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UK economy surging ahead at 0.7%

Aatif Khan - 28 July 2015 - Economy

UK GDP rose by 0.7% for the second quarter of 2015, matching most analysts’ and City expectations and nearly double than that of the previous quarter with a disappointing 0.4% expansion. In light of the newly-released figures, Lloyds bank accredited first quarter growth as temporary and if current growth rates ...

Strike laws should be reformed

Joseph Baum - 28 July 2015 - Politics

The laws governing strike action are rarely discussed around the family dinner table but they should be. The right to strike is an important principle that should not be abandoned and trade unions play a vital role in representing the views of their members. However, they are less impressive when ...

Seven taxes that should be abolished

Adam Memon - 27 July 2015 - Economy

Milton Friedman once argued that he was “in favour of cutting taxes under any circumstances and for any excuse, for any reason, whenever it's possible.” The reason, Friedman argued, was because the only effective way to hold down the size of the state is to hold down the amount of ...

Why we should cut the 45p rate

Alex Howard - 22 July 2015 - Tax

In a recent article in the Times, David Cameron announced that he would not touch the 45p tax rate, instead reaffirming his emphasis on raising the personal allowance and the thresholds for lower tax bands. While reductions in tax at these lower levels is commendable, it is vital that the ...

Boost productivity with apprenticeships

Julia Routledge - 20 July 2015 - Economy

Low productivity is the Achilles’ heel of the British economy. Despite vigorous growth and employment levels which have defied gravity, it still jeopardises a sustainable recovery and impedes the development of better living standards. Indeed, last week’s extensive Treasury report highlighted the fact that if the UK’s productivity were commensurate ...

A first steps budget

Adam Memon - 15 July 2015 - Economy

This article is taken from the CPS Economic Bulletin written by Adam Memon and Tim Knox. To receive it by email before it is available online, sign up here. “Productivity is the challenge of our time. It is what makes nations stronger, and families richer.” This first line of the Productivity Plan ...

We need a South-West Powerhouse

Julia Routledge - 10 July 2015 - Economy

The creation of a Northern Powerhouse is a bold and innovative pledge which seeks to empower northern cities by injecting a healthy dose of devolution into the veins of the body politic. This conurbation will undoubtedly go far to redressing the economic disparity between London and the north, but if ...

Britain's creaking water industry needs real competition

Adam Memon - 08 July 2015 - Economy

In the Emergency Budget today, the Chancellor will outline a series of measures aimed at raising productivity. One industry which is in dire need of an injection of competition and productivity growth is water. The water industry remains relatively insulated from competition with 19 regional monopolies. They collect the water from the ...

Deficit reduction is still important

Adam Memon - 08 July 2015 - Economy

The Emergency Budget in June 2010 set out the Coalition Government’s plans to cut the deficit and restore medium term fiscal sustainability. Excluding the publicly owned banks, public sector net borrowing reached 10.2% of GDP in 2009/10 which was £153.5 billion. With one of the largest budget deficits in the ...

Banking needs a fresh wave of competition

Adam Memon - 03 July 2015 - Economy

When Metro Bank was set up in 2010, it was the first time in 150 years that a new company had been granted a banking licence. Many of the problems in the banking sector derive from a lack of transparency, choice and competition. The number of major UK banks fell ...

Britain must be committed to NATO. Our security depends on it

Adam Memon - 02 July 2015 -

The security and freedom of European nations ultimately rests upon a strong and effective NATO. The Article 5 treaty obligation ensures the common defence of all NATO nations and has so far worked in protecting the alliance. However, NATO only retains its strength if its defence capacity remains credible. Approximately ...

Household Incomes, Taxes and Benefits

Adam Memon - 30 June 2015 - Economy

Yesterday we published an Economic Bulletin which examined new ONS data on household incomes, taxes and benefits. Amongst other things, the ONS data showed that 51.5% of households are receiving more from the State (in cash benefits and benefits-in kind) than they are paying in taxes. Cash benefits of course ...

Europe must wean itself off Russian gas. Start in Lancashire

Adam Memon - 29 June 2015 - Energy

Today’s decision by Lancashire County Council to block shale gas exploration at the Preston New Road site is a terrible mistake. The economic, environmental and geopolitical arguments are overwhelmingly in favour of fracking. Shale gas could provide thousands of jobs, boost productivity, increase our energy security and all at a ...

Time to get fracking. No more excuses

Adam Memon - 28 June 2015 - Energy

In a recent Economic Bulletin, we highlighted the challenges facing the UK oil and gas sector. Maturing fields are pushing up decommissioning costs, which tightens margins especially in the context of much lower prices. Alongside this, heavy taxation of the sector remains a burden despite some positive steps take in ...

Can SMEs solve the productivity puzzle?

Ranjavati Banerji - 26 June 2015 - Economy

Understanding the SME productivity puzzleBritain’s productivity continues to lag behind even as the economy continues its recovery. A report by New Policy Institute demonstrates the productivity puzzle vis-à-vis the size of businesses. Previously, firms of all sizes were gaining productivity, yet post recession, while large companies show signs of improvement, ...