Finally, a breakthrough alternative to growth economics – the doughnut | George Monbiot

April 11, 2017, 10:00 pm

≫ Next: Sorting out paying on time and productivity | Letters

≪ Previous: McCluskey has set the new agenda for Unite | Letters

Instead of growth at all costs, a new economic model allows us to thrive while saving the planet

So what are we going to do about it? This is the only question worth asking. But the answers appear elusive. Faced with a multifaceted crisis – the capture of governments by billionaires and their lobbyists, extreme inequality, the rise of demagogues, above all the collapse of the living world – those to whom we look for leadership appear stunned, voiceless, clueless. Even if they had the courage to act, they have no idea what to do.

The most they tend to offer is more economic growth: the fairy dust supposed to make all the bad stuff disappear. Never mind that it drives ecological destruction; that it has failed to relieve structural unemployment or soaring inequality; that, in some recent years, almost all the increment in incomes has been harvested by the top 1%. As values, principles and moral purpose are lost, the promise of growth is all that’s left.

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Sorting out paying on time and productivity | Letters

April 12, 2017, 10:34 am

≫ Next: Higher interest rates. Great idea. Here’s why it won’t happen

≪ Previous: Finally, a breakthrough alternative to growth economics – the doughnut | George Monbiot

In defence of large companies named and shamed by Corbyn (Corbyn declares war on M&S – but retailer ‘does not recognise figures’, 12 April), Experian said that the data taken from its report showing very late payment of invoices do not apply to the majority of invoices. Capita said that only 10% of its payments are made later than 30 days of receipt. But even such a small percentage of late payment by a large company can cause huge pressures down the supply chain, and it invites questions about corporate ethics. Jeremy Corbyn raises a valid alarm about a potential national scandal.
SP Chakravarty
Bangor, Gwynedd

• Jeremy Corbyn is right to “declare war” on late-paying companies. Data on the scale of the problem comes as no surprise. My late father worked into his 80s doing bookkeeping for a small engineering firm. They did minor maintenance on ships. Every time I spoke to my father about work, he seemed to be chasing up overdue payments (cheques in those days) from major shipping companies. On some occasions, his boss had to pay his employees out of his personal bank account. Nothing has changed. That’s what big companies do. That’s why they’re big and why small businesses struggle or go to the wall.
Karen Barratt
Winchester

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Higher interest rates. Great idea. Here’s why it won’t happen

April 15, 2017, 9:00 am

≫ Next: How Britain can build a successful, lasting industrial strategy

≪ Previous: Sorting out paying on time and productivity | Letters

The Bank of England, IMF and other policymakers see ongoing low rates as dangerous but can’t see how to change things. There is a way, of course …

For some time now savers have campaigned for a return to normal interest rates, by which they mean central bank rates more like 4%-5%. And it’s not just about earning more on their savings. This protest against the current 0.25% base rate also has a broader, altruistic bent. At least that is what they honestly believe.

They argue that higher interest rates will restore a lost balance in the economy – taking it back to the way it was before the financial crisis, when things were so much better.

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How Britain can build a successful, lasting industrial strategy

April 16, 2017, 3:03 am

≫ Next: Investors think the election means a softer Brexit – are they right?

≪ Previous: Higher interest rates. Great idea. Here’s why it won’t happen

The UK has had three grand plans in 10 years. It’s time to get everyone to agree on the targets and stick to them

For many years, the idea that a government of the right should have an industrial policy was heresy. The state’s role was to keep inflation and taxes low, then stay out of the way so that market forces could operate. Ronald Reagan summed up the philosophy when he said the nine most dangerous words in politics were: “I’m from the government and I’m here to help.”

The idea that Reagan pursued a form of pure laissez-faire is, of course, nonsense. Plenty of US firms reaped the benefits of vastly increased defence spending in the 1980s, a form of military Keynesianism, that had plenty of technological spin-offs.

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Investors think the election means a softer Brexit – are they right?

