Money

From fracking to net zero: ten energy myths busted

This week we will find out how government intends to end any UK reliance on Russian energy and tackle rising household bills. While the war in Ukraine has brought the problems with our energy policy into sharp relief, it has highlighted issues that have been decades in the making. The government’s long-awaited ‘energy independence plan’ has been delayed, not just by wrangling between No. 10 and the Treasury over how it will be funded, but because the Conservative party is fundamentally split on the best way forward. Business Secretary Kwasi Kwarteng is a sworn enthusiast for green energy sources, yet Brexit Opportunities Minister Jacob Rees-Mogg has urged Boris Johnson to

Rishi Sunak’s NFT gimmick is a step too far

We had got used to the expensive trainers. The carefully curated hoodies were just about acceptable. The Twitter feed was starting to grate on people’s nerves, and so were the stage-managed photo ops, such as filling up a borrowed Kia Rio at Sainsbury’s right after cutting fuel duty, but they were part of the package. But the Chancellor Rishi Sunak may finally have come up with a gimmick too far with the launch of the Treasury’s very own digital token. Sunak’s addiction to gimmicks is starting to undermine his credibility The Chancellor, between figuring out how to control inflation, pay for public services and reboot the economy found some time

Can Elon Musk save Twitter?

Teslas will be permanently trending. So perhaps will space rockets. Petrol cars will be quietly forgotten about. And if you get enough likes and followers perhaps you might win a place on the planned space colony on Mars. With the news that Elon Musk, the founder of Tesla, and one of the richest men in the world, has today taken a 9.2 per cent stake in Twitter there will be lots of jokes about how he might change the social media site. But by far the most significant one is this. He could shift it to the libertarian right. That really would be significant. Twitter shares soared by 25 per

Ross Clark

Are sanctions working?

When allied military operations go well or badly, we very quickly hear about them. But what about sanctions? It is about time that we started to ask: are they hitting their target, or are some of them slewing off, out of control, straight into civilian targets? Notionally, sanctions have been a success – or at least they seemed to be initially. The rouble and Russian stock market collapsed. But then the rouble recovered strongly, and the stock market, too, has staged some sort of recovery since it reopened. What seemed like a pretty comprehensive boycott by western companies turns out to be rather less complete than many might imagine.  The

Katy Balls

No. 10 prepares decades-long energy plan

The government’s delayed energy strategy is finally due to be released this week. The Prime Minister is due to unveil his plans on Thursday, which will supposedly ensure that the UK is self-reliant on energy supply after Russia’s invasion of Ukraine. Not that the proposals will lead to much change overnight. Instead, they are focussed on ensuring self-reliance in the long term – with many of the plans likely to take decades to come to fruition.  So, what’s on the agenda? Part of the reason the energy strategy has been delayed several times is a difference of opinion between the Department for Business, Energy & Industrial Strategy, No. 10 and the Treasury. The Chancellor initially queried proposals for increased nuclear

After invasion, famine

Geopolitical pundits fool themselves by thinking that President Putin wants simply to return to challenge Nato or return to the Soviet Union. This is a much older story. Russian imperialists have had utopian designs on the Ukrainian plains since at least the days of Peter the Great and Ivan the Terrible. In 1768, Catherine the Great fulfilled the Russian dream by seizing Ukraine’s goldilocks zone of abundant fresh water, flat land, fertile soil, and the dirt roads that led to the Black Sea. This is the same land that fed the Greek city-states, the Roman and Byzantine empires, and, in the 18th century, the grain-guzzling cities of Europe: Liverpool, London, Antwerp,

Ross Clark

Did P&O use an EU loophole?

