Money

Amid the panic over the Indian variant this week it would have been easy to miss news that the Consumer Prices Index (CPI) more than doubled in a month, from 0.7 per cent in March to 1.5 per cent in April. That is still below the Bank of England’s 2.0 per cent target, but could this be just the beginning? The signs from this month’s Purchasing Managers’ Index (PMI) – a survey of businesses carried out by IHS Markit – suggests strong inflationary pressures. Its index for inflation expectations has soared to 58 this month – with anything above 50 indicating that businesses expect inflation to rise. It is higher

The government says it is ending a quarter of a century of the ‘fragmentation’ of the railways by gathering all mainline services into an entity called Great British Railways. That will please some critics of privatisation, but has the government actually renationalised the railways, as the unions, the Labour party and – to judge by some opinion polls – the public want? No, but it might superficially look like it. Gone will be the plethora of liveries, along with names such as Arriva, Great Western Railway and East Coast. The familiar old British Rail symbol of an arrow pointing in two directions will return. But anyone calling for the common

Farms will be devastated. The countryside will be ruined. And we will all be forced to eat weird food that will probably kill us. As the government tries to finalise a free trade deal with Australia, there are already reports of fierce rows over the future of agriculture played out against a backdrop of a angry backlash from the farming lobby.  It’s time for the government so face up to these critics. True, farming is not crucial to the future of the British economy, and neither, as it happens, is trade with Australia. But the principle is important – and if the UK doesn’t embrace free trade then leaving the EU

The ONS recorded a sharp recovery in economic growth in March. The Bank of England has already increased its forecast for the growth of the UK economy in 2021. Now comes more evidence of rapid growth. The quarterly CIPD/Adecco Labour Market Outlook, published today, shows a sharp rise in the number of organisations that are hiring extra staff or are expecting to do so over the next few months. The survey, which goes out to 1,000 employers in the private, public, and voluntary sectors, found that 36 per cent of employers are planning to increase staff levels over the next three months. Nine per cent said they are expecting to

National Work from Home Day might not be a calendar highlight but it has undoubtedly taken on increased significance during the pandemic. Remote work is du jour and the big question now is: will it become the new normal? Take headlines at face value and we’re living in both a Zoomshock dystopia and a commute-free Shangri-La. We’re selfishly contributing to the hollowing out of city centres, and we’re righteously boosting the local economy. The same ministers now pushing for hybrid working to become the default unless employers have good reason to forbid it were last summer warning absenteeism risked making people more ‘vulnerable’ to getting sacked. We should probably be

Two months ago The Spectator reported on what was keeping Rishi Sunak awake at night ahead of the Budget: an inflation resurgence that could damage Britain’s economic recovery as it comes out of the pandemic. He deliberately designed his March Budget with inflation in mind, trying to make the UK’s finances ‘Biden-proof’ if inflation or interest rates started to move, and the cost of servicing the country’s debt became remarkably more expensive. At the time, Sunak was a lone voice on the matter. His inflation fears put the decision to raise tax into perspective, but many remained critical of his rather cautious approach. Inflation seemed a strange focus as the conditions

New growth figures were released this morning show that the economy contracted 1.5 per cent in Q1 this year and remains 8.7 per cent smaller than it was in Q4 2019 (the last quarter not to be impacted by the pandemic). Alongside this update, the Office for National Statistics also released its latest set of monthly figures, which saw GDP rise by 2.1 per cent in March — the biggest boost since August last year — taking the economy to 5.9 per cent below pre-pandemic levels. That GDP fell by just 1.5 per cent overall once again illustrates the extent to which businesses have developed a resilience to lockdowns. The first

Queen’s Speech day is one of the set-pieces when the government gets to decide that morning’s headlines. Barring disaster, the stuff you brief to the media the day before the speech will be what leads that morning’s bulletins, and has the best chance of being the thing that punters remember about the speech – if they remember anything at all, since, of course, most people don’t pay any attention to political news. Anyway, the central fact here is that No. 10 chose to lead with skills today, a package of promises about how things will get better for the people who do not do A-levels then got to university for