April 18, 2017, 11:40 am

≫ Next: Green Investment Bank sell-off described as a disaster by critics

≪ Previous: How Britain can build a successful, lasting industrial strategy

Theresa May may have won herself room to compromise on the UK’s exit from the EU – but don’t get too carried away

Ignore the 180-point fall in the FTSE 100 index. Part of the decline occurred before the lectern had even been placed in Downing Street. Part of the rest can be explained by a stronger pound, which tends to depresses the value of the many big dollar-earners in the index. The real question is why sterling, which hit a six-month high, reacted so strongly to an early general election.

It was because investors calculated – counter-intuitively at first glance – that a bigger Tory majority in the Commons, if that’s what follows, will mean a softer form of Brexit. This argument was best expressed by Deutsche Bank’s analysts, who reckon the election is “a game-changer” for the pound and the Brexit negotiations. A bigger majority would set Theresa May free from the “unrealistic timetable” set by the eurosceptics in her party, they argue.

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Green Investment Bank sell-off described as a disaster by critics

April 20, 2017, 8:22 am

≫ Next: Green Investment Bank sell-off: only time will tell how green it is | Nils Pratley

≪ Previous: Investors think the election means a softer Brexit – are they right?

Greenpeace says £2.3bn sale to controversial Australian bank Maquarie risks climate targets, while Lib Dems say bank was sold too fast and too cheap

The UK government’s decision to sell the Green Investment Bank to Australian bank Macquarie for £2.3bn has been attacked by critics including the Liberal Democrats and Greenpeace as “politically dubious” and a “disaster”.

A consortium led by Macquarie, which also includes the bank’s European Infrastructure Fund 5 and the Universities Superannuation Scheme, a UK pension scheme for university professors, agreed to buy the GIB, which was established in 2012 by the coalition government to fund green infrastructure projects.

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Green Investment Bank sell-off: only time will tell how green it is | Nils Pratley

April 20, 2017, 11:20 pm

≫ Next: A hasty election before Britain sees the hard truth of Brexit

≪ Previous: Green Investment Bank sell-off described as a disaster by critics

The government has secured green ‘commitments’ after the £2.3bn sale. In reality it has secured only ‘good intentions’

The charge that Macquarie is a ruthless asset-stripper that, given half a chance, would dismember the Green Investment Bank clearly stung. As the government unveiled the inevitable sale, for £2.3bn, to a consortium led by the Australian finance house, all sides were anxious to emphasise the buyer’s long-term enthusiasm for its new purchase.

GIB will survive as a discrete entity in Edinburgh. Macquarie will throw a few of its own assets – a couple of windfarms and a waste and biomass plant – into the mix for it to manage. It will report on progress in honouring GIB’s green investment principles. It will aim to invest £1bn a year in green energy projects, more than the £700m-ish that GIB was achieving via taxpayer funding. “We look forward to seeing these commitments from Macquarie delivered, in full, in the months and years ahead,” said Lord Smith of Kelvin, GIB’s chair.

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A hasty election before Britain sees the hard truth of Brexit

April 22, 2017, 10:59 pm

≫ Next: Inflation puts the brakes on Britain's economic activity

≪ Previous: Green Investment Bank sell-off: only time will tell how green it is | Nils Pratley

Of all the reasons for Theresa May to go for an immediate vote, the clearest is that the future prospects for Britain are darkening all the time

My friend Paul Whitehouse told me the news in my local cafe. At first I thought he was practising a sketch for a re-run of the much-missed Fast Show.

Sadly, he wasn’t. Theresa May’s repeated denials of an intention to call a snap election had gone the way of so many of her inconsistent and often fatuous pronouncements. There was going to be an election after all.

If she ploughs on, she could end up by 2020 as the most unpopular prime minister since records began

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Inflation puts the brakes on Britain's economic activity

April 23, 2017, 11:00 pm

≫ Next: UK government borrowing at lowest level since 2008 financial crisis

≪ Previous: A hasty election before Britain sees the hard truth of Brexit

Official GDP estimate – due on Friday – will reflect how weaker pound has pushed up the cost of imported goods

Britain’s economy cooled considerably in the first three months of the year as higher inflation put a squeeze on disposable incomes, official figures are expected to show this week.

The economy shrugged off the shock of the Brexit vote last June and has been surprisingly resilient, with growth rates of 0.5% in the third quarter of 2016 and 0.7% in the final quarter.

