Matthew Lynn is a financial columnist and author of ‘Bust: Greece, The Euro and The Sovereign Debt Crisis’ and ‘The Long Depression: The Slump of 2008 to 2031’
Ten billion here. Twenty billion there. At least we now know where Rishi Sunak is getting all the money from. As of today, the Bank of England has quietly started directly financing the government. Instead of selling gilts to fund the difference between what it raises in taxes and what it spends the Bank is
In some ways we will miss John McDonnell. His reheated 1970s student union Trotskyism was always an easy target for a column. From free broadband, to nationalising great swathes of industry, to raising taxes to punitive levels, and banning just abut anything he disapproved of, he managed to come up with a constant stream of
Rising death rates. Economies closing down. People forced to stay at home. The coronavirus is a health, social and economic emergency for every country where it hits. But in Europe it has also mutated very quickly into something else as well, and which, while it may not be quite so threatening in the short-term, could
Ten billion? Twenty billion? Thirty billion? To borrow a phrase from the American senator Everett Dirksen when scrutinising the escalating costs of the military, ‘pretty soon you are talking about real money.’ Chancellor Rishi Sunak has already thrown huge sums of money at rescuing the economy. He may well spend a lot more over the
It will be impossible to calculate. There will be widespread fraud. And there is no mechanism for sending out the money. As the Chancellor Rishi Sunak scratches around for ways to bail out the UK’s five million self-employed in the same way he has done for employees he faces plenty of obstacles. No doubt his Treasury
At least no one can say it isn’t bold. The United States is fiddling around with some possible cuts to payroll taxes. Most of Europe is stuck with some printed money from the ECB. But the UK is embarking on one of the most radical experiments in modern economic theory, and one that will no
A £330 billion package of loans to business. A huge tax break to any company in the hospitality or leisure industry. Mortgage holidays to anyone who has been impacted by the coronavirus. People can accuse the Government of being behind the curve on delaying the spread of Covid-19 through the population. But it is hard
A dramatic dawn cut in interest rates. A huge blast of public spending. And immediate cash help for companies that might find themselves temporarily in trouble as their customers stay at home and staff call in sick. We will find out over the next few weeks whether the British government has done enough to fight
It is too expensive. It mostly goes to Southerners who already have plenty of money. And it doesn’t even work very well, while the money would be better spent elsewhere. As the Chancellor puts the finishing touches to his Budget, the leaks suggest that the most generous tax relief for entrepreneurs will either be curbed,
Supply chains are shutting down. Factories and offices are closing. Flights are being cancelled, conferences postponed and football and rugby games rescheduled. It remains to be seen how much of a blow the spread of the coronavirus turns into for the global economy. But one thing is now certain: it is going to lead to
She’s back. With Brexit ‘done’ and with most of the country just grateful to have moved on from the whole saga, we might have thought we had heard the last of Gina Miller. Miller, who became something of a figurehead in the anti-Brexit movement, could quietly return to doing whatever it was she used to
We will export less. There will be less competition. Prices will be higher and productivity lower. Textbook economics tells us that trade friction – that is anything that makes it harder for goods or services to flow across borders – is a very bad thing. So why is the British Government suddenly accepting trade frictions
It will be big, shiny and it will make a difference. Even with its astronomical and rising cost and its wobbly economics, it is possible to see the gut appeal of HS2, especially to a big spending government such as this one which can borrow freely at virtually zero cost. After all, it needs to
At least no one will be able to accuse it of not caring about the environment. The government has just bought forward its ban on all diesel, petrol and hybrid cars to 2035. From that date onwards, you will only be allowed to buy electric or hydrogen vehicles. The gas-guzzling, polluting SUVs we all like
It is hard to imagine there will be much of a meeting of minds. As the new president of the European Commission Ursula von der Leyen meets with the newly re-elected British Prime Minister Boris Johnson today the pleasantries will quickly give way to a strong clash of views. With our departure from the EU
Stock markets are hitting record highs. New companies are being listed. Fortunes are being minted. The last year has been a great one for investors, and so has the last decade, as what was already one of the longest bull markets acquired fresh impetus. There is one exception to that, however, and if you happen
Just when you might have thought that our departure from the EU was finally dealt with it turns out another cliff edge is looming. We have only a year to agree a trade deal with the rest of Europe. Already there are scare stories about how we may crash out without one, and plenty of
The most vocal opponents of our decision to leave the European Union have been the City and big business. For the last three years, from the CBI to the Bank of England to the FT and countless FTSE chairmen and trade groups, there have been hysterical warnings about the consequences of leaving. As Project Fear
It is still too close to call. And the odds are still on a Tory victory. Even so, with the polls narrowing, with lots of constituencies likely to change hands and with plenty of voters still to make up their minds, there is still a real chance that by Friday morning Jeremy Corbyn could be
Less than the cost of a Spotify subscription. Less than Netflix charges you every month. True, you might not be able to get the latest Taylor Swift remix or episodes of Stranger Things, but the Labour Party is trying to reach out to the streaming generation with the claim that the state costs you less than either
