Letters to the Editor February 21, 2013 Reform for growth [Re: Time to take drastic action to reboot Britain’s feeble economy, yesterday] Cutting corporation tax and capital gains tax will undoubtedly increase the incentive for risk-taking and investment, both prerequisites for growth. But other fundamental problems will remain. First, government spending is currently unaffordable. The required money cannot be raised from taxation [...]
The Debate: Would an EU cap on bankers’ pay damage London’s ability to attract the best talent? February 18, 2013 YES Eamonn Butler The latest EU proposals to fix bonus rates will strangle the life out of Canada. Perhaps that is part of the intention: other EU financial centres envy London’s superiority. Pay policy is a key part of attracting and retaining the top-rate staff that City firms need to run their [...]
Letters to the Editor February 18, 2013 The capital's roads [Re: Congestion charge after ten years: it’s time to be bolder, yesterday] Baroness Valentine is right that the congestion charge scheme could be bigger, bolder and more sophisticated. But this is unlikely to be acceptable to motorists, or to deliver sustainable improvements to the quality of roads in London, given our existing [...]
Sugar drinks levy: More interference won’t end obesity February 18, 2013 AMONG the ten point plan published yesterday by the Academy of Medical Royal Colleges in its “prescription for the nation’s medical crisis”, the headline-grabber was a tax on sugary drinks. An additional 20 per cent charge “would be an experimental measure, looking at price elasticity, substitution effects, and to what extent it impacts upon consumption [...]
Frontline Economics: The 10p rate is pure politics – let’s raise people out of income tax altogether February 18, 2013 MILTON Friedman once said, “I am in favour of cutting taxes under any circumstances and for any excuse, for any reason, whenever it’s possible.” I agree, particularly for taxes on income. There is a strong moral case for easing the burden, especially now the cost of living is rising above nominal wages. Yet Ed Miliband’s [...]
Britain’s Facebook is already here but we lack the tools to identify it February 18, 2013 IT’S been described as “the $4.2 trillion (£2.7 trillion) opportunity”. According to the Boston Consulting Group, there will be 3bn internet users globally by 2016. If it were a nation, the internet-based economy would rank in the world’s top five. And the UK sits at the forefront, with 8.3 per cent of GDP now online [...]
Our sprawling permanent state is a disaster for the UK’s public services February 17, 2013 OF ALL the pejorative terms applied to the banking industry, “vampire squid” is my favourite. It’s uniquely expressive, describing a malign organism that extends its tentacles into all the crevices of its host, while draining it of resources. Expressive though it is, applying the term to the banks is mistaken. Britain’s real “vampire squid” is [...]
Letters to the Editor February 17, 2013 Fiscal failure [RE: High inflation is denting recovery: The Bank of England must act now, Thursday] Andrew Sentance makes some very good points. Quantitative easing (QE) has resulted in inflation. As an importer of wine, buying mainly in euros, weaker sterling affects my prices directly and we have no choice but to pass these on [...]
Practical steps towards improving Britain’s economic relationship with India February 17, 2013 WHEN it comes to bilateral relations with the BRICs, one country where the UK should have an edge on its rivals is India. Not only do we both share a love for cricket – unlike the US and the vast majority of the EU – but Britain is also home to a vibrant Indian community [...]
The Debate: As the horse meat scandal continues, is it fair to lambast retailers for their role in the crisis? February 17, 2013 YESPaul Huck The horse meat scandal is evidence of the weaknesses within supply chains of major food retailers. Businesses have still not shown that they are doing everything in their power to prevent such scandals in the future. The golden rule – which many retailers have not abided by – is to know your suppliers. [...]