Kate Andrews is economics editor of The Spectator
International investors may be jittery about the UK’s future, but the International Monetary Fund appears to be more optimistic. The IMF has published its World Economic Outlook report for January, which forecasts the UK will have the third-fastest growth in the G7 this year. It revises upwards its projection for 2025, by 0.1 per cent,
The UK economy has grown for the first time in three months. The Office for National Statistics (ONS) reports that the economy expanded by 0.1 per cent in November after it contracted by 0.1 per cent in both September and October. This uptick is largely thanks to an increase in services output, which grew by
11 min listen
With rumours swirling around Westminster and after Keir Starmer’s less than convincing defence of his Chancellor earlier in the week, Rachel Reeves has found some brief respite. The Office for National Statistics (ONS) confirmed that inflation dipped to 2.5 per cent in the 12 months to December, down from 2.6 per cent the month before.
Rachel Reeves has found brief respite this morning, with the Office for National Statistics confirming that inflation dipped to 2.5 per cent in the 12 months to December, down from 2.6 per cent the month before. This is a smaller rise than had been expected (the consensus was 2.6 per cent) and roughly in line
Rachel Reeves did her best to keep today’s China visit statement on topic. The Chancellor wanted to talk about ‘cooperation’, ‘competing where our interests differ,’ her efforts to break down market barriers and the £600 million she secured in investment. But other MPs had other ideas. ‘I know the Chancellor has been away,’ said the
Donald Trump has made a long list of promises for what will be done on ‘day one’ of his second term in the White House. Peace in the Middle East was not one of them. Yet it looks increasingly likely that the President-elect will be sworn in having just helped to secure a ceasefire between
Rachel Reeves returns from China this morning to face growing accusations that she has lost her grip on the public finances. This latest bond market crisis has brought into question whether the Chancellor is at risk of – or has already – broken her own fiscal rules. Capital Economics reports that a surge in gilt
12 min listen
Long term borrowing costs for the government have reached levels not seen since 1998, and 10 year UK gilts are now at their highest point since the 2008 financial crash. Both surpass the levels seen during the Liz Truss premiership – and this hasn’t gone unnoticed by the former PM. A set of similar circumstances,
What is a legacy? Is it the sum of our actions? Is it the family and friends we leave behind? Is it banning cigarettes? The consensus for exiting western leaders seems to be that last option. Just days before Joe Biden is to leave the White House, and hand the power back to Donald Trump,
The new year may have rustled up some surprise stand-offs for the Labour government (mainly calls from X founder Elon Musk for Keir Starmer to resign), but the rise of new problems does not mean the old problems have disappeared. A harsh reminder has been dished out this morning, as long-term borrowing costs reached a
It’s not terribly helpful for Keir Starmer that Elon Musk is creating polls on X, asking his 210 million followers if ‘America should liberate the people of Britain from their tyrannical government’. Nor does the Prime Minister seem very happy about the attacks on his record as chief prosecutor, using the Q&A of his healthcare
Interest rates have been held at 4.75 per cent. The Bank of England’s Monetary Policy Committee voted 6-3 to maintain the base rate, with the minority voting to further reduce rates by 0.25 percentage points. This is an unsurprising move from the Bank of England. Markets weren’t optimistic that another rate cut would follow so
10 min listen
The Bank of England has voted to hold interest rates at 4.75%. The Spectator’s economics editor Kate Andrews joins Katy Balls and Freddy Gray to discuss the decision and what this means for the economy. Also on the podcast they discuss how a potential donation from Elon Musk to Reform UK has rattled politicians across
12 min listen
New figures have shown that, for the year to November, inflation rose by 2.6%. While unsurprising, how much will this impact the Chancellor’s plans going into the new year? Katy Balls speaks to Kate Andrews and Isabel Hardman about the impact on Labour, especially given their October budget. Also on the podcast: do the WASPI
It was already unlikely the Bank of England (BoE) was going to cut interest rates this week. Having pledged a slow and steady approach to rate cuts, the decision to cut the base rate by 0.25 per cent last month made it much more likely that the Bank would hold rates at their meeting in
Good news for workers: wages are up. According to the latest data, released by the Office for National Statistics this morning, annual pay increased by 5.2 per cent in the three months leading up to October. Despite inflation returning broadly to the Bank of England’s 2 per cent target, these above-inflation wage increases will be
16 min listen
Today Downing Street has continued its reset – that is definitely not a reset – by providing more details on Labour’s plan to cut the planning red tape and deliver a housing revolution. Their target is to build one and a half million new homes over the next five years by building on green belt
Buenos Aires ‘I never wind down,’ says Argentina’s President Javier Milei when we meet in his Presidential Office at the Casa Rosada. ‘I work all day, practically… I get up at 6 a.m., I take a shower and at 7 a.m. I am already at my desk working. And I work all the way until
13 min listen
Preparations are stepping up for the government’s spending review, due in June. The Chancellor has taken a more personable approach to communicating with ministers, writing to them to outline how they plan to implement the Budget – with a crackdown on government waste and prioritising key public services. So, expect money for clean energy, the
How will the £40 billion additional tax revenue raised in the October Budget be spent? Efficiently, says the Chancellor this morning, who is setting out her plans for a war on waste. Rachel Reeves has informed government departments this morning that there will be a ‘line-by-line review’ of budgets leading up to the Spending Review