Money

After a three-year saga, inflation has finally returned to the Bank of England’s target. The Office for National Statistics reports this morning that the inflation rate slowed to 2 per cent in the 12 months to May 2024: its lowest point since July 2021. The greatest contribution came from another slowdown in food and non-alcoholic beverages: having once peaked at a staggering 19.1 per cent in 2023, prices have now slowed to 1.7 per cent in the year to May, down from 2.9 per cent in the year to April. It’s a painful reminder of what triggered an early election in the first place Clothing and footwear also played a

When Paris overtook London as the continent’s largest stock market two years ago, it was widely seen as a significant milestone in Britain’s relative decline. It was a sign of the City of London’s weakness – and it was evidence that the UK’s departure from the European Union was slowly destroying its once powerful financial markets. But hold on. This week, London has reclaimed top spot. French president Emmanuel Macron’s high-risk gamble on a general election has already backfired, at least financially, and he has now gifted financial leadership back to London.  Thanks to France’s president, the smart money is leaving Europe On Monday, the total value of all the

The Conservatives love trying to reduce their estimates for the cost of a Labour government down to a neat per-household figure, which makes it easy for voters to appreciate but comes with the danger that the figure will fall apart on closer examination. That is what happened with Rishi’s Sunak’s claim, made in his ITV two-way debate with Keir Starmer, that Labour is planning tax rises of £2,000 per household. That turned out to be over four years rather than one, as many people might have assumed, and turned out to rely on all kind of assumptions which were made by Conservative party researchers rather than the Treasury officials to

Keir Starmer has been promising ‘no surprises’ on tax in the Labour manifesto. At first glance, he has – technically – delivered on that. There is nothing new on tax in today’s manifesto: the hikes already announced were included, and the pledge not to raise income tax, National Insurance, VAT or corporation tax were there too. The surprise, then, is what isn’t included. There is lots of commentary on tax (attacks on Tory ‘unfunded tax cuts’, getting better ‘return for taxpayers’). But there is no comment on any other specific tax. In other words: a few tax hikes have been ruled out, and all the others are being left on the table

There is something a little refreshing about the Green party. In contrast to Rishi Sunak, who has no option but to carry on pretending he has the slightest chance of remaining in Downing Street after 4 July, Green party co-leader Adrian Ramsay admitted at his manifesto launch this morning that his party isn’t looking to form the next government. The party’s realistic hope seems to be to double its number of Commons seats, from one to two. Nevertheless, the Greens do have a full manifesto for government, so let’s do it justice by taking it seriously. Mercifully, the Greens seem to have not bought into the fashionable concept of ‘degrowth’

It has impeccable green credentials. It is crucial to the country’s power grid. And it is one of the UK’s largest private companies. A floatation of Octopus Energy should have been just the kind of event that would give the London Stock Exchange a much needed boost. And yet it now emerges that it may well choose a rival market to list its shares. If that happens, it will accelerate the City’s decline into global irrelevance – and an incoming Labour government may well finish it off.  It is probably the worst news the London market could have had. The chief executive of the giant Octopus Energy, the largest electricity

It is possible that President Macon had some clever plan when he called a general election in the wake of catastrophic European election results last night. After all, he has a reputation for always being several moves ahead on the political chessboard. And yet one point is surely clear. France can’t afford a Le Pen government – and its election may well trigger a crisis in the French debt markets.  Le Pen, after all, is a high welfare, big state, economic nationalist It is, perhaps, not quite such a foregone result as Britain’s election a few days earlier. And yet after the second round of voting on 7 July, it looks

It had been called the dinner party from hell. A seven-strong convention of the also rans. But only one dinner guest really mattered: Nigel Farage. The populist politician’s last-minute decision to stand as a Reform candidate in Clacton has struck fear into the hearts of Conservative MPs across the country, but especially in the 60 marginal seats that Professor John Curtice says Reform could help the Tories lose on 4 July. The surprise of the night was a new coalition on electoral reform between Farage and the Lib Dems But none of tonight’s participants in the BBC debate were going to allow the debate to turn into the Nigel Farage show. He

There is a very big problem with Jeremy Hunt’s Family Home Tax Guarantee, though which he promises a Conservative government would not increase the number of council tax bands, carry out a council tax revaluation, cut council tax discounts, impose capital gains tax on sales of main homes or increase the level of stamp duty. It reminds voters of all the times that the Conservatives have jacked up property taxes in the past 14 years. No-one paid more than 4 per cent on any sale. George Osborne soon changed that When David Cameron become Prime Minister in 2010, stamp duty was levied at 1 per cent on homes sold for between

My colleague Ross Clark has shown how the Tories cooked up that £2,000 figure. They worked out the total cost of what they think Labour will do, using standard HM Treasury costings. Then, they divided that by the number of in-work households (18.4 million). This is a subset of the 21.4 million total UK households, so no pensioners or workless households. By choosing a smaller denominator, you concentrate the increase and conjure up a scarier figure. Then they quadruple-counted. So they took each year’s estimate for tax rise and then added them together over four years and – presto! – you end up with £2,000. But let’s apply a similar method to