

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 also out today by the Centre for Social Justice (CSJ) finds that between 2022 and 2024, some 400,000 more households slipped into arrears, taking the total number of people in debt to their local council to 1.8 million. The CSJ’s report also finds that 97 per cent of those in arrears have at least one

We are not the fastest growing economy in the G7, even though the Labour party promised that we would be. We are not topping any tables for inward investment, and we have fallen to the bottom of the league for new companies listed on the stock market. Still, it is good to know that there is still one measure where the UK economy comfortably beats the rest of the world. We are now losing more millionaires than any rival nation. The exodus of wealth out of the UK, it appears, is accelerating – and very soon this is going to turn into a big problem for the Chancellor Rachel Reeves. 

Speaking today at Church House in Westminster, Nigel Farage announced that Reform will introduce a ‘Britannia card’ that will let wealthy foreigners pay a £250,000 fee to move to the UK, and live here exempt from all tax on their foreign assets. The move is an attempt to win over ‘non-doms’ alienated by Labour and Conservative governments and bring their wealth back into the country. Farage may think his policy will attract ‘talented people’ from around the world, in reality it is more likely to deter them. Farage forgot about the Laffer curve The party says the policy will raise between £1.5 and £2.5 billion annually. Our analysis of the

The remarkable resurgence the Russian economy has experienced since Vladimir Putin’s invasion of Ukraine is losing momentum. Where once Putin could boast about 4.3 per cent growth rates for two years in a row – thumbing his nose at Western sanctions with all the aplomb of a man who’d discovered alchemy – the numbers now tell a somewhat different story. The party, as they say, is over – and the time to crank up sanctions against Moscow has come. For two years running, Putin’s propagandists have crowed about Russia’s economic vitality as proof that Western sanctions were about as effective as a chocolate teapot. The economy’s steroid-fuelled growth, pumped up

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 from President Trump, desperate for a rate cut as inflation remains hard to tame and forecasts predict sluggish growth and rising unemployment. In Britain, the cost of borrowing on credit cards rose to its highest ever level on record in the second quarter of the year, according to Moneyfacts – despite the rate cut from

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 ago they admitted that figure was overstated due to an error. Because of a policy not to revise inflation figures, that error lives on – leading them to announce the fiction that inflation has fallen. The reality is it has not. The result of stubbornly sticking to this no-revisions policy is a slew of misreporting

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 our magazine cover piece last month, the fact that these changes – which came into force in April – would apply retroactively is what really sent non-doms over the edge and led them to flee the country in large numbers, taking their wealth and not insignificant tax revenues with them. Rachel Reeves has to deal

As missiles fly across the Middle East as Israel and Iran embark on what could well become a wider regional conflict, you might expect turmoil in the financial markets. After all, if the beginning of a third world war doesn’t knock a few dollars off the Apple share price it is hard to know what would. But it turns out that investors, at least for now, appear indifferent. Investors, at least for now, appear indifferent Looking at a trading screen this morning you would probably think not much was going on in the world. The FTSE100 was up 30 points. Overnight, the Nikkei was up by 1.2 per cent; and

Motability, the scheme set up to provide vehicles, scooters and powered wheelchairs to disabled people, has become something of a monster. By the end of 2024, Motability supported a staggering 815,000 vehicles, up by 200,000 in the last two years alone. It is clear that the scheme has extended way beyond its original purpose and is in dire need of reform. But Motability is determined not to give up its lucrative business model without a fight. Only five per cent of Motability cars are adapted for those with physical disabilities Andrew Miller, the scheme’s chief executive, has hit back at criticism of Motability. ‘We’ve been a business all along. Any sense

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 wider look at Britain’s fiscal and economic problems. Why, despite record tax levels, do our public services feel as if they’re in managed decline? Why do voters’ expectations of the state seem so out of whack with what we actually deliver? We discussed whether Ruth’s predecessor, Torston Bell, was right to claim Labour has ended

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 terms, while every other department combined only grows by 0.2 per cent. Or that the health service will soon take up nearly half of all day-to-day government spending on services. Or that only 13 per cent of Rachel Reeves’s capital spending increase is classed as ‘growth-focused’. It’s hard to pay attention to this because of the sense