We need a new fiscal rule to rid the UK of its unsustainable debt levels December 3, 2012 IN A month’s time, millions of Britons will make a New Year’s resolution to lose weight. Over the next year, nearly 80 per cent of them will find this commitment too difficult and abandon it. UK governments of all colours have found it just as difficult to keep their fiscal promises over the last decade. [...]
Sluggish growth makes further cuts to spending more essential than ever December 3, 2012 SLOWER than expected growth will result in George Osborne missing his fiscal targets. In March, the Office for Budget Responsibility forecast 0.8 per cent growth in 2012, 2 per cent in 2013, 2.7 per cent in 2014 and 3 per cent in 2015. Now, the average of independent forecasters suggests 0.1, 1.2, 1.8 and 2.2 [...]
The company tax debate must focus on realistic reform December 3, 2012 THE Public Account Committee’s (PAC) ongoing criticism of large multinationals for their corporation tax payments is an ill-considered departure from a more sensible debate. Multinational companies, like Starbucks and Google, are by definition different to domestic businesses (like John Lewis or Morrisons). This is especially true of internet retailers like Amazon. Under the current law, [...]
After the turbulence of recent years, has the Eurozone finally managed to turn the corner? December 3, 2012 YES Ian Stewart The process of adjustment in peripheral Europe is starting to deliver results. The pace of change varies hugely, but some of the key indicators are moving in the right direction. Greece reduced its fiscal deficit before interest payments by a hefty 13 per cent of GDP between 2009 and 2012. Spanish and [...]
Rapid responses December 3, 2012 Capital gains [Re: Osborne must now face up to his fiscal failings, yesterday] As the chief executive of a UK-based small-to-medium sized business (SMB), I urge George Osborne to lay out a clear plan that would support business over the long term, and therefore kick start Britain’s economy. SMBs account for the vast majority of private [...]
The Chancellor can stick to his debt target by following Canada’s lead December 2, 2012 ON WEDNESDAY the Chancellor will announce whether he plans to stick to the government’s pledge that debt will fall as a share of gross domestic product (GDP) by 2015/16. Worse than expected growth forecasts make it more – not less – vital that he sticks to that plan. Economic forecasters are lining up to predict [...]
We need to put the past behind us and get the special relationship right December 2, 2012 ONLY a few months ago, talk of a special relationship between the US and the UK would have provoked some quizzical looks among many in the City. A number of British banks – Standard Chartered, HSBC and Barclays among them – had faced a summer of discontent as they were subject to accusations of wrongdoing [...]
How US politicians will respond to the looming fiscal cliff December 2, 2012 ONE of the few things that politicians in the United States are good at is dealing with a problem by kicking the can down the road. That’s what happened in August 2011 when Republicans and Democrats reached an agreement to avoid breaching a statutory ceiling on the federal government’s mounting debt. The agreement included the [...]
Could UKIP become the third party in British politics as Nigel Farage recently professed? December 2, 2012 YES Andrew Hawkins It’s the morning after the 2014 European elections and UKIP has won the most votes. This follows a string of by-election successes, regularly beating the Liberal Democrats or Conservatives into third place. UKIP averages 10 per cent in the polls, often ahead of the Lib Dems. Nigel Farage now demands to be [...]
Rapid responses December 2, 2012 New energy model [Re: Simpler energy tariffs will lead to higher bills and less competition, Thursday] It is a mistake for a prime minister to interfere in markets. Competition in the retail energy market was always a bad idea. Since the buying power of the domestic consumer is relatively small, competing for custom is correspondingly [...]