This is the final instalment of a short series previewing the Budget. It discusses how the statement might be received and what could - or should - be done differently. The first instalment began with a primer on the fiscal framework and a guesstimate of the size of the new financial hole, which could be as large … Continue reading Will Rachel Reeves’ second Budget land any better than her first?
Category: Labour markets
The Government should rethink its plans for the National Living Wage
The Times is reporting today (Saturday) that the Chancellor is likely to confirm a rise in the National Living Wage (NLW) of about 4%, from £12.21 to at least £12.70, in next month’s Budget. She will also recommit to extending the full living wage to young people between the ages of 18 and 21 (where a lower … Continue reading The Government should rethink its plans for the National Living Wage
Will the UK need an IMF bailout?
This weekend the Sunday Telegraph led with Britain ‘heading towards IMF bailout’, citing three leading economists who are warning of a “1970s-style debt crisis unless the Chancellor changes course”. The three – Jagjit Chadha, Andrew Sentance and Willem Buiter – are not the usual suspects and their views should be taken seriously. The story was prompted … Continue reading Will the UK need an IMF bailout?
The Government cannot take credit for the cuts in UK interest rates
The Bank of England’s decision to trim its key interest rate by another quarter point this week was widely expected, but there is still plenty to write about. Unfortunately, little of this is good news. For a start, why on earth is the Monetary Policy Committee (MPC) still cutting rates when the Bank itself now … Continue reading The Government cannot take credit for the cuts in UK interest rates
Plain-speaking Economics 