Why interest rate rises won’t push voters into Ed Miliband’s arms September 1, 2014 We all know they are coming, even if not quite yet. The Bank of England Monetary Policy Committee (MPC) is not expected to change interest rates this week, but its inaction is unlikely to last for long. In August, dissenters appeared on the MPC for the first time since 2011, with two members voting for an [...]
Self-employment is at its highest for 40 years August 20, 2014 The rise in the employment rate since 2008 has largely been amongst the self-employed, according to new data from the ONS. What is more, the percentage of the workforce that answers only to itself is at 15 per cent, the highest rate for 40 years. To make matters worse, the average salary for a self-employed [...]
In graphs: UK is “halfway to recovery” says Carney August 17, 2014 Britain's economy is "more than halfway towards the finish line" Bank of England governor Mark Carney has said, with the UK economy expected to grow by 3.5 per cent this year. Perhaps more poignantly for those looking for hints as to an interest rate rise, Carney also indicated he wouldn't necessarily wait until wages caught up [...]
Regular pay growth at lowest rate since records began August 13, 2014 Regular pay has grown at its lowest rate since records began in 2001, according to the Office for National Statistics. Average earnings excluding bonuses between April and June rose by just 0.6 per cent year-on-year, while pay in the three months to May had risen by 0.7 per cent. In comparison, consumer price [...]
Labour: True fall in wages missed by official statistics August 11, 2014 Real wages have fallen even further than official data show, the Labour Party claimed today, arguing the figures do not properly measure the self-employed. Labour said the average pay of a self-employed worker is down £2,000 since 2010. But they are not included in official data, which are based on surveys of employers. “Worryingly under the [...]
Forget pensions: We need radical Isa reform to really tackle the UK savings crisis August 4, 2014 The UK’s pensions crisis is no longer looming. It’s here. We are dangerously over-heating, and millions of British households, who are simply not saving enough for later life, face a bleak financial future – unless there is swift, radical action. UK adults need and deserve a solid framework that will help them save and plan [...]
Interest rate hikes risk a household debt tragedy if we don’t act now July 23, 2014 Beware the economist bearing forecasts. The only thing that’s ever certain about economic predictions is that they’ll turn out to be wrong. But this one’s nailed on: interest rates are going to rise. Hardly the riskiest punt – the current emergency base rate of 0.5 per cent can’t be sustained forever and, as yesterday’s Monetary [...]
As MPs warn of a student loan tipping point, is the system now fundamentally broken? July 22, 2014 Liam Byrne, shadow minister for universities, science and skills, says Yes. Britain’s student finance system is as broken as the Liberal Democrats’ promise not to increase fees – which is what got us into this mess in the first place. By trebling tuition fees to £9,000 per year, the government has overloaded young people – already [...]
There will be more Putins – and more Flight MH17s – if Europe fails to act now July 21, 2014 “Pay no attention to that man behind the curtain” – The Wizard in L Frank Baum’s The Wizard of Oz In her able, forthright way, Hillary Clinton has just painfully called Europe’s bluff. Speaking just after the horrific details of the Malaysian plane disaster became clear – where it looks increasingly likely that murderously clueless [...]
…but wage growth lags further behind pace of price inflation July 16, 2014 FALLING unemployment and a rise in the number of jobs announced yesterday both failed to boost the value of wages, which grew 0.7 per cent in the quarter compared to a year ago, excluding bonuses. The figure from the Office of National Statistics (ONS), which excludes those who are self-employed, is just 0.3 per cent [...]