Money

Why Britain is building the world’s most expensive nuclear plant

For over 20 years, Britain effectively gave up on building new nuclear power stations. But that’s changed now Hinkley Point C in Somerset is under construction. When completed it will provide around 7 per cent of the UK’s electricity. Hinkley Point C is set to be the most expensive nuclear power station ever built. In fact, it is more than four times more expensive on a pound-for-megawatt basis than the average nuclear power plant built in South Korea. Even Flamanville 3, a French plant that uses the same reactor (EPR-1750) and built by the same company (EDF), is set to cost at least 25 per cent less. Why has Hinkley Point C

Is Javier Milei’s medicine working?

Javier Milei was taking too many risks. Argentina’s president didn’t have enough political support. And his radical version of free market economics didn’t offer any solutions anyway, especially in a world where the state is more crucial than ever. When Milei won the presidency last year there were plenty of predictions that he would fare as well as Britain’s Liz Truss. And yet, there are signs the medicine is starting to work – and that will be globally significant.   Over the past couple of weeks, the data coming out of Argentina has been far better than anyone expected. This month, inflation is forecast to dip below 10 per cent

The truth about Ireland’s £600 million Brexit ‘bonanza’

Ireland is reaping the benefits of a Brexit bonus to the tune of €700 million (£600 million). It is not hard to understand why hardcore Remainers are gleefully reporting the news that the government in Dublin is collecting huge extra revenues, much of which comes from imposing tariffs on British goods. What is being reported as a ‘Brexit bonanza’ for the Irish isn’t quite what it seems ‘The level of customs duties has effectively doubled in recent years compared to the previous decade, reflecting the transformation of Great Britain into a third country in 2021,’ says the Irish Revenue Commissioners. British companies suffer, and a foreign government makes lots of

Martin Vander Weyer

How Pret ate itself

How bad would it be if Royal Mail’s parent company, International Distributions Services (IDS), were to be taken over by the Czech billionaire Daniel Kretinsky? Our historic postal service is heavily lossmaking, struggling to maintain its universal delivery obligation and at war with its unions: a foreign owner would surely take an axe to it. Kretinsky, who owns almost 28 per cent of stockmarket-listed IDS, has gone back on an assurance that he would not try to take the company private and has tabled a £3.1 billion offer – above the group’s current market value but well below what other shareholders think it is worth. He won’t win with this

Ross Clark

Who will pay the price for the boost in defence spending?

Rishi Sunak’s announcement that the government will increase defence spending to 2.5 per cent of GDP has been warmly welcomed, but how much is it really going to transform the UK’s military? Former armed services minister James Heappey was quick to scotch expectations this morning when he said it wouldn’t necessarily be enough to reverse falls in the size of the Army, Navy or Royal Air Force – the money could quite easily disappear simply in upgrading equipment. Nor is there anything particularly novel about the Prime Minister’s announcement: Boris Johnson made the same promise – to raise defence spending to 2.5 per cent of GDP by by 2030 – at the

Why did it take Rishi Sunak so long to up defence spending?

Britain is putting its defence industry on a ‘war-footing’, the Prime Minister has said, as he vowed to boost spending to 2.5 per cent of GDP by 2030. It was only a matter of time that Rishi Sunak made such an announcement. After all, Russia’s invasion of Ukraine illustrated a simple truth: that the world is more dangerous now than for a generation, and nations will need to increase their defence spending if they want to protect themselves and their interests. Grant Shapps, Penny Mordaunt and Tom Tugendhat had all expounded this view from within government, and now it seems the PM has given his seal of approval. The money

Ross Clark

What happened to the Tory promise to balance the budget?

