This is what you get with a Conservative majority: A national living wage July 15, 2015 Why do we care about the economic recovery? Sometimes economists seem to forget, that we care about recovery not for some statistics on a chart, but because recovery creates more jobs giving people the dignity of work, and pay rises for those in work. In short, the purpose of economic recovery is to make people [...]
Scandinavia provides the evidence for George Osborne’s war on welfare July 14, 2015 George Osborne’s Budget has been met with predictable outrage from the poverty lobby. The cuts to the welfare budget will allegedly create shocking levels of deprivation. Young people in particular, it is stated, have been singled out for punitive measures. On the face of it, the arguments seem plausible. Many people on benefits will get [...]
Ignore the rhetoric: George Osborne’s July Budget was a retreat from market liberalism July 13, 2015 George Osborne’s desired message was clear. He claimed last week’s Budget was a new settlement for a “higher wage, lower tax, lower welfare country”. The Tory media duly reported it as such. But political rhetoric often doesn’t match reality. Osborne’s Budget fails on his own terms, and marks a retreat from the market-based consensus of [...]
How peer-to-peer lending can help wean the UK off artificially cheap credit July 13, 2015 The Budget contained headline-grabbing announcements on banks and pensions. But there’s been little commentary on the chancellor’s declaration that “the government is against unfair subsidies wherever we find them”. This immediately got me thinking about some of the disparities in the financial system and, in particular, the Funding for Lending Scheme (FLS). It’s almost [...]
CBI: Apprentice levy won’t fix skills crisis July 12, 2015 Britain’s top business group will lash out at the government’s new apprenticeships plan today, arguing that the move is “unlikely” to help fix the UK’s skills shortage. The Confederation of British Industry (CBI) publishes a survey this morning showing that over half of firms are afraid that they will not be able to find staff [...]
Business secretary Sajid Javid defends “regressive” Budget on Marr July 12, 2015 Business secretary Sajid Javid has defended criticism of the government's Budget as regressive, following an analysis by the Institue of Fiscal Studies, concluding it was "not the Budget of a tax reforming chancellor". "As in every Budget, there will be some losers and some winners," said Javid, responding to questioning on the BBC's Andrew Marr [...]
Budget 2015: Why tech startups based in the “Northern Powerhouse” were left disappointed with George Osborne July 10, 2015 A whopping £100bn. That’s what the digital industry contributes to the UK economy. A thriving industry and a significant driver of UK economic growth, the digital economy is growing faster than the average of 8.1% across the G20 countries and is expected to grow at 11% a year this decade. Read more: These are the [...]
From the Tube strike and July Budget to Battle of Britain and the 7/7 London bombings anniversary: Here’s what got us talking this week July 10, 2015 There was a technical fault in New York. There was a cocktail cloud. And somewhere in crowdfunding land, there was a jacket that would make all your commutes suddenly so much better. Here's what got us talking this week 1) Battle of Britain celebrations began They kicked off with a flypast over Buckingham Palace, but [...]
Rationale of bank surcharge under fire as IFS think tank blasts George Osborne’s 2015 July Budget July 9, 2015 A leading think tank has criticised the volatility of the UK’s bank levy and the thinking behind a new bank surcharge as part of a wider assault on what it described as a “deeply disappointing” Budget. There would have been 13 different bank levy rates in 10 years by 2020 under Wednesday’s Budget plans, [...]
City plays down living wage cost fears but hospitality industry could struggle July 9, 2015 Analysts predicted yesterday that UK retailers would largely dodge the effects of the new national living wage but warned the leisure and hospitality industry would face tough times. In a surprise move on Wednesday George Osborne announced a new minimum wage of £7.20 per hour from April next year for workers over the age of [...]