Moneyblog

Tuesday

Katy Balls

How is Theresa May’s NHS funding boost landing with voters?

How is Theresa May’s big £20bn funding pledge landing with the public? That’s the question Tory MPs are beginning to ask. The Prime Minister’s – currently unfunded – early birthday present for the NHS to celebrate its 70th birthday was announced to much fanfare last month. It was meant as an agenda setting policy that would help to define her premiership, show there was more to Mayism than Brexit and boost the Tories’ standing with voters. As of yet though, signs of an immediate Tory boost are absent. A YouGov poll – taken 25-26 June about a week after it was announced – puts the Tories ahead with a five-point

Thursday

Spectator Money

Defence of the realm

The Defence Select Committee called for the defence budget to be raised by £17 billion a year, from just over 2 per cent of GDP to 3 per cent. Some £35.3 billion was spent on defence in 2016/17. How much was allocated to particular operations? Wider Gulf £51m Afghanistan £70m Deployed Military Activity Pool (for unforeseen military activity) £23m Counter Daesh £432m Conflict stability and security fund (various peace-keeping activities) £87m EU counter migrant-smuggling ops £3m

Charles Moore Charles Moore

Don’t interfere with Britain’s charitable causes

A new body called the Charity Tax Commission has been asked to look into the £3.7 billion tax reliefs given to charities. The Financial Ombudsman, Sir Nicholas Montagu, chairs the commission. He asks, ‘Are the right charities benefiting and should we start asking some awkward questions about whether there might be more to show for the money if we distinguished between charities?’ He invites the views of interested parties. Jonathan Ruffer, the rescuer of Auckland Castle, about whom I have written in these pages, has sent Sir Nicholas an interesting reply, based on his experience of giving away £200 million (95 per cent of his post-tax income) to charitable causes. He

Tuesday

Spectator Money

Best Buys: Five-year fixed rate mortgages

If you’re on the hunt for a mortgage, a fixed rate one will ensure that your repayments stay the same. Here are some of the best rates available for five-year fixed rate mortgages on the market at the moment, according to data supplied by moneyfacts.co.uk.

Monday

Martin Vander Weyer

We need to embrace India’s love of retro British brands

Whatever happened to Horlicks? Patented in Chicago in 1883 by British-born brothers William and James Horlick, the malted milk drink was manufactured in Slough from 1908 and came to be thought of as a British product — but disappeared from most of our kitchens half a century ago. It lingered only as a figure of speech, as in foreign secretary Jack Straw’s 2003 description of Downing Street’s dossier on Iraqi weapons of mass destruction as ‘a complete Horlicks’. Meanwhile the product itself found a huge market elsewhere — in India, where it had first arrived in British troop rations during the war.  Under the ownership of Beecham, now part of

Wednesday

Toby Young

Should women be paid for doing the housework?

According to a new study published by some feminist academics at the Australian National University, women risk damaging their health if they work more than 34 hours a week. That’s not because women are the weaker sex, obviously, but because they do more housework and childcare than men, effectively working just as hard but dividing their labour between the office and home. On the back of this, the report’s authors have called for women to be paid the same for working a 34-hour week as men are for a 47-hour week. Until this happens, according to the researchers, women are being forced to choose between their health and gender equality.

Tuesday

Why are NHS funding critics silent on Quantitative Easing?

After the prime minister’s announcement that the NHS would be given a large boost in funding only partly paid for by taxes, some backbenchers called for fiscal responsibility. For them it is paramount that a government should live within its means and avoid increasing the budget deficit. And yet they have nothing to say about monetary policy. Quantitative Easing (QE), the creation of money out of thin air by the Bank of England, with the intention of boosting demand has been carried out in a manner highly beneficial to owners of existing assets. The Bank’s website explains how it works. It buys bonds from the private sector with money that

Friday

James Kirkup

QE is the biggest thing in politics but politicians aren’t talking about it

Essay question: what was the most consequential British public policy decision taken in the last 10 years? Clue: it wasn’t David Cameron’s call on an EU referendum. It wasn’t even done by a politician. The biggest thing in British public life since 2008 has been the Bank of England’s emergency stimulus package for the UK economy. It probably averted an even worse economic crisis. It possibly allowed or perhaps necessitated the Coalition’s fiscal austerity. And it skewed the distribution of economic advantage in favour of people who own stuff, especially houses. Whether or not quantitative easing increases income inequality is still up for debate (even the BoE’s economists aren’t really

Martin Vander Weyer Martin Vander Weyer

It’s not always true that bosses should walk the plank when something goes wrong

Should he stay or should he go — or will he already have gone by the time you read this? These are frequently asked questions about chief executives whose businesses hit troubled waters. It’s true that the higher you rise, the higher the risk if you don’t deliver, but it’s not always true that bosses should walk the plank whenever something major goes wrong: sometimes it makes more sense to stick around, take the flak and solve the problem. However, in the cases of Gavin Patterson of BT (ousted a week ago) and Paul Pester of TSB (still in post as we go to press), it would be fair to

