Taxes and pension contributions are squeezing workers’ pay December 2, 2013 IT WAS meant to be one of the most basic rules of economics: the more people produce, the more they get paid. It is a long-standing, near-universal relationship that helps to explain why some jobs are so much more lucrative than others. But in recent years many have argued that the link has broken down, [...]
We need to judge policies by good outcomes not just on good intentions November 11, 2013 OVER the past week, two aspects of our public debate have become noticeable. First, many judge policies by their intentions, not their effects. This often leads to policymaking that seeks fairness, but actually eliminates opportunity. The second is that unequal outcomes are often just assumed to indicate institutional bias or injustice. Both result in do-gooders [...]
Almost a third of Londoners in poverty according to think tank October 14, 2013 Almost one third of Londoners are living in poverty, according to new research conducted by the New Policy Institute. The study shows that 28 per cent of all Londoners are living in poverty, seven percentage points above the national average. The survey commissioned by Trust for London uses the official definition of poverty, a household [...]
Treasury insists Britons benefiting from growth December 2, 2013 THE TREASURY insisted yesterday that compensation for workers in the UK is still closely linked to output, adding to debate over the cost of living in the lead up to the Autumn Statement. A new paper seen by City A.M. yesterday suggests that in the years since the crisis, the share of output going to [...]
Letters to the Editor – 05/11 – Minimum wages, Startup lending, Best of Twitter November 4, 2013 Minimum wages [Re: Help the low-paid by slashing their tax and boosting education, yesterday] I agree the best way of boosting low-paid income is to increase the tax threshold to, say, £12,000. A minimum wage increase would only lead to more outsourcing and automation. Chris Hobson As the economist Paul Krugman said in 1998, “the higher [...]
Cable: Tax threshold helps poor more than Labour’s wage plans October 9, 2013 THE COALITION has helped shore up living standards by raising the income tax threshold to £10,000, Vince Cable will say this morning. The business secretary is hitting back at Ed Miliband’s claims the government has hit living standards. The Labour leader has struck a chord with voters by promising to freeze energy bills if he is [...]
Letters to the editor – 29/11 – A new Germany, UK savings crisis, Best of Twitter November 28, 2013 A new Germany [Re: Germany’s new coalition will make little change to Merkel’s euro policies, yesterday] The coalition may not cause an explicit change in Germany policy towards Europe, but the consequences of the SPD’s influence on internal economic policy may nevertheless have far-reaching consequences. A national minimum wage and higher pension contribution burdens for [...]
Tories need to map out a tax cutting plan to ease the living cost squeeze December 1, 2013 AS THE chancellor’s Autumn Statement beckons, after a run of good economic news, it is time to address Britain’s less flattering fundamentals. Government has too much debt, the country too little to show for the recovery. Public spending at 48.4 per cent of GDP is debilitating, leaving the tax burden at its highest for 24 [...]
Reactions to the chancellor’s statement December 5, 2013 THE BUSINESS GROUPDirector general of the CBIJohn Cridland The CBI had lobbied the government to cap business rates at two per cent and support business finance. “We have always advocated the dual approach of tackling the deficit and driving growth – the OBR forecasts confirm it is working. Let’s stick with what works. “The pressure [...]
Higher wage bill would hit small business September 22, 2013 NEARLY half of small firms already paying staff at or above the amount advocated by the living wage campaign, according to new research. A survey by the Federation of Small Businesses (FSB) suggests that 49 per cent of firms already pay their staff at or above the amount that the campaign is pushing for, but [...]