Ross Clark

Ross Clark

Ross Clark is a leader writer and columnist who has written for The Spectator for three decades. He writes on Substack, at Ross on Why?

Europe is turning against net zero

The contrast couldn’t be greater. In Britain a wealthy cabinet minister goes on television to boast of how he is installing a heat pump in his home – something his government is proposing to force on millions of British homeowners over the next few years in spite of them costing many thousands of pounds more than a gas or oil boiler. Meanwhile, in France, the President makes a speech calling for a ‘regulatory pause’ on green issues in order to push for the ‘re-industrialisation’ of his country. So far, Britain and the EU have moved more or less in tandem on climate change – which is not all that surprising given that until three years ago Britain was a member of the EU and therefore within its regulatory orbit.

Britain is becoming Brussels on Thames

Whatever happened to Singapore on Thames? Weren’t we, after leaving the EU, supposed to be forging a future as a deregulated, low-tax, business-friendly enclave situated 20 miles off Calais? It isn’t quite looking that way at the moment. We are reinventing ourselves as Brussels on Thames – only more so. Do our bureaucrats really need to come down so heavily on big players in the realm of cloud computing games? Our corporation taxes are rising at a time others are static or falling, we keep inventing new regulations which far outdo EU regulations – such as that allowing new employees to demand flexible working. We are ploughing ahead with green measures such as the ban on petrol and diesel cars from 2030 while the EU has allowed some flexibility.

Train companies are finally getting their comeuppance

As they call yet more strikes today and tomorrow, rail unions are the leading candidates for the most miserable and destructive institutions in contemporary Britain. Train operating companies, though, are not far behind. Having ripped us off for years by ruthlessly exploiting the local monopolies gifted to them through the franchise system they can't even run their trains on time on non-strike days. First Group, which was finally relieved of its Transpennine franchise this week, managed to run just 46.5 per cent of its services on time during the last three months of 2022. Avanti West Coast, which for the moment retains its franchise – though God knows why – managed only 34 per cent. And that was after reducing its timetable by two thirds in some cases.

Why are the Tories so afraid to tackle housing reform?

If there ever were a couple of policies the government desperately needs to give it a chance of being re-elected next year it is rental reform and leasehold. Both in their own way would make life a good deal less miserable for the younger voters who have drifted away from the party in recent years.  How depressing then that Rishi Sunak seems to have gone cold on them. It nastily exposes the Conservatives’ Achilles' heel: its tendency to drop good and popular proposals in the face of staunch lobbying by those with vested interested.

Justin Welby’s climate confusion

It is widely expected that Justin Welby, having now screwed the crown on Charles III’s head, will shortly retire as Archbishop of Canterbury and put himself out to grass. If so, he is not going quietly. This afternoon, in the House of Lords, he launched a wholesale attack on the government’s Illegal Migration Bill, which includes measures to offshore the processing of asylum-seekers in Rwanda, describing it as ‘isolationist, morally unacceptable and politically impractical’ to leave developing countries to handle the world’s refugees.    But one comment in particular stands out in the Archbishop’s speech.

The troubling return of 100 per cent mortgages

Is there a greater weapon of financial mass destruction than the 100 per cent mortgage? Take out a loan equivalent to the full value of your home and it only takes one bad month for the Halifax house price index to land you in negative equity.  If you have bought a new home, you will almost certainly be in negative equity from day one – as with a new car, a brand new home commands a premium which disappears the moment someone moves in and starts scratching the paintwork. But it is not just the borrower who needs to worry. When property prices fall, homes with 100 per cent mortgages secured against them cease to be fully-secured loans.

What happened to the voter ID backlash?

You might have thought that a heavy defeat for the Conservatives in the local elections would silence those claiming that the government was out to disenfranchise left-wing voters by introducing compulsory photo ID for voters at polling stations. But not a bit of it.   Paul Mason was up bright and early bleating about ‘serious vote suppression’; the Mirror is reporting voters were leaving polling stations ‘in tears’ after turning up without their ID. And a professor of accounting practice at Sheffield university, who also described himself as an ‘economic justice campaigner’, tweeted that this was ‘the first reversal of the right to vote since 1832’.

