Michael Simmons is The Spectator's economics editor. Contact him here.
The Iran war is being felt in Britain’s economy. Figures just released by the Office for National Statistics (ONS) show inflation rose to 3.3 per cent in March – up from 3 per cent the month before. The rise was mainly driven by fuel prices, which jumped at their fastest rate in more than three
On the face of it, the Office for National Statistics (ONS) have just released great news on unemployment. The rate – against all expectations – has fallen from 5.2 per cent to 4.9 per cent. Radio 4’s Today programme welcomed the ‘surprising’ news. But this is no good news story. To be classed by statisticians
Buying a flat in Britain has increasingly become a fool’s errand, driven in part by the leasehold system trapping homeowners into flats. When Labour wrote their manifesto they promised reform to the leasehold system, but it remains a sticking point in Westminster due to heavy lobbying. Michael Simmons is joined by Harry Scoffin, founder from
It must be bittersweet being Rachel Reeves. Figures just released by the Office for National Statistics (ONS) show the economy grew by 0.5 per cent in February. That is significantly better than economists had expected and, coupled with the fact that January growth has been revised up, it marks probably the first piece of seriously
Rachel Reeves lands in Washington tonight to be greeted with bad news. The International Monetary Fund (IMF) – whose spring meeting the Chancellor is attending – has just handed Britain the largest GDP downgrade of any G7 country. In the freshly released update to their world economic outlook, the IMF forecast growth for the UK
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Has Britain become a freeloader’s paradise, asks the Spectator’s economics editor Michael Simmons in our cover piece this week. Michael analyses ‘the benefits of benefits’, at a time when Britain’s welfare bill is burgeoning and most households are struggling with cost of living. For example, while a family of four can expect to pay £111
Britain has become a freeloader’s paradise. A working family of four will fork out £111 for a trip to the Tower of London, or £108 to visit London Zoo. With one parent on Universal Credit (UC), however, that drops to just £4 and £26 respectively. Welfare-advice websites expose how the public sector is ‘geared permanently
Plastered around Westminster this Easter were adverts for the Tower of London. ‘The perfect place for troublemakers – pre-book now,’ the poster read. ‘Members go free.’ So too – near enough – do those on Universal Credit (UC). Easter-holiday treats can be expensive for hard-working families. For those on benefits they’re a breeze. A trip
What has the war in Iran got to do with Britain’s house buyers? Michael Simmons takes a look at conflicting predictions from economists and the markets on the impact rising oil prices could have on interest rates. 2026 was expected to be one of the best years for first-time buyers to finally get on the
The IMF has warned Britain is particularly vulnerable to another spike in energy prices, and is more exposed than many of its European neighbours. Why is that the case? And does the government have any real plan to shield households and businesses from the fallout? With the Tories and Reform calling for the government to
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The panic has set in around the cabinet table about this energy crisis, and fears of history repeating itself. Tim Shipman writes in the magazine about the comparisons being made to 1973 and the Opec oil shock, with the government preparing for oil prices to reach £150 a barrel. What levers are available to the
This week Rachel Reeves ruled out a blanket energy bailout to manage the fallout from the Iran war. That’s the right approach. But her targeting of a bailout – reportedly to those on benefits – risks solidifying Britain’s welfare trap. When the Chancellor gave her economic update to the Commons on Tuesday following an emergency
The Organisation for Economic Co-operation and Development (OECD) has just confirmed what we already knew: Britain will be hit harder than almost anywhere else by the economic fallout triggered by the war in Iran. Updated OECD forecasts released today slashed predictions of UK growth for this year to just 0.7 per cent from the 1.2
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In the final Prime Minister’s Questions before Easter recess, Kemi Badenoch pushed Keir Starmer to commit to new oil & gas drilling licences. The Conservatives spot an easy win here – cost of living concerns are rising as America’s war with Iran continues. Plus, with a burgeoning welfare bill, the trade-offs are even trickier for
Prices rose by 3 per cent last month – the same rate as the month before. Figures just released by the Office for National Statistics (ONS) show that – ironically – falling petrol costs were one of the main things keeping the Consumer Prices Index (CPI) from climbing. This data was, of course, collected before
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Today Rachel Reeves promised ‘support for those who need it most’ as she updated MPs on measures the government is taking as the Iran war risks increasing energy bills. Michael Simmons is joined by Spectator writer Ross Clarke to discuss why energy bailouts won’t work, why Reeves is unfair to pile the blame on Liz
Britain’s response to the conflict in Iran is dominating Westminster – but is Keir Starmer really keeping the country out of war? After a tense Liaison Committee appearance exposed divisions over defence spending, pressure is also mounting on the government’s economic strategy. With energy prices rising, mortgage products disappearing and fears of inflation returning, how
After a record tax take and surplus in January, normal service has resumed. Britain experienced its second-largest February borrowing splurge since records began, according to figures just released by the Office for National Statistics (ONS). Last month we borrowed some £14.3 billion, which was £2.2 billion more than a year before and the second highest
In a surprise to no one, the Bank of England’s Monetary Policy Committee (MPC) has voted nine-zero to hold interest rates at 3.75 per cent. The unanimous decision is the first time the MPC have been in complete agreement since September 2021. Before Trump and Israel’s bombs rained down on Iran, the markets had been
Finally, some good economic news: Britain may have turned a corner on jobs. Figures just released by the Office for National Statistics (ONS) show the unemployment rate remained flat at 5.2 per cent in January. On payrolled jobs there was positive news too: employees on PAYE payrolls in February grew at their fastest rate since