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Economics

  • Don’t believe the Scottish independence hype — I’d bet on Johnson’s tortoise to beat Sturgeon’s hare

    July 24, 2020

    For his first significant political event outside the Westminster bubble, timed for his one-year anniversary of becoming Prime Minister, Boris Johnson chose to go to Scotland. The significance of that choice cannot be overestimated.  Politics is as unpredictable as ever, and despite chancellor Rishi Sunak hosing Scotland with the billions confected by the Bank of [...]

  • Three charts suggest a V-shaped recovery, but economists are sceptical

    July 24, 2020

    British businesses reported the best growth in five years in July and shoppers spent their money at close to pre-coronavirus rates in June, data showed today in a positive sign for the UK economy. It was a stark contrast to two weeks ago, when figures showed that the economy undershot expectations in May with just [...]

  • Private sector grows at fastest pace in five years as UK economy reopens

    July 24, 2020

    Britain’s all-important services sector grew at its fastest pace in five years in July as much of the UK economy reopened from the coronavirus lockdown, a survey has shown. Private sector output as a whole also grew at its fastest clip since 2015 as manufacturing production picked up speed, according to the early survey reading. [...]

  • UK bosses more positive on hiring but worried about economy

    July 24, 2020

    Employers became more positive in July about making hiring and investment decisions for the first time since February, although more companies laid off workers as coronavirus bit the UK economy. Bosses’ confidence in bringing in new workers and spending to grow rose to a net level of four in July, according to the Recruitment & [...]

  • UK retail sales surge close to pre-lockdown levels in June recovery

    July 24, 2020

    UK retail sales almost recovered in June from their staggering drops during Britain’s coronavirus lockdowns, official data showed today. The volume of retail sales jumped 13.9 per cent from May to June as shops and non-essential stores opened their doors to customers once again following a lockdown that started on 23 March. Non-food store sales [...]

  • We can’t tax our way out of the Covid-19 crisis — instead, the chancellor must drive growth

    July 24, 2020

    There has never been a time to my knowledge when, in the run up to a Budget or other fiscal event, the Treasury has not highlighted the pressures on public finances which made the option for significant (or, indeed, any) net tax cuts unwise.  Typically, projected shortfalls in the state’s annual budgets have been in [...]

  • How badly will the UK unemployment rate spike when furlough ends?

    July 22, 2020

    Chancellor Rishi Sunak’s furlough scheme has so far saved the UK unemployment rate from sharp increases during the coronavirus lockdown, but it is drawing to an end. Consequently job losses are set to spike after furlough concludes in October, according to economists. Currently the government is paying 80 per cent of over 9m British workers’ [...]

  • ‘Euphoria’: Silver price surges and gold nears all-time high

    July 22, 2020

    Silver hit its highest price in seven years and gold surged close to an all-time record as investors bought up the commodities in anticipation of yet more economic stimulus from the world’s biggest economies. Silver rose as much as seven per cent to around $22.80 per ounce in morning trading. However, it then slipped back [...]

  • Why you should read the small print on alarmist Covid-19 death projections

    July 22, 2020

    Another day, another lurid, headline-grabbing number of deaths to expect from Covid-19.   This time, it was a study from the Academy of Medical Sciences. A second wave, we were warned, could kill 120,000 this winter in hospitals alone.   To be fair, this study was a projection rather than a forecast. A forecast is what is [...]

  • Rishi Sunak launches spending review and warns of ‘tough choices’

    July 21, 2020

    Chancellor Rishi Sunak has warned that “tough choices” will have to be made over government spending from 2021 onwards as he launched a comprehensive review of public sector budgets. The spending review comes as Sunak revises the overall spending plans made in the March Budget to reflect the huge impact coronavirus has had on the [...]

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