Rapid Responses September 26, 2012 Clegg on housing [Re: The ideas emerging from Lib Dem conference dissolve under scrunity, Tuesday] Nick Clegg, and the coalition more broadly, are failing to pursue sufficient supply-side reform in the housing sector. The reason approved sites are lying idle is because the current planning system limits supply. The really big money is to be [...]
Technology only boosts growth if countries can exploit it effectively September 25, 2012 OVER the last five years, the British economy has experienced its worst growth since the 1920s. Yet, in important respects, the economy is faring far better than it did back then. Part of the reason lies in low interest rates and forbearance on the part of lenders, which have both helped to soften the damage [...]
George Osborne’s economic policy seeks to blind markets from the truth September 25, 2012 ANDREW Mitchell, the government’s chief whip, remains in some difficulty after his exchange with the police at the gates of Downing Street. At the heart of the incident there is an objective reality. Either he used the word pleb, or he didn’t. Either the police were officious jobsworths, or they were the epitome of politeness. [...]
After more banks signed up to Funding for Lending, is it likely to help UK business? September 25, 2012 YES Corin Taylor Funding for Lending – the scheme run by the Bank of England which seeks to stimulate the economy by making cheaper loans available to firms and individuals – is fine as far as it goes. But we must be sure not to overstate its likely benefits. Those companies that would already qualify [...]
Rapid Responses September 25, 2012 The shale debate [Re: Britain needs to embrace the global shale revolution, Friday] Britain must position itself at the forefront of the shale revolution. The US has had a head start because, firstly, its government has allowed extraction. Secondly, its main shale fields are in remote locations away from residential areas. Thirdly, it’s been developing [...]
The ideas emerging from Lib Dem conference dissolve under scrutiny September 24, 2012 SOMETIMES, it’s hard not to feel rather sorry for the Liberal Democrats. After the public relations disaster of Nick Clegg’s toe-curling apology on tuition fees last week, the party faithful have gathered in Brighton only to be battered by violent storms. The Lib Dem leadership was hoping to pilot a course to sunnier political climes [...]
Frustrating UK tax quirks can easily mean missed mortgage payments September 24, 2012 WHEN HMRC wrongly changed my tax code last October, I was paying 40 per cent of my total income as tax for six months. It had a huge impact on my finances – my take home pay went below my mortgage costs. And HMRC couldn’t correct it, despite admitting its error. In the end I [...]
Ten golden rules of investing September 24, 2012 Some industries produce more economic profit than others. How much economic profit a sector or industry tends to produce is often a function of how difficult it is to enter. High entry barriers can therefore provide a sustainable competitive advantage for incumbents. Take banking. Unlike retailing or steel manufacturing, there are all sorts of obstacles [...]
After German business confidence fell for the fifth month, is the euro crisis about to return? September 24, 2012 YES Ferdinand Fichtner The Eurozone is already in the middle of a recession. Production has declined since the summer of 2011 and unemployment rates are increasing in almost all euro members. In the last quarter, Germany was the only country that had a relatively solid growth record. But, looking forward, the picture remains gloomy. Growth [...]
Rapid Responses September 24, 2012 Shale gas potential [Re: Britain needs to embrace the global shale gas revolution, Friday] Allister Heath is right that shale gas has had a huge impact on the US energy sector, with a resultant impact on the economy. However, he fails to stress the adverse environmental impact of certain hydraulic fracturing or “fracking”. The Royal [...]