The UK’s productivity is not as bad as we thought. The ONS has used a new approach which shows that since 2008 our productivity is almost double what we thought it was. Previously it looked like we were doing worse than our American cousins and our European neighbours but the figures suggest we have performed in line with France and Germany. It’s nothing to call home about, but it should make us think who we look to for policy inspiration.
Another reconfiguration of numbers is going to affect the upcoming Budget. When Rachel Reeves left government there was a financial cushion of £23.6 billion. Andy Burnham and John Healey need to do some serious thinking because that has been wiped out leaving them with £8.5bn in headroom. See our Stat of the Day below.
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
Nobody is trying to copy the NHS
Alys Denby
‘We must ask ourselves what it is about the NHS that leads to such cruelty. I can’t help but feel it has something to do with a model of state control that canonises the institution and dehumanises the patient.’
The Thirlwall report is not really about Lucy Letby’s crimes. It’s about a malignancy of another kind: NHS bureaucracy. Again and again staff at Letby’s hospital put the institution before the patients it was supposed to serve. Not only does our nationalised and heavily centralised health service deflect blame, it is uniquely vulnerable to political attack. Take the response to Palantir’s involvement, despite evidence showing greatly improved outcomes. Read More
Why can't Britain fix its roads?
Eamonn Butler
‘Cones and barriers with nobody working behind them should be regarded as political and economic failure – not a normal Tuesday.’
Potholes and roadworks are beoming more and more common. People are noticing more temporary traffic lights and cones with no workers. In some cases road closures carry on for years but the massive disruption to people’s time – and the emergency services ability to attend an urgent call – goes unaccounted for. Authorities need to incentivise contractors to carry out roadworks as quickly as possible. Read More
Stat of the Day
Best of the Web
Don’t fear the donors
Henry Hill, The Critic
‘It is wise to be wary of people citing nebulous perils to justify very concrete power grabs.’
Should we be worried about Reform’s £72 million donations? Not when you recognise that British political donors tend not to be half as good as the conspiracy-minded imagine at deploying their money effectively. British politics needs to develop institutions that care for the long-term health of a party not ones that cater to the whims of a particular leader and their immediate needs. Read More
Labour's budget fears
Patrick Maguire, The Times
‘Not for the first time, the fate of a Labour government is sliced and diced by the lenders.’
Borrowing costs are now higher than they ever got under Liz Truss and Labour believe they are being “Trussed in slow motion”. The Chancellor keeps emphasising that he and this Government will stay within the same limitations as the last one but so far the bond vigilantes don’t believe him. Read More
Why can't people move to high-wage areas?
The Capitalist: Britain needs saving from itself
And if you want more...
– Britain needs to matter somewhere (ConservativeHome)
– Good intentions paved the road to the 2008 crisis (The Daily Economy)
– AI and the Luddites (Econlib)
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