Matthew Lynn is a financial columnist and author of ‘Bust: Greece, The Euro and The Sovereign Debt Crisis’ and ‘The Long Depression: The Slump of 2008 to 2031’
Some thought Rachel Reeves’s experience at the Bank of England meant she ‘knew how to run the economy’. She would keep an iron grip on budgets and demand value for money. The reliability of her management of the Treasury would unlock a wave of support from global finance. Ahead of the election, Reeves, along with
Dubai, Italy or perhaps the Bahamas? Many multi-millionaires are discussing where they should flee to as the Rachel Reeves prepares to raid their bank accounts in the ‘Horror Budget’ scheduled for the end of this month. But not, as it turns out, Patriotic Millionaires, the group that campaigns tirelessly for higher taxes on the rich.
There have been plenty of accusations made against crypto currencies such as Bitcoin over the years. It is too flimsy, you can’t buy anything with it, and it is wildly volatile. All fair enough. But is it racist? That appears to be the view of Kamala Harris, the Democratic nominee for US president. The US
It could be 30 per cent. Or 35 per cent? Or perhaps 39 per cent? Heck, who knows, if Rachel Reeves wants to keep the accountants on their toes, perhaps 39.657 per cent. The Treasury is, according to the latest leaks to the Guardian, looking at an increase in Capital Gains Tax as it scrabbles around
It’s innovative, it generates huge wealth, and it offers great products for completely nothing. The lobbyists for Alphabet, the parent company of Google, will make plenty of familiar arguments about why the internet giant should be left intact. And yet, as the US Department of Justice pushes for it to be broken up, it is
In the wake of the UK’s departure from the European Union, French president Emmanuel Macron made a big effort to woo London’s bankers and hedge fund managers across the Channel. Macron wanted to use Brexit as an opportunity to turn Paris into the key hub for European finance. Trust me, he told Britain’s bankers: I’m
Cheap Chinese imports will flood the market. Even more jobs will be lost, and the country’s industrial base will be even weaker than it already is. UK Steel, the lobby group for the industry, has today called for tariffs to stop the last remaining steel mills being wiped out by unfair competition from lower cost
Business confidence has plummeted back to the levels last seen in the wake of Liz Truss’s unfortunate mini-budget. Hiring has slowed down as employers worry about all the new rights Labour is about to award their staff. Consumer confidence has fallen, as people worry about the tax rises that will be imposed in the ‘Horror
Donald Trump is campaigning hard on protectionism, promising to bring skilled manual jobs back onshore. What will that look like? Huge tariffs on imports, foreign companies unable to ‘steal’ American jobs, a re-industrialisation of the heartlands of the United States. But here’s the catch: a trade war on the scale that Trump is promising is
It is not hard to imagine what will be in Rachel Reeves’ ‘industrial strategy’. There will be lots of ‘green industries’, along with plenty of ‘cutting-edge technologies’, all designed to nurture ‘national champions’ in the ‘sectors of the future’. And presumably Lord Alli, the Labour donor who has been footing the bill for Keir Starmer’s
Smart meters were meant to make our lives easier. They were designed to help us reduce energy consumption and cut bills. Over the last five years, the government has been pushing energy firms to install these meters as quickly as possible. Millions of homes have been fitted with one. The flashing screen monitoring how much
Labour might relax the ban on the sale of new petrol cars that is scheduled to come into force in six years’ time, according to reports today. The government will reportedly allow hybrids to still be sold until 2035, on the grounds that they are proving far more popular with consumers than the entirely battery
The Chancellor was so shocked when she received the briefings from Treasury officials that she had no choice but to scrap her election commitments. It was so serious that it was about to crash the markets. It had to be fixed so urgently that the winter fuel allowance had to be cut, and we will
There may be a few warnings about pay, and the inevitable references to the ‘black hole’ that has mysteriously appeared in the government’s finances since Labour won the election in July. And yet despite that, the Prime Minister Sir Keir Starmer will deliver the most positive speech a Labour leader has delivered to the Trades
The commute is often unreliable, expensive and crowded. It is easy enough to understand why so many of London’s 5 million strong workforce are so reluctant to go back to the office. There is a catch, however. Working from home is costing the British economy a huge amount of lost output. In reality, the UK
The EU’s three largest economies are stuck in a deep structural slump. The budget is a mess, with money running out. And the bloc is rapidly losing competitiveness. Meanwhile, populist parties committed to overthrowing the organisation are coming closer to power all the time. You might think that the President of the European Commission, Ursula
As winter approaches, and fuel prices go up, Keir Starmer’s honeymoon period is well and truly over. The Labour government is clearly getting a little nervous about Chancellor Rachel Reeves’s decision to scrap the £300 given to millions of pensioners to help keep warm over the winter. It is now claiming that it had no
It must be the worst kept secret in the country. At almost every opportunity, the Prime Minister Sir Keir Starmer, and his Chancellor Rachel Reeves, keep telling us that the Budget in October will have to be ‘very painful’, that ‘taxes will have to rise’ and that the ‘broadest shoulders will have to bear the
It had the history, the manufacturing muscle, the capital, and the brand to make it work. When Ford announced plans to create an all-electric SUV, it looked like the moment the major auto manufacturers could finally bring battery-powered cars into the mass market. Until today. The American company has abandoned its plans to build the
It was easy to mock it as a piece of political grandstanding. On taking office, the Chancellor Rachel Reeves almost immediately discovered a ‘black hole’ in the public finances, and started warning of tax rises in the autumn. To many of her opponents, it looked like pure opportunism. And yet, now it turns out that
