Airbnb, Amazon, peer to peer lending and universities: There’s a simple reason why no sector is immune from radical change April 10, 2017 If you were to ask an economist why financial institutions or food retailers exist, I wonder if the answer would go beyond that which would be offered by a random person travelling on the Tube. Answers might include “to provide bank loans, insurance and savings products” and, in the case of food retailers, “to provide [...]
IMF “encouraged” by strong UK growth, Christine Lagarde says March 14, 2017 The UK’s growth in recent months has been “encouraging”, contributing towards healthier prospects for the world economy, according to the head of the International Monetary Fund (IMF). Christine Lagarde said the IMF is “especially encouraged by stronger-than-expected economic activity in the Euro area, the United Kingdom, and Japan.” The outperformance of the UK was one [...]
The chancellor’s shambolic national insurance hike is based on a faulty reading of aggregate statistics March 14, 2017 "Britain is damning itself to be a low wage, low productivity economy”. How many headlines like that have we read over the past few years? Certainly, the UK has performed poorly when it comes to overall real wage growth since the financial crisis, reflective of weak aggregate productivity growth. But often these average statistics are [...]
There’s no need for Treasury giveaways to help the just about managing March 6, 2017 On the steps of Downing Street, Theresa May outlined the core of her political strategy: “If you are just about managing, I want to address you directly”. The just about managing – the so-called JAMs – saw their cost of living significantly squeezed in the aftermath of the financial crisis, and it is indeed vital that [...]
Paris vs Los Angeles: Why the IOC will reward both wannabe host cities for future Olympic Games March 2, 2017 When the International Olympic Committee (IOC) members gather in Lima to choose the host of the 2024 Olympic and Paralympic Games this September, ostensibly their choice is simple. It’s now either Paris from the old world or Los Angeles from the new, after Budapest joined Hamburg, Boston (LA’s forerunner) and Rome in opting out of [...]
The costs of running a business in London are starting to outweigh the benefits February 28, 2017 The late, great Robin Williams once said: “Spring is nature’s way of saying, ‘Let’s party’.” When the chancellor stands up to deliver the last ever Spring Budget next week, however, small businesses in London are likely to be putting party plans on hold unless Philip Hammond can pull the miraculous business rates “rabbit out of the [...]
Carmakers must embrace Big Tech to survive the coming revolution February 28, 2017 Merger plans for Europe’s car manufacturers have dominated headlines in recent weeks, not least because of the threat they pose to UK and wider European car jobs. Combine this with Brexit jitters and concerns about overcapacity, and you might view our industry with a “glass half empty” attitude. And this is even before you contemplate [...]
Economists react: Immigration from eastern Europe falls as net migration dips below 300,000 February 23, 2017 Immigration to the UK from countries in central and eastern Europe fell significantly in the year to September, including the period after the EU referendum, while net migration dipped below 300,000, new figures show. Emigration by nationals from the eight nations which joined the EU in 2004 tripled, according to the Office for National Statistics [...]
A smooth Brexit could lead to tighter monetary policy according to the Bank of England’s Mark Carney February 21, 2017 A smooth Brexit process would lead to a faster rate of interest rate increases, according to the Bank of England’s governor, Mark Carney If the process of the UK leaving the EU moves “relatively smoothly to an increasingly clear end point” it would “be consistent with a higher path of interest rates,” Carney said, in [...]
Business rates fight intensifies as government accused of misleading MPs February 20, 2017 The row over business rates is heating up with businesses hitting back at the government's claim that they will receive a tax cut. The government has retaliated at the business groups that are demanding reform to business rates, saying that three in four businesses will receive a rates cut, or won't be affected. Read more: The business rates backlash [...]