Money

Fraser Nelson

Why Kate Forbes is right about high tax

I was on BBC1’s Question Time with Kate Forbes in Glasgow last week in which she was oddly loyal to the SNP government. She seems to have been the only member of Nicola Sturgeon’s government not to be deleting her WhatsApp during Covid and I suspect she’s appalled at the way Sturgeon & co placed secrecy at the heart of their Covid response. She said on Question Time that the way to grow Scotland’s economy was to attract people to come and work there. I put to her that having the highest tax rates in the UK (as Humza Yousaf has chosen to do) didn’t exactly scream “come to Scotland!”.

Ross Clark

Will Londoners fall for Sadiq Khan’s election bribes?

Taxpayers are being treated to a clutch of pre-election bribes from a politician who only a few months ago was claiming there was a lack of money for anything. That will almost certainly be true of Jeremy Hunt’s budget on 6 March, but it is already true of Sadiq Khan’s London Mayoralty budget for 2024/25. Khan was in no doubt who was to blame last December when he announced that the Mayor’s precept on council tax bills in London would rise by 8.6 per cent, more than twice the rate of inflation. The government, he claimed, was starving London of money. It was ‘due to the continued lack of national investment

Ross Clark

Do French farmers really have it so bad?

What a shame we are not still in the single market, seamlessly exporting our lamb and whisky so it can be enjoyed in the finest restaurants in Paris. Or rather so that it can be burned and poured over the A1 autoroute. French farmers have blockaded roads with tractors and haystacks, set lorries on fire and are now threatening to re-enact the Siege of Paris by cutting off food supplies to the capital. They are protesting against red tape, environmental policies and what they say are cheap imports. And no, it isn’t just UK farmers whom they don’t like exporting food to Britain. Over the past week, they have attacked lorries

Can we blame universities for cashing in on foreign students?

As an English teacher and sixth form tutor, I spend a lot of my time at the moment celebrating and comforting students as they hear about their UCAS offers. I try to reassure them when they are disappointed – which many of them were last week in particular, when Cambridge offers came out – that the system is flawed and far from always fair. Many of them this weekend will have realised just how unfair it can be, as a Sunday Times investigation revealed that British universities are paying tens of millions of pounds a year to recruit lucrative overseas students with far lower grades than those required of UK applicants. Up

Ross Clark

Hinkley C and the rising cost of net zero

Should we be bothered that Hinckley C nuclear power station has run even further over budget (the latest estimate is £35 billion, nearly twice that quoted when the project was given the go-ahead in 2016) and that its completion date has been put back yet further, to 2031? After all, the whole point of offering French energy giant EDF a guaranteed ‘strike price’ at the then juicy rate of £92.50 per megawatt-hour (at 2013 prices, rising with inflation) was supposed to be to transfer financial risk to EDF and its financial backers. ‘It is important to say that British consumers won’t pay a penny, with the increased costs met entirely

Isabel Hardman

Why the Tories should think twice about pre-election tax cuts

Are Jeremy Hunt and Rishi Sunak asking the right question as they approach the spring Budget? For the Chancellor and Prime Minister, the key issue is ‘how can we cut taxes in a way that will get us credit with voters?’ But polling by YouGov for today’s Times suggests voters might want them to ask a different question about improving public services, with 62 per cent saying that the government should prioritise spending more on public services rather than cutting taxes. Hunt won that argument, but seems to have forgotten about it now he is Chancellor The curious thing is that Hunt used to make a similar argument when he

Kate Andrews

Rising inflation makes a speedy interest rate cut less likely

Inflation rose to 4 per cent on the year to December, up slightly from 3.9 per cent the previous month. It’s the first time the inflation rate has increased for almost a year – an unexpected uptick, as the consensus was for the rate to slow once more, down to 3.8 per cent.  This is not the update politicians and central bankers were hoping for, but as far as monthly data goes, it’s not the end of the world either. The inflation rate doesn’t come down in a straight line, as evidenced already in the UK’s battle to get prices under control. The jump up to 4 per cent on the year

Michael Simmons

Has Britain’s jobs market bounced back?

The jobs market has turned a corner. Vacancies have fallen again to 934,000, down 49,000 in the last three months of the year, the longest continuous fall on record. Wage growth slowed to 6.5 per cent in cash terms – which will please the Bank of England – but luckily for workers inflation is falling faster, meaning those rises translate into real terms pay bumps (of about 1.3 per cent). Employment climbed slightly while unemployment remained flat.  The next inflation figures are out tomorrow but the wage data are a sure sign of the direction of travel. Take out bonuses and average pay rose 6.6 per cent (1.4 in real

What’s wrong with trillionaires?

Why is Oxfam so concerned about the coming possibility of the world’s first trillionaire? The charity has this week released a report with an apocalyptic warning that one is likely within the next decade. Yet surely people only get that rich by making something that people want. That should be celebrated instead of condemned.  In a report published for the start of Davos, the annual event where very rich people gather at an expensive resort in Switzerland to worry about being rich, Oxfam said the world’s first trillionaire could come soon. Apparently, that showed we are entering a ‘decade of division’. ‘We have the top five billionaires, they have doubled

Kate Andrews

Will inflation return to normal this year?

