Money news

How ‘safe’ is the Bank of England?

‘Safe as the Bank of England.’ So goes the old phrase. And yes, with walls 8ft thick, the Old Lady is pretty impregnable. Even the keys to her vaults are more than a foot long (the locks also now incorporate voice-activated software). Until 1973 the building was guarded at night by soldiers from the Brigade of Guards, who received a pint of beer with their dinner there. With all this security, how can you hope to get in? One answer came in 1836, when the directors received an anonymous letter inviting them to meet the letter writer in the bullion room late one night. At the agreed hour they heard

Martin Vander Weyer

The importance of ethical banking

When I first visited Canary Wharf in the early 1990s, I was struck by a set of black-and-white posters in the shopping concourse advertising the Co-op Bank’s ethical banking stance: essentially, no lending to arms, tobacco, gambling or oil companies, or to regimes that disrespected human rights. A cynic might have argued that it was all about virtue signalling (before we learned that phrase) in the sense that no landmine manufacturer or brutal Third World dictator had ever been known to pop into a Co-op branch, ask for a loan and be met with a polite refusal and a copy of the policy. But it was a smart exercise in

Theresa May’s Brexit fear is selling Britain short

The EU is afraid of us, but we’ve got a prime minister who is afraid of the EU. The declaration by the European Commission that member states should prepare for ‘no deal’ is a powerful reminder that EU oligarchs are petrified that we will make a success of independence and expose the flaws in their dream of domination. They fear that we will reform our taxes and update our regulations to raise productivity and take market share from them. Their reaction is not to start improving their own competitiveness but to try to suppress our ability to compete, unfortunately with the willing compliance of the Chequers agreement and its anti-competitive

Steerpike

‘I’m literally a communist’ T-shirt – literally free market economics

Last week, the left-wing blogger Ash Sarkar told Piers Morgan she was ‘literally a communist’ after the pair got into a heated debate over her decision to protest Donald Trump’s visit to the UK when she hadn’t done the same for Barack Obama. Since then, the clip has gone viral and Sarkar – who works for Novara Media – has been rebranded as a liberal champion – with Teen Vogue even chipping in. Now Novara Media is keen to cash in. The blog has released a new t-shirt to its online shop emblazoned ‘I’m literally a communist’. Only rather than, say, practise communism and dispensing them ‘from each according to his

Business should now get behind ‘no deal’ with the EU

Both the Brexit and and Foreign Secretaries have resigned. The Chequers agreement, if that is the right word, looks about as enduring as the latest relationship on Love Island. The Prime Minister is staggering so uncertainly from one option to another that even Donald Trump’s advice over the weekend seemed almost sane. The UK’s strategy for leaving the European Union, insofar as we ever really had one, is in tatters. Big Business will no doubt respond to that with calls for a softer and softer Brexit simply in the hope of getting something in place before March next year. We will hear a lot about cliff edges, and the dangers

Trump surprises Nato members with demand that they should spend 4% on defence

Donald Trump has demanded that Nato members spend four percent of their GDP on defence. He is proposing a doubling of the current Nato target of two percent. This is, obviously, a negotiating tactic: even the US doesn’t, currently, hit this 4 percent mark. I suspect that Trump’s real aim is to highlight how few Nato countries meet the two percent target, apart from the US only four others do. He would also like European countries to spend more so that the US can reduce its military commitments in Europe. But the way in which his request was presented, on a day in which he once again took a swipe

Steerpike

Gary Lineker tops the BBC pay league

Whether or not England win their World Cup semi-final tonight, one thing is guaranteed: Gary Lineker has plenty to be happy about. The Match of the Day host, who flogs crisps and virtue signals on Twitter when he isn’t on the telly, has topped the BBC’s pay league for the first time. Lineker’s earnings last year of at least £1.75m means that he has overtaken Chris Evans to bag the top spot in taking home licence fee payers’ cash. The last time his earnings were published, Lineker doubled down by suggesting that he could earn more elsewhere. Will he do the same this time? Even if football doesn’t end up coming

What is China up to in the Arctic?

In January, a pair of pandas flew to Finland on a diplomatic mission. Hua Bao and Jin Bao Bao had been dispatched from their native Chengdu as a gesture of goodwill from China’s president Xi Jinping. Their arrival, part of China’s ‘panda diplomacy’, is one of several signs that the country is on a High North charm offensive. Days after the pandas had settled into their new home, China released its first ever White Paper on the Arctic. It is a document that defies geography, referring to China as a “Near-Arctic State,” despite its borders lying over a thousand miles south of the Arctic Circle. Much of the language is cautious, yet

Charles Moore

Brexit isn’t the cause of High Street woes

As someone who follows the news on Radio 4 at 6, 7 and 8 each morning, I notice that the bulletins begin very leftish and become slightly less so later. I assume the unit responsible, ‘Newsgathering’, works through the night from its default political position. So it relies heavily on the ready supply of ‘news’ from pressure groups, NGOs and right-on charities: ‘A new report warns that millions will die unless the government immediately injects £400 billion into X’; ‘A survey by an independent, Brussels-based think tank reveals that independent, Brussels-based think tanks believe that Brexit will be a disaster for Britain’. As actual news gets going, this dreary propaganda

Number 10: We’ll do a free trade deal with the US

Earlier I wrote about how a paper circulated to ministers before Chequers makes clear that the UK’s plan to follow a ‘common rulebook for all goods including agri-food’ with the EU ‘would not allow the UK to accommodate a likely ask from the US in a future trade deal’ as the UK would be unable to recognise the US’s ‘array of standards’. But Number 10 are absolutely insistent that this doesn’t mean there won’t be a trade deal with the US; they also say that senior figures in government and trade experts are confident that a deal could still be done and that Theresa May wouldn’t be talking to Donald Trump

