Misguided calls for further stimulus misunderstand Britain’s downgrade February 25, 2013 FRONTLINE ECONOMICS BRITAIN’S downgrade became inevitable on 29 November 2011. Before then, the chancellor was committed to eliminating the structural deficit within five years, and to getting net debt as a proportion of GDP falling by 2015. But new forecasts, presented on that day’s Autumn Statement, indicated that he wouldn’t achieve the first target on [...]
Why the coalition may hope for Ukip victory in Eastleigh February 25, 2013 THE Eastleigh by-election is looking like a turning point for the coalition. Opinion polls suggest the Lib Dems were just about ahead of the Conservatives going into the weekend, with Ukip surging rapidly into third. But that was before most Conservative voters had the chance to reflect upon the loss of Britain’s AAA rating – [...]
Letters to the Editor February 25, 2013 Rating Loss [Re: Loss of UK’s AAA rating will intensify the pressure on sterling, yesterday] The loss of the AAA rating may be symbolic, and markets may not consider it a disaster, but it symbolises the decline of Britain as a confident economic power. Medium-term growth forecasts are depressed, and nothing is being done to reverse [...]
Three reasons why Britain’s credit downgrade is no mere technicality February 24, 2013 A MAJOR irritation for anyone attempting to engage in an informed public discussion of economic policy is the media’s desire to latch onto any piece of news which makes a snappy headline. No one pretends that the majority of the public knows – or much cares – about how the ratings agencies work, but the [...]
How the City can play its part in tackling youth unemployment in London February 24, 2013 THE news that several London boroughs – including some that neighbour the Square Mile – are among the areas worst-hit by child poverty is a stark reminder of the tough economic climate many people are facing across the capital. It more vital than ever, therefore, that the City demonstrates how the positive relationship between finance [...]
The audit market wasn’t working: here’s how to fix it February 24, 2013 IN A wide-ranging set of findings, the Competition Commission has concluded that there are significant flaws and a lack of competition at the large company end of the UK audit market. The Big Four group of accountancy firms now acts as auditors for 90 per cent of Britain’s listed big companies. The problem, as diagnosed [...]
Letters to the editor February 24, 2013 Rising inflation [Re: Britain: a case study in low-growth economic mediocrity, Friday] Historically, inflation has followed an economic recovery – but not this time. British manufacturing (secondary sector) may be helped by a lower pound, but our economy now operates more in the tertiary sector. The real concern is not the manufacturing industry, but the [...]
Coalition U-turn on private prisons will undo 20 years of real progress February 22, 2013 THE coalition’s pursuit of competition in healthcare may have grabbed the headlines, but it was the Ministry of Justice that had made the most headway. In 2011, its Competition Strategy set out a “guiding principle” that competition will apply to all services not bound to the public sector by statute. After two decades of limited [...]
Google Glass won’t save humanity – but could show us a larger richer world February 22, 2013 THE LONG VIEW TWO VISIONS of our technological future are battling it out this week. Google has released a promotional video celebrating the potential of its astonishing, voice-activated heads-up display Google Glass, complete with acrobats on video chat in mid-air. Meanwhile, the new series of Charlie Brooker’s TV show Black Mirror continues with a bleak [...]
How clever traffic management can boost UK growth February 22, 2013 BRITAIN’S roads are being choked by a swarm of unnecessary, expensive, and damaging restrictions. Between 2000 and 2008, the number of traffic lights rose by over 30 per cent, boosted by an extra 1,800 imposed on London’s streets under former mayor Ken Livingstone. There are now over 30,000 signal-controlled junctions and 25,000 pelican crossings across [...]