Andy Burnham is in New York, meeting President Trump and refusing to rule out a pledge to rejoin the EU in Labour’s next election manifesto.
Here at home, conditions for next month’s Budget look grimmer by the day. The latest figures show the Government borrowing £18.8 billion in August, 23.6% more than the OBR expected. The debt interest bill alone was £8.8bn, and set a new August record – see our Stat of the Day below. Tax rises now seem inevitable – but didn’t they always?
In other news, it turns out that most of the prisoners let out under the Government’s early release scheme will not be fitted with electronic tags when they actually leave prison. Next month, 1,350 prisoners will be freed, twice as many as originally planned. What could go wrong?
And Charlotte Church has accused Ed Sheeran of choosing ‘consumerism and capitalism over doing the right thing’. By ‘doing the right thing’, she means forcing Sheeran’s fans to listen to chants of ‘Free Palestine’. At least she seems to accept that adding her favoured brand of moral bullying to his concerts would be bad for ticket sales.
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
It's time for Poland to join the G20
Shanker Singham
‘G20 membership is not about claiming economic perfection, but rather a recognition of countries making a substantial contribution to the global economy.’
As Europe becomes more dangerous, and with many of the largest Western economies slumping, Poland is a light in the darkness. It should be invited to join the G20 and help shape the future of the global economy. Poland’s strong economic performance over the past 25 years and evolving strategic importance make it an excellent candidate to invite to the table. Read More
How to make gas storage competitive again
Juno Chowla-Song
‘The anxiety about gas is real. We can channel that anxiety productively, instead of grasping for the first option presented. We don’t need to take Centrica’s 45-year commitment.’
The UK’s gas storage will halve if our largest storage facility’s operating licence expires in April 2027. An exceptionally cold day could then leave the system without enough gas, affecting the 80% of households who still rely on it for heating. However, that doesn’t mean the Government should panic and agree to the terrible 45-year deal it is being offered to keep the site open. Read More
Stat of the Day
Best of the Web
Left and Right need to tell voters the truth
Kallum Pickering, The Telegraph 🔒
‘No party will move first, because whoever is first will inevitably get punished for imposing concentrated costs on a chunk of the electorate.’
There is no secret to getting Britain’s economy moving. In private, politicians know the unpopular decisions it would take. They just don’t know how to take them and still win an election. We need more honesty, and a workable plan that resists the two great seducers of recent policy: nostalgia and the magic money tree. Read More
Healey is scrambling before his first Budget
Joanna Marchong, The Spectator
‘Labour officials will no doubt cite the one bit of good news in the ONS’s figures: since April, the Government has borrowed £2.2 billion less than the same period last year. But they’re unlikely to mention the fact that it is £8.1 billion more than the OBR pencilled in back in March.’
Government borrowing surged in August, substantially overshooting OBR forecasts. This was despite tax receipts increasing by £2.5bn from last year, as Labour’s spending outpaced the extra income by £4.9bn. Much of that went on debt interest payments and welfare. As the Budget approaches, the Chancellor’s headroom is shrinking drastically. Read More
Prosperity matters more than jobs
Daniel Hannan
The Capitalist: Liam Halligan – Britain needs saving from itself
And if you want more...
– Britain’s energy cliff edge (The Critic)
– The rule of law or the rule of lawyers? (Law and Liberty)
– Why plastic-eating microbes never left the lab (Works in Progress)
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