Steerpike

Naz Shah gets another NHS payday

‘Happy 70th Birthday to our wonderful NHS,’ the Labour MP Naz Shah tweeted earlier today. Shah isn’t the only one marking the anniversary, but it would seem that the Labour MP has more to celebrate about our health service than most. The latest register of MPs’ interests reveals that last month Shah received £1,800 for providing ‘leadership training’ for the NHS. The payment, for twelve hours’ work, means that Shah earned a healthy £150 an hour. This isn’t the first time that Shah has received a payday from the NHS. Last year, the Labour MP took home £1,200 from the NHS for delivering two leadership training sessions at the NHS Leadership

The problem with Theresa May’s Brexit compromise

At Chequers over the next couple of days Theresa May, along with her chief Brexit-sceptic ministers Philip Hammond and Greg Clark, will attempt to convince others to agree to a soft Brexit. The latest thinking, according to reports today, is that the UK would more or less remain in the single market for goods but would face greater restrictions on trade in services. There would also be some degree of freedom of movement, though it would be more restricted than at present. A necessary compromise that will stave off the fear of ‘no deal’, or a cave-in which will hugely favour the EU? The problem is that the UK economy

Osborne at a loss over Evening Standard

Evening Standard editor, Kissinger Fellow, Honorary Economics Professor, Blackrock Advisor and Stanford Visiting fellow George Osborne is a skilled man at many things – namely job applications. However, as Chancellor Osborne struggled with deficit reduction, repeatedly missing his targets. He seems to now be experiencing economic turbulence in one of his new jobs, as editor of the London Evening Standard. BBC Media Editor Amol Rajan reports that in the space of a year the Standard has gone from a two million pound profit to a ten million pound loss. The paper will post a loss of £10m for the year ending in September 2017. Osborne started at the paper as editor

Jeremy Hunt tells Tories that a ‘low taxes at all costs’ party would lose the next election

In conversation with Andrew Neil at a Spectator event this evening, Jeremy Hunt defended the principle of increasing taxes to pay for more spending on the NHS. He warned Tories unhappy with the idea that if in an election you offer voters a choice between a low taxes at all costs party and decent public services, they’ll vote for decent public services. He said that this extra money for the NHS was needed to deal with a ‘once in a generation change in demography’ and that it was important that the Tories show the public they are on the right side of this argument. In language reminiscent of David Cameron,

Matthew Lynn

Businesses should try and shape Brexit – not fight it

Airbus will abandon the UK. The car factories will all be closed down. Trade will grind to a halt, we will run out of food and medicines, and Harry Kane will be sold to Real Madrid and made captain of Spain instead of England. Okay, I made that last one up, but all the others are among the dire warnings that big business have issued over Brexit in the last few weeks. Project Fear III, or IV, or possibly XXVII by now, keeps coming back. Right now, it seems to have as many sequels as Jurassic World, and with plot-lines that are about as original. That, however, is a mistake,

Full text: Liz Truss’s LSE lecture – ‘I want to take a zero-tolerance approach to wasteful spend’

As an economics geek, and a committed free marketer, I’ve always admired the London School of Economics. Despite its left-wing reputation, it was the academic home of Hayek. But even more than that, it produced my husband, Hugh O’Leary. It means that whenever I want a late night discussion about supply side reform or econometrics, there’s always someone on hand. And why do I love this stuff? Because I care about freedom. I’ve never liked being told what to do. And I don’t like to see other people being told what to do. Britain is a country that is raucous and rowdy. We have a younger generation of self-starters growing

Businesses should try and shape Brexit – not fight it | 26 June 2018

Airbus will abandon the UK. The car factories will all be closed down. Trade will grind to a halt, we will run out of food and medicines, and Harry Kane will be sold to Real Madrid and made captain of Spain instead of England. Okay, I made that last one up, but all the others are among the dire warnings that big business have issued over Brexit in the last few weeks. Project Fear III, or IV, or possibly XXVII by now, keeps coming back. Right now, it seems to have as many sequels as Jurassic World, and with plot-lines that are about as original. That, however, is a mistake,

Steerpike

Tom Watson’s gambling hypocrisy

When it was announced that the crackdown on fixed-odds betting machines could be delayed for up to two years, Labour’s deputy leader Tom Watson made his feelings loud and clear: ‘The state of this government. It’s pathetic,’ he tweeted. That outburst wasn’t the only time Watson has called for action against the bookmakers. Here he is describing gambling as Britain’s ‘hidden epidemic’ and urging football clubs to cut their ties with the bookies: ‘Kids more than ever are exposed to gambling adverts, and it’s no surprise to me then…that gambling addiction has gone up by an estimated third in recent years. There is a problem: the current arrangements are not

Treasury X Factor: Tory MPs belatedly summoned to find the money for NHS pledge

How do you find the money to pay for a £20bn NHS funding pledge? Usually such discussions – and eventual calculations – would be made before the money was announced. However, Theresa May decided to ditch the rulebook this week when she unveiled her government’s funding package to boost health spending by an average of 3.4 per cent over the next five years. Far from a fully costed pledge, May referred to a rarely-sighted Brexit dividend, potential borrowing and future tax rises. The uncertainty has led to criticism from Jeremy Corbyn’s Labour – not usually known for fiscal restraint. But happily it seems the Treasury now has a plan – or