Britons squeamish to spend their savings are jeopardising our economic recovery

The economic recovery is under threat. British consumers are saving and not spending. The Office for Budget Responsibility (OBR) estimates that during lockdown, households accumulated a massive £180bn of so-called “excess savings”.   Earlier in the year, most economic forecasts assumed that these would be run down. Lockdown had constrained people’s normal behaviour and with the […]

In the end, the Swedes really did have the last laugh with a relaxed Covid approach

They never give up. The finger waggers who know what is good for the rest of us; the epidemiologists trying to intimidate us with their seemingly terrifying but actually rather trivial models of applied mathematics. The vested interests in the NHS creating excuses for the inefficiencies inherent in the system. If we already have restrictive […]

Rishi Sunak vs Boris Johnson: to spend or not to spend?

Rishi Sunak has directed his energy into recasting the Treasury back to its traditional role – the guardian of the public finances. The Chancellor notched up a substantial victory after education recovery tsar, Kevan Collins, resigned earlier this month, after his demand for £15 billion for catch-up programmes in schools was beaten down to a […]

Longer lockdown based on hypotheticals would come with serious economic costs

The penny is finally beginning to drop. The health service’s focus on giving absolute priority to the treatment of Covid-19 generates costs and problems on a massive scale. Chris Hopson, chief executive of NHS Providers, has warned of the huge pressures on the NHS from the backlog of non-Covid cases. Many of these are life-threatening […]

Unemployment has stabilised but there will be economic pain ahead

There are high levels of business optimism. Survey after survey has told us this, from reports from Deloitte on large companies to evidence from the Federation of Small Businesses. Consumer savings are at an all-time high. People are itching to get out and spend the money they have been forced to accumulate. All in all, […]

Government scientists must be transparent about flawed Covid models

The strength of the economic recovery as Britain emerges from lockdown is a hotly contested subject among economists. Some believe there will be a massive surge in demand as consumers celebrate their freedom, others argue it will take time to claw back confidence. Economic forecasts are subject to the same faults as any projections, as […]