Can reforms save the London stock market?

The decline of the UK stock market has finally reached the Financial Conduct Authority (FCA). It has proposed to deregulate it in order to attract more companies to list in London rather than do as, for example, UK-based chip-maker ARM is doing and choosing to list in New York (it was once a UK-listed company before being bought out by the Japanese Softbank and is now being refloated).   The FCA has proposed that the London market become more tolerant of dual share structures – where, for example, a start-up might float on the stock exchange but retain a ‘golden share’ to ensure that the founders remain in full control over non-voting shareholders.

Ed Miliband is wrong about BP’s profits

Are BP’s profits of $5 billion in the first quarter of this year really the ‘unearned, unexpected windfalls of war’, as Ed Miliband asserted this morning? The idea that any oil company’s profits are unearned must come as news to the geologists and engineers who are employed in the tricky business of exploring and drilling for oil. You might claim that oil traders sometimes make unearned profits, but surely not the oil companies which extract the stuff from the ground – a business which involves large amounts of capital and vast numbers of hours of human effort. BP certainly can’t be accused of profiting from Covid.

When does a banking wobble become a crisis?

Can a banking crisis really be going this well? After a week of panic withdrawals and a crashing share price, the First Republic Bank in the US will be taken over nearly in its entirety by J P Morgan Chase, in a shotgun marriage facilitated by the Federal Deposit Insurance Corporation (FDIC). No depositors will lose money, and most of the bank’s functions will continue uninterrupted – just as they did in the case of HSBC’s takeover of the UK arm of Silicon Valley Bank last month.     We have now had four major banking collapses in the space of six weeks, with remarkably little spillover into the economy at large and the misery mostly limited to shareholders in the banks concerned. Otherwise, stock markets have largely escaped collateral damage.

Can Britain become the Saudi Arabia of carbon capture?

Boris Johnson wanted to make Britain ‘the Saudi Arabia of wind’. But Grant Shapps is keen to send Britain's green agenda in a new direction. Speaking at The Spectator’s Energy Summit on 26 April, the Secretary of State for Energy Security and Net-Zero announced the government’s ambitions for Carbon Capture, Utilisation and Storage – CCUS – where carbon dioxide is sucked out of the air with the aid of solvents and either put to use or buried deep in the ground where – hopefully – it will remain locked up forever after. The technology does not merely offer the chance to cut future emissions but also to remove past emissions from the air.

There is hope yet for Britain’s car industry

The UK car industry is, of course, doomed. First we lost our native manufacturers and then, post Brexit, overseas manufacturers like Honda started to close down their UK factories, too. Finally came the farce of BritishVolt: the Tyneside factory which was going to transform the UK car industry by pumping out batteries, but collapsed before a spade could be put into the ground (what there is to buy, which is little more than a plot of land, has since been bought by an Australian company). Light commercial vehicles are on the ascendant as online shopping expands the market for deliveries The above narrative has become so engrained that it comes as a shock when a set of figures emerges to contradict it.

Cambridge’s ‘cycle-friendly’ roundabout is needlessly dangerous

There is nothing more boring than potholes. I remember that from my own days as a parish councillor. It saps the spirit every time the subject comes up, makes you wish you could be anywhere other than this damned meeting.  How much more exciting it must have felt to have been the councillors in Cambridge who in 2020 gave Britain its first Dutch-style roundabout – a £2.3 million remodelling of an existing city roundabout with three concentric colour-coded circles. On the inside there is the road, outside of which stands a reddish cycle path, flanked by a footway with dashes of pink. It is an object of municipal beauty, if you like that sort of thing: a ground-breaking experiment in how to manage and merge three very different types of traffic.

