Ross Clark

Ross Clark

Ross Clark is a leader writer and columnist who has written for The Spectator for three decades. He writes on Substack, at Ross on Why?

Net zero is a gift to Nigel Farage in Scotland

From our UK edition

It wasn’t long ago that Nigel Farage seemed a hopeless sell in Scotland. In 2013, on his way to campaign in a by-election in Aberdeen, he didn’t get further than Edinburgh’s Royal Mile before he had to be escorted from a pub by police for his own safety. Ukip, which he then led, had a derisory presence north of the border – even when it was making in-roads into working class areas in the North of England. The destruction of North Sea oil and gas is very big deal for Scotland, especially in Aberdeen where Farage was campaigning yesterday What has changed to make Reform UK, Farage’s current party, serious contenders for the Hamilton by-election this week?

Starmer’s welfare cuts are nothing like ‘Tory austerity’

From our UK edition

Keir Starmer has already folded on the winter fuel payment, promising a partial reversal of the policy by reinstating it for pensioners in receipt of pension credit. How much longer before the proposed £4.8 billion cuts to welfare benefits go the same way? This morning, the Health Foundation think tank has issued a pronouncement that will be a red rag to critics of Labour’s welfare cuts: that the effect of Starmer’s reform of disability benefits will be four times as great as changes proposed by the Conservatives before the election and on a similar scale to George Osborne’s benefits cuts of 2015.

Reeves is right to slash funds for wealthy landowners

From our UK edition

It is beginning to feel a bit like 1998 all over again. That was the year of the first countryside march when it – supposedly – rose up in anger at the Blair government over its plan to abolish hunting, introduce the right to roam and build some houses for people to live in. Landowning interests, already reeling from Rachel Reeves’ decision to partially remove the inheritance tax exemption on agricultural land, are now gearing up to bleat about a proposal to slash the £2.5 billion a year budget for Environmental Land Management (ELM) – the scheme which replaced the Common Agricultural Policy (CAP) after Brexit.  It is reported that the scheme will be designed to be less generous, with payments being retained only for small farms.

Don’t pay the junior doctor Danegeld

From our UK edition

Who would have guessed that caving into union militancy and paying a whacking above-inflation pay rise, with no strings attached, would lead to even bigger pay demands? In one of its first acts after coming to power last July the Starmer government awarded junior doctors a 22 per cent pay rise, which they accepted and ended their run of strikes. Is anyone really surprised the BMA has come back this year demanding 30 per cent, threatening yet more strikes? It is not hard to guess what would happen were the government to cave in again: next year’s demand would come in at 50 per cent. Who would have guessed that caving into union militancy and paying a whacking above-inflation pay rise, with no strings attached, would lead to even bigger pay demands?

Is Rachel Reeves prepared to raise taxes?

From our UK edition

Some of the most infamous words in politics are ‘read my lips, no new taxes’ – uttered by George H.W. Bush as he accepted the nomination as the Republican candidate for the 1988 US presidential election. It helped him win that year but contributed to his downfall in 1992 as he failed to stick to his promise. We can argue how much of Bush’s defeat by Bill Clinton had to do with the broken tax promise and how much was to do with recession, but ‘read my lips, no new taxes’ should certainly have been on Rachel Reeves’s mind in recent months.

Reform is now a left-wing party

From our UK edition

How much longer are Reform’s critics going to be able to get away with calling it a right-wing party? It is an odd kind of right-wing party that proposes to reinstate welfare benefits that even Labour has decided are too expensive; that pledges to nationalise the steel industry and 50 per cent of utilities; and whose manifesto for the last election budgeted for £141 billion of spending increases over five years, including an extra £17 billion for the NHS. Nigel Farage’s party is only ‘right-wing’ if you define your political spectrum entirely in terms of attitudes to national borders and on ‘woke’ issues such as critical race theory and trans rights, or if you see climate change and net zero as a left–right issue.

Britain is enjoying another Brexit dividend

From our UK edition

Has there ever been a day when Brexit seemed such a good idea? The story of Brexit began to change on ‘Liberation Day’ on 2 April when Donald Trump announced a 10 per cent tariff on imports from the UK and a 20 per cent tariff on those from the EU. No longer was it possible for anyone to argue there were no tangible benefits from leaving the EU: here was one of them staring us in the face. Following that, all proposed tariffs were suspended for 90 days to allow negotiations. Since then, though, the story has changed dramatically – and in Britain’s favour. Thanks to the trade deal announced by Trump and Keir Starmer a fortnight ago, some tariffs on UK imports will be dropped altogether.

