Spring Statement: Reeves should abolish the OBR
By strengthening the OBR, Reeves has created severe difficulties for herself. Vital decisions about our economic future should be made by politicians, not unelected quangocrats, says Paul Ormerod Later today we will know for certain what is in Rachel Reeves’ Spring statement, a budget to all intents and purposes. But as is usually the case […]
The bond markets must not be allowed block defence spending
The Treasury has pledged an extra £2bn for UK exporters to secure overseas defence orders. The Germans are funding increased defence spending through debt so why can’t we? The Chancellor needs to start telling a better story about the future direction of our economy, says Paul Ormerod President Trump wants European countries to spend five […]
If crises are the test of a nation, Western Europe is failing
The financial crisis and the pandemic have shown how Western Europe deals with crises. And it’s not pretty, writes Paul Ormerod Karl Marx certainly had the ability to encapsulate a complex phenomenon in a pithy and memorable paragraph. In a pamphlet on the Crimean War of the 1850s he wrote: “The redeeming feature of war […]
What ever happened to levelling up?
Levelling up has all but disappeared from the government’s agenda. That’s a big mistake for growth, writes Paul Ormerod Later this month Chancellor Rachel Reeves will deliver her Spring Statement. It seems to be waited on more in fear than hope. But one area of policy appears to have more or less disappeared from the […]
The West has been free riding on US defence spending
Western nations have been free riders on American defence spending for decades. We shouldn’t be surprised Trump is now calling us to account, writes Paul Ormerod Keir Starmer has announced an increase in defence spending to 2.5 per cent of GDP ahead of his crucial summit with Donald Trump on Thursday. But even this hasty announcement falls short […]
I’m sorry Ed Miliband, your big green energy plan is all fantasy
Ed Miliband’s green vision is admirable, but the history of energy consumption shows it is all but a fantasy, writes Paul Ormerod The energy secretary, Ed Miliband, has attracted criticism in large sections of the media. But he has, unlike some of his Cabinet colleagues, a clear vision about what he wants to do while […]
Yes, AI will wipe out some jobs. But this is the story of progress
AI will inevitably make some jobs redundant, but the benefits to society are far worth it, writes Paul Ormerod The world of AI has gone through exciting times in the last couple of weeks. The main event of course was the launch of the Chinese AI app DeepSeek. It looks very much like ChatGPT and almost […]
Starmer must remember humans respond to incentives, not rules
Rules are important to any civilised society, but Starmer has forgotten that humans respond far better to incentives, writes Paul Ormerod. As the Prime Minister, Keir Starmer, often reminds us, his father was a toolmaker. He himself is a lawyer. The two professions have a lot in common. Both require the following of well-established rules […]
Reeves has placed an uncertainty premium on the British economy
Rachel Reeves promised to restore economic stability, but the outcome of her various actions has been to increase uncertainty, says Paul Ormerod Daniel Ellsberg, who died in 2023 in his 90s, was a true Renaissance Man. After a stellar career as an economics student at Harvard, he served in the Marines before working for the […]
Forget the big infrastructure projects, SMEs are the key to unlocking growth
Dear Chancellor, forget the big infrastructure projects. Boosting the productivity of SMEs is the key to growth, writes Paul Ormerod The Chancellor, Rachel Reeves, has reportedly asked Cabinet colleagues to come up with ideas to boost economic growth. We might reasonably wonder why this exercise was not carried out during Labour’s long period of opposition. Still, something […]
