Living standards· Prices & consumption· Brexit & trade· Tax After Brexit the UK could cut VAT on energy – but should it? 2 September 2019 by Adam Corlett During the EU referendum, one of Vote Leave’s promises was that “fuel bills will be lower for everyone”. Specifically, Boris Johnson and others argued that: “In 1993, VAT on household energy bills was imposed. This makes gas and electricity much more expensive. EU rules mean we cannot take VAT off those bills. The least wealthy … Continued READ MORE
Economic growth Is there any economics behind Johnson’s ‘perk up and carry on’ strategy? 15 August 2019 by Torsten Bell It’s time to get with the perk… I mean programme. Boris Johnson’s government might not even have a Budget under its belt, but its economic strategy is taking shape. It’s time to abolish the gloomsters. And the doomsters. As he said on entering Downing Street, “after three years of unfounded self-doubt it is time to … Continued READ MORE
Living standards· Universal Credit· Childcare· Scotland· Welfare A welcome boost for ‘just about managing’ families in Scotland 27 June 2019 by Adam Corlett Yesterday started with a bleak assessment by the Child Poverty Action Group of the impact of ongoing welfare cuts – specifically how the two-child limit on support, which began to be implemented in 2017, is set to push 300,000 children into poverty. But there was better news for Scottish parents later in the day, as … Continued READ MORE
Jobs· Labour market· Productivity & industrial strategy· Pay Two and a half reasons to be cheerful about our strong and stable labour market 11 June 2019 by Nye Cominetti Today’s labour market statistics were, to use a technical term, boring. In a world of high political and economic drama, our labour market has served up headline measures of real pay growth and employment which basically haven’t changed for four months in a row. We shouldn’t bemoan unchanging numbers. Like air travel and digging tunnels, … Continued READ MORE
Firms· Labour market· Productivity & industrial strategy The word on the high street 18 April 2019 by Daniel Tomlinson The way we shop in the UK has changed dramatically in just the space of a decade. In 2008 less than five per cent of retail spending was online, and that share has almost quadrupled in the years since. The latest statistics published just this morning show that in March this year almost a fifth … Continued READ MORE
Labour market· Cities and regions (Almost) every part of the country is celebrating Britain’s latest jobs surge 19 March 2019 by Charlie McCurdy We’re now a decade on from the Great Recession where the UK’s labour market took a turn for the worse. Back in 2009, we were panicking that unemployment could hit over three million. Today, we’re celebrating the highest employment rate – at 76.1 per cent – since World War II, while unemployment is also at … Continued READ MORE
Labour market· Low pay· Cities and regions Why city regions should be leading the charge on tackling low pay 3 March 2019 by Fahmida Rahman Low pay in Britain is an issue of national importance. With around one-in-five employees classed as low paid, the share of Brits who fall into this category remains well above the levels achieved by the best-performing countries in the OECD. That said, within Britain, there are huge disparities in terms of where low pay is … Continued READ MORE
Jobs· Firms· Labour market Relocation, relocation, relocation – why workers in firms are increasingly staying put 13 November 2018 by Stephen Clarke Channel 4 (or at least some of it) is off to Leeds. Some staff may be relishing the move, some may have wanted to move to Manchester or Birmingham, while others may have just wanted to stay put. Despite the mixed feelings one thing is undisputed; Channel 4 staff are now part of an increasingly … Continued READ MORE
Inequality & poverty· Wealth & assets· Cities and regions Regional wealth inequality: a nation divided 1 September 2018 by Conor D’Arcy On Monday, families across the country will be feeling a mix of excitement, anxiety and relief as kids go back to school (with Scotland having already gone through it). Experiences that unite every corner of the UK feel rarer these days, with talk of division and left-behind places common. Differences between South Shields and South … Continued READ MORE
Firms· Productivity & industrial strategy· Economy and public finances· Economic growth Time to concentrate on our capitalism 26 July 2018 by Torsten Bell and Daniel Tomlinson Our politicians are anxious. And not just because no-one has a decent poll lead or idea where Brexit will end up. No, some are finding the time to get anxious about other things too, including the state of capitalism in the UK. The angst isn’t limited to the left either, with Michael Gove becoming a … Continued READ MORE
Living standards· Cities and regions Tackling London’s living standards exodus 2 July 2018 by Conor D’Arcy Everyone knows housing is a disaster in London. This is most obvious in the ludicrous prices that properties fetch, but London’s housing problems stretch well beyond having to fork out over half a million pounds for a poky flat in Zone 2. For a start, the way people are housed in London has changed dramatically … Continued READ MORE
Living standards· Productivity & industrial strategy· Cities and regions Poor productivity and high housing costs are driving a ‘living standards exodus’ from London 27 June 2018 by Stephen Clarke As a Londoner it’s fair to say that as a city we’re quite good at giving ourselves a pat on the back (though apparently self-loathing Londoners are a thing too). It’s often suggested that London is an economic powerhouse, productive, innovative and leaving the rest of the country in its wake. However new research by … Continued READ MORE
Living standards· Inequality & poverty· Brexit & trade· Economic growth Dis-United Kingdom? Inequality, growth and the Brexit divide 25 May 2018 by Matthew Whittaker Much has changed in Britain since the EU referendum, but in many ways the divide that opened up around the vote feels as cavernous today as it was on the morning after the night before. That owes much to the inevitably divisive nature of a binary in/out referendum of course, but many commentators point also … Continued READ MORE
