IPPR responds to interest rate rise
The UK’s leading progressive thinktank, IPPR, has responded to the announcement that the Bank of England has raised UK interest rates to their highest level for 14 years as it has just lifted them for the tenth time in a row, increasing them by half a percentage point to 4 per cent.
Carys Roberts, executive director at IPPR, said:
“While inflation now looks to have likely peaked, other lights are flashing red on the economic dashboard. Tighter financial conditions are hitting the real economy and this week’s dire growth projections show that signs of a soft-landing look doubtful.
“The Bank of England’s decision yesterday was also made on the back of issues around workforce shrinkage. We know that this is also down to factors far away from monetary policy, such as the UK’s poor overall health – driven by an NHS in crisis, worsening mental health and our poor record on preventing avoidable illness.
“Only by addressing wider gaps in public services that are making it harder for people to return to the workforce can we get a handle on labour market issues that determine how high and how long this inflationary period lasts.”
Latest News from
Clear vision needed for health and social care23/02/2024 16:25:00
The Scottish Government needs to develop a clear national strategy for health and social care to address the pressures on services.
The IFS Scottish Budget Report – 2024–2523/02/2024 10:20:00
This report looks at the key budgetary and public service issues for the Scottish Government for the 2024–25 financial year and beyond.
IEA - Red tape has fuelled the cost of living crisis, argues new IEA paper22/02/2024 16:20:00
Since 2000, sectors with heavy state intervention have experienced large price rises while competitive markets have experienced price falls.
IFS - Scottish Government boosts support for students’ living costs, but further cuts funding for universities to teach them22/02/2024 10:20:00
How much does the Scottish Government spend on higher education, and what challenges does it face on university funding and living cost support?
Demos - New statistics confirm that the pandemic has had a sustained negative impact on employment in the UK – here’s how policy makers should respond22/02/2024 09:20:00
This week the ONS published new statistics about employment and jobs in the UK – the first time for a number of months due to problems with survey response rates. With the appropriate caveats that the figures are estimates based on survey data – and therefore, as always, they come with a margin of error – here’s what we learnt from the new statistics, and some of the implications for policy makers.
IPPR - Calls for ‘quick win’ changes to social security as claimants say system leaves them ‘scared, exhausted and drained’21/02/2024 15:05:00
A state of the nation report on the UK’s social security system concludes with a package of reforms to cut poverty, incentivise work and deliver quick wins to create a modern welfare system.
IFS - January usually sees the government run an overall surplus, as this is the month when a large chunk of self-assessment receipts is paid21/02/2024 13:10:00
Today’s ONS government borrowing figures suggest that the public sector ran a surplus of £16.7 billion in January. This is much bigger than the £7.5 billion surplus it ran in January 2023, and is the biggest January surplus on record.
King's Fund - An unhealthy end looms for the private finance initiative19/02/2024 09:20:00
The private finance initiative (PFI) was controversial from day one. Ten thousand or so days later it still is, as the first of these 25–30-year contracts for the private sector to finance, design, build and maintain public assets, including hospitals, come to an end.