The Nobel Prize-winning economist, Paul Krugman, once famously said that “productivity isn’t everything, but in the long run it is almost everything”. If so, the UK has a huge problem – and that problem is particularly acute in the public sector. Official estimates released last week suggest that public service productivity was an astonishing 8.5 … Continue reading The real ‘black hole’ is in public sector productivity
Category: productivity
False economies on spending could be just as damaging as tax hikes
So far, the speculation ahead of the Budget on 30 October has focused on the scramble to find tax increases that might not breach Labour’s manifesto commitments, while still having some chance of actually raising some money. This is clearly not going well. Rachel Reeves may end up as the only economist in the country … Continue reading False economies on spending could be just as damaging as tax hikes
Labour’s first 100 days – the economy
In response to overwhelming public demand (not really!) here is my take on the impact that the incoming Labour government has had on the UK economy. Clearly, it’s early days and there is still all to play for, but the initial signs are not encouraging. The obvious place to start is the health of the … Continue reading Labour’s first 100 days – the economy
“How sustainable is our national debt?”
Earlier this year I gave oral evidence to the Economic Affairs Committee of the House of Lords on the state of the public finances. I'm pleased to say they included many of my thoughts in their final report, available here. Some excerpts. On the level of the debt-to-GDP ratio... 31. When considering the implications of … Continue reading “How sustainable is our national debt?”
Plain-speaking Economics 