Uk economy

Yesterday

Jawad Iqbal

Andy Burnham’s good vibes just won’t cut it

Andy Burnham became Britain's Prime Minister today – the seventh leader of the country in the last decade. It is a case of all hail the new messiah, who promises to build “a new politics” (the eternal empty vow of every politician when taking power), but this time with a shiny new twist. Burnham, who oozes a desperate desire to be liked, will lead a government focused on good vibes and the fantasy of a mythical Labour paradise lost, rather than anything grounded in the harsh political realities of today. His approach to power boils down to trusting his instincts (those vibes, again), based on the delusion that he has a special connection with ordinary voters.

united kingdom

Thursday

Michael Simmons

Who do voters trust most on the economy?

From our UK edition

12 min listen

Chancellor Rachel Reeves has been in Washington D.C. this week at the IMF’s spring meetings, and will meet US Treasury Secretary Scott Bessent tomorrow. Cue the ususal talk of compromising on chlorinated chicken. Not so, reports the Spectator’s economics editor Michael Simmons, who explains that Reeves may offer a reduction in long-standing tariffs already imposed on American cars. But, it’s been a bad week of economic news for the Chancellor as the IMF downgraded the UK’s growth forecast.  We’re also one week away from the local elections – Starmer’s first big test since last year’s general election.

Monday

Kate Andrews

Are mortgage rates the next crisis?

From our UK edition

The average two-year fixed mortgage now sits at 6 per cent, according to financial data group Moneyfacts – just below the 6.65 per cent reached in December last year, after the fallout from Liz Truss’s mini-Budget. Five-year fixed rates aren’t too far behind, at 5.7 per cent. For many of the 2.4 million homeowners whose mortgages are up for renewal between now and the end of next year, this is, at best, cause for alarm. At worst, it’s an alert to a crisis. Later this week, we’ll get last month’s inflation data – and the next rate update from the Bank of England. Threadneedle Street’s dilemma is only getting worse. Between core inflation rising last month (from 6.1 per cent on the year last April to 6.

Tuesday

Kate Andrews

Britain is set for the slowest economic recovery in the G7

From our UK edition

Britain is set for the slowest economic bounce-back in the G7 and one of the slowest recoveries among wealthy nations, according to new forecasts published today by the Organisation for Economic Cooperation and Development. The OECD has updated its forecasts for global economic recovery, showing a return to pre-Covid GDP levels by the end of next year. The central scenario estimates a 4.2 per cent fall in global GDP this year, matched by a 4.2 per cent lift next year – while suggesting that its 'upside scenario' becomes more likely if successful vaccines are rolled out at a relatively fast pace. But while these latest forecasts bode better for the global economy, the findings are a blow to the UK.

Wednesday

Matthew Lynn

Gina Miller should leave the Bank of England’s new boss alone

From our UK edition

She’s back. With Brexit ‘done’ and with most of the country just grateful to have moved on from the whole saga, we might have thought we had heard the last of Gina Miller. Miller, who became something of a figurehead in the anti-Brexit movement, could quietly return to doing whatever it was she used to get up to. Not so. Now she is back on the attack, demanding a ‘review’ of the appointment of Andrew Bailey as Governor of the Bank of England. What’s her complaint this time? Apparently as head of the Financial Conduct Authority, Bailey presided over “a toxic cocktail of negligence, incompetence and indifference to the needs of ordinary depositors, investors and pensioners”.

Monday

Andrew Montford

It’s time for an honest debate about the true cost of going net zero

From our UK edition

When the Committee on Climate Change (CCC) launched its report on the feasibility of entirely decarbonising the UK economy, we were told the expense involved was manageable. The CCC’s chief executive Chris Stark explained that the project ‘carried a cost – of one to two per cent of GDP – which was affordable’. His claims were noted approvingly by MPs during debates in Parliament on whether to enshrine a ‘net zero’ emissions target in law. While others complained about the lack of a clear cost-benefit case, CCC chairman Lord Deben put aside these concerns.