On Thursday the Office for Budget Responsibility (OBR), the government’s independent fiscal watchdog, published its latest annual report on the long-term sustainability of the public finances and the fiscal risks facing the UK. This made for grim reading, as these reports always do. But this time, the report has been widely interpreted as a warning … Continue reading Is the OBR right to warn against tax cuts?
Category: Labour markets
Bank of England falls further behind in race to tame inflation
The Bank of England’s Monetary Policy Committee (MPC) has raised interest rates by just a quarter point, to 1.25 per cent. This was the fifth increase in as many meetings, but still leaves rates near historic lows. In my view, this was a mistake. This decision is hard to square with April’s consumer price inflation … Continue reading Bank of England falls further behind in race to tame inflation
The trials and tribulations of a four-day week
This week has marked the start of a six-month UK trial of a four-day working week. Employees at around 70 businesses will receive 100% of their usual pay in return for just 80% of their usual hours. This concept is (of course!) hugely popular with the general public, and has been lapped up in the … Continue reading The trials and tribulations of a four-day week
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