There is one big reason why a summer general election is unlikely, however tempted the Prime Minister might be to try to take advantage of the first migrant flight to Rwanda. Read between the lines and it is clear that Rishi Sunak and Jeremy Hunt want to hold another ‘fiscal event’ before going to the polls. Nibbling away at a few more taxes, they appear to believe, will give them the best chance of clinging to power, or at least limiting the electoral damage to the Conservatives. They must be hoping that few people will notice the public borrowing figures. This morning it was revealed that last month the government

Elon Musk (Photo: Getty)

Elon Musk doesn’t know how to turn Tesla around

The share price is in freefall. Sales are sliding at an accelerating rate as customers lose interest. The Chinese are moving in, and the brand is tarnished. When Elon Musk unveils the quarterly results for Tesla later today, he will need to convince his shareholders he has a plan to turn the company around. The only trouble is, right now there is not much sign Musk has a clue what to do. Musk is a brilliant entrepreneur. There is no question of that. But he has also spread himself too thinly Tesla’s results this week are expected to be its worst in years. Sales have already fallen by 8 per

Ross Clark

Labour should think twice before taxing pensioners

Labour, according to Rachel Reeves, is now the party of low taxes. She has said she won’t raise income tax, National Insurance, capital gains tax and corporation tax, as well as ruling out a wealth tax. But that still leaves a few options for jacking up taxes, as one of Reeves’ advisers, Sir Edward Troup has hinted. Last week, Troup, a former head of HMRC, was appointed by Reeves to look at efforts to reduce tax avoidance. This is a slightly ill-timed initiative given that Labour is simultaneously trying to play down the case of a particular taxpayer who stands accused of failing to pay capital gains tax on a

Ross Clark

Inflation is down again – but don’t expect interest rates to follow suit

Interest rate cuts are beginning to look like a mirage: the closer we seem to get to them the more they seem to recede into the distance. Bank of England governor Andrew Bailey may have hinted this week that UK rates could soon be cut regardless of what happens in the United States, where strong jobs data is putting off the Federal Reserve from cutting rates, but this morning’s inflation data will not encourage an early cut. While the Consumer Prices Index (CPI) did fall in March, from 3.4 per cent to 3.2 per cent, this was less than the fall which was expected. The rise in road fuel prices

Michael Simmons

Worklessness hits eight-year high

Britain already has the worst post-pandemic workforce recovery in Europe. New figures out today show the problem is getting even worse. The number of those ‘economically inactive’ (not in work or looking for it) rose by a remarkable 150,000 in the last three months to 9.4 million – equivalent to the adult population of Portsmouth and some 850,000 since the first lockdown. Taken as a share of the working-age population, it’s now at an eight-year high – and significantly worse than it was during Covid or its aftermath. What’s driving the worklessness? The biggest single factor is long-term sickness, also at an all-time high. Is this just economic long-Covid, the

Ross Clark

Martin Lewis is wrong about the ‘energy poll tax’

Given that a fair proportion of the UK public seem to want Martin Lewis to be prime minister, the government might well hesitate to dismiss the Money Saving Expert’s latest grumble: that Ofgem’s cap on standing charges is to be jacked up from today – from 53 pence to 60 pence per day in the case of electricity and from 29 pence to 31 pence in the case of gas. This rise comes in spite of the sharp fall in Ofgem’s energy price cap, which should see average annual dual fuel bills fall from £1928 to £1690. Lewis is not the least bit pleased, tweeting that standing charges are ‘an

How Starmer wants to reverse Thatcher’s legacy

Members of Labour’s frontbench have recently fallen over themselves to acclaim Margaret Thatcher. Hot on the heels of Rachel Reeves feting the Iron Lady’s determination to reverse Britain’s decline, David Lammy lauded the woman who defeated his party three times as a ‘visionary leader’. But like Mark Antony’s attitude to Julius Caesar, Reeves and Lammy come to bury Thatcher rather than to praise her. This appropriation of a Conservative icon like Thatcher is highly mischievous Labour’s shadow ministers invoke the ‘Iron Lady’ because they know a certain kind of voter, one Labour needs to help it win power, still goes all of a quiver at the mere mention of her

Fraser Nelson

There’s nothing conservative about the Tories’ free childcare rollout

On Monday, the UK welfare state will expand to cover 15 hours of free childcare for working parents with two-year-olds. In September, this will be extended to infants of nine months or more. Next year, cover doubles to 30 hours. The total cost: £5.3 billion a year. It’s the ‘largest ever expansion of childcare in England’s history,’ says Gillian Keegan, the Education Secretary. This Easter weekend we see the bizarre spectacle of Tories attacking Labour from the left What is conservative about this? Nothing, of course. It pushes up costs and taxes. But the idea, at the time, was to to do this before Labour proposed it. To shoot Labour’s fox.