Is it any surprise doctors are trying their luck with more strikes?

From our UK edition

Did anyone really think that the incoming Starmer government was going to appease the public sector unions for long by stuffing their mouths with gold – awarding them fat pay rises without any requirement to improve productivity? When he awarded junior doctors a pay rise of 22 per cent last July, Wes Streeting told us that he had made more progress in days than the Conservatives had made in months. The strikes were over, thanks to grown-up government. Not so fast, Wes. Predictably enough, the government’s largesse towards towards the unions has merely served to embolden them. Now they are back for more – and the government finds itself unable to satisfy them.

Only now are Britain’s high streets busier than before Covid

From our UK edition

Finally, in a horrible week for Rachel Reeves which has seen inflation surge, the public finances take a dive and her authority undermined by Angela Rayner’s memo and the Prime Minister’s U-turn on the winter fuel payment, a glimmer of good news. Retail sales rose by 1.2 per cent in April. The Office for National Statistics (ONS) did, however, revise down March’s figure from 0.4 per cent growth to 0.1 per cent. The quarterly figures, which are more reliable, show that sales volumes were up 1.8 per cent between February and April. There is now a clear trend. Retail sales volumes bottomed out in December 2023 and have been generally rising since then.

Miliband’s 2030 clean power target looks increasingly impossible

From our UK edition

The answer, according to Ed Miliband in an infamously toe-curling rendition of the Bob Dylan song, is blowing in the wind. But no longer, it seems, if you are on the board of SSE. The energy company, which was one of the first UK electricity companies to commit in a big way to renewable energy, has just pulled £3 billion worth of investment in renewables, citing the 'changing macroeconomic environment' and delays in the planning system. For that read that the projects it had intended to build have become economically unviable now that we no longer have near-zero interest rates, and that the national grid is struggling to absorb so much intermittent green energy.    To put that figure into context, SSE is still planning to invest £17.

Is Britain heading for bankruptcy?

From our UK edition

We can thank Rachel Reeves for one thing: setting up a real-world experiment to show the Laffer curve in action. April’s figures for the public finances, like yesterday’s figures for inflation, are truly dreadful. April should have been a bumper month for tax receipts, being the month that the rise in Employers’ National Insurance Contributions (NICs) came into effect. Instead, borrowing surged to £20.2 billion in a single month. It took borrowing for the year 2024/25 to £148.3 billion, a smidgeon less that the Office for National Statistics (ONS) estimated last month but £11 billion higher than the Office for Budget Responsibility (OBR) had forecast. Government receipts in April did advance by a fairly modest £5.6 billion compared with April 2024.

Starmer’s winter fuel U-turn is a big mistake

From our UK edition

One of Keir Starmer’s first mistakes in office was to remove the winter fuel allowance from all pensioners other than those in receipt of pension credit. His latest big error is performing a U-turn and telling us that the government is, after all, looking at loosening the eligibility criteria, so that many more pensioners will qualify for the money next winter. Starmer’s explanation for his U-turn during Prime Minister’s Questions was bizarre How can both these things be true? Because the former was a political error, the latter an economic one. The optics of removing the winter fuel allowance at a time when millions of public sector workers were receiving large pay rises was terrible.

Thank God Angela Rayner isn’t Chancellor

From our UK edition

Rachel Reeves may have killed off growth with her raid on employers’ National Insurance contributions, but today comes a reminder that she is nevertheless the relatively mild face of the Starmer government. We can at least be thankful that Angela Rayner is not Chancellor. Labour’s deputy leader has written a memo to Reeves suggesting a number of taxes she would like to see increased, and which she believes – somewhat hopefully – would obviate the need for spending cuts at the next Budget. There are cabinet ministers who are even more hostile to the idea of low taxes than Reeves herself is She wants inheritance tax relief on Alternative Investment Market (AIM)-listed shares to be removed altogether (Reeves has merely halved it).

