Who will keep Britain safe?
Healey resigns, Corbyn cheers, Trump eyes Iran's oil
Farewell, Defence Investment Plan, we never knew you. The shock resignation of the Defence Secretary has thrown back into the air the question of how Britain re-arms to face a more dangerous world. John Healey has blamed Keir Starmer and the Treasury for failing to find the money to keep the country safe (see Tim Shipman’s piece, below) – it’s hard to think of a more serious accusation. Even worse, one of the few people on the Government’s side is Jeremy Corbyn.
As if to drive home the urgency, President Trump may send US troops in to seize control of Iran’s Kharg Island and its oil infrastructure as early as tonight. With the World Cup also getting underway in America, this is the first time a host nation has been at war with one of the participants. But maybe peace will break out before the end of the group stage.
Meanwhile, Andy Burnham, Starmer’s likely challenger for the Labour leadership, has been busy backtracking on his ill-advised support for the WASPI women’s compensation claims. A spokesman has clarified that Burnham’s backing doesn’t extend to a multi-billion pound payout as the campaigners want. If nothing else, Burnham promises to deliver U-turns faster than the current Government.
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
Rachel Reeves is closer to an IMF bailout than she thinks
Damian Pudner
‘ A country cannot keep piling up debt faster than it is growing the income needed to support it.’
Britain has a better than 50:50 chance of a major debt crisis before 2030. That’s not the view of an excitable commentator, but Kenneth Rogoff, the IMF’s former chief economist. With the national debt on course to hit £3 trillion this year, and the Government unwilling to rein in spending, Rachel Reeves needs to change course before disaster hits. Read More
What the World Cup tells us about free trade
Ben Ramanauskas
‘NAFTA actually created more jobs for Americans than it destroyed.’
The last time the US hosted the World Cup also marked the year the North American Free Trade Agreement came into force. There won’t be an anniversary celebration. Donald Trump’s promise to scrap NAFTA is arguably one of the reasons he became President in 2016. Yet the data shows that the trade deal was, in reality, a huge win for America. Read More
Stat of the Day
The CapX Reading List
The best of the web today
Healey's resignation is devastating for Keir Starmer
Tim Shipman, The Spectator
‘This is the most consequential issue on which anyone has resigned for years; far more so than when Michael Heseltine quit Margaret Thatcher’s cabinet over the Westland affair.’
The Defence Secretary has resigned. His letter to the Prime Minister says: ‘you have been unable, and the Treasury has been unwilling, to commit the resources that the nation needs to defend the country at this time of rising threats’. Starmer was praised for his handling of foreign affairs in his first year. Now he looks like he has failed in the first task of any government. Read More
Britain doesn't need a tax war on billionaires
Gerard Lyons, The Telegraph 🔒
‘Britain should not become hostile to success.’
In the UK, the debate about taxing the ultra-wealthy is likely to be given a renewed boost if Andy Burnham is elected to Parliament and makes a tilt at No 10. But it is important to approach any debate on billionaires rationally, or bad policy will follow. The debate is not really about them. It is about the kind of capitalism we want. Read More
How to get towers built in Canada
Works in Progress, Anya Martin
The Capitalist
Keir Starmer is giving tech companies three months to activate on-device content scanning and age verification across all smartphones and tablets sold in Britain in the name of child safety. The proposal has drawn fierce criticism from privacy advocates. The messaging app Signal has already said it will not comply – will others follow?
And if you want more...
– How smartphones broke British politics (Politico)
– Dear Chancellor: Here’s how to pay for Britain’s defence (CapX archive)
– How Europe lost the future (Europe 2031)
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