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UK government borrowing at lowest level since 2008 financial crisis

April 25, 2017, 3:39 am

≫ Next: It’s a great honour to be called a mugwump | Brief letters

≪ Previous: Inflation puts the brakes on Britain's economic activity

Boost for chancellor as borrowing falls by £20bn to £52bn – but analysts say it is too soon to be complacent

Government borrowing fell to the lowest level since the financial crisis in the year to the end of March as the economy proved more resilient than expected in the aftermath of the Brexit vote.

Borrowing fell by £20bn to £52bn in the 2016-17 financial year after economic growth helped drive tax receipts higher, narrowing the gap between what the government spends and earns.

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It’s a great honour to be called a mugwump | Brief letters

April 27, 2017, 10:25 am

≫ Next: UK economy is being sucked into London and south-east, says TUC

≪ Previous: UK government borrowing at lowest level since 2008 financial crisis

Post EU rail franchises | Mugwump | Family relationships and language | E-readers

John Draper makes a good point about competitive tendering for rail franchises within EU member states – but isn’t the main point about renationalising the railways that there won’t be any new franchises to bid for (Letters, 26 April)! Whether Caroline Lucas wants Britain to remain in the EU or not is therefore irrelevant.
Paul Tattam
Chinley, Derbyshire

• Think before you speak, foreign secretary (Report, 27 April). The term “mugwump” was used in the US to describe an independent Republican who refused to support the party ticket (sound familiar, Boris?) in 1884. I don’t think Jeremy will take too much offence: the term derives originally from the Algonquian Indian language and means “chief” or “great man”.
Ralph Willett
Sherborne, Dorset

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UK economy is being sucked into London and south-east, says TUC

April 27, 2017, 11:44 pm

≫ Next: Brexit could trigger worse crash than 2008, says Vince Cable

≪ Previous: It’s a great honour to be called a mugwump | Brief letters

Unions say industrial strategy now more important than ever as two regions will account for 40% of GDP by 2022

The TUC has called on political parties to spell out plans to spread prosperity to all Britain’s regions after warning that economic activity is becoming ever more concentrated in London and the south-east.

On current trends, the TUC said, the two most prosperous regions would account for 40% of national output by the end of the next parliament in 2022.

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Brexit could trigger worse crash than 2008, says Vince Cable

April 28, 2017, 9:58 pm

≫ Next: Good and bad news from an economy in uncharted territory

≪ Previous: UK economy is being sucked into London and south-east, says TUC

Liberal Democrat former business secretary launches election bid with warning of dire consequences of leaving EU without a good deal

Quitting the EU could could trigger an economic crisis even greater than the 2008 financial crash, former business secretary Vince Cable has said. Cable predicted that job losses, inflation and falling consumer confidence could send the UK economy into a recession even harsher than the credit crunch if Theresa May presses ahead with a hard Brexit.

The Liberal Democrat made the comments as he launched his bid to reclaim his old seat of Twickenham in June’s general election. He has vowed to battle to keep Britain in the single market and the customs union if reelected.

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Good and bad news from an economy in uncharted territory

April 29, 2017, 8:00 am

≫ Next: Pensioners will carry on hoarding cash if state won’t step in

≪ Previous: Brexit could trigger worse crash than 2008, says Vince Cable

In the no-man’s land between a referendum and a snap election, what are the key economic indicators telling us?

Elections have long been won and lost on the state of the economy. So Theresa May’s decision to call a snap poll just as UK growth appears to be slowing has raised eyebrows. But with the Brexit vote predicted to put more pressure on households as the year goes on, the prime minister may well believe this is as good as it gets for economic news.

With less than six weeks to go to the election, a look at the economic backdrop reveals there is both good news and bad for the government.

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Pensioners will carry on hoarding cash if state won’t step in

April 29, 2017, 9:00 am

≫ Next: Poorest face ‘double whammy’ if Tories ditch triple lock on pensions

≪ Previous: Good and bad news from an economy in uncharted territory

Without government investment in care and housing, the baby boomers will naturally hold on to their money

The row brewing over the state pension triple lock plays into a wider debate about incomes and wealth in old age and how, as a society, we adapt to the escalating costs of improved life expectancy, increasing care costs and, crucially, property prices.