Thursday

John Redwood

Since Trump became President, US share markets have performed well. We need to understand why

Some say that Mr Trump’s behaviour at the G7 meeting last week-end showed contempt for the international rules-based system that many people in financial markets and the media admire. It is true that Mr Trump complained Russia was not present, inserted special prose about his energy and tariff policies and decided he did not agree with the communique after it had been issued. He showed he thought going off to his bilateral meeting with the North Korean dictator was more important than the very general conclusions of the G7 summit. The G7 official statement ranged widely over world economies and affairs but lacks clout if the USA does not agree

Wednesday

Ross Clark

Sex and the City: the paradox of women bankers who can’t negotiate a bonus

I am sure there must have been a time when feminism was concerned with the interests of the low-paid and disadvantaged – before, that is, it became almost wholly concerned with powerful, well-paid women demanding even higher money. Nicky Morgan and her Treasury Select Committee have found an injustice which puts into the shade the gross injustices suffered by female BBC presenters on £150,000 a year. They have identified a ‘gender bonus gap’ in the City which they say is a whopping 67 per cent. The reason, contends Morgan, is that female City workers are put off by the grubby business of having to negotiate their own bonuses. This practice,

Tuesday

Friday

Spectator Money

What have been the most expensive public inquiries in recent times?

The inquiry into the Grenfell Tower fire could last years. What have been the most expensive public inquiries in recent times? Bloody Sunday £191.5m, 12.5 years Rosemary Nelson (N Ireland) £46.5m, 6.5 years Robert Hamill (also NI) £33m, 7 years Billy Wright (also NI) £30.5m, 6 years Harold Shipman Inquiry £21m, 4 years Chilcott Inquiry £13m, 8 years Leveson Inquiry £5.4m, 1 year  

Rory Sutherland Rory Sutherland

Does a tax rise make you work less? Or does it spur you to work harder?

History records many well conceived and apparently logical grand plans for the betterment of mankind. Sadly such ideas almost always fail. Why is this? One possibility is that they fail precisely because they are logical. The dictates of logic require the existence of universally applicable laws. But humans, unlike atoms, are not consistent enough in their affinities for such laws to hold very broadly. For example we are not remotely logical in whom we choose to help. Will wealthy Germans help poorer Germans? Yup. Greeks, however? No chance. Utilitarianism makes perfect sense — right up to the point you try to apply it. As Orwell said, ‘To an ordinary human

Thursday

Martin Vander Weyer

Let’s hope RBS emerges as something worth owning shares in

At last the government has restarted the process of selling its stake in Royal Bank of Scotland. A first £2 billion sale in 2015 (of 5 per cent of the bank’s shares) took place at 330 pence per share, against a purchase price of 502 pence in the 2008 bailout. Those numbers looked so embarrassing for George Osborne that the sell-off file was consigned sine die to a Treasury basement; but now that RBS has returned to a slim profit after nine years of losses, Philip Hammond sold another £2.5 billion tranche on Monday, ahead of what his advisers evidently think will be a weaker stock market after the European summit, but at

Tuesday

Sunday

Roger Alton

Is Gareth Bale worth 20,000 times more than Bobby Charlton?

I must have missed the memo when it became compulsory for major football matches to operate as a marketing opportunity for the game’s marquee players, but that was what we got at Kiev after Liverpool were outmuscled and outplayed by a flinty-eyed Real Madrid. After Ronaldo announced that his time at Madrid was in the past, then our very own Gareth Bale, he of the annoying man-bun and sublime skills, in a rather graceless piece of scene-stealing, decided to ask for a transfer. Live on TV. Well, you do the math. He is on £300,000 a week (or £600,000 depending on who you trust), but assuming someone somewhere has to

Friday

Martin Vander Weyer

Pret A Manger is an excellent example of what British entrepreneurs do best

I shop at WH Smith with gritted teeth but I positively salivate when I spot a Pret A Manger. Some serious investors think likewise: the sandwich chain has just been sold for more than £1.5 billion by the US investment firm Bridgepoint to JAB Holdings, the vehicle of the German billionaire Reimann family who also own Krispy Kreme doughnuts and Kenco coffee. Though recently criticised by the Advertising Standards Authority for describing its sandwiches as ‘natural’ when there are E-numbers in its bread, Pret has sustained the authenticity of its brand while expanding globally with the hand of high finance on its shoulder. That included, for a decade, the incongruous

Thursday

Spectator Money

Is money an appropriate wedding present?

Dear Mary: I have been invited to the wedding of a distant relative through marriage, to her long-term partner. I did not expect to be invited, therefore would like to show my gratitude. However, there is no wedding list and they have specified on the invitation that the only gift they wish to receive is money. I find this to be slightly vulgar and frankly, given that they already own their home and are from relatively wealthy families, rather brass-necked. I do not wish to give cash in an envelope — à la Goodfellas — but would still like to get them something. What do you suggest? —C.S., Leicestershire A.