Brexit, as Boris reminded us many times during the referendum campaign, would give Britain the power to make its own laws, unencumbered by constant directives from the European Commission. But it will take a long while to disentangle UK laws from the influence of the EU, as the government may be about to discover in its attempt to punish P&O ferries for sacking 800 workers and replacing them with agency staff. It will take a long while to disentangle UK laws from the influence of the EU At last week’s Prime Minister’s Questions, Johnson declared that P&O had contravened section 194 of the Trade Union and Labour Relations Act 1992,

Lloyd Evans

PMQs: Boris let slip his election attack lines

Covid is ancient history. And Ukraine has ceased to dominate PMQs. Today, ideological warfare between the parties broke out again. The old politics is back. Sir Keir Starmer accused the Chancellor of fibbing during last week’s bogus budget. Tax hikes had been camouflaged as tax cuts. Boris denied this and praised his Chancellor for delivering a historic bonanza of golden giveaways. ‘The biggest cut in fuel duty ever. And the biggest cut in tax for working people in the last 10 years.’ Sir Keir silenced him. ‘Cut the nonsense and treat the British people with a bit of respect.’ The tax burden is soaring, he said, and for every pound

Ross Clark

Scrapping free car parking for NHS staff is long overdue

The private motor car is, of course, an environmental vandal which needs to be driven out of our towns and cities for the good of the planet and for the benefit of residents who are being killed by traffic fumes. We know this because we keep being told by some of those on the left that parking charges, congestion charges and fines must all be ramped up and the proceeds used to improve public transport and encourage cycling and walking. But there seems to be an exception. When the motorists in question are NHS staff, their fondness for their cars ceases to be an outrage. On the contrary, it is

Isabel Hardman

Are we falling out of love with the NHS?

Clap for carers now feels like ancient history. Public satisfaction with the NHS is at its lowest since 1997, according to a new study out today. The British Social Attitudes Survey finds overall satisfaction with the health service at just 36 per cent, a record-breaking fall of 17 points since 2020. People often relate to the health service through GPs and their experience of A&E. The latter has experienced a record-breaking 15 point fall, now at 39 per cent satisfaction, its lowest level since the BSA started asking questions about A&E in 1999. It’s worth remembering that in 1997, when public satisfaction with the NHS as a whole was at just 34

Kate Andrews

Is this the end of borrow and spend?

Since the spring statement last week, Rishi Sunak has been dealing with complaints from all sides: the right have been arguing he should have been bolder with tax cuts, the left insists more support is needed to help people with the rising costs.  With the Office for Budget Responsibility projecting the biggest fall in living standards since records began, rumours of U-turns and further announcements started bubbling over the weekend. The media, the opposition, and even some Tory MPs have been asking Treasury representatives over and over again: is that all? In a keynote address hosted by the Institute of Economic Affairs this morning, chief secretary to the Treasury Simon

Stop attacking billionaires

The $5.79 trillion budget plan Joe Biden submitted to Congress yesterday was more notable for what it didn’t include, rather than what it did. There were no line items on the environment or education – key pillars of his ‘Build Back Better’ agenda – but it did call for a new minimum tax requiring ‘billionaires’ to pay at least 20 per cent of their income in taxes, including on the gains on investments that have not been sold. This will, apparently, reduce the government deficit by $360 billion over the next decade. The President is in a tight spot. Since the turn of the year, his approval ratings have fallen

Ross Clark

The rouble’s astonishing recovery

The tank columns are stalled; one or two towns captured from the Ukrainians have been retaken. Russia’s war effort has been going nowhere fast for the past fortnight – unless you count the constant pounding and destruction of apartment blocks a form of progress. But then is the economic war being waged against Russia making any greater progress? True, Muscovites can no longer get a Big Mac, and western-made luxury goods have disappeared from the shelves. Yet look at the dollar’s march against the rouble and it is starting to look like a convoy of Russian armoured vehicles. For the first few days, the rouble sank inexorably as sanctions kicked in.

