Moneyblog

Friday

Simon Mcvicker

The Chancellor must not betray business with another attack on the self-employed

The Conservatives used to be known as the party of business. Theresa May still seems to be trying to keep up the pretence, saying in her conference speech that the Conservatives are ‘a party that believes in business’. But the proof is in the pudding, and this pudding is turning sour. Fast. The Budget rumour mill is in overdrive that Chancellor Philip Hammond will use the Budget to extend the government’s disastrous changes to self-employed IR35 tax law from the public sector to the private sector. However Theresa May’s speechwriters may spin this, it would be the final nail in the coffin of the Conservatives’ small business credentials. Let me

Thursday

Olga Fitzroy

What the Government can learn from Piers Morgan’s ‘papoosegate’

When Piers Morgan called Daniel Craig an #emasculatedbond for carrying his daughter in a baby carrier, Twitter responded in the best way possible. Apart from feminists scoffing (and yes, I was one of them), dads from all walks of life tweeted pictures of themselves with babies in carriers. Society has shifted, but Piers didn’t get the memo. What has this got to do with government? Plenty, actually. On Father’s Day this year, the TUC released figures showing that every year, 100,000 self-employed new dads don’t get a single day of paid paternity or shared parental leave. While on the one hand we have a £3 million government advertising campaign encouraging

Spectator Money

Correcting the FTSE

The FTSE100 fell by more than 10%, which is generally regarded as a ‘correction’. How does that compare with other ones recently? Dec 1999–March 2003 -49.6% Oct 2007–March 2009 -47.5% April 2010–June 2010 -16.1% Feb 2011–Sept 2011 -16.7% March 2012–May 2012 -11.8% April 2015-Feb 2016 -21.9%

Martin Vander Weyer Martin Vander Weyer

What can Monday’s Budget do to make business feel better?

‘Uncertainty is draining investment from the UK, with Brexit having a negative impact on eight in ten businesses,’ says Carolyn Fairbairn of the CBI. OK, let’s pause for a chorus of ‘She would say that, wouldn’t she?’ But even if we shade off for ‘scaremongering’, her survey (of 236 firms) is bleak: ‘44 per cent of businesses with contingency plans intend to stockpile goods… 30 per cent intend to relocate production and services overseas… 15 per cent intend to move jobs…’ And I’ve seen no rival surveys that contradict the gist of it. So what can Monday’s Budget do to make business feel better? Suggestions abound, and Chancellor Hammond is

Rory Sutherland Rory Sutherland

Why a four-day working week isn’t such a bad idea

Most people were scandalised by John McDonnell’s proposal to promote a four-day working week. But before we get incensed about giving people more leisure during their working life, we need to ask another question. If it really is so vital to the economy that people spend more time at work, then why does the government spend £41 billion every year (a third of the cost of the NHS) providing tax relief on pension contributions? This merely encourages older and more experienced employees to leave the workforce several years earlier than necessary. Remember, five years needlessly spent in retirement is 20 years that could have been spent enjoying a working life

Tuesday

Spectator Money

Best Buys: One-year fixed rate bonds | 23 October 2018

Savers who are looking for a fixed return on their cash but who don’t want to invest over the longer term will be pleased by latest research conducted by moneyfacts.co.uk, which shows a vast improvement to rates offered on one-year fixed bonds in the last two years. Here are some of the best bonds on the market right now.

Ross Clark Ross Clark

Why James Dyson isn’t a hypocrite for manufacturing in Singapore

Remainers’ first response to the news that James Dyson will build his new electric car in Singapore was to accuse him of hypocrisy. Here is a man who expects others to be patriotic, goes the argument, and yet when it comes to his own interests he dumps Britain and takes his business elsewhere. But those who try to make such accusations miss the point entirely. James Dyson has never argued for a protectionist, Britain-first policy. On the contrary, he has always argued for free and open markets. He just happens to think that those markets should extend beyond the borders of Europe. Singapore has won Dyson’s business because it offers

Thursday

Martin Vander Weyer

From Faangs to Baangs – why it makes sense to go for gold

The current stock-market correction has been steaming down the track since August and I claim no wisdom for having predicted it: the FTSE100 dipped below 7,000 at the start of the week, having shed all of the 10 per cent it had gained since it began to surge in April. Weaker UK growth forecasts from the EY Item Club, reflecting the impact of the Brexit impasse on business and consumer confidence, are just one factor in the autumnal mood. But let’s cheer ourselves up with a round of applause for our veteran investor Robin Andrews, whose ‘Faangs to Banngs’ trading idea I offered you on 1 September. His proposition was

Isabel Hardman Isabel Hardman

Chuka Umunna’s £451-an-hour new job will help his opponents no end

The news that Chuka Umunna is getting paid £451 an hour to chair a new centrist think tank will go down very well indeed with some of his Labour colleagues. It’s not so much that those MPs are just delighted for Umunna, as it is that they can use his £65,000 salary to undermine the chances of the new centrist party that this think tank might be working for. The Labour leadership is naturally worried about the idea of a breakaway centrist party, as it could rob Jeremy Corbyn of his chance to become Prime Minister at the next general election. But the Corbynite attack line against such a party

