Iceland’s reticence to unwind financial crisis capital controls will prove costly in the long term August 1, 2016 Whether because of the enthusiasm of its football commentators or interest in its EEA arrangement as a model for post-Brexit UK, Iceland has been in the news frequently recently. Its economy has been growing fairly rapidly in recent years, up around 30 per cent from its 2009 trough, though still more than 20 per cent below [...]
As French growth grinds to a halt, is the country’s economic model fundamentally broken? August 1, 2016 Tim Worstall, senior fellow of the Adam Smith Institute, says Yes. France’s economic model is irretrievably broken. Along one axis we have a spectrum of possible economic models. We can have low tax and redistribution market economies and high tax and redistribution ones. Non-market economies do not work. Further, the more we tax and redistribute, the [...]
Legislators must not be fooled by the latest insolvency figures July 29, 2016 The latest insolvency statistics released yesterday by the Insolvency Service paint a positive picture for UK businesses, renewing hopes that struggling firms can gain access to the help they need. However, business owners and legislators must look beyond the figures and act now to prepare for future market shocks. In the second quarter of 2016, the total [...]
This is why Byron Hamburgers’ immigration scandal backlash isn’t fair July 29, 2016 Following the detainment of 35 illegal immigrants found to be employed by popular restaurant chain Byron Hamburgers, many former customers have mobilised on social media, vowing to boycott the restaurant and shaming them for their recruitment practices. But is the backlash the restaurant has received fair? I would argue not. From a legal perspective, employers [...]
PM’s takeover test may do more Arm than good July 29, 2016 We're less than a month into Theresa May’s administration but there’s already a worrying air of economic policy schizophrenia drifting through Whitehall. The new Prime Minister has the most daunting in-tray of any incoming Premier for decades, but she needs to flesh out her vision for corporate Britain fast; what she has offered so far [...]
Hinkley Point C: Prioritising the politically sexy over the economically rational is a waste of money July 29, 2016 The new nuclear plant at Hinkley Point, which has finally been approved by EDF’s board, will be the most expensive power station anywhere in the world. Beset by delays (first proposed in 2006, it was meant to come online in 2017), it won’t be operational until 2025 and EDF will still receive its enormous £30bn [...]
How Britain can boldly seize the new opportunities created by Brexit in trade and beyond July 28, 2016 After the historic Brexit vote, the UK faces an inflection point, as does the world itself. What Britain does in the next few months and years will have a big impact on the global economy. We may choose to be timid about our future and limit ourselves to a muted conversation with the EU about [...]
Leaving the EU only strengthens the case for expanding both Gatwick and Heathrow July 28, 2016 As MPs prepare to jet off on their summer holidays, there is one big decision that awaits their return: where to build a new runway in London and the South East. This is a decision that has now dragged on beyond all belief. When the Airports Commission published its final report over a year ago, we [...]
Failure to reform refugee laws risks the unravelling of liberal democracy across swathes of Europe July 28, 2016 One of the great paradoxes of this era of globalisation is the narrowing of many Western minds about the world that lies beyond our own culture and values. For sure today’s opinion formers – and indeed the vast majority of our population – are better travelled than ever, but the dominance of US culture and [...]
As it says it’s in a “strong position to withstand uncertainty”, is Lloyds right to be so bullish after Brexit? July 28, 2016 Laith Khalaf, senior analyst at Hargreaves Lansdown, says Yes. It’s not a great time to be a bank, but the sector is in much better shape than it was going into the financial crisis. In particular Lloyds has simplified its structure to focus on key strengths in the UK retail and commercial banking market. There may [...]