The bill for Personal Independence Payment (PIP) benefits is set to double by 2030. It is on track to reach £45 billion, which is larger than all but three government departments. Research from The Times found a huge number of constituencies where claimants outnumber the incumbent MP’s majority. So much for their ability to tackle the problem head on.
In other news, Andy Burnham reaffirmed his commitment to reaching Net Zero by 2050. This will come as disappointing news to many who hoped that the new Prime Minister would have a more pragmatic and serious approach to energy. Burnham may have moved Ed Miliband away from energy policy but from the outside it looks as though he is still in charge of it. Read more below from Centre for Policy Studies Researcher Sean Ridley.
Below you’ll find all the latest pieces from CapX, plus what we’re reading from around the web.
Oscar Gill-Lewis
Deputy Editor, CapX
Today’s Takes
Fresh thinking from CapX
Burnham needs to get serious on energy
Sean Ridley
‘Our current path towards Net Zero is increasingly visible as an economic folly.’
Andy Burnham reaffirmed his commitment to reaching Net Zero by 2050. Keir Starmer may not be Prime Minister nor Ed Miliband in charge of the energy brief but it looks like their climate policy is set to continue. If Burnham was serious about making our energy secure and affordable there are a number of things he could have announced, like approving Jackdaw and Rosebank. Read More
Trump is right about Britain’s digital regulations
Ben Ramanauskas
‘American firms dominate the tech industry and so almost any domestic digital regulation a foreign government passes will land disproportionately on US companies.’
The Trump administration has admonished its British counterparts over digital regulations like the Online Safety Act. The US feels hard done by because while the UK says these policies are neutral, they tend to affect American firms the most because of their size and revenue. In this case Trump is right to call these laws out for being non-tariffs trade barriers and Andy Burnham should repeal them. Read More
Stat of the Day
Best of the Web
Will the Bank of England repeat past mistakes
Roger Bootle, The Telegraph 🔒
‘Unions put pressure on the government because of the cost of living, Labour grants pay rises, the cycle continues and a dwindling private sector picks up the bill’
Will the Bank of England raises rates in November? It could well do. Many members of the Monetary Policy Committee are worried about failing to increase rates early enough in 2021. The Bank may also be influenced by the European Central Bank and the US Federal Reserve, but we should make sure that any decisions we take, make sense for our economic context. Read More
Labour are choosing decline
Emma Revell, City AM
‘When the very people the country is counting on to hire and invest are writing open letters begging the government to change course, something has gone deeply wrong.’
Britain’s economy has been sluggish for the past 20 years. The next year is looking particularly bleak. Businesses are pushing back against Labour’s taxes, energy bills are soaring and Labour’s core voters and backbenchers reject the tax and spending cuts needed to stimulate the economy. It doesn’t have to be like this, but if we really want a different fate it means the Labour Party needs to be honest about the policies we can’t afford. Read More
Burnham needs to deliver meaningful tax reforms
The Capitalist: Britain needs saving from itself
And if you want more...
– Why Arab armies don’t win wars (Works in Progress)
– Constitutional reform is complex (Substack)
– A tourist tax will be bad for all businesses (City AM)
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