Productivity isn’t such a puzzle: Five steps to unleash business’s potential July 5, 2015 Solving the “productivity puzzle” is consuming a lot of brain power in UK business and economic circles. But is it quite the conundrum it’s made out to be? Productivity is certainly a serious issue. The latest data offers a hopeful sign – as reported output per hour was 1.3 per cent higher in the first [...]
London can build Crossrail – so why won’t we give Heathrow a new runway? July 5, 2015 Back in 1971, the Roskill Commission on London airport expansion selected Cublington, a sleepy village in Buckinghamshire, as the site for a new South East airport. For those of us old enough to remember, the government rejected the idea, and since then politicians and policymakers have been trying to fix our airport capacity shortfall. Last [...]
Resilience and revival: 7/7 bombings and London’s bid for the Olympics 10 years on July 5, 2015 Today is the tenth anniversary of London winning the competition to host the 2012 Olympics. Tomorrow is the tenth anniversary of the worst terrorist attack on the capital in recent times, when 52 people were killed and 770 injured by bombs on the underground and a bus. From the pinnacle of celebration to the depths [...]
Even pro-Europeans admit the Greek crisis has been disastrous for the EU July 2, 2015 There is a growing gap between the way the Greek crisis is seen in the Eurozone and the way it is seen across the rest of the world. Everyone agrees that Greece is a poorly governed country and that Syriza has played a poor hand badly. But whereas many Eurozone policy-makers appear sanguine about the [...]
George Osborne’s challenge: Will he make his mark as a tax reformer? July 2, 2015 Next week’s Budget is a big opportunity for George Osborne – now he’s able to shape public spending and tax policy free of the constraints of coalition politics. One of his Budget themes should be tax reform. In the 70 years since the end of the Second World War, there have been 22 chancellors of [...]
How Greece could pull fragile Europe back into recession July 2, 2015 European stocks began the week with losses of 4 per cent or more, a clear sign that investors are concerned about the news from Greece. Talks of a referendum, liquidity issues and bank closures mean that the next few days will be a transformational moment in the 60 year project of building a unified Europe. [...]
After UK house price growth slowed in June, is the UK housing market now finally cooling down? July 2, 2015 Augustin Eden, a research analyst at Accendo Markets, says Yes The market is finally cooling down – to the point where it may actually start to contract on an annual basis. There is much to be done until house prices are actually “affordable”, of course. A Bank of England interest rate rise would deter buyers [...]
Sir Martin Sorrell on Heathrow expansion: Back it and get building – the government must move quickly on third runway July 1, 2015 After nearly three years spent carefully examining the evidence, the Airports Commission published its Final Report yesterday. Its definitive view, following what has been a long and robust process, is that London needs one new runway, and that the best option is to expand Heathrow. We believe that we need airport expansion, and that the [...]
George Osborne’s marginal revolution: Why Britain’s top rate of tax is unsustainable July 1, 2015 The so-called marginal revolution in economics occurred in the nineteenth century. George Osborne’s marginal revolution in taxation needs to start next Wednesday, with decisive steps towards a more sensible tax system. In many ways, next week’s Budget will reveal the real Osborne. Freed from the shackles of coalition politics, will we see a markedly free [...]
Greek voters will support the creditors – and Syriza will fall July 1, 2015 Monaco – Being away from the din of daily life has its advantages. Presently, I’m at the wonderful Fund Forum International Conference in Monaco, having designed several war games to play with the attendees, which illuminate how geopolitics can impact investment decisions. Beyond enjoying new and insightful company, a startling clarity – achieved only by [...]