Katy Balls

‘Do you think people are stupid?’ Rishi Sunak grilled by MPs

After unveiling his spring statement on Wednesday, Rishi Sunak found himself under attack from all sides: his personal approval ratings dived amid a media backlash and criticism from his own side. So, the Chancellor’s appearance this afternoon before the Treasury Select Committee on paper made for a painful session.  Over the course of several hours, the committee of MPs quizzed him on whether he thought people were ‘stupid’ when it came to his pre-election tax cut, the impact of Brexit on trade and why he had borrowed a Sainsbury’s worker’s Kia for a publicity shot. When it came to the latter question, Sunak admitted that his team has asked a supermarket worker

Is Biden trying to crash the economy?

A war is raging in Ukraine. Inflation has risen to a 30-year high and may have started to spiral out of control. The country is on the brink of recession, and a gaffe-prone leadership is under increasing fire. You could be forgiven for thinking that President Biden has more than enough problems right now. But he is about to make his already miserable term in the White House a whole lot worse. How? By adding a stock market crash, and the destruction of America’s best companies, to the already worryingly long list of self-inflicted disasters. It is hard to think of a single tax that could be worse for growth

Ross Clark

Can we trust economic models?

Rishi Sunak shared a delightful moment of honesty on the Today programme on Thursday. Mishal Husain asked him how households will cope if, as the Office for Budget Responsibility has forecast, energy bills rise by a further £830 a year – on top of the rises already due to take effect in April. No, no, no, said the Chancellor, you can’t believe the OBR forecast on energy prices: ‘They just take what the market expectation is at a given time, and since they closed their forecast actually the forecast for energy bills in the autumn has come down by £400.’ It was a fair point. Except, if the Chancellor doesn’t think

Katy Balls

Is Sunak’s spring statement starting to unravel?

The Chancellor woke this morning to a grim set of headlines as the newspapers chew over his spring statement. Despite dangling the carrot of an income tax cut by 2024, most papers focus on the OBR’s projection that inflation will lead to the biggest fall in living standards since records began in the 1950s. While left-leaning papers such as the Guardian accuse Sunak of forgetting the poorest in society, the papers on the right aren’t that much better for him. The Express asks about the ‘forgotten millions’, while the Telegraph roundly criticises his economic package. The Daily Mail has run with a slightly more welcome tone for Sunak but ultimately calls for more tax cuts

Robert Peston

Has Rishi Sunak just destroyed his relationship with Boris?

I said yesterday that I expected the Chancellor to increase universal credit by more than planned. I was misled. I was wrong. Today, Rishi Sunak’s official forecaster, the Office for Budget Responsibility, is explicit about how painful Sunak’s refusal to increase benefits will be for those who rely on them. It says:  ‘Lags in CPI (or inflation) uprating of benefits mean they fall almost five per cent in real terms in 2022-23, reducing their real value by £12bn, and take up to 18 months to catch up fully with higher inflation’. It means those who are unemployed, on very low incomes, or who rely on the state pension, are going to be in

Ross Clark

Fact check: What’s the truth about Sunak’s Brexit tax cut claim?

Labour’s Chris Bryant was quick to try to scotch Rishi Sunak’s claim that it was only thanks to Brexit that he was able to remove VAT on a number of home energy improvements, such as the installation of solar panels. Within a few minutes of Sunak making the claim, Bryant had tweeted:  ‘Contrary to what Sunak said, there is already a VAT exemption on solar panels and heat pumps already happens in the EU, so this is not a benefit of Brexit.’ After we have left the EU, Brussels wants to copy our example So who is right? Is it Brexit wot gave us our VAT-free solar panels or is

Isabel Hardman

Labour’s economic plan? Reheated Miliband

Rachel Reeves is, as Labour frontbenchers go, pretty experienced. She’s not been in government, but then neither has her leader because there are now young teenagers who have never experienced a Labour government. Reeves has been on and off her party’s frontbench ever since she was elected in 2010, and that long experience was on show in her response this afternoon to the spring statement – in both good and bad ways. This was one of the more confident responses I’ve watched from a Labour frontbencher to an economic statement over their 12 years of opposition. Reeves had a really clever section where she mocked the difference between Rishi Sunak’s reality and