John Ferry

The SNP’s star economist eviscerates the case for independence

He’s only gone and done it again. Mark Blyth, born in Dundee but now professor of international economics at the prestigious Brown University in the United States – the man who was wooed by the Scottish government to join its economic advisory council in 2021 in the obvious hope he would lend credibility (and maybe a touch of stardust) to its case for secession – has eviscerated the economic arguments for splitting from the UK. What was meant to be a PR triumph for the SNP completely backfired As a quick recap, not long before Blyth took up his role formally advising the Scottish government, video emerged of him criticising

What happened to the post-Brexit free trade deals?

When people talk about the ways the Conservatives have squandered this parliament, and with it their first and best opportunity to demonstrate to voters the benefits of Brexit, they often focus on domestic concerns: the failure to tackle legacy EU red tape, or the lack of progress on levelling up. But one of the biggest disappointments of the past few years must be the United Kingdom’s dismal record on international trade. Time and again the UK has walked away from transformative deals over trivial domestic hang-ups Outside the bloc, Britain ought to have been in a good position to bolster our commercial relationships across the globe, losing the sheer mass

Kate Andrews

Britain just can’t stop spending

Will Jeremy Hunt have scope to deliver more tax cuts before the next election? Tory MPs certainly hope so, as cuts to employee National Insurance in last year’s Autumn Statement and this month’s Budget have yet to move the polls. Something like an income tax cut, they think, would be preferable. But this morning’s update from the Office for National Statistics is an uncomfortable reminder that those kinds of tax cuts are hard to deliver: for as much as the government insists it wants to bring down the tax burden, it likes to spend money too. Public sector net borrowing in February was £8.4 billion – significantly higher than the

Five takeaways from Rachel Reeves’s Mais speech

We live in an age of stunts and soundbites so it was refreshing to hear a politician stand up and, for the best part of an hour, explain their political philosophy to an audience savvy enough to shred it. That’s what Labour’s Rachel Reeves did at last night’s Mais lecture.  She summoned the ghosts of heterodox leftists Karl Polanyi, Joan Robinson and Marie Curie to explain that Britain stands on the brink of a global economic regime change just as big as the one begun in 1979, that the Tories have left us bystanders, and that Labour is the only party that can make it happen.  Though she didn’t mention

Rachel Reeves
Kate Andrews

How big will Rachel Reeves’s state be?

Every year the Mais lecture, hosted by Bayes Business School, gives its speaker a chance to lay out their vision for the economy. It’s how we knew Rishi Sunak would prioritise fiscal prudence over tax cuts long before he entered Number 10. Last night it was Rachel Reeves’s turn.  The message seemed to be: build up the state to get it out of the way As expected, there were no big policy announcements about what Labour might do in power. But that wasn’t the point of the speech. Reeves formally committed to keeping Jeremy Hunt’s fiscal rule, to get debt falling as a percentage of GDP in a rolling five-year forecast. This

Isabel Hardman

Rachel Reeves is making mischief for the Tories

Rachel Reeves has a busy day: the shadow chancellor is giving her big speech tonight, where she is expected to outline the broad brush of her economic policy and claim there is a ‘new chapter in Britain’s economic history’ just waiting to start under a Labour government. Reeves was in the Commons this morning for Treasury Questions, and her focus there was on whether the Tories had a sequel planned for their own National Insurance policy. Labour has decided that it’s worth exploiting the suggestion As I reported from the Commons yesterday, Labour has decided that it’s worth exploiting the suggestion from senior Conservative figures that they would like to