How Britain can end the curse of infrastructure white elephants forever March 5, 2015 No question, Britain has an infrastructure problem. A fast-growing population, hitting 70m by 2030, no fiscal surplus for another five years, and no recovery to the national debt levels of 2007 until 2030 will put even further strain on it over the coming years. But financing infrastructure in an era of prolonged austerity requires some [...]
Would the failure to hold TV debates ahead of the election be a national embarrassment? March 5, 2015 Katie Ghose, chief executive of the Electoral Reform Society, says Yes Compared with other democracies, Britain has been extremely late to the party when it comes to TV debates. Voters around the world are used to hearing directly from party leaders in the run up to an election, and it gives them a chance to [...]
Standard Chartered bonus bungle shows investors need to speak up March 4, 2015 Falling profits, boardroom turmoil and a declining return on equity: by any measure, Standard Chartered’s 2014 was a year to forget. So the decision of Peter Sands (whose resignation last week was met with a surge in the bank’s share price) to forgo a variable pay award for the year was necessary to avoid a [...]
How to ensure twenty-first century companies invest for the long term March 4, 2015 In the twentieth century, firms were predominantly capital-intensive and competed on cost efficiency. Companies with the most efficient factories could outcompete their rivals and become market leaders. The twenty-first century firm is different. Competitive success now depends increasingly on product quality and innovation. These in turn hinge on a company’s intangible assets, such as its [...]
Living standards are finally recovering – but we ignore poor productivity at our peril March 4, 2015 The metamorphosis of Labour’s attack lines on the economy has been a sight to behold. In the early years of this Parliament, the party argued that spending cuts were being implemented “too far and too fast”. After that came the infamous “flat-lining growth” hand gesture, and finally the “cost of living crisis”. This latter criticism [...]
We can protect the City’s interests in Europe – and we now have the proof March 4, 2015 Wednesday 4 March 2015 could come to be seen as a defining moment in Britain’s relationship with the rest of the EU, and for the City of London in particular. This is because of a ruling by the European Court of Justice (ECJ) yesterday, which upheld a vital British claim protecting the City from Eurozone [...]
As the government sells its stake in Eurostar for £757m, is this a good deal for taxpayers? March 4, 2015 Lord Paul Deighton, commercial secretary to the Treasury, says Yes There is no value in government owning assets that it doesn’t need to. It ties up resources that could be used for other objectives, like investing in new infrastructure or paying down debt. Eurostar is such an asset. It is managed on a commercial basis [...]
Budget 2030: What will chancellors of the future have to grapple with? March 3, 2015 Red box at the ready: it’s two weeks until George Osborne delivers his final Budget of this Parliament. As it is happening only days after Nesta’s future-gazing London festival FutureFest (taking place on 14 and 15 March), we’ve been speculating as to what the Budget in 2030 might look like. Let’s take a look into [...]
Mario Draghi calling: Why the ECB’s QE may struggle to reach €1 trillion March 3, 2015 The European Central Bank’s (ECB) version of quantitative easing (QE), which was announced to much fanfare in January, involves the purchase of bonds from both institutions and individuals. ECB president Mario Draghi hopes that the proceeds of these sales will be used to buy other assets or to lend, thereby oiling the wheels of the [...]
There’s nothing inevitable about slower growth – but we must embrace change March 3, 2015 Are we doomed to secular stagnation, to permanently lower rates of economic growth? The debate was sparked off nearly a decade before the financial crisis by the top US economist Robert J Gordon. He took a pessimistic view of the impact of the new wave of technology on productivity and economic growth. The latest contribution [...]