Economy

We’re four months away from Scotland’s day of destiny, with the London-Scottish media fraternity becoming increasingly alarmed, and ironically (considering their total unionism) far more noticeably Scottish. At the Telegraph Graeme Archer made a characteristically elegant appeal to Sir Malcolm Rikfind to step forward, and there would indeed be something touching and rather beautiful about the grandson of Jewish immigrants being the man who saves Britain. The film script would write itself, if someone were to make a film about the Scottish referendum (which I admit is pretty unlikely). Sir Malcolm’s son Hugo meanwhile seems to think that the end of a 300-year union that helped export liberal democracy and

Independence is a fringe issue in Wales. Just 12 per cent of Welsh voters support it, and that figure has been stubbornly consistent. But it is far from implausible that within a decade Wales could find itself standing alone, not through any conviction that independence is the best bet, but because the UK has marginalised Wales. Wales is in a weak negotiating position already, as the Scottish referendum campaign has shown. Take the Barnett Formula, which adjusts the amount of money received from the Treasury by Scotland, Wales and Northern Ireland. An expert commission, led by respected economist Gerald Holtham, pointed out that if Wales were treated on the same basis

What a very long PMQs today, presided over by a very bumptious John Bercow. The Speaker let the exchanges run into what he called ‘injury time’, made a rather poisonous jibe at Labour MP Fiona Mactaggart over her private schooling, and told the Prime Minister that as far as he was concerned, he had finished an answer when the PM didn’t believe he had. listen to ‘Cameron defies Bercow’ on Audioboo

My friend and critic Jonathan Portes obviously took exception to my remarks about Keynesianism having been disproven. His entertaining rebuttal claims to have exposed my misreading of data. That’s not quite how I see it. I agree with him that the appalling build-up of out-of-work benefits happened before 1997. The Tories badly miscalculated incapacity benefit; thinking it would be a one-off way to help those affected by deindustrialization. But, in fact, it created a welfare dependency trap, and the 1992 recession caught too many people in it. John Major had an excuse: a recession. Tony Blair had no such excuse. I wasn’t joking about a quarter of Liverpool and Glasgow

In a speech given at Tilbury Port in Essex, Chancellor George Osborne hailed cuts to business and personal taxes this week as the ‘biggest in two decades’ – and committed to ‘fight for full employment in Britain’. Here’s what he said:- Thank you for coming here to Tilbury Port, this morning. We’re all here at the start of the most important week of changes to our tax system for a generation. These are the biggest cuts to personal and business taxes for two decades, and we’re making our benefit system more affordable and fairer too. Changes which will affect the lives of millions of people. Whether you are working or

Mark Field, MP for Westminster, has set up a brand new campaign group of Tory backbenchers called Managed Migration – as opposed, you might think, to the unmanaged sort we have at present. But he’s not actually in favour of managing migration in the conventional sense; he wants the PM to drop the party’s commitment to containing overall numbers of net migrants to the ‘tens of thousands’ though there seems fat chance of that just now.  Big increases in net migration, he says, are a tribute to the recovering economy. He’s got a point in one sense. As the economy improves, fewer Brits want to leave, which has an effect on net numbers.

George Osborne was on Andrew Marr this morning announcing support for a new garden city at Ebbsfleet in Kent and the extension of Help to Buy on new build homes until 2020. The Tories hope that these policies will show both that they are planning for the long term and that they are supporting aspiration. But what struck me as most significant was Osborne’s response when told by Marr that he was sounding more like a Liberal Democrat than a Conservative. He instantly replied, ‘Conservatives believe in lower taxes, Liberal Democrats want to put taxes up.’ We already know that Osborne believes that the rest of the deficit can be

Another day, another hole blown in Alex Salmond’s case for breaking up Britain. The IFS has today published its estimates (based on the OBR’s) for Scottish oil and gas revenues, and they’re less than half those of the SNP administration in Edinburgh. Salmond forecast oil and gas revenues of between £6.8 billion and £7.9 billion in 2016-17. The IFS puts it at £3.3 billion. Salmond’s best-case scenario for 2017-18 has Scotland with a deficit of 1.0 per cent of GDP; the IFS’s figures suggest that’ll be closer to 3.6 per cent of GDP. A country like Britain can ride out such fluctuations, but Salmond may find he’s swapping rule from