The Spectator’s Economics newsletter
What happened to ‘growth, growth, growth’?
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
Why Britain’s benefits problem is likely to get worse
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
Labour has walked into a net-zero trap of its own making
The government’s net-zero noose draws tighter. At energy questions in the House of Commons on Tuesday, the Conservative MP Charlie Dewhirst asked the Energy Security and Net Zero Secretary Ed Miliband if the recent report by the National Energy System Operator (Neso) projected higher or lower bills under his policies. Miliband replied that Neso forecast
Rachel Reeves has shattered economic confidence in Britain
A few journalists have pointed it out. So have some Conservative and Reform MPs, think tanks and one or two of the City banks. Now, it is official: the Bank of England (BofE) has warned that Chancellor Rachel Reeves’s October Budget has caused Britain’s economy to stagnate. The real question now is when will the
It’s not surprising the Bank of England didn’t cut interest rates
Interest rates have been held at 4.75 per cent. The Bank of England’s Monetary Policy Committee voted 6-3 to maintain the base rate, with the minority voting to further reduce rates by 0.25 percentage points. This is an unsurprising move from the Bank of England. Markets weren’t optimistic that another rate cut would follow so
France’s defence spending debacle will infuriate Donald Trump
Donald Trump is right that some of Nato’s European members are essentially freeloaders. That these countries are holding talks about increasing the alliance’s target for defence spending to 3 per cent of GDP at its annual summit next June comes too little, too late. Countries like Germany and France have consistently underspent on defence, leaving
Ofgem’s standing charge crackdown is a win for the wealthy
At last some good news for owners of second homes: Ofgem has ordered electricity providers to offer tariffs which have no standing charges, but where instead householders pay more per unit of electricity consumed. True, it isn’t second-home owners which Ofgem had in mind when it came up with the idea, rather low income consumers
Javier Milei’s medicine is working
The economy would crash, the markets would be in open revolt, and he would swiftly be evicted from office by the IMF, and replaced by some ‘grown-ups’. When Argentina elected its chainsaw-wielding, libertarian President Javier Milei a year ago, the economic and political establishment confidently predicted he would only last a few weeks. And yet,
Labour’s planning reforms look like a way of punishing Tory voters
Is the government’s housing policy aimed principally at increasing the stock of homes and making them more affordable or at punishing Tory voters? I ask because of its obsession with Nimbys and the green belt. According to Keir Starmer last week the planning system exerts a ‘chokehold’ over the housing supply. Writing at the weekend Angela
Is Britain really fated for economic decline?
Another day, another flurry of bad news on the fallout from October’s Budget. The BDO Monthly Business Trends indices – which pull together the results of all the main UK business surveys – show that confidence has fallen to the lowest level in almost two years, with output and employment down, and only inflation up.