Economics newsletter
Is Starmer’s Trump trade deal the win he thinks it is?
Keir Starmer says it is a ‘fantastic, historic’ day after signing a trade deal with the United States, but is the agreement really something to celebrate? Ten per cent tariffs, announced last month, still apply to most UK goods entering the US The government is no doubt cock-a-hoop to be the first country to get
Why Britain is cutting interest rates – and the US isn’t
Interest rates have been cut to 4.25 per cent. The Bank of England’s Monetary Policy Committee (MPC) voted by five to four for what will be the fourth rate reduction since August. The decision breaks with the direction of the US Federal Reserve, which held rates yesterday after refusing to bow to pressure from President
What would a US trade deal mean for the UK?
Later today, Donald Trump is reportedly set to unveil a trade deal with the UK. He’ll make the announcement alongside ‘a big and highly respected country’ which is said to be Britain. If the reports are true then it would make the UK the first country to secure a deal since Trump’s tariff turmoil began. The
Starmer can’t afford a winter fuel U-turn
Keir Starmer has ruled out a U-turn on the government’s decision to cut the winter fuel payment, with the Prime Minister’s spokesman insisting there ‘will not be a change to the government’s policy’. This came after a report in the Guardian suggesting No.10 was considering softening the £1.4 billion cut, possibly by raising the threshold that defines
Wes Streeting won’t end the 8am GP appointment scramble
You can say it for Wes Streeting: he doesn’t hang about. Reacting to the heavy loss of council seats in last week’s elections, he is proffering £102 million of money for extra GPs’ appointments – hopefully to end what has been termed the “8am scramble”: a kind of Hunger Games which NHS patients have to
The Motability scheme needs to be put into reverse
Keir Starmer’s government has taken some important first steps to bring the welfare budget under control. But expenditure on disability and incapacity benefits is still set to increase to almost £100 billion by the end of the decade, so more changes are needed. Every aspect of the welfare system must be examined to see if
Nigel Farage’s left-wing turn looks like a triumph
Nigel Farage declared earlier this year that ‘economics might be bigger than immigration for us at the next election’. Most people at Westminster didn’t take him particularly seriously. After all, Reform UK is all about immigration, right? Westminster didn’t take Farage seriously. After all, Reform UK is all about immigration, right? When Farage based his local election
Can Rachel Reeves woo Trump’s team – without alienating the EU?
The government is on a charm offensive in Washington. Tonight, Britain’s ambassador to the US, Lord Mandelson, will host officials from Donald Trump’s government and American business figures at the British embassy. Tomorrow, the Chancellor will meet her counterpart, Treasury Secretary Scott Bessent. Rachel Reeves is looking to permanently end the punishing 25 per cent
No, Ed Miliband: zonal pricing won’t cut energy bills
Is Ed Miliband going to announce a move towards a zonal electricity market, where wholesale prices would vary between regions of Britain? It would appear to be on cards following the Energy and Climate Secretary’s interview on the Today programme in which he said he was considering the idea. Miliband’s apparent support for the plan
Britain’s borrowing is spiralling out of control
Britain borrowed nearly £152 billion in the financial year to March – almost £21 billion more than at the same point in the last financial year, according to the Office for National Statistics (ONS). The latest public finance figures reveal that borrowing in March was the third highest since records began in 1993. Crucially, it’s