It is becoming clear that the answer for many people is to take the Italian approach. In addition to eating pizza and pasta, they do everything to avoid paying higher taxes and hoard whatever assets they have accumulated.

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Poorest face ‘double whammy’ if Tories ditch triple lock on pensions

April 29, 2017, 9:59 pm

≫ Next: Diane Abbott has several numbers on police costs – sadly they are all wrong | John Crace

≪ Previous: Pensioners will carry on hoarding cash if state won’t step in

Removal of minimum rise could push many into poverty

Plans to ditch the triple lock on the basic state pension would represent a “double whammy” for the poorest pensioners, many of whom have already lost out under this month’s new flat-rate pension, according to a leading pension expert.

Pensioners who rely on the state pension for most of their income will be the biggest losers should the Tories drop the element of the triple lock that guarantees annual rises of at least 2.5%.

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Diane Abbott has several numbers on police costs – sadly they are all wrong | John Crace

May 2, 2017, 6:35 am

≫ Next: UK needs £15bn in cuts or tax rises to clear deficit by 2022, says IFS

≪ Previous: Poorest face ‘double whammy’ if Tories ditch triple lock on pensions

Shadow home secretary blunders through LBC interview on officer recruitment, making up figures as she goes along

General election 2017 – live updates

Think of a number. Any number. Jeremy Corbyn had thought of a number. He had thought of the number 10,000. That was how many new policemen and women Labour were promising to put on the beat if they won the election. He’d show the Tories he too could be tough on law and order.

Think of a number. Several numbers. The shadow home secretary, Diane Abbott, had thought of several. Unfortunately all of them were the wrong ones as she tried to explain Labour’s policing commitments to Nick Ferrari in an interview on LBC radio.

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UK needs £15bn in cuts or tax rises to clear deficit by 2022, says IFS

May 2, 2017, 9:35 am

≫ Next: 'International development' is a loaded term. It's time for a rethink | Jennifer Lentfer

≪ Previous: Diane Abbott has several numbers on police costs – sadly they are all wrong | John Crace

Tory austerity drive has made little difference to public spending as a share of national income, leading thinktank finds

It will take an extra £15bn of spending cuts or tax rises to eliminate the budget deficit by the time of the 2022 election, a leading thinktank has said as it laid bare the damaging legacy of the financial crisison UK living standards and public finances.

The Institute for Fiscal Studies said that despite “two parliaments of pain”, the Conservative-led austerity drive had made little difference to public spending when measured as a share of national income and compared with pre-downturn levels.

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'International development' is a loaded term. It's time for a rethink | Jennifer Lentfer

May 3, 2017, 6:48 am

≫ Next: Tories attack Labour over inheritance tax and spending plans

≪ Previous: UK needs £15bn in cuts or tax rises to clear deficit by 2022, says IFS

Our organisation was formed 30 years ago to share ideas on making the poor richer. Now a new mindset has led the organisation to change its name

People would always give me a quizzical look. “And what is that, exactly?” they would ask, if brave enough to reveal their naiveté about what was to become the next decades of my life.

“Well, it’s the study of how to help poor countries become richer,” I would explain of my choice to study international development.

We bring in consultants whose circumlocution

Raises difficulties for every solution –

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Tories attack Labour over inheritance tax and spending plans

May 3, 2017, 12:43 pm

≫ Next: General election 2017: May criticised for 'poisoning' negotiations with claims of EU election interference - as it happened

≪ Previous: 'International development' is a loaded term. It's time for a rethink | Jennifer Lentfer

Opposition accused of being unable to fund campaign promises as party insists it has yet to finalise manifesto

Labour came under sustained pressure from the Tories over its tax and spending plans on Wednesday, with a series of ministers claiming the party would raise inheritance tax and be unable to fund its campaign promises.

The opposition was accused by Boris Johnson of planning to halve the threshold at which tax on inheriting estates is levied, while Phillip Hammond and David Davis claimed that voters would face a £45bn tax and borrowing “bombshell” under Jeremy Corbyn.

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