Rachel Reeves is to blame for the 3.5% inflation spike

From our UK edition

There is no positive spin to be put on this morning’s inflation figures, which show the Consumer Prices Index (CPI) rising from 2.6 per cent to 3.5 per cent in a single month. If you want to do the trick of stripping out energy and food prices to arrive at so-called ‘core’ inflation (how you can have a cost of living index which excludes two of the biggest costs faced by households defeats me) the picture is even worse – core inflation is even higher, at 4.5 per cent. The grim inflation figures are a sign that you cannot get something for nothing If you want to use the government’s preferred measure, CPIH, which includes an element of housing costs, then that too is higher than CPI, at 4.1 percent.

Miliband’s wind farms won’t ease Britain’s sky-high energy prices

From our UK edition

Rachel Reeves is perhaps not a great fan of Donald Trump, but she should be grateful to him nonetheless, and Ed Miliband even more so. The trade war sparked by Trump’s ‘Liberation Day’ tariffs is about to lower energy prices for UK consumers. According to a forecast by consultants Cornwall Insight, Ofgem’s price cap will fall in July by 7 per cent – to a level at which the average home with a dual gas and electricity bill will be paying £1,720 a year. It will reverse the uplift in the price cap in April and moderate the rise in the Consumer Prices Index (CPI), giving Reeves a bit of breathing room and – temporarily – diverting attention from the fact that Britain has the highest energy prices of any member of the International Energy Agency.

Under Labour, Britain is living beyond its means

From our UK edition

The bleak future of the UK’s public finances can be summed up in a few statistics. For the financial year just ended, the Office for National Statistics’ provisional estimate for the government’s deficit – the gap between income and expenditure – is £151.9 billion. The Office for Budget Responsibility’s estimate is that spending on welfare (including the state pension) will rise from £313 billion in 2024/25 to £377 billion in 2029/30 in today’s money – an increase of £64 billion. The government, meanwhile, has proposed changes to the welfare system, reducing Personal Independence Payments (PIPs) which it hopes will save £4.8 billion a year.

Rachel Reeves’s war on family businesses

From our UK edition

The Environmental and Rural Affairs select committee is surely right that the government imposed the inheritance tax changes on farmland without proper consultation – and ignored the likelihood that they will cause serious hardship for family farms. Never mind the threshold which Rachel Reeves claims will mean most farms can still be passed on IHT-free – something questioned by the NFU and other critics – the new rules will inevitably drive many larger farms out of business when the current generation passes on. But is there really any point in what the committee is proposing: that the changes are simply delayed for a year?

Is it any surprise junior doctors want more money?

From our UK edition

If the government was deliberately trying to encourage union militancy, it could not be making a better job of it. It is reported that junior doctors – or 'resident doctors' as we are now supposed to call them for fear of implying that they might be less qualified than consultants who have been doing their jobs for 40 years – could be in line for a pay rise of five per cent this year. This would be on top of the 22 per cent they were awarded last year. Meanwhile, nurses, who had a pay rise of 5.5 per cent last year, appear to be on course for a rise of no more than 2.8 per cent. Inflation, to put these figures into context, is currently running at 2.6 per cent. Can the government risk continuing to award much greater pay rises to junior doctors than to nurses?

What’s the truth about immigration and economic growth?

From our UK edition

If the consequences of Labour’s heavy losses in the local elections were not already clear, they became so in this morning’s press conference to relaunch the government’s migration policy. Reversing years of generally friendly attitudes towards migration, dating back to Tony Blair’s day – when the UK opened its doors to migrant workers from Eastern Europe seven years ahead of most EU countries – Keir Starmer has unashamedly tried to reposition Labour as an anti-immigration party. He lambasted the Conservatives for saying they would reduce migration before trebling it, and repeatedly used the Leave campaign’s slogan ‘take back control’.

Trump

Will Trump’s war on Big Pharma work?

Cynics will scoff at Donald Trump’s latest initiative: issuing an executive order forcing pharmaceutical companies to lower the prices of medical drugs used by US patients by between 30 and 80 percent. The President wants to impose what he calls a “most favored nation” rule, under which drugs companies would be allowed to charge US consumers no more than they charge in the lowest-priced country where they sell their product. That could have serious consequences for campaigns to fight disease globally, given that cheaper versions of drugs are often sold in developing countries which might not otherwise be able to afford vaccination programs and the like. Isn’t Trump supposed to be against price-fixing?