Borrowing to invest is all very well but what about value for money?
The precise contents of the budget are still secret. But a widely trailed theme is that the Chancellor, Rachel Reeves, wants to create as much scope as possible for extra public sector investment. She appears to be willing to rewrite the existing fiscal rules in order to accommodate the increase. In principle of course there […]
Will carbon capture work? Nobody knows – and that’s the problem
The government confirmed this month the funding for the UK’s first carbon capture sites. The technology, it is claimed, captures CO2 emissions before they reach the atmosphere and stores them away safely. Based on Merseyside and Teesside, the project will have almost miraculous powers. It will create 4,000 jobs directly, as many as 50,000 in […]
The threat of higher taxes is already harming growth
The Chancellor, Rachel Reeves, had made no secret of her desire to make economic growth her top policy objective. She reinforced the message this week in an interview with the Financial Times, using the mantra “invest, invest, invest!”. Perhaps unwittingly, this carries echoes of Karl Mark’s memorable phrase in Das Kapital: “Accumulate, accumulate. That is Moses and the […]
The main task of the next Tory leader is to repaint the party’s image
Since the election in July, Starmers have been the stock to short. In the middle of that month, the Prime Minister had a net approval rating of plus 19 per cent. It is now minus 26 per cent, a huge 45 point turnround. But as with all stocks, past performance is not necessarily a guide […]
A lesson from King Canute for the EV transition: You can’t force hype
The total victory of the electric car is in sight. For the first time ever, the total number of all-electric cars on the road has recently exceeded those of petrol. Just this August, a massive 94.3 per cent of all new car sales were all-electric. This means that we will hit our target – all new car sales […]
Haldane is right – the Chancellor’s doom-mongering is dangerous
The Chancellor, Rachel Reeves, often mentions her experience as an economist at the Bank of England. But she has been taken to task by no less a figure than the former chief economist of the Bank, Andy Haldane. Haldane notes that “just after the election, there was a sense of refresh, a sense of renewal, a […]
Is there such a thing as a ‘fair’ price? Definitely, maybe…
The pricing of tickets for the forthcoming Oasis tour has stirred up a major controversy. This is not just on social media. Lisa Nandy, the culture secretary, has promised it will be included in a government review of pricing at gig events. One of her cabinet colleagues, Lucy Powell, has expressed personal outrage at the amount she […]
Spending without productivity improvements won’t lead to better public services
The decision by the government to stuff money into the bank accounts of the train drivers and junior doctors has been widely discussed. But the constant insistence by the doctors, and many others in the public sector, that they have in some ways suffered since the year 2010 has received much less attention. The use […]
Do long prison sentences work? Economics has the answer
Does prison deter crime? The recent riots have rather left the government facing both ways on the matter. On the one hand, the Starmer administration has not just gone along with the previous policy under which most inmates served just 50 per cent of their allotted sentences. They have reduced this to 40 per cent. […]
Don’t be so quick to dismiss the ‘doped Olympics’ – at least they’re honest
Despite all the glitches and the controversies, the Olympics have provided a great spectacle of skill and prowess. Not least was the dramatic men’s 100 metres final, won by America’s Noah Lyles by five thousandths of a second in a time of 9.79 seconds. Wildly hailed as the greatest ever 100 metres final, seven of […]
