Chances are you’ve been looking forward to George Osborne’s 2011 Autumn Statement even less than he has, so this year we thought we’d make it a little more interesting. Notoriously difficult to predict though our Chancellor is, we’ve pulled together a list of words and phrases that might just crop up in his annual defence of government economic policy – download a George Osborne Bingo playsheet below and have a pen ready to score them off from 12.30pm this afternoon! More
This month The Children’s Society launched a report on their new, child-centred deprivation index. Drawing on focus group and survey research with young people across the UK, and using multiple regression analysis, The Children’s Society argue that taking children’s perspectives on material deprivation into account produces a very different picture of what it means to be deprived than that assumed within conventional measures such as family income and employment. More
The Bank of England’s Robert Jenkins launched a blistering attack on the UK banking sector earlier this week, accusing it of “intellectual dishonesty” as bank executives warned that new rules emanating from the Basel Committee could lead to reduced lending. In a speech in London titled ‘Lessons in Lobbying’, Jenkins undermined the banking profession, saying:More
“Correctly phased renewable subsidies are by their nature temporary. The very purpose of subsidies is to kick start new and desirable industries. As those new industries stand on their own two feet subsidies can be phased out. Subsidies of fossil-fuel and nuclear energy can only increase over time."
That is the argument for proper subsidies for the solar industry, and very well put by Ben Goldsmith, himself an important investor in this field.More
Two bits of news this week have managed to be equally disheartening although one, at first glance, looks like good news. This was yesterday's announcement from Royal Mail that its financial performance has improved so much that in the first six months of this year revenue rose 4 percent. Losses on parcels and letters were down from last year; the Post Office made an operating profit of £55 million and profits on Royal Mail's European parcel business rose 10 percent.More
Fresh from his bargain-basement purchase of Northern Rock, tycoon Richard Branson offers his three-point blueprint for economic recovery. A “lost generation” is at stake, he claims, correctly, if the economy does not recover.More
At the heart of the economic crisis is the collapse in private investment, allied to the collapse of the old, inefficient model of growth. To create employment and develop a sustainable economy, the Government should grant the Green Investment Bank the same powers to create loans as other commercial banks. More
Unborn babies get a lot of attention from the government. Their mothers get free prescriptions. There are ante-natal classes and special hand-outs.
Quite right too. The more we can nurture unborn babies and their mothers, the healthier they will be in later life. That’s good economics, quiet apart from anything else. It’s an example of the elusive new economics principle of prevention.More
Originally posted at London Loves Business.
There is a simple fact about the UK banking system that is both profound and mundane. It is also little known, and yet the source of much hyperbole. What is this simple fact?
Commercial banks create new money.
This statement often seems to have a strange effect on people, either sending them down to St Paul’s with a Guy Fawkes mask and a tent, or backing away from you in horror as if you had just blasphemed in front of the Pope.More
Everyone is talking about how the taxpayer will make a loss from the sale of Northern Rock. But less has been said about the Chancellor’s claim that the sale “will increase choice on the high street for customers”.
It is widely agreed that competition in the retail banking sector is lacklustre. But this sale won’t mean a better deal for consumers, just more business-as-usual.More