The Treasury is right to begin to wind down the furlough scheme – and not a moment too soon. The UK economy is springing back to life and the labour market is not far behind. It will take a while for this to be confirmed in the official data. We still only have the headline … Continue reading The UK’s flexible labour market needs to be allowed to do its job
The horror! Yesterday we discovered that UK economic output — as measured by GDP — fell by 1.6 per cent in the first quarter of the year, 0.1 per cent worse than the 1.5 per cent originally reported. This is practically a rounding error. To put it in context, as recently as March the Office for Budget Responsibility, … Continue reading Ignore the gloomsters, the economy is roaring back
On 3rd February I was one of four economists who testified to the House of Commons Treasury Committee on the 2021 Budget, exactly one month before Rishi Sunak is due to present it for real. We disagreed on many things, but there was a strong consensus on two points. First, March is far too soon … Continue reading My wish list for the March Budget
Who’d have thought the Treasury’s ‘Ways and Means’ facility at the Bank of England could cause so much excitement? The two parties have agreed a temporary extension of what is, in effect, the government’s overdraft account with the central bank. Cue great delight from advocates of printing money to pay for higher public spending, such … Continue reading No, the government still hasn’t found a ‘magic money tree’!