Money

I almost felt a sense of perverse celebration as the meter clocked round to £100 – the first time I have ever spent so large a sum filling my car with diesel. Not so long ago it was costing me closer to £60. After gas and electricity prices, it is suddenly oil prices which are making the news. Some garages have been shown selling the fuel for over £2 a litre. If you live in a rural area and rely on oil to heat your home, you may have experienced an even bigger shock in the past fortnight: the price of domestic heating oil has doubled to around 120 pence

This morning’s revelation that the UK economy grew 0.8 per cent in January, the fastest growth since April last year, is welcome news after a Christmas plagued by Omicron – but it’s news that’s out of date, too. As Capital Economics warns: ‘This is as good as it gets for the year’. Russia’s invasion of Ukraine, the commodity price jump and the cost-of-living crisis will soon show in the figures. Today’s ONS release warns that even in January, businesses were already reporting significant rises in the cost of energy and staff wages. The week after next, Rishi Sunak will present a mini-Budget. The Chancellor faces a conundrum: how to explain the inflation and

With refugees fleeing Ukraine, shells raining down on civilians, and threats of chemical weapons being used on the battlefields of Ukraine, it was surely only a matter of time. Today the British government finally added Roman Abramovich to the list of sanctioned Russian oligarchs, freezing his assets, and making sure that he could not profit from any sales. That will impact his entire fortune, of course. But most of all, it will hit Chelsea Football Club – and radically re-shape the fortunes of the Premier League. Abramovich’s departure will mark the beginning of an exodus of global money from British football In the two decades since a then relatively unknown Russian

The priority for the UK and other rich democracies is to protect the people of Ukraine from the depredations of Putin’s forces. A close second should be protecting the poorest people in our countries and vital public services from the cancerous impact of soaring inflation, made much worse by the West’s economic warfare against Putin’s Russia. The most basic costs of living are soaring. And that means a devastating recession that has already begun for all those but the richest. This blow to living standards will be the worst in living memory, more pernicious than the impact of either the banking crisis or Covid. Talking to ministers and MPs, it is

The sheer complexity – and horror – of Russia’s war on Ukraine makes it difficult to distil the essential points. To take only one example, the battlefront north of Kiev, where the Russian convoy is stalled, is significantly different from that along the Black Sea, where Russian forces from Crimea have made substantial progress. A third front, in the east, is consolidating in Russia’s favour, though the fight was much harder and longer than Moscow expected. Amid this complexity, it is important to summarise what we know so far: 1. Vladimir Putin’s decision to invade Ukraine appears to be the most catastrophic strategic mistake since the end of the Cold War and

When I was in Russia in the very early 1990s, there was a generic figure who seemed to stand at the entrance to every metro station: an ancient babushka in a headscarf and tatty coat, face creased with age and weather, holding out a flimsy plastic bag rolled into a little triangle, begging for kopeks. The collapse of communism had its winners and its losers – and these old women were the losers. The ‘social umbrella’ of the necrotic Soviet system may have provided its pensioners with a miserable existence, as a local explained it to me, but it had provided; and these women, having discovered that freedom is all

Britain must spend more on defence. As I say in the Times today the defence budget is already being increased but it is hard to argue that it is sufficient given how changed the security landscape now looks with Putin’s Russia launching an all-out invasion of a sovereign, European state. Until this week, the UK could argue that it would only increase defence spending still further when other European members of Nato had pulled their weight and were hitting the 2 per cent of GDP target. But now Olaf Scholz has announced that Germany will be spending 2 per cent – or more – by 2024, which poses another dilemma for London: does it

It was an odd launch event for what had previously been a much-touted initiative. While all eyes were on the war in Ukraine, Scotland’s finance minister, Kate Forbes, took to Dundee to set out Scotland’s new ten year National Strategy for Economic Transformation. Such events usually involve a room full of press, lots of questions, photographs, one-on-one interviews and then widescale coverage in the Scottish media. This event however was characterised by complaints from print journalists that they were excluded on spurious grounds of ‘ongoing Covid restrictions’, despite the finance minister speaking to a room full of business people and some select journalists to which this rule seemed not to

The price of Brent crude exceeded $112 a barrel this morning. There is, as yet, no interruption in supply from Russia, nor any ban on buying their oil (save for in Canada) – but western companies are reported to be exercising a voluntary boycott. Either that, or they are sceptical of whether their orders will actually arrive. Turkey has already closed the Bosporus Straits to warships. Much of the oil exported to Europe takes this route. Even a voluntary refusal to buy Russian oil will have serious repercussions for markets. Russia produces around 12 per cent of the world’s oil – which is a huge chunk to lose. Except, that

As with Covid-19 it will take time for the full consequences of the Russian invasion of Ukraine to become apparent. But one unexpected impact is already becoming clear: that on air freight. Ukraine, it turns out, occupies a niche at the very heavy end of the industry. Ukrainian company Antonov manufactures the world’s largest transport planes in the shape of the An-225 – a six-engined behemoth built by the Soviets in 1985 and capable of a maximum take-off weight of 640 tonnes – and the slightly smaller An-124. By contrast, the freighter version of the Boeing 747-400 has a maximum take off weight of 450 tonnes. As a total share of the

There is not much more that Britain can do for Ukraine. We have done more than most: sent 2,000 anti-tank missiles and stationed troops in eastern Europe to help other allies. But as thousands flee Kiev – not knowing if Putin will turn it into the next Grozny – there is something immediate and profound that Britain can do: offer asylum. Brexit powers of border control can be used to allow anyone with a Ukrainian passport to come here. Ukraine has a population of 44 million – it’s a small country. It wasn’t so long ago that 450 million Europeans had an unconditional right to live and work in the UK –

Sanctions hit both sides: this is a point that Joe Biden has made to Americans and Olaf Scholz is making to Germans. But Boris Johnson is not (so far) talking about the economic implications of this war. They will be — and in fact, already are — profound.  When Russian tanks moved into Ukraine, the price of gas for next-day delivery in the UK shot up 40 per cent. A study by Investec yesterday suggested this means typical household energy bills — already expected to approach £2,000 in April — could end up closer to £3,000. Quite a hit for a country already facing a cost-of-living crisis. And this is just