How worried should we be about the price of food?

Andrew Bailey, the Governor of the Bank of England, made an apology last month. Not for inflation heading towards 10%, but for sounding ‘apocalyptic’ about the price of food. The possibility of more increases in food prices was a ‘major worry’ for the UK economy, he said, as he warned…

What Will Rishi Sunak Say in his Budget?

Chancellor of the Exchequer Rishi Sunak is expected to deliver his Spring Budget on March 23rd, in which he’ll outline his view of the country’s fiscal position. Mr Sunak has long been keen to stress that the money spent on the Government’s coronavirus economic support packages, such as the furlough…

Could Ukraine Crisis Force National Insurance U-Turn?

“Events, dear boy, events.” This famous quote is often attributed to former prime minister Harold Macmillan after being asked what could knock his government off course. This could be a timely quote right now, as the horrific events in Ukraine look set to impact on consumers and businesses across the…

Who will Pay the Bill for Covid-19?

Government borrowing is at its highest level since the Second World War. According to the Office for National Statistics it reached £303.1bn in the year to March – nearly £250bn higher than in the previous year. Borrowing in March was £28bn – the latest month to set an unwelcome record.

Could the UK have its own digital currency?

At a seminar in March, Haruhiko Kuroda, Governor of the Bank of Japan, suggested that the central bank should immediately start “preparing thoroughly” for a future with its own cryptocurrency. While there were no immediate plans to introduce a cryptocurrency Kuroda stressed the importance of being ‘thoroughly prepared’ should the…

The Chancellor’s Mortgage Guarantee: a Good Idea? Or a Big Mistake?

“Generation Rent,” declared Rishi Sunak in his Budget speech, “will become Generation Buy.” Had the House of Commons been full, this announcement would no doubt have been greeted with loud cheers by Conservative backbenchers. At last, someone is doing something to help young people get on the housing ladder… So…

Could we see Negative Interest Rates in the UK?

In February, the Daily Telegraph had a headline which must have alarmed savers up and down the land: ‘Savers face threat of negative interest rates.’ According to the story, the Bank of England had told the clearing banks that they ‘must be ready to introduce the policy in the next…

Budget Overview 2021

Introduction It is interesting to look back 12 months to Rishi Sunak’s first Budget: it was followed by a year none of us could have predicted or imagined. The Conservatives had won a comfortable majority in the December 2019 General Election. As expected, Sajid Javid became Chancellor and, in January,…

Who are the ‘winners’ of Covid-19?

To talk in terms of ‘winners’ and ‘losers’ around the topic of a global crisis certainly risks downplaying the human impact of the pandemic. It cannot be ignored, however, that amidst the unquestionable tragedy, there are companies, industries and indeed entire nations who have either benefited or can be expected…
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