The government is using Brexit as a scapegoat forits own failures
David Lammy, the Deputy Prime Minister, chose last week to reopen the issue of the UK rejoining the EU. Asked if we will go back into the customs union, Lammy not only refused to rule it out, but seemed enthusiastic about it. “That is not currently our policy. That’s not currently where we are. But […]
Whatever Reeves announces, Britain is still paying for lockdown
Regardless of the precise measures brought in by the Chancellor, Rachel Reeves, in the budget to be announced today, a fearful spectre haunts the public finances of the UK. Namely, the spectre of the costs of lockdown. In the calendar years 2017-19, immediately before the pandemic, the UK government borrowed around £50 billion each year. […]
My advice to Rachel Reeves? Learn how to spin a yarn
Macroeconomists spend much of their lives immersed in highly mathematical models of the economy. But at the top of the profession there is increasing interest in a much older tradition of what really drives the economy. Namely narratives. The story which people believe can be the key determinant of behaviour. Everyday commentary on the economy […]
Nobel Prize winners’ message is clear: excessive taxation inhibits growth
This year’s award for the Nobel Prize in economics, announced a couple of weeks ago, has not attracted much media attention. But the recipients have a lot to say about the central aim of the government’s economic policy. Namely, how to make the UK more innovative and generate economic growth. Joel Mokyr, an economic historian […]
Rational consumers reject cost of climate change
The headlines are full of bad news for Kier Starmer. But an important story last week was bad news for his Cabinet colleague, the Energy Secretary Ed Miliband. Miliband is well known for his devotion to Net Zero. Unfortunately for him, the electorate seem increasingly less enthusiastic about the concept. The Times newspaper carried detailed […]
Tube strikes: With union ingratitude on full display, will Labour finally change course?
As Tube strikes bring London to a halt, Labour must realise its pushover relations with trade unions have been to no avail, writes Paul Ormerod Keir Starmer has tried to signal a major reset of his government by his reshuffle of the Cabinet and the promotion of a batch of the new intake of MPs. A different […]
Could the Labour Party just disappear?
Precedent shows big political majorities like Labour’s are no cause for complacence – in fact, whole parties can even vanish in their wakes, writes Paul Ormerod Could the Labour Party disappear? The Labour Party has been a prominent feature of British politics for a century. But could it now just vanish? There is a clear historical […]
Has Reeves realised she’s reached the limits of taxation?
Much of the economic damage has already been done, but in ruling out wealth taxes and further pay deals with doctors, at least the Chancellor is allowing a shimmer of light to peep through, says Paul Ormerod England’s cricketers narrowly failed to score the 374 runs needed to beat India in the final Test match […]
Is Joe Root actually the greatest English batsman ever?
Joe Root has been acclaimed as the greatest English batsman ever, but is it actually true? Paul Ormerod delves into the stats Joe Root has delighted cricket fans for well over a decade. In the recent Test match against India, he moved into second place in the all-time world list of total number of Test […]
Starmer must face down the self-righteous clowns on his back benches
Keir Starmer’s attempt to select compliant MPs has backfired, producing a rebellious and ill-informed parliamentary party that has already successfully vetoed its own government’s economic policy, says Paul Ormerod A fundamental feature of the social and economic world is that intentions are not the same as outcomes. Morgan McSweeney and his colleagues exercised very close […]
Enough with black-hole blaming, Reeves is ignoring low hanging fruit
Raising taxes and plugging black holes, Labour’s discourse ignores proven (and easier) methods to boost productivity, says Paul Ormerod The Chancellor, Rachel Reeves, has a major financial problem. Much of this is of her own making. Her relentlessly negative narrative about the UK economy has in itself created a stagnant economy. The issue she faces […]
To find out who’s to blame for economic uncertainty, reeves should look in the mirror
Household spending is down £50bn since last year. It’s hardly surprising there’s so much uncertainty in the economy given the relentless negativity of the Chancellor herself, says Paul Ormerod Households in Britain are still saving large chunks of their incomes. The Office for National Statistics (ONS) confirmed this week that the percentage of income saved […]
Is Labour changing its mind about the OBR?
Labour is becoming increasingly disillusioned with the OBR as the reality sets in that no amount of forecasting can solve Britain’s spending problems, says Paul Ormerod How fashions change! Less than a year ago, Labour politicians were falling over themselves to praise the Office for Budget Responsibility (OBR). Labour was elected on a promise of […]
How much should you pay to see Billie Eilish? Don’t ask St Thomas Aquinas
Thomas Aquinas argued for the concept of a “just price”, but when it comes to concert tickets the correct price is the one determined by the market, says Paul Ormerod Summer is in full swing, and with it the usual round of festivals and music gigs. Alongside these, another tradition is emerging. Namely, extensive whingeing […]
Farage has a point, the UK should stop subsidising Scotland
It may have lost him the byelection, but Nigel Farage has a point about Scottish spending, writes Paul Ormerod Last week, Nigel Farage created a bit of a storm north of the border when he suggested that the longstanding formula for calculating how much Scotland receives from the UK Treasury needed “looking at”. Some commentators […]
