Money

How to build more houses

Since the 1930s, bad planning has destroyed swathes of our most precious heritage while causing economic damage that, by some estimates, exceeds that of the second world war. We will end the disaster only if we learn from past mistakes. The current war about housing targets and ‘concreting over the South East’ is the latest in a long line of — generally successful — revolts against government housebuilding plans. In the 1940s, jeering protestors coined the name ‘Silkingrad’ for housing minister Lewis Silkin’s new town of Stevenage. In the 1980s, Nicholas Ridley’s controversial boost in housebuilding was reversed when he was replaced by Chris Patten. And in 2010 the backlash

Ross Clark

The boiler ban fiasco and the true cost of net zero

Politically it must have seemed an easy promise for Theresa May to make in the dying days of her premiership: to commit Britain to a legally-binding target of achieving net zero emissions by 2050, rather than the 80 per cent reduction previously stipulated in the Climate Change Act. It was the summer of 2019 and Extinction Rebellion protests had taken place with surprisingly little counter-protest. David Attenborough’s TV documentary was received warmly by the press, and polls indicated that the public appeared to supported action on climate change – according to a YouGov poll in December 2018 two thirds of the population stated they did not believe the risks of

The EU is overplaying its hand on Northern Ireland

The EU’s decision to take control of the vaccine programme was hardly a roaring success. The eurozone’s economy remains stuck in recession. And the EU’s foreign policy is a mess, as events in Belarus have just made clear.  Still, despite the evidence that she isn’t very good at managing anything, no one can argue that the European Union’s president Ursula von der Leyen lacks self-confidence. Last night, she made it clear there could be no possible compromise over the Northern Ireland protocol. The trouble is that she could easily bring the whole trade deal between the EU and the UK crashing down. As so often, the EU is overplaying its

From Suffolk to Essex: why moving east makes sense

You might remember, back before Covid, when life was ‘normal’, at three o’clock on a Friday afternoon, the Volkswagens, Audis and Jaguars clogging up the pavements of Kensington, Parsons Green and Hammersmith would one by one nudge out, and make for the Great West Road, duly clotting the A4 like a fast-food addict’s aorta. To all points west they would go – to the dewy hamlets of Hampshire, to the honeyed villages of the Cotswolds, to the pebbled beaches of Dorset’s Jurassic Coast, to the curvaceous nooks of Devon’s South Hams. But there is another way you can go, my friends, one which isn’t west. You can go east. And, boy,

James Forsyth

The future looks bleak for Tory free-marketeers

The free-market Tory right’s victory on the Australia trade deal obscures the fact that the economic direction of the party has turned against them since the Brexit vote. As I say in the Times today, this is a big-spending Tory government that believes in an active role for the state in fostering innovation and driving growth. As one cabinet minister puts it, ‘It is a kind of Faustian bargain. The Tory right defeated the One Nation Tories on Europe but had to become One Nation Tories on the economy.’ There are several reasons why Brexit hasn’t ushered in the shift to the right on economics that many hoped (or feared). The

Ross Clark

The post-Covid boom means inflation will be back

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

Ross Clark

The rail revolution is nothing of the sort

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

Comedy gold: the economics of internet irony

If you’re looking for proof we live in a computer simulation, consider the farcical story of dogecoin. Named after an internet meme about a talking dog, the joke currency was created as a parody of bitcoin. Dogecoin has no practical uses, yet online investors have ploughed billions into it. ‘We thought it would just make the viral rounds on social media,’ said founder Jackson Palmer. Last week the valuation passed $68 billion — more than Kraft Heinz and Ford. Palmer is now worth several hundred million dollars. Not bad for a Twitter gag. Although it’s seven years old, dogecoin wasn’t a big deal until a few months ago, when supportive

Martin Vander Weyer

Is Farrow & Ball’s business model flaking?

