Kate Andrews is deputy editor of The Spectator’s World edition.
There was no easy option for the Bank of England’s Monetary Policy Committee (MPC) this week. Raising interest rates, even by a small amount, could add to financial instability following the collapse of Silicon Valley Bank and takeover of Credit Suisse over the past few weeks. But holding the base rate at 4 per cent
For the past few months, the debate over inflation in Britain has centred around just how fast the rate might fall. Both the Bank of England and the Office for Budget Responsibility’s most recent forecasts have been very optimistic, showing inflation falling back down to something approaching the Bank’s target of 2 per cent by
To what extent have the public finances really been brought under control? This morning’s update from the Office for National Statistics reveals that public sector net borrowing reached £16.7 billion in February. This is more than double the figure from February 2022 of £7.1 billion, and also well above the consensus estimate of around £11 billion.
Has a full-scale banking crisis been avoided? UBS has announced a takeover of rival Credit Suisse for just over $3 billion – half of its valuation on Friday and a tenth of its valuation just two years ago. The deal, timed to conclude before the Asian markets opened, is intended to stop any domino effect
A million pounds is very small change in the context of wider government spending – especially compared to the £20 billion of extra giveaways Jeremy Hunt has announced for the next few years. But sometimes that small change tells you more about a government’s priorities, and its sense of direction, than the big announcements. I
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The day after Jeremy Hunt’s Spring Budget has been fairly muted compared to recent Budget hangovers. What has been the overall reaction? On the global markets, Kate Andrews looks at the international response after Credit Suisse shares fell by more than 30 per cent yesterday. And what’s behind today’s breakthrough in negotiations between NHS Unions
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On the podcast: The Spectator’s economics editor Kate Andrews looks back on a week of economic turbulence and asks whether we should be worried, for her cover piece in the magazine. She is joined by the economist – and former ‘Trussketeer’ – Julian Jessop, to discuss whether we are entering a new era of economic uncertainty
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Jeremy Hunt, the Chancellor has unveiled his spring Budget, which was accompanied by forecasts predicting that the UK will avoid recession this year and that inflation will drop to below 3 per cent by the end of the year. But do the measures go far enough? Katy Balls speaks to Kate Andrews and Fraser Nelson.
The biggest surprise from today’s Budget was not an announcement, but the forecasts that gave Jeremy Hunt room for manoeuvre. The Office for Budget Responsibility has revised its forecasts for economic growth and inflation towards the upside. The OBR no longer expects the UK to enter into a technical recession (two consecutive quarters of negative
Why did nobody see it coming? When the late Queen asked this question about the crash of 2008, on a visit to a London business school, no one had a clear answer. Why, in a financial world crawling with regulators, did no one spot that subprime mortgages were toxic, on the brink of falling apart?
Is the UK’s labour market cooling down? While unemployment remains unchanged at 3.7 per cent, according to today’s update from the Office for National Statistics, the number of job vacancies ‘fell on the quarter for the eighth consecutive period’, down 51,000. The overall number of vacancies, however, still remains above a million. But the biggest indicator things
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Two stories dominated the news agenda over the weekend, one concerning a household name and the other involving a bank which – before Sunday – few had heard of. What is the political significance of Gary Lineker’s row with the BBC? And after the fall of Silicon Valley Bank, are we heading for a regional
A Chancellor’s Sunday media appearance before a Budget often serves as a ‘free pass’ – not because difficult questions aren’t asked, but because they can quite easily get out of answering by saying some polite version of: ‘you’ll have to wait and see.’ So instead of focusing on the upcoming Budget this Wednesday, the BBC’s
The government’s plans for the Illegal Migration Bill – which would see virtually all people arriving outside formal, legal channels deported – has raised many uncomfortable questions. Is a trafficked Romanian girl sold into sex slavery in Britain really exempt from protection under the Modern Slavery Act? Would an Iranian gay man, afraid for his
This morning’s release from the Office for National Statistics shows the UK economy grew by 0.3 per cent in January – an improvement on December 2022 figures, which saw the economy contract by 0.5 per cent. There are no revisions to the last update: the UK still avoids the technical definition of recession, and January’s growth was higher than
Shadow chancellor Rachel Reeves has promised to tackle what businesses tend to fear the most: instability. ‘In recent years, corporation tax has gone up and down like a yo-yo, while the government has papered over the cracks with short-term fixes like the super-deduction,’ Reeves told the manufacturing group Make UK’s annual conference this morning. Under
As tax rates rise in the UK, so do business jitters. The windfall tax on oil and gas companies – raising tax on profits to 75 per cent this year – has energy companies openly discussing plans to divert money elsewhere. The looming hike in corporation tax – from 19 per cent to 25 per cent for
Last month the Bank of England announced its tenth rate rise in a row, taking interest rates to 4 per cent. At the time it was speculated that the BoE might end there: not only were rates now catching up with market expectations of where they would peak, but there seemed to be more agreement
When Liz Truss ushered in the Energy Price Guarantee (EPG) last September, her government insisted that a universal subsidy scheme was necessary to make sure no one fell through the cracks this winter. But there was an internal argument for the scheme too: put a big down payment on energy bills now, No. 10 thought,
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Today marks one year since Putin sent the Russian army into Kyiv. Since then, what has been the experience of the Ukrainians who fled their homes and came over to the UK? Svitlana Morenets, a staff writer at The Spectator speaks to Kate Andrews about the year reporting on her war-torn country from Britain. Also joining the
