Category: UK economy

More state intervention is not the answer to reviving our economy

Many people argue that the Covid crisis has demonstrated the need for government to take a bigger role in the economy, in good times as well as bad. When asked to suggest five policies to help the recovery their ‘wish lists’ are therefore full of ways in which the state could do even more. In … Continue reading More state intervention is not the answer to reviving our economy →

The UK government should still be cutting corporation tax, not raising it

Corporation tax hikes are apparently back on the agenda for the March Budget, with the Financial Times suggesting that the Chancellor believes it would be fair to ask businesses for more after taxpayer support during pandemic. This argument might score a few points with focus groups and play well on social media, but it is … Continue reading The UK government should still be cutting corporation tax, not raising it →

Why has the UK economy been among the worst hit by Covid?

According to the latest official data, the UK has seen a larger fall in GDP during the pandemic than almost any country in Europe. The worst hit economies are actually Greece and Spain. But the UK appears to have suffered much more than France, Germany, Italy, or Sweden. This needs some explaining. Let’s deal first … Continue reading Why has the UK economy been among the worst hit by Covid? →

The UK economy will bounce back this year – here’s why

I often think my fellow economists are a miserable bunch. Survey after survey has predicted that the UK economy will take years to recover even to pre-Covid levels, with unemployment set to spiral and the fallout from Brexit only getting worse. But as we know, the consensus among followers of the ‘dismal science’ has often … Continue reading The UK economy will bounce back this year – here’s why →