The Spectator

Home Stagecoach and Virgin could only manage to run the East Coast rail franchise for a few more weeks, Chris Grayling, the Transport Secretary, said, because ‘Stagecoach got its numbers wrong. It overbid.’ To cut 2,000 Royal Marines and the Royal Navy’s two specialist landing ships, a plan considered by the Ministry of Defence, would be ‘militarily illiterate’, the Commons Defence Select Committee said. Northamptonshire County Council gave notice that it would undertake no new expenditure because it expected to be overspent by £21.1 million by the end of this tax year; last year it opened a £53 million headquarters. The government proposed changes in the law that prevents heterosexual couples forming civil partnerships.

It’s easy to see why Donald Trump gets angry. He is presiding over a robust economy, growing at the fastest rate of any major economy. His recent tax cut has encouraged jobs and investment to come back to the United States. Apple alone is redirecting an extra $38 billion in tax towards the Treasury’s coffers. Other employers are using the tax cuts to pay workers a bonus: AT&T is handing 200,000 of its staff a payout averaging $1,000 each. There’s so much economic optimism that even Democrat voters say they feel better about the economy than they did under Barack Obama. But Trump isn’t taking much credit. He is still very much blamed — and his approval ratings are still very low, worse than any other President going into his second year.

Sir:  Sir James Dyson is right (Letters, 20 January). We need big farming; that is where our food comes from. But the elephant in the room is tax — inheritance tax and roll-over relief — which of course he conveniently skirts. Farming at this level needs subsidy precisely because land is too expensive for food production to give an economic return through income. And why is this? Because so much money chases land for tax reasons.  The massive distortion of the allocation of capital due to tax reliefs is one of the fundamental problems of the UK. The solution is not more tax, it is to reduce tax to a level so that the economic case , not tax, drives decisions; and then remove reliefs.

For Jeremy Corbyn and his allies, there has been no far-left takeover of the Labour party or its governing National Executive Committee. It’s true that, this week, Corbyn supporters came to control the majority of the NEC, completing their command of the party apparatus. But they see this as getting rid of the last of the right-wingers and enabling — for the first time — the Labour party to dedicate itself to the interests of the working class. It’s not the triumph of a fringe, they say, but the expulsion of a fringe. The Corbynite agenda of government expansion, mass nationalisation of railways, utilities and more, can now be pursued. Those still laughing at all that have not been paying attention.