Tuesday

Ross Clark Ross Clark

Philip Hammond must not use rising wages as an excuse for hiking taxes

In two weeks’ time, Philip Hammond is expected to declare an ‘end to austerity’. Today’s figures on wage growth are a reminder of why he needs to tread extremely carefully on this. What he will mean is that austerity is over for the public finances – he is confident enough to start increasing government spending again. Many individuals and families, on the other hand, remain deep in personal austerity. There is very little room for tax rises without making people feel poorer. News that wages are growing at their highest rate – 3.1 per cent – since the economic crash of 2008/09 is, on the face of it, a cause

Matthew Lynn Matthew Lynn

The euro is the source of Macron’s troubles

A new interior minister. A new agriculture and culture minister. There wasn’t, despite some speculation, a new prime minister, but there will be lots of new fresh faces around the cabinet table. France’s dynamic young president Emmanuel Macron has finally re-launched his government after a wave of resignations in a bid to kick-start phase two of his term of office, restore some order to an increasingly chaotic administration, and, probably not co-incidentally, to rescue his tumbling poll ratings. The trouble is, his real problem is not the team around him. Nor is it his style, or resistance to his reforms, although both might cause controversy. In fact, it is becoming

Thursday

Tarek Hamoud

As Trump cuts funding to the UNRWA, the EU must fill the vacuum

On 31st August, in a move celebrated by Benjamin Netanyahu as a ‘blessed change’, the Trump administration announced it would cut all funding to the United Nations Relief and Works Agency (UNRWA). It was a decision with far-reaching and catastrophic implications: the US has long been the largest individual donor to the UNRWA, which serves millions of Palestinian refugees and their dependents in the Middle East. Despite putting at risk the schooling, healthcare and social services on which these refugees rely, Jared Kushner was dismissive and unapologetic. ‘This agency,’ he said, ‘is corrupt, inefficient, and doesn’t help peace.’ That isn’t the case. The move is a clumsy sweeping aside of

Tuesday

Thursday

Matthew Lynn

The Tories are wrong to ditch austerity

Schools will finally get a bit more money. Nurses and policemen may at last get a proper pay rise. Local councils can stop scratching around to see if there are any services left they can still cut and the Chancellor may even be able to lighten up budget day with a minor tax cut or two. As Theresa May used her speech at the Conservative party conference to announce the ‘end of austerity’, departments all over Whitehall were no doubt busy thinking of new ways they could spend the money that is about to be released. The politics of that decision might well be fine. A decade after the financial

Ross Clark Ross Clark

Why is the BBC blaming falling car sales on Brexit?

Congratulations once again to the BBC’s anti-Brexit propaganda unit, for its news website headline this morning: “Car sales plunge as Nissan warns on Brexit”. It takes talent to pin something on Brexit which even the Guardian admits is caused by something quite different – indeed, something which might more naturally be seen as constituting a case against the EU.     It is true that there was a sharp fall in car sales in September – which at 338,834 were 20.5 per cent lower than the same month in 2017. It is also true that Nissan has issued a warning that a no-deal Brexit, which could see tariffs of 10 per cent placed

Wednesday

Martin Vander Weyer

2018 finalists lunch – Midlands

Today we’re in the baronial setting of Hampton Manor Hotel in Warwickshire — a long iron shot from Birmingham Airport, but happily out of earshot of the fractious Tory Party conference up the road. We’re here to meet the Midlands regional finalists for The Spectator’s Economic Disruptor of the Year Awards: our host is Mark Embley, regional manager for our sponsor, the private bank Julius Baer, and our guests are Dr David Jehring, chief executive of Black Pear Software, Ian Firth, vice president for products at Speechmatics, and Steven Greenall, founder of Warwick Music Group. I’ve met or talked to some 16 of our 22 disruptor finalists so far, listened

Tuesday

Tim Morris

Why Brexit could be a boom time for Britain’s ports

Anyone who has followed the news over the past 18 months could be forgiven for thinking that, in our ongoing debate around Brexit, Dover is the only port currently operating within the UK. Its fate, it seems – and by implication, the fate of our other ports – is tied so closely to the outcome of our negotiations that if the right deal isn’t struck, every port in the country will become inert, with roads throughout the UK gridlocked with queues of lorries. Perhaps there’s something symbolic in this focus on Dover, our closest connection to the continent and, for many people, their route of holiday travel to Europe. But

Thursday

John McTernan

The fatal flaw in Labour’s politics

If we learned one thing from Labour Party Conference it’s that capitalism is bad. The union leaders said so, the delegates said so, Jeremy Corbyn, the Leader of the Labour Party, said so – at length. And do you know what? They’re right. Capitalism is bad, very, very bad – at defending itself. As anti-business policy after anti-business policy was announced, despair at the poverty of the response of the business lobby was matched only by grudging admiration for the message discipline of Corbyn and his supporters. The bar is set low in UK politics, where the monstrous incompetence of Theresa May’s Conservative government is matched only by the appalling