Coalition tinkering on family tax and pensions is too little too late January 7, 2013 THE foreword to the coalition’s mid-term review could have been written in the early 1970s. Perhaps this is not surprising. Policymaking tends to lack a sharp edge in coalition. Compromises must be made, and this can lead to bad decisions. Changes to student fees are a prime example. Most students will pay a lot more [...]
The dynamics of QE have set the Bank of England on an unintended journey January 7, 2013 SINCE the financial crisis, the Bank of England has made use of some highly controversial monetary policy measures to help the UK economy recover. The most recent was the chancellor’s decision to claw back £35bn of the interest payments the Bank of England made from its holdings of government bonds. This took several economists by [...]
Basel III extension is a pointless tonic to a deeper disease January 7, 2013 WHAT should discipline how much cash a business keeps aside to service its debts – what we might call its “liquidity buffer”? The answer’s pretty obvious: how much the debts are; how often they fall due; to what extent they can be called up early; how secure are the inflows from a business’s cash-generating activities [...]
As Gérard Depardieu flees to Russia, will the 75 per cent tax rate damage France? January 7, 2013 YES Emmanuelle Savarit François Hollande’s policy of a 75 per cent rate of income tax for top earners is already a disaster for the country’s image, and it will have a negative impact by reducing France’s economic competitiveness. France needs entrepreneurs and risk-takers to create wealth. Heavy taxation is unfair on talented people who create [...]
Rapid responses January 7, 2013 Broadband policy [Re: Think tank slams plan to splash out on UK broadband arms race, yesterday] This is an essential look at the UK’s costly and ineffective broadband policies. But it fails to recommend immediate policy changes that would result in much-needed, competition for fixed line and mobile internet access. Allowing wholesale internet service providers [...]
The coalition’s lack of purpose has ruined our freedom to fail or thrive January 6, 2013 A SOCIETY must provide its people with certain basics, including security, food and shelter. A civilised society should also provide freedom. There is no precise definition of the term, but it is basically a status that allows people to do what they want, provided they do not interfere with the freedom of others. A market [...]
The government must use its mid-term review to focus on our role in Europe January 6, 2013 THIS week will see the coalition government publish a mid-term review that will look back at its achievements, and set the agenda for the period running up to the next general election in 2015. In many ways, the coalition has already exceeded expectations by overcoming political differences to still be a fully functioning government halfway [...]
Flailing high street has worse to come in the year ahead January 6, 2013 AFTER holding their breath for the last few weeks, some retailers can at last allow themselves a cautious sigh of relief. Positive sales numbers from the likes of John Lewis and Next have given the sector a much-needed dose of optimism, resulting in a slight hike in share prices for some of the larger players. [...]
Should the government’s policy to cut child benefit for higher earners be welcomed? January 6, 2013 YES Sam Bowman These reforms are the next step to rolling back the culture of benefits for all, and they should be applauded. Nobody earning more than £50,000 a year needs extra money from the state. Arguments against withdrawing benefits for the poor may be compelling, but it is hard to feel the same way [...]
Rapid responses January 6, 2013 Export revolution [Re: We need an export-led revolution to save the UK economy, Friday] Exporting is a key area where the UK should be doing better. An “export-led revolution” should focus on small and medium-sized enterprises (SMEs) that are not keeping up with the pace of our overseas competitors. Currently, only 20 per cent of [...]