Labour market· Productivity & industrial strategy· Economic growth Introducing….Hamilton – The Industrial Strategy 21 May 2018 by David Willetts Today’s science speech by the Prime Minister shows how much she has in common with the great Alexander Hamilton – though she has not got her own musical yet. Hamilton’s great rival Jefferson had a picture of America as sturdy yeoman farmers enjoying their liberties under a minimalist Government. Hamilton instead saw the Federal Government … Continued READ MORE
Jobs· Labour market· Productivity & industrial strategy· Pay Britain’s labour market – the good (jobs), the bad (pay) and the ugly (productivity) 15 May 2018 by George Bangham This month’s labour market statistics gave us a classic mixed bag of results, with reasons to be cheerful on jobs, confused on pay, and downright depressed when it comes to Britain’s productivity record. Let’s start with the good news on jobs. Employment has hit another new high, with recent growth driven by full-time work – … Continued READ MORE
Jobs· Labour market· Productivity & industrial strategy Britain passes a major milestone on pay and breaks new ground on jobs – but there’s a productivity sting 17 April 2018 by Stephen Clarke This morning UK labour market passed a few living standards milestones on pay and jobs with two good pieces of news, one expected and one a surprise. We also got a hint of more good news to come. But we also got one bit of bad news. Let’s start with the good. Today pay growth … Continued READ MORE
Living standards· Globalisation· Intergenerational Centre “Don’t it always seem to go, that you don’t know what you’ve got till it’s gone” – UK generational trends in an international context 19 February 2018 by Daniel Tomlinson and Fahmida Rahman Joni Mitchell’s lyrics may refer to her first trip to Hawaii, but they could just as easily apply to UK trends in generational living standards that the Resolution Foundation’s Intergenerational Commission has uncovered. That’s particularly so in light of new analysis comparing these trends internationally. While there are huge living standards differences between high-income countries, … Continued READ MORE
Labour market· Productivity & industrial strategy· Technological change ‘The rise of the robots’ and ‘productivity pessimism’ can’t both be right 14 December 2017 by Adam Corlett Talk of looming automation, AI and robots is pervasive in public policy chat – including in the government’s new industrial strategy. Almost as common are projections that the weak growth of the past decade is here to stay – including in the latest official economic outlook. Sometimes these assumptions are even mentioned in the same … Continued READ MORE
Labour market· Productivity & industrial strategy· Skills Britain’s skills record has hindered, not helped, our productivity drive. That needs to change 30 November 2017 by Kathleen Henehan Over the last week, we’ve heard a lot about the need to boost Britain’s productivity and how education and training can support that drive. First we had welcome new funding commitments in the Budget, then a strong skills focus in the Industrial Strategy White Paper and today we have a Skills Summit. Throughout, the Government … Continued READ MORE
Budgets & fiscal events· Scotland· Tax Will the (Scottish) Budget raise income tax rates? 20 November 2017 by Adam Corlett With the UK Budget imminent, it’s important not to forget proposals released in Scotland earlier this month. These could lead to increases in income tax rates as soon as April, intended to protect public services and benefits in Scotland. This would be a departure from the usual direction of travel in the UK: there has … Continued READ MORE
Budgets & fiscal events· Productivity & industrial strategy· Economy and public finances Hammond’s goal in this Budget should be to restart the productivity engine 20 November 2017 by Matthew Whittaker As a nation, we’re working smarter than we used to. A decade ago, for every hour we worked, we produced about £31.30 of stuff; today each hour of graft generates £31.85 of output. That sounds like good news. If we’re becoming more productive we should be able to treat ourselves to a pay rise, or … Continued READ MORE
Jobs· Labour market· Cities and regions Charting a course to better jobs in Greater Manchester 26 October 2017 by Stephen Clarke Andy Burnham, the mayor of Greater Manchester, has just announced that he is looking at creating a ‘GM Employers’ Charter’ to raise productivity and job quality in the region. As a first step the Mayor is seeking the views of employers, workers, trade unions and other experts, so it’s a good time to take stock … Continued READ MORE
Living standards· Brexit & trade· Economy and public finances There’s much uncertainty about a ‘No Deal’ Brexit, but what we do know would be bad for living standards 17 October 2017 by Torsten Bell Big change, means big uncertainty. Especially when that big change is being brought to the complex beast that is a major developed country in the 21st Century. To complicate the task further, in the case of Brexit Britain while we know big change is coming, we don’t know what form that big change will actually … Continued READ MORE
Productivity & industrial strategy· Economy and public finances· Economic growth The living standards cost of the OBR’s newfound productivity pessimism 10 October 2017 by Matthew Whittaker Rumours of attempts within the Cabinet to remove Philip Hammond may or may not be wide of the mark. But given the recent steady flow of disappointing economic data, the Chancellor could be forgiven for wanting to walk before he’s pushed. Last week’s PMI data and today’s short-term indicators from the ONS both suggested that … Continued READ MORE
Living standards· Incomes· Inequality & poverty· Brexit & trade We’re getting poorer, but it’s not (just) Brexit 6 October 2017 by Matthew Whittaker Amid a busy week in politics, the publication this week of new data showing that average household income per person has fallen in each of the last four quarters has passed somewhat unremarked upon. As the chart below shows, annualised income fell by 0.3 per cent in the second quarter of this year relative to … Continued READ MORE
