Money

International investors may be jittery about the UK’s future, but the International Monetary Fund appears to be more optimistic. The IMF has published its World Economic Outlook report for January, which forecasts the UK will have the third-fastest growth in the G7 this year. It revises upwards its projection for 2025, by 0.1 per cent, to 1.6 per cent. The UK falling in after the United States and Canada does not make good on Labour’s promise to be the fastest growing advanced economy. But after a tumultuous week of gilt fluctuations, bad growth figures and an even worse retail sales update, it’s a good way to be ending the week.

Perhaps you could gather a group of traffic wardens and ask them how to build a racetrack. Or get the leaders of the Salvation Army over to suggest some cool ideas for a cocktail bar. Think up any improbable brainstorming sessions, and it will still be hard to imagine anything more awkward than the gathering of regulators Chancellor Rachel Reeves summoned to Downing Street today to give her some ideas on growth. After all, that is her job, not theirs.  Just the concept of frog-marching regulators into the Chancellor’s office and demanding ‘growth ideas’ is ridiculous It hardly sounds like fun. The chief executives of such august sounding bodies as

Rachel Reeves has found brief respite this morning, with the Office for National Statistics confirming that inflation dipped to 2.5 per cent in the 12 months to December, down from 2.6 per cent the month before. This is a smaller rise than had been expected (the consensus was 2.6 per cent) and roughly in line with the Bank of England’s forecast from November, which had predicted a 2.4 per cent increase. It’s welcome news for a Chancellor who is under pressure. Core inflation slowed too, from 3.5 per cent in the year to November, to 3.2 per cent in December. This competes for the best news in the update, as core

Rachel Reeves did her best to keep today’s China visit statement on topic. The Chancellor wanted to talk about ‘cooperation’, ‘competing where our interests differ,’ her efforts to break down market barriers and the £600 million she secured in investment. But other MPs had other ideas.  ‘I know the Chancellor has been away,’ said the Shadow Chancellor Mel Stride. ‘So let me update her on the mess she left behind.’ So began the battle between the Chancellor – to stay on topic – and her opposition to bring up the long list of economic woes that have come to the forefront this week: not just the substantial rise in borrowing

In politics as in everyday life it is possible to be right at the same time as being terribly, terribly wrong. Look no further than Liz Truss instructing her lawyers to send a ‘cease and desist letter’ to Keir Starmer demanding that he stops accusing her of “crashing the economy”. The claim, she alleges, is not only false but contributed to her losing her South West Norfolk seat in last year’s general election. Truss is right, as it happens – the mini budget delivered by her Chancellor Kwasi Kwarteng during her micro-premiership may have precipitated a run on bond markets, but it had little effect on the economy, and Britain did

The new year may have rustled up some surprise stand-offs for the Labour government (mainly calls from X founder Elon Musk for Keir Starmer to resign), but the rise of new problems does not mean the old problems have disappeared. A harsh reminder has been dished out this morning, as long-term borrowing costs reached a 27-year high, calling into question yet again exactly how the Treasury is going to make good on its spending commitments while sticking to the Chancellor’s own fiscal rules. Thirty-year gilt yields hit 5.21 per cent this morning – a level that surpasses the surge in borrowing costs following Liz Truss’s mini-Budget in 2022. The ten-year

When the British government spent £400 million on the satellite internet start-up OneWeb back in 2020, it was seen as precisely the kind of active, tech-led industrial strategy that could re-boot the British economy. There were hopes the deal would help secure a place for the UK at the heart of the emerging space economy. Then prime minister Boris Johnson saw it as a key part of launching ‘Galactic Britain’. But four years on, the taxpayer is on the hook for a £300 million paper loss after shares in OneWeb’s parent company sank to a record low. The money poured into OneWeb has proved to be remarkably poor value Even

This is hardly how 2024 was supposed to end for Labour. Free from the shackles of ‘14 years of Tory misrule’, the economy was supposed to take off. ‘Growth, growth, growth,’ Keir Starmer told us, a little unconvincingly, were going to be the government’s three main priorities. Indeed, Britain was going to tear away as the fastest-growing economy in the G7 – although he never offered us any explanation as to why this would be the case, still less which of his policies was going to achieve it. This morning’s revised GDP figures from the Office for National Statistics (ONS) reaffirm just how big a failure the government’s economic policies

More than half of Britons receive more from the state than they pay in taxes, according to figures from the Office for National Statistics. The proportion of those receiving more through benefits than they paid in taxes last year fell slightly to 52.6 per cent, down a percentage point compared with the year before. The data – which factors in use of public services, such as schools and the NHS, as well as welfare payments and benefits – highlights the fundamental problem underlying the British state: how do we support a population that is aging, getting ill and becoming increasingly workshy? As you’d expect, more than 85 per cent of