Is Britain really better off?
Plus: could Spain take Gibraltar, and why exams still matter
Mission accomplished: after 23 years, the US military is finally withdrawing from Iraq… even as a whole new quagmire military operation continues to ramp up right next door in Iran. President Trump is now threatening massive strikes on Iran’s bridges and power stations in an effort to bring the mullahs back to the negotiating table. I’m sure it’ll all be over by Christmas.
As Britain prepares for the arrival of PM Andy Burnham on Monday – and Burnham’s team scramble over each other to decide who should get which Cabinet job – Keir Starmer used his final Prime Minister’s Questions today to declare: ‘I’m proud to leave this country in a better shape than I found it.’ I suppose that depends on who you’re asking: the people he gave money to, or the people paying for it.
Meanwhile the Centre for Policy Studies, CapX’s parent organisation, has announced its next Director: Liam Halligan, the economist, author, columnist and broadcaster, will be joining from 14 September to lead our fight for free market ideas. Robert Colvile is a hard act to follow, but we couldn’t be in better hands.
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
Let London grow
Alys Denby
‘Britain’s challenge is not that London is too successful; it is that too few other places are.’
The City generated nearly £300 billion in 2025 – 11% of the UK’s total GVA. But the Government is halting the financial centre’s redevelopment plans to protect views of the Tower of London, putting 7,000 jobs and £1.7bn in investment at risk. To unlock more growth, the Square Mile needs to be allowed to build. Read More
Britain needs a tax revolution
Ben Ramanauskas
‘Eliminating ludicrously high marginal tax rates must be a priority for the new Chancellor so that hard work is rewarded rather than punished.’
If Andy Burnham wants economic growth, tax reform must start on day one. Britain’s tax system is riddled with inefficiencies and perverse marginal rates that punish hard work – not to mention the hated death tax. Stamp duty gums up the housing market, VAT is needlessly complicated and National Insurance simply taxes work itself. Tinkering isn’t enough – it’s time to be radical. Read More
The Capitalist: Burnham’s trap
Andy Burnham is days away from becoming prime minister. According to economist Andrew Lilico, he’s inheriting an economy with almost no room left to manoeuvre – and a sense of personal virtue is no substitute for a plan, as the fate of his predecessor shows.
In this week’s episode of The Capitalist, Lilico joins me to dissect the fiscal trap awaiting the new government. He argues that Keir Starmer never had a theory of growth – and that Labour, having spent a decade assuming the Tories underspent, had no answer once they discovered the opposite was true.
Plus: why Burnham’s pick for Chancellor will be critical, and can the new PM survive to the next election?
Best of the Web
All pain, no gain
Daniel Herring, ConservativeHome
‘The main problem with Labour’s tax plan is that it will cause economic harm while probably not raising much, if any, money.’
Eager for extra money to spend, many in the Labour Party are calling on Andy Burnham to raise capital gains tax. But it wouldn’t raise much, and might actually lose the government revenue. With most CGT revenue coming from a small number of highly mobile taxpayers, it’s a gamble that could easily backfire. Read More
The real threat to Britain's finances is the NHS
Ryan Bourne, The Times 🔒
‘Britain’s fiscal fate turns on whether the NHS can achieve a productivity miracle.’
Here’s a scary fact: the UK’s future solvency is in the hands of the NHS. Over the next five decades, the OBR expects healthcare to drive 60% of the growth in state spending – unless it becomes vastly more efficient. We are betting everything on the belief that a nationalised system can deliver more for less. Buckle up. Read More
AI-enabled amateurs are coming for Britain's elite
Stat of the day
And if you want more...
– Could Gibraltar fall to Spain? (The Spectator)
– An ode to the examination (The Critic)
– The World Cup shows what growth can buy you (Human Progress)
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