Economy

It is finally dawning on the government and the banking industry that it is not such a good idea to put the entire economy at the mercy of a couple of large overseas corporations. Today, a consortium of banks are meeting to hammer out a plan to create a homegrown alternative to Visa and Mastercard, which at present have a virtual duopoly on the handling of card payments in Britain and much of the developed world. Their fear, in particular, is that Donald Trump could simply order Visa and Mastercard to switch off their services to any country which displeased him. This is what happened in Russia after the Ukraine

Forty-five per cent of 24-year-olds who are not in education, employment, or training – known as ‘NEETs’ – have never had a job. Not a Saturday shift at a café, not a summer stacking shelves, not an entry-level role that teaches you what an invoice or balance sheet looks like. Alan Milburn, former Labour health secretary and now chair of the government’s own young people and work review, delivered this verdict this week with the weary authority of a doctor who knows the patient is deteriorating but cannot persuade them to change the treatment. The latest figures from the National Institute of Economic and Social Research (NIESR) confirm what anyone with a

What a pair Ed Miliband and California governor Gavin Newsom make. Both seem to suffer from the delusion that they are national leaders, meeting up in London on Monday to sign a deal in which they aim to share green technology and finance. Both are committed to what they like to call a ‘global race for clean power’. And both are presiding over electricity grids which are heading for disaster. In this, California is a little ahead even of Britain. It provides a frightening picture of what is to come as Miliband tries to decarbonise the grid, mostly with intermittent renewables, by 2030. On Christmas Day, 130,000 homes and businesses in

In his speech in Munich on Saturday, the Prime Minister, Sir Keir Starmer, made it very clear that he was planning to rejoin the European Union’s single market, perhaps as early as this year. The argument in favour of this is that it will boost growth – and it will put Britain at the heart of a defence-fuelled industrial revival. But there is just one problem: joining the single market won’t do anything to improve Britain’s failing economy and may well make it worse. Sir Keir has gone further than any of his colleagues in embracing the EU. Instead of just joining the European customs union, he now wants to

With Sir Keir Starmer’s premiership in perpetual peril, it seems instructive to pay closer attention to his potential successors. On that, there have been two noteworthy interventions this week. The first from Ed Miliband who told the Today programme: ‘I tell you what angers Keir most about this country, it’s class. It’s the class divide.’ Not to be outdone, Andy Burnham then told a Resolution Foundation think-tank event that the focus of British politics needed to switch to lower earners. They present a Britain where capital exploits cheap labour, resulting in profound and widespread poverty. But that’s not the Britain we’re in Both men seem to want to focus on a country that

Jim Ratcliffe is not a polished media performer, and neither does he have an accurate set of UK demographic statistics in his head. But how typical that the Prime Minister and his Labour colleagues, as well as the Guardian and many others, have chosen to latch onto a loose remark the billionaire Manchester United co-owner made about migration rather than address the very genuine concerns he has for the UK economy. Read between the heavily edited clips from Sky News’s interview with the chemicals entrepreneur and the point he was trying to make when he said that Britain is “being colonised by immigrants” is clear. You cannot grow an economy healthily when

It should have moved ‘Beyond Petroleum’ by now, with wind, solar and hydroelectric power powering its profits. If you rewind twenty years, BP had a clear plan to place itself at the forefront of the green energy transition. It hasn’t worked out as they had hoped. Instead, today the company announced it was suspending share buybacks to shore up its balance sheet, sending its shares tumbling. Its rival Shell is in better shape, but only just. As both of Britain’s oil giants struggle, it is becoming painfully clear that the obsession with net zero has destroyed what was one of our major industries – and it will be very hard

By the end of last week, it was clear the Prime Minister is a goner – the debate moved to the pace of his demise. That sped up yesterday with the resignation of Morgan McSweeney, his chief of staff. Starmer’s prospects looked very bleak indeed when I turned on the Today programme this morning to hear a defence of the PM being mounted by Baroness Smith of Malvern. I wouldn’t pretend to understand the government’s communications strategy, but it doesn’t exactly scream confidence when the most senior spokesperson offered up for the morning media round is a junior skills minister from the Lords. A few hours later, the man in

The Bank of England’s Monetary Policy Committee (MPC) has just voted to hold interest rates at 3.75 per cent. While market expectations and pundit’s predictions overwhelmingly foresaw a hold, the vote came in slightly tighter than expected at five against four. The decision came alongside new forecasts from the Bank that predict inflation falling back to the 2 per cent target from April, in what will be a relief to the government and indeed the rest of us. In even better news for Rachel Reeves, in the Bank’s ‘Monetary Policy Report’, also released today, it gave the government some credit for ‘developments in energy prices including from Budget 2025’.  Better