The Economist says Britain would be ‘bonkers’ to ditch Palantir. Good to see it catching up with CapX.
Meanwhile, Labour’s Home Secretary Shabana Mahmood seems to be borrowing from the last government’s immigration playbook, as she considers plans for an overseas resettlement scheme for failed asylum seekers. Just don’t suggest putting it in Rwanda.
And there might be a bright sign for the UK economy – with a new analysis by Morgan Stanley suggesting an increase in private sector productivity in the second quarter of the year, attributed in part to AI adoption. No word on how the public sector is doing.
Finally, Harry and Meghan may no longer be royal, but it’s heartwarming to see them still willing to serve as public role models for the virtues of smart tax planning. Their return to the UK is astutely timed given the capital gains tax rules. Of course, what we really need are simpler taxes that are fairer for everyone.
Below you’ll find all the latest pieces from CapX, plus what we’re reading from around the web.
Marc Sidwell
Editor, CapX
Today’s Takes
Fresh thinking from CapX
Red tape is a tax on time
Damian Pudner
‘We have spent years asking why British productivity is so poor, while showing remarkably little curiosity about how much productive time government itself absorbs.’
Compliance costs British business around £52 billion a year. How much of that is wasted on rules nobody has bothered to think through? Every hour spent on paperwork is an hour not spent selling, investing or training staff. Ministers are held to account when they spend public money. They should face the same scrutiny when they spend everyone else’s time. Read More
Don't blame water firms for hosepipe bans
Samuel Williamson
‘Between 2010 and 2024, Ofwat kept prices 25% lower than if they had followed inflation – helpful for customers, but starving the system of necessary investment.’
More than 20 million people are under hosepipe bans, and Andy Burnham is floating a plan to take water back into public ownership. But privatisation cut leaks by 43% – saving the equivalent of 22 reservoirs. And we haven’t built a new one in decades because the regulator has stood in the way. Read More
Stat of the Day
Best of the Web
A tax on development
Viggo Terling, The Critic
‘A 50% affordable housing requirement will simply kill the viability of most developments, meaning no homes, affordable or otherwise, get built.’
Angela Rayner deserves some credit: her new planning framework gives homes near stations a default yes and opens up the green belt. But those sites must then offer up to 50% affordable housing, while London has cut its threshold from 35% to 20% to keep schemes moving. This is not the way to build more homes. Read More
Burnham's rough sleeping crackdown is doomed
Iain Duncan Smith, The Telegraph 🔒
‘If all that is given is accommodation, rough sleepers’ lives won’t have changed and they will gradually return to the streets.’
Andy Burnham has vowed to get rough sleepers off England’s streets by Christmas. He may succeed – temporarily. Without tackling the underlying causes, they’ll be back within months. Addiction is behind close to half of homeless deaths. What’s needed is proper residential rehab, not just a roof. That takes more than a target. Read More
Nobody knows what the baby bust will do
The Capitalist: Dalibor Rohac on outbuilding our enemies
And if you want more...
– How markets make us better people (Human Progress 🎥)
– Sweden’s nurseries thrive without nannying (City Journal)
– Why aren’t modernist bridges ugly? (Marginal Revolution)
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