When will inflation return to the target rate? According to its latest forecasts, the Bank of England isn’t expecting inflation to slow to 2 per cent until 2025. But could this happen much sooner? Several independent forecasters are growing in confidence that inflation could get down to 2 per cent this spring, rather than next spring. Oxford Economics now expects inflation to average 2.1 per cent this year (a full percentage point lower than it expected in November). They also expect the inflation rate to slow to the annual rate of 2 per cent in April, as Ofgem once again lowers the energy price cap and last year’s higher prices

Ross Clark

Boris Johnson can’t lecture Sadiq Khan on rail strikes

London mayor Sadiq Khan has just given us a foretaste of a Labour government by capitulating to the RMT and averting a tube strike at the last moment by, to borrow Nye Bevan’s phrase, stuffing the rail workers’ mouths with gold. That, at least, is Boris Johnson’s assessment of the 11th-hour agreement to avert the walkouts. Johnson is right, except is it really much different from what has been going on for years under his and other Conservative governments? It wasn’t Labour which gave us train drivers on £65,000 a year – far more, in some cases, when you add on overtime. That puts some train drivers in the top

In defence of ‘fat cat’ chief executives

Are chief executives overpaid? The High Pay Centre thinks so. Every January, it releases data showing the huge inequality between top UK CEOs and average workers. The results are startling: ‘Bosses of Britain’s biggest companies will have made more money in 2024 by lunchtime on Thursday than the typical worker will all year,’ according to the BBC, which wrote up the story showing that top bosses’ average reward amounts to £3.81 million a year. But is this disparity with the £34,963 annual median wage for full-time workers really a surprise? The truth is that this pay gap is an obvious feature of a free market where top pay in business

Ross Clark

eBay side-hustlers deserve to get taxed

There will be people outraged by the latest initiative of HMRC: to demand that the likes of Airbnb, eBay, and Vinted furnish it with details of everything bought and sold on their online platforms. The taxman should keep his nose out of the sharing economy, many will say. People who sell their secondhand clothes, books, or who earn a little holiday money by letting their property to tourists while they are themselves away from home are doing the environment a favour, they will argue. HMRC should keep its nose out and go for the ‘real’ tax-dodgers in large corporations, who are taking advantage of our tax system by shunting profits

Labour won’t fix Britain’s childcare mess

Labour appeared stumped when, earlier this year, the government announced it would be drastically increasing its ‘free’ childcare provision. Given it was a policy that shadow education secretary Bridget Phillipson was rumoured to be considering, her party would now need to find a way to outdo itself. Now, we have a clearer idea what its ‘signature offer’ to voters might entail. At present, all parents of pre-school children over the age of three are entitled to 15 ‘free’ hours with registered providers. From April 2024, this will expand to all over-twos, and from September, to all children over nine months (the point at which Statutory Maternity Pay ends). If the rollout continues

Why did it take so long to give Tim Martin a knighthood?

The news that Tim Martin, the founder of JD Wetherspoon, has been given a knighthood in the New Year Honours list caused predictable outrage among the perpetually outraged. The gong was awarded for Sir Tim’s ‘services to hospitality and culture’, but the usual crybabies on social media asked whether it was really because he supported Brexit. The real question is why did it take so long? The first Wetherspoons opened in 1979 (named after a teacher who told him that he would never amount to anything). There are now more than 800 of them. His services to hospitality and culture are indisputable, but Wetherspoons is more than a successful business.

Is Opec’s power finally failing?

Since 1973, much of global politics has been conducted in the long shadow of the Organisation of Petroleum Exporting Countries (Opec) cartel. That was the year Opec first set its stamp on global affairs by engineering an oil crisis in response to Western governments’ support for Israel in the Yom Kippur War. Prices quadrupled and exports to western Europe, the United States, and Japan were banned altogether. The result was a deep recession and spiralling inflation, the effects of which endured long after the oil embargo was lifted in 1974. In the years since, the steady flow of petrodollars has propped up authoritarian regimes from Latin America to the Arabian

John Keiger

Is Airbus a metaphor for Britain’s relationship with the EU?

A French member of the board of Airbus – the giant European aircraft and aerospace group – once told me that the French thought of it as their company while the Germans thought it theirs. In reality, both countries own it: the French state owns 11 per cent of Airbus capital, Germany 10.9 per cent and Spain 4.17 per cent, with the remaining shares quoted on Euronext. Assembly of Airbus planes from across Europe takes place in Toulouse, where the company’s operational headquarters are located, but the company’s official registered headquarters are in Leiden, Netherlands. For Brussels, Airbus is a model of European integration and EU strategic autonomy. But the invisible

Ross Clark

The Conservatives are indulging in fantasy economics

Finally it seems to be dawning on many Conservative MPs that abolishing – or seriously cutting – inheritance tax at the same time as jacking up income tax for millions of low earners is not a great way to tackle a strong Labour lead in the polls. Several backbenchers have written to the Prime Minister in response to reports that he is considering taking the axe to inheritance tax in the Budget on 6 March. They have suggested that the government should be cutting income tax instead, or at least raising the thresholds which have been frozen until 2028. At a time of elevated inflation, that is dragging millions more into

The decline and fall of banking’s barrow boys

Before the ‘Big Bang’, which led to the deregulation of financial markets in London in the 1980s, the city was dominated by two types of person: the often Oxbridge-educated spreadsheet warriors who ran merchant banks; and the ‘barrow boys’, students of the school of life who worked as traders. While the former are still thriving in London, the latter are now something of a rare breed. It’s a pity. What the barrow boys lacked in formal education, they made up for in exuberance. Often the children of market traders who put their quick maths to use on the trading floors of the City, the barrow boys came to epitomise the

Fraser Nelson

Why are birth rates falling?

A few weeks ago, I chaired a debate in Westminster about the falling birth rate and its implications. It was organised by the Centre for Social Justice, which I’ve long been proudly involved with. Miriam Cates, a Tory MP, was on the panel as was Rosie Duffield, a Labour MP. But when I arrived, Duffield had pulled out: she had taken so much abuse and threats from those furious that she would attend this debate that she felt she could not continue. The debate, quite plainly, is one many people would rather never took place and I look at it in my Daily Telegraph column today. While populists have embraced this argument,