Tag Archives: chris giles

Labour’s VAT cut: bad economics and disingenuous politics

In the run-up to today’s county council elections, Ed Miliband has been taking to a wooden pallet in towns and villages around the UK, telling anybody who would listen about Labour’s plan to rescue the British economy by temporarily reversing the 2.5 percentage point increase in the rate of VAT.

Desperate, though, to avoid admitting this would involve a significant increase in borrowing, he’s been telling us that this would actually be a free tax cut because the economic growth that resulted from it would increase revenues by more than the upfront cost.

That unlikely-sounding claim was given short shrift by …

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Welfare: right policy, wrong reasons?

Many column inches have been filled with comment over the government’s decision to restrict a number of benefits and tax credits to increases of 1% over the next couple of years.

This piece (£), however, by the FT’s economics editor, Chris Giles, warrants a special mention, not least because it is makes some interesting points that nobody else seems to have done.

Here’s a (fairly lengthy) extract:

In any case, good evidence exists on living standards to assess the merits of restricting benefit uprating. According to the most recent year of data, 2010-11, the crisis has caused real household net incomes around the

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The Weekend Debate: Bank of England independence – an economic success story or a well-intentioned failure?

Here’s your starter for ten in our weekend slot where we throw up an idea or thought for debate…

The Liberal Democrat 1997 manifesto said the following:

We will turn the Bank of England into a UK Reserve Bank, free from political interference. We will charge the Bank with keeping inflation low and make it accountable to Parliament for achieving this goal.

Of course after Labour’s landslide victory in that election, one of Gordon Brown’s first decisions as chancellor was to borrow this Lib Dem policy and essentially transfer responsibility for monetary policy to the Bank of England.

Most Labour politicians look back on …

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  • User AvatarEddie Sammon 31st Aug - 6:34am
    A liberal revival needs to involve Lib Dems listening to each other and the public more. I don't always succeed at this, but it is...
  • User AvatarDan Falchikov 31st Aug - 2:04am
    Five former target seats in there...
  • User AvatarLiberal Al 31st Aug - 1:38am
    I am NOT trying to say I think the West handled this situation well (worst Freudian slip ever, haha.)
  • User AvatarLiberal Al 31st Aug - 1:34am
    @Jedi, yes, the Telegraph, that most enlightened of newspapers on energy policy. @John, warmongering West? I think this shows John that basically you have allowed...
  • User AvatarSimon 31st Aug - 12:59am
    Community politics is NOT community activism. Please read the original pamphlet online.
  • User AvatarLiberal Al 31st Aug - 12:41am
    http://www.telegraph.co.uk/women/womens-politics/10214326/One-to-watch-Why-political-campaigner-Daisy-Cooper-is-going-places.html An interesting article on this very articulate candidate. This really is a tough presidency campaign, but I like the focus of this positive article...