Let’s start with the good news. This change of Prime Minister undoubtedly makes a difference for the better. The Conservatives have finally found a leader with a decent chance of making it until the next General Election, providing some much-needed political stability. The financial markets have reacted positively too: the pound has strengthened, the cost … Continue reading Rishi Sunak offers greater stability, but also more pain
Category: Everyday Economics
An online sales tax would be more trouble than it is worth
The UK government has been consulting on the concept of an ‘online sales tax’, or OST, which could raise £1-2 billion annually to help pay for a reduction in business rates for physical retailers. I submitted a response to the consultation, which is available here... ost-consultation-response-20-may-2022-julian-jessopDownload
Weak consumer confidence doesn’t necessarily signal recession
If you believe the media coverage of the latest consumer confidence surveys, household spending is set to collapse under the weight of the cost of living crisis, dragging the UK economy into a deep recession. But how reliable are these signals? As always, it is worth digging past the headlines. The GfK measure of consumer … Continue reading Weak consumer confidence doesn’t necessarily signal recession
Is inflation really a lot higher for poorer people?
The Office for National Statistics will shortly be publishing new figures on inflation rates for different types of household. They will also be updating the method for collecting individual prices from supermarkets. However, anyone hoping for evidence that inflation is much higher for low-income households is likely to be disappointed. In particular, the anti-poverty campaigner … Continue reading Is inflation really a lot higher for poorer people?
