Ross Clark

The former boss of Sainsbury’s, Justin King, warned on the Today programme this morning that Rachel Reeves has damaged the economy through her constant warnings of tax rises to come in October’s budget, causing anxious shoppers to draw in their horns until the big day. But if shoppers really are holding off purchases for fear that the Chancellor will raid their savings or hit them with tax rises there is scant sign of it in the Office for National Statistics’ (ONS) retail sales figures for August. They show that sales volumes increased by 1.0 per cent over the course of the month. July’s figures were also revised upwards from a 0.5 per cent increase to a 0.7 per cent increase. Clothing retailers had a particularly good month, with sales up 2.

Is it really any surprise that car manufacturers have started refusing to sell us petrol cars? According to Robert Forrester, chief executive of dealership Vertu Motors, anyone trying to buy a petrol car at the moment is likely to be quoted a delivery date into next year. As I wrote here last December, unless electric vehicles (EVs) enjoyed a sudden rush of popularity, the inevitable result of the Zero Emission Vehicle (ZEV) mandate would be that car manufacturers would be forced to withdraw from the UK market. The reason was coming down the road at us like a three-ton electric SUV. Under ZEV, which began on 1 January this year, manufacturers are obliged to ensure that at least 22 per cent of their sales this year are pure electric models.

It is not that long ago that the new Prime Minister Sir Keir Starmer announced that his would be the government of ‘growth, growth, growth’. What has he done in that time to try to realise that ambition? It is hard to think of a single measure that will genuinely do anything to improve the fortunes of wealth-creating businesses – other than promised planning reforms which seem destined to fail as they are based on the faulty premise that it is only Nimbys who hold up house-building and other development, and not reams of environmental regulations which Labour has shown no interest in reforming.

Employees will have the right to ask their employers to compress their hours into four days a week rather than five, but employers will not be forced to agree. Just what is the point of the government’s latest employment reform, as proposed by Baroness Smith of Malvern, the minister for skills? Surely employees already have the right to ask for a four-day week, and always have had. There is no law I know that prohibits an employee knocking on their boss’ door and asking for a four-day week, a day off to go to the races, to bring their pet gerbil into the office or, indeed, anything else.

Keir Starmer's government appears to have softened its stance on oil and gas. Back in June 2023, the Labour leader told an audience in Edinburgh that there would be no new licences for oil and gas exploration in the North Sea. Instead, a Labour government would pursue green energy all the way, slashing our bills (it promised) and taking us ever faster to the nirvana of net zero. But how the responsibilities of government come to bear. A release from the Department for Energy Security and Net Zero (DESNZ) this morning indicates some notable shuffling of ground.

Britain will not be rejoining the EU, the single market nor the customs union – that ship has sailed, and all we seek now is a closer relationship with the EU. So Keir Starmer assures those who feel a little suspicious about his multiple meetings with Olaf Scholz in the weeks since becoming Prime Minister, the latest of which took place this morning. All he seeks, he says, is a better trade deal which would allow better access to EU markets for UK firms. Maybe Starmer dreams at night of being paraded through the streets of Brussels as the man who engineered Britain’s return to the EU Maybe Starmer dreams at night of being paraded through the streets of Brussels as the man who engineered Britain’s return to the EU.

Who would bother to create jobs in modern Britain? Clothing retailer Next has done plenty of job-creation over the past few years – only to be whacked by an equal pay claim brought by 3,500 shop assistants. An employment tribunal has ruled that the company was wrong to pay them less than it paid staff at its warehouses. With back pay it could cost the company £30 million. The cost of this kind of case goes far beyond the potential legal liability itself Equal pay is one thing where it concerns men and women working alongside each other in the same jobs. It is quite another when it is extended to the concept of ‘work of equal value’, as it was in this case.

As far as the economy goes, Sir Keir Starmer has enjoyed something of a golden honeymoon. True, he has had riots to deal with, but economic growth has been stronger than many anticipated, while a small uptick in the Consumer Prices Index (CPI) allowed the Bank of England to reduce interest rates earlier this month. Everything appeared to be going in the right direction – until this morning, that is. Ofgem have announced that the energy price cap will rise in October by 9 per cent, adding an average of £149 to annual bills. While a rise was expected, this is a substantial rise at a time when inflation seemed to be back under control. A 9 per cent jump will not take energy bills to anywhere like where they were in late 2022 and early 2023.

Just how much longer will the government be able to sustain its assertion that the Conservatives left behind a £22 billion hole in the public finances? Confirmation that ministers are continuing to blame their predecessors for out-of-control public finances – and for expected tax rises in October’s budget – was provided this morning by Chief Secretary to the Treasury Darren Jones, who reacted to July’s grim borrowing figures by stating:  ‘Today’s figures are yet more proof of the dire inheritance left to us by the previous government.