British private sector growth picks up as the UK consumer’s strong form continues March 3, 2017 Private sector growth picked up in February as services geared towards consumers continued to impress, according to a survey of British companies. The balance of firms from across the UK economy reporting growth increased from 10 per cent to 15 per cent positive in the three months to February, according to the Confederation of British [...]
US jobless claims fall to 44-year low to strengthen Fed rate rise case even further March 2, 2017 The number of people collecting unemployment benefits in the US fell to its lowest in 44 years, astonishing economists and prompting further expectations of an interest rate hike for the Federal Reserve at its next meeting on 15 March. There were 223,000 jobless claims in the week ending 25 February, a 19,000 fall from the [...]
Higher energy prices drive Eurozone inflation to hit two per cent for the first time in four years March 2, 2017 Eurozone inflation hit two per cent in February, beating the European Central Bank (ECB)’s target for the first time since January 2013. The year-on-year rate of inflation rose from 1.8 per cent in January according to flash estimates from the European Commission. The sharp rise over the months since November has mainly been driven by the [...]
Tinkering with business rates won’t fix a fundamentally broken tax on investment March 2, 2017 Business rates reform is crucial for the health of local communities across the country. Retailers pay a quarter of all business rates and it is the single largest tax paid by the industry. Put simply, the burden of property taxation is too high. It is a disincentive to invest in physical space. A system where [...]
Forget the trivial Single Market: Brexit’s true economic dividend will be a revival of self-reliance and liberty March 2, 2017 In order to understand the long-term impact of Brexit on the UK economy, imagine a river running upstream to downstream and out into the ocean. With this in mind, view conventional long-term economic performance as very much downstream, at the mouth of the river, with an emphasis on the performance of productivity and competitiveness. But [...]
Weak income growth set to hit poor households with children, warns the Institute for Fiscal Studies March 2, 2017 Median household income will not grow at all for the next two years, the Institute for Fiscal Studies (IFS) has predicted. In a new report published today, the IFS pointed out that if the Office for Budget Responsibility (OBR)’s forecast for average earnings is correct, median household income will not grow and will be just four [...]
Immigrants add £83bn of economic value to London March 1, 2017 Migrant workers in London with full time jobs each contribute an additional £46,000 net in gross value added (GVA) per year to the economy, research by PwC and London First reveals. A combined total of £83bn for all of London’s 1.8m migrant workers is added, making up approximately 22 per cent of the capital’s GVA. [...]
Bank of England Brexit rate cut had little effect on UK’s surprise growth says former deputy governor March 1, 2017 The Bank of England’s (BoE) actions to cut interest rates after the referendum had little effect on the UK's powerful economic growth, according to its former deputy governor. Sir Charlie Bean said: “It may have some small effect at the margin but I really don’t take the view that the policy package that was announced [...]
Keep calm and carry on: Deutsche Boerse boss confident about future as an independent company March 1, 2017 Deutsche Boerse will keep calm and carry on following speculation that its planned £21bn merger with the London Stock Exchange could be called off, the German Group's chief executive has said. "We feel very well prepared as a company for the future," Carsten Kengeter said today. On Sunday night the LSE revealed it was is dispute with [...]
It’s pure rubbish to claim a low tax, low regulation Britain would be a disaster March 1, 2017 Dame Minouche Shafik, deputy governor of the Bank of England, is leaving to become director of the London School of Economics. Last weekend, she gave her final interview wearing her Bank hat. Shafik issued what was described in the media as a “thinly-veiled warning” to the chancellor Philip Hammond. She stated that it was an [...]