The Office for National Statistics has quietly revised the government’s borrowing figures. And the picture is, on the face of it, better than expected. Borrowing in March 2026 came in at £12.6 billion — £1.4 billion lower than a year earlier, and the lowest March figure since 2022. More importantly, borrowing for the full financial … Read more
What happened in the budget? Last week Rachel Reeves delivered the Government’s latest budget. It arrived amid a fog of leaks — some accidental, others clearly not — and a week of breathless speculation about market panic. In reality, there was a modest increase in the interest rate the Government pays on its borrowing. But … Read more
Another Magic Wand The latest “big idea” in economics is wealth taxes. The claim: Britain’s collapsing public services and messy finances exist because the rich don’t pay enough, and governments are too timid to act. I’m always suspicious of these kinds of fads. The right had its laffer curves, trickle-down theory and efficient markets. The … Read more
The interest rate on UK government debt remains stubbornly high—and it’s eating into the public purse. Around 8% of total government spending now goes purely to pay interest on past borrowing. That’s money not spent on the NHS, schools, or infrastructure. The current Labour government inherited a toxic mix: huge debts and higher-than-normal interest rates, … Read more
The drama in the Commons on Tuesday and Wednesday — as the government scrambled to push through a controversial welfare reform bill — looked like a major crisis. Even with a large majority, Labour struggled to control the narrative. In truth, this kind of backbench revolt is nothing new. Blair faced dozens of them and … Read more
This is the most boring blog you’re ever going to read. Truly dull. It contains some very big numbers and zero sex appeal. And yet, it marks a fundamental shift in how government works in the UK—a quiet but far-reaching change that’s been unfolding over the past year and underpins the most recent Government Spending … Read more
Is This an Austerity Government? No. Rachel Reeves will deliver her Spring Statement today. While not a full budget, this statement will outline the framework for the government’s spending review. Government departments will find out if they have more or less to spend—most will find the answer is less. This follows a Green Paper consultation … Read more
This week Rachel Reeves delivered the Mais lecture, setting out Labour’s economic policy. For those who don’t follow such things the Mais lecture takes place at the Bayes business school in London, and for a future Chancellor of the Exchequer this is a big thing. This is where Nigel Lawson explained Thatcherism, Gordon Brown … Read more