Sanctimonious Starmer falls short of his own standards September 17, 2024 As Keir Starmer faces questions over a £5,000 donation towards his wife’s wardrobe, the Prime Minister is finding out that decency in public life isn’t an automatic function of not being a Tory, writes Alys Denby When Victoria Starmer entered Downing Street for the first time wearing a Me+Em dress in Labour rose red, the [...]
The real fiscal ‘black hole’ is government debt September 11, 2024 When one of the most senior figures in investment banking was asked at a private event last week what keeps him awake at night, he replied “government debt”. A recent House of Lords report will not help him sleep any easier. The Economics Affairs Committee has warned of the “grim reality” that at £2.74 trillion [...]
Are young people losing faith in the NHS? September 2, 2024 When it comes to private healthcare, young people are revealing a welcome preference for choice One of the most revealing moments in Labour’s policy-lite election campaign was when Keir Starmer insisted he would never use private healthcare for himself or a family member. For the Labour leader, the NHS is a matter of identity upon [...]
Raising capital gains tax would be a big mistake August 1, 2024 City A.M.’s consistent warning that the government will raise taxes in their first Budget have been vindicated. Rachel Reeves admitted that “I think we will have to increase taxes” to the News Agents podcast. Labour will no doubt rebut accusations that this is a violation of their election pledges with references to their weaselly caveat [...]
Rayner must defy her own backbenchers and build, baby, build July 31, 2024 Angela Rayner has clearly been reading City A.M.. In a statement to the House of Commons yesterday the housing secretary outlined plans to build 370,000 homes a year, in a clear victory for our Build, Baby, Build campaign. The challenge now is to realise that ambition in bricks and mortar. It is encouraging, then, that [...]
Look behind you! Rachel Reeves’ political pantomime July 30, 2024 Rachel Reeves is shocked – shocked she tells you – at the state of the public finances. Never mind that everyone passingly familiar with spreadsheets, including City A.M., had warned her – the chancellor has now discovered what was hiding in plain sight: Britain is poor. Incoming governments promising one thing to get elected and [...]
The business case for the King July 25, 2024 In a cost of living crisis, headlines suggesting that the King is set for a “£45m pay rise” funded by taxpayers are bound to rankle – but they are misleading. The monarchy is not funded out of the public purse in the ordinary sense. The money the King receives – the Sovereign Grant – is [...]
Benefit cap punishes children for their parents’ choices July 24, 2024 If Labour are looking to make savings on the welfare bill, there are plenty of places other than the two-child benefit cap to look – starting with the pensions triple lock In a manifesto that was light on detail, two of Labour’s biggest promises were to adopt Conservative policies: on the fiscal rules and the [...]
Tedium alone won’t restore confidence in the economy July 23, 2024 The theory of Ricardian Equivalence posits that financing public spending out of taxes or borrowing will have the same overall economic consequences. This, David Ricardo argued in 1820, was because rational consumers understand that debt will eventually have to be paid off. They will therefore set aside current income in anticipation of future tax rises. [...]
What’s to blame for Tory woes? Boris Johnson and Brexit July 9, 2024 If Boris Johnson hadn’t backed Brexit, the Tories could still be in power – and further pandering to the right will only push voters further into the pinstripe embrace of Nigel Farage, argues Alys Denby As an endorsement of Keir Starmer, this election result was equivocal. His thumping majority was won with a vote share [...]
