Many people are understandably still confused about the huge differences between the official figure of 'just' £3.4 billion for the cost of the Chagos deal, as cited by the Prime Minister, and other estimates which are as high as £30.3 billion. Here's my best attempt to clarify. The top figure of £30.3 billion (which I … Continue reading What is the real cost of the Chagos deal?
Tag: government borrowing
The Government should hold the line on public sector pay
The independent pay review bodies are reportedly set to recommend pay increases of around 3pc for NHS staff and 4pc for teachers. However, the Government has only budgeted for a 2.8pc increase for public sector workers. This is broadly in line with expected price rises over the coming year, but still higher than the Bank … Continue reading The Government should hold the line on public sector pay
Thirteen questions and twelve answers on Trump’s tariff war
By popular demand, here is a bitesize Q&A on tariffs. In short, there are no winners from a trade war, but it is not too late to avoid a global recession. For now, ‘wait and see’ may be the best strategy both for central bankers and investors. 1. Do the new ‘reciprocal tariffs’ make any … Continue reading Thirteen questions and twelve answers on Trump’s tariff war
Is defence spending good for growth?
The right amount to spend on defence should, of course, primarily be a decision based on the benefits to our security. But could more defence spending also be good for growth? The short answer is ‘not necessarily’. The overall impact on the economy will depend on how the additional spending is financed, and on whether … Continue reading Is defence spending good for growth?
Plain-speaking Economics 