The happiest thing that happens in May is the coming into leaf of my long beech hedge. The shift from brown to green symbolises, for me, an annual economic revival — of openings, reopenings and entrepreneurial optimism. This year, after April’s frosts on the end of a dismal winter, it was especially welcome. And as revival collides with new fears of ‘the Indian variant’, I’m clinging to optimism while watching for new-season winners and losers. In that spirit, I’ll make this column a collage of consumer themes. First — though I’m not sure what this symbolises — a friend tells me he celebrated relative freedom by driving to Bicester Village

Ross Clark

The problem with investing in ‘value’ stocks

For the first half of the pandemic a simple investment rule would have served you well: buy anything that was being plugged as a ‘tech’ stock – and dump nearly everything else. Lockdown ushered in a new era in which everything would be done online, rendering the traditional bricks and mortar economy. Since ‘Pfizer Monday’ on 9 November, when the results of the first phase 3 trials of Covid vaccine were made public, the opposite advice has served investors just as well: buy any bricks and mortar company that was dumped during the first phase and sell anything touted as a tech stock. The economy was going to spring back

The insanity of Britain’s housing market

On the day the Office for National Statistics announced a sharp rise in consumer price inflation, albeit to a still modest 1.5 per cent, we discovered that house prices have jumped by a staggering 10.2 per cent in the last year. The average house in England now costs £275,000, close to ten times the average annual income. In 1992, the average house cost three times the average income. A housing boom during a pandemic in the wake of the deepest recession in 300 years doesn’t make a lot of sense, but a few recent events can partially explain it. After three lockdowns, there is pent-up demand, including for houses. The

Inflation is the biggest threat to Boris

The vaccines are rolling out. Lockdown is easing, the EU has been forgotten about, and the Labour party has returned to its traditional pastime of plotting furiously against its leader. No one is even talking about wallpaper anymore. Things could hardly be going better for Boris Johnson, and that has been reflected in local election results and in the polls. There is one looming threat, however. The return of inflation. In truth, rising prices have been destroying governments for a hundred years, and it would be complacent to imagine this one will be the exception. President Biden has embarked on a tax, spend and borrowing spree the like of which

Boris must stand up to farmers – and back the Australia trade deal

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

How much credit does the NHS deserve for the Covid vaccine rollout?

Who should we thank for our Covid vaccines? For many, the answer is straightforward: the National Health Service.  ‘Thank you NHS’, says a profile sticker shared by thousands of Brits on Facebook. But while Britain’s undoubtedly successful vaccine programme owes a great deal to the efforts of NHS staff, is it right to thank the NHS itself? Left to its own devices, would the NHS have delivered in quite the same way? And how much should we credit Boris’s vaccine task force – rather than the health service – for the vaccine rollout? I am a critic of the NHS – but not for the sake of it. I criticise it

Ross Clark

Is Britain facing a jobs crisis?

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

The truth about Camberwell – is Boris’s old haunt worth investing in?

Like other areas of London, Camberwell suffered from having much of its modern town planning done by the Luftwaffe. As the original bridges over the Thames were built, particularly Blackfriars in the 18th century, the roads leading to them, wide and quiet, became lined with handsome Georgian and Regency houses. Victorian fillers came later along with grids of basic but reasonable housing for the many labour intensive businesses springing up. Modern Camberwell has become aligned with artists, perhaps trendily missing out on the over gentrification affecting some near SW postcode neighbours. That is a polite way of saying that it was one of those places that, when I started in

Is working from home here to stay?

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

Kate Andrews

Inflation fears grow

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

Why the EU keeps losing against big tech

They shift revenues around. They create endless shadowy shell companies. And they undermine the social model by dodging taxes. To the European Union, the American tech giants, when they aren’t busy destroying democracy and hollowing out local economies, are paying far too little to the state, and it is the only organisation with the muscle to start forcing them to contribute their fair share. There is one flaw in that analysis, however. Whenever the matter is put before Europe’s own courts, it keeps losing – and the Commission itself looks like an increasingly rogue organisation. Yesterday, the European General Court decided that a £215 million fine handed to Amazon in