The Bank of England is right: Brits can’t keep demanding pay rises

Bank of England chief economist Huw Pill isn’t going to win a popularity contest. Speaking on a podcast for Columbia Law School – a medium in which he perhaps felt a little less exposed than had he said it on a British TV programme – he said:  'Somehow in the UK, someone needs to accept that they are worse off and stop trying to maintain their real spending power by bidding up prices….What we’re facing now is that reluctance to accept that yes, we’re all worse off and we all have to take our share.' Nurses, doctors, train drivers and everyone else contemplating striking for an inflation-beating, or even inflation-matching, pay rise: those remarks are aimed at you.

The era of big state spending is here to stay

Lockdown ended, the economy reopened – and public sector borrowing went up. Provisional figures for 2022/23 released by the Office for National Statistics (ONS) this morning show that the government borrowed £139.2 billion. This is an increase of £18.1 billion on the previous year, when the economy was still being disrupted by Covid. The figure was made much worse by figures for March this year, when the government borrowed £21.5 billion – £16.3 billion more than in March 2022.  A huge surge in borrowing during the pandemic was to be expected. The government was, after all, paying the wages of 9 million people at one stage through the furlough scheme. Tax revenue was slashed as businesses were put into hibernation.

Why are we allowing solar panels to swallow up our farmland?

We have spent a year talking about energy security, but with inflation in food prices running at 19 per cent, how much longer before the debate turns to food security? Ideally, we would have policies which prioritise energy security as well as food security, but sadly the latter seems to have been forgotten. National self-sufficiency in food (the percentage produced relative to the percentage consumed) has been allowed to fall from 74 per cent to 61 per cent since the mid-1980s. Worse, energy and climate policy is damaging food security. There is no better example of how the latter is being sacrificed in favour of the former than Project Fortress, Britain’s largest solar farm.

This afternoon’s alarm test is slightly sinister

At 3 p.m. this afternoon, our phones will awaken with a screech announcing impending doom. It won’t be for real (unless a terror group decides it is an opportune moment to launch an attack) but an exercise in testing a new civil defence warning system – an updated version of the network of sirens used to warn of air raids during world war two and maintained until the 1990s.    We should be worried about the long-term implications of the government seizing control of our mobile phones in order to spread emergency messages. True, were Vladimir Putin ever minded to fire one of his nuclear missiles at us it might be useful to be able to warn people about it (at least those who are at least two miles away from where it lands, there being little point otherwise).

Newsnight stoops to a new low in its climate protest coverage

Has the BBC been invaded by a cabal of Extinction Rebellion protesters who have tied up the Director General in his swivel chair? I ask because of a remarkable interview on Newsnight which marks a new low in the objectivity of the BBC’s climate coverage.  The flagship BBC Two news programme last night covered the threatened disruption of the London Marathon by Just Stop Oil protesters. Given that activists from another organisation did indeed carry out leaked plans to disrupt the Grand National – which delayed the start of the race – it is a threat to be taken very seriously.

Don’t blame the rain for the drop in high street shopping

Did retail sales really fall in March because of the wet weather? This is the excuse being trotted out by the ONS and many others this morning. Or is it really more a case of February’s surprise rise in sales being too good to be true, and the economy not being as perky as we have fooled ourselves into believing? Sales volumes have been recorded by the ONS as plunging 0.9 per cent in March, nearly cancelling out the rise of 1.1 per cent in February (which itself was revised down from 1.2 per cent). Sales volumes are still up a modest 0.6 per cent over the past three months, but in March they were 3.1 per cent lower than they were a month earlier.  It ought not to really be a surprise.

Michael O’Leary’s Brexit jibe is a step too far

Ryanair boss Michael O’Leary never has exactly been the master of tact, but will his latest outburst make his customers finally ask themselves: do they really want to travel in his planes? Speaking at a Bloomberg event he asserted that Britain will one day rejoin the single market because 'in the next five to ten years, quite a number of the Brexiteers will die, as the average age of them is about over 70'.  What O’Leary forgets is that people’s attitudes tend to change with age Let’s leave aside, for a moment, whether it is wise to talk about your customers in this way; O'Leary’s remarks are wrong-headed. It is right that the proportion of people voting Brexit in 2016 rose with age. And, of course, humans being mortal, these voters will inevitably thin out.