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 [...]
Is delivering a third runway at Heathrow even feasible? July 1, 2015 John Longworth is director general of the British Chambers of Commerce, says Yes The Commission has provided a clear conclusion that Heathrow is best-placed to provide the type of capacity crucial for the UK’s long-term prosperity. It has laid out evidence on all the potential impacts for a new runway, including a clear cost plan [...]
Why it’s public sector productivity George Osborne should worry about June 30, 2015 Improving the UK’s lagging productivity record is a hot topic among economists and politicians at the moment. Next week, the chancellor is likely to produce a productivity plan alongside his Summer Budget, which is set to find additional savings and enshrine budget surpluses into law, all without raising the rates of income tax, national insurance [...]
Child poverty is thankfully not rising – but the archaic definition needs to go June 30, 2015 David Cameron is feeling the heat. This is not just a consequence of the sudden dramatic rise in London temperatures. The need to extract something meaningful from our EU partners and the increased threat of terrorist attacks are sleep-depriving problems. But the Prime Minister did have one good result during the past week. Despite widespread [...]