Economy

The Prime Minister has called for an international coalition of free countries to oppose the growing influence of China’s authoritarian dictatorship. But it needs to be a lot bolder. The wheels of international diplomacy turn slowly and the government should make full and immediate use of the powers it already has. Three decisive steps are already possible. Companies from Western liberal democracies are bolstering an authoritarian dictatorship First, we should stop entities under the control or influence of the Chinese Communist Party (CCP) from buying up our companies, especially infrastructure firms. A Chinese company, for example, controls about 25 per cent of North Sea oil and other companies own gas,

To what extent do workers want to return to the office? It’s a question on everyone’s mind – none more so than Rishi Sunak. If Covid working habits stick post-lockdown, with a majority of people continuing to work from their living room, it’s not just the working day that will be fundamentally altered, but the wider economy too. The economic implications for the shops and services designed to cater to the office worker will be drastic: large parts of city centres and high streets may find themselves without customers, or enough business to turn a profit. But these were not the main points the Chancellor made in his interview with

It’s no surprise that the bill for Covid-19 keeps racking up. The Office for Budget Responsibility’s latest forecast predicts borrowing will reach £355 billion for the financial year: decisions to extend furlough, boosting public sector spending and supporting businesses that have been closed for months at a time all come with a price tag attached. But that doesn’t stop the sums from creating shock and awe each time they’re announced. Today’s update from the Office for National Statistics shows that government borrowing hit £19 billion last month — more than £17 billion from the previous year and the highest borrowing recorded for February since records began in 1993.  Operating on the assumption that

Bill Clinton’s declaration that ‘the era of big government is over’ summed up the late 1990s political zeitgeist. Centre-left political parties could win if they accepted the small state model bequeathed by the Thatcher-Reagan consensus. Now things feel very different, as I say in the Times today. The stimulus Joe Biden signed into law is huge, $1.9 trillion (£1.4 trillion): three times larger than the financial hole created by Covid. Here there has been nothing as dramatic. But it is still telling that Boris Johnson is insistent that the public finances won’t be brought back into order by ‘austerity cuts’. Big government appears to be back. Politics is going to become

Keir Starmer’s speech on economic recovery, delivered at Labour’s Southside HQ on Thursday, was hyped as one of the most pivotal moments of his leadership so far. A Labour insider told Politico it had been ‘six months in the making with a huge amount of work going into it’. It was designed to establish a clear ‘fork in the road’ between the Conservatives’ and Labour’s economic visions, both in the short term — leading up to the Budget next month — but also in the future, as Starmer pledged to shape the economy ‘to look utterly unlike the past’. But for a speech that was supposedly months in the making,

It’s been no mystery that the UK economy took a severe beating in 2020: two lockdowns, a host of circuit-breakers and fire-breakers, Christmas cancelled for millions of people. The experience of an economy forced to hibernate for months on end last year is reflected in today’s GDP update from the Office for National Statistics, showing the economy contracted 9.9 per cent last year — the ‘largest yearly fall on record’ and biggest contraction in 300 years. The fall isn’t quite as stark as the Office for Budget Responsibility forecast alongside the Chancellor’s spending review last November (an estimated 11.3 per cent), but it still represents one of the largest economic