Embrace road pricing to build the infrastructure we actually need without government borrowing October 27, 2016 It is odds on that Philip Hammond will announce in the Autumn Statement that government spending constraints will be relaxed to facilitate investment in infrastructure. We will be told that the government should borrow and invest more and that this will promote growth in the long run. This argument might have merit if it were not for [...]
House prices rebounded in September after the Brexit vote lull September 19, 2016 UK house prices are rebounding from the lull that immediately followed the Brexit vote, according to data from Rightmove. Asking prices have increased 0.7 per cent month-on-month, Rightmove said. In the weeks after the Brexit vote, Rightmove found that prices fell by 0.9 per cent. But first-time buyers are finding it increasingly difficult to get on [...]
How Theresa May can achieve a truly radical housebuilding revolution October 25, 2016 Today, so many leaders are judged on how much they achieve in their first 100 days in office, a concept first associated with US President Franklin D Roosevelt. But as this milestone passes for Theresa May, what can we expect from the government when it comes to its promise of a radical approach to housing? [...]
Meet the Edmond de Rothschild asset manager who launched a UK-focused fund just before the referendum (and doesn’t regret it) November 27, 2016 With the European Union referendum just two months away, April 2016 may have seemed like a bold time for a European asset manager to launch a new fund focusing exclusively on the UK – even if it looked like we were headed for a Remain vote. Shares in companies such as ITV, BT, and Marks [...]
Money supply growth suggests we’re still too pessimistic about the British economy November 2, 2016 The latest broad money supply M4x figures from the Bank of England (up to the end of September this year) paint a picture of an economy getting stronger, not weaker. To understand why, we need a short digression into economic theory. Broad money supply growth provides an insight into the outlook for nominal GDP growth [...]
How the chancellor can satisfy pension funds’ hunger for infrastructure October 31, 2016 Death and taxes are said to be the only two certainties in life, but you could now add “rumours about increased government infrastructure spending” to the list. Infrastructure captures the imagination as it literally provides the building blocks of the nation. It can be a contentious topic, as seen with HS2 and the Heathrow-Gatwick debate, [...]
Infrastructure delays cost the UK £48,000 a minute October 13, 2016 The nation is being held back by infrastructure delays – and they're proving costly. A one-month delay in the transport infrastructure pipeline means the UK economy will miss out on around £2bn of investment-related GDP over the next five years – equivalent to £48,425 for each minute of delay. That’s according to research by the Centre [...]
Chancellor Hammond must focus on the quality of infrastructure spending, not its quantity November 22, 2016 Keynes is back, or so it seems. Both left and right wing movements across the West are calling for greater government borrowing to finance infrastructure projects. In the US, Donald Trump is proposing to invest $500bn. In the UK, Labour’s John McDonnell wants an even more lavish £500bn programme, equivalent to around a quarter of [...]
Philip Hammond has warned against attempts to lure key financial services sectors to mainland Europe after Brexit September 8, 2016 Chancellor Philip Hammond has hit back at Francois Hollande after the French president suggested that euro clearing could move to Continental financial centres in the aftermath of Brexit. Just days after Britain voted to leave the EU, Hollande said that “other financial centres in the bloc'” should prepare to carry out euro clearing if Britain [...]
Five ways government can cut the soaring cost of car insurance for honest drivers October 18, 2016 The rising cost of insurance understandably concerns many motorists. The average comprehensive motor insurance premium has risen by 10 per cent over the last year. Today we lift the lid on what is driving up the costs of motor insurance, and what is needed to give hard-pressed honest motorists a break. Lifting the Bonnet on [...]