Rachel Reeves searches for new ideas on economic growth
The chancellor is seeking advice from cabinet members as market turmoil derails the government’s strategy
The basic British economic problem is microeconomic, not macroeconomic. It’s not about tweaking demand, the balance of money in the economy, all those macro things. They’re not great, sure, but that’s not what is stymying growth.
No, we have a vast bureaucracy and NGOsphere dedicated to not allowing anyone to do anything. Blow up the planning system. Allow fracking. Shoot the people who demand bat tunnels. Leave REACH. And so on. Just kill off the hundreds of thousands who stop people doing things.
Metaphorically if you wish.
Today’s news tells us that school uniforms are to be regulated as to how many pieces of them can be specific. Also, that margins on ticket resales are to be limited.
Past weeks have given us the regulation of football. That all schools must now teach to the same curriculum and all teachers be on the same pay scales. Nationally.
The current Cabinet really isn’t going to grasp that fact that the economic problem is those interventions in the microeconomy. They’re really, really, just not going to grasp it, are they?
Shoot the people who demand bat tunnels
That’s a bit illiberal Tim. Let them demand bat tunnels all they like, and if they pay for them, they can have them.
The GWR broad gauge conversion of May 20th & 21st 1892 converted
177 miles of railway track and the points from broad gauge to standard gauge. One weekends work. http://www.broadgauge.org.uk/history/pops/bg_pic_gauge_conversion.htm
These days the bureaucracy would drag it on for years, just relocating newts.
Getting rid of Rachel Reeves might be a start and replacing her with Baron Kwasi Kwarteng.
The puzzling thing is that it was obvious from July 2024 that Reeves didn’t have a clue but went ahead like a wrecking ball. What do people actually do in the Treasury? Are there no officials who advise Labour ministers of the likely impact and outcome of their policies? They seem ready enough to thwart Conservative ones and
to howl about bullying if their inertia is challenged.
Oh, and that stuff Tim is talking about too, obvs.
Govt cant create growth, it can only put obstacles in its way.
The very best a govt can manage for growth is removing its own obstacles.
Swannypol……….re government cannot create growth, it may depend on the government. China is building about 3000 kilometres a year of High Speed Rail a year, 10,000 kilometre of freeway a year. Plus about two thirds of the worlds ships.
‘shoot the bureaucracy’
I tend to agree with you, Tim. But of course I was a bureaucrat.
Jimintheantipodes:
When it’s doing that, is it really government? You can have something state-owned and operated and still make stuff.
But that saying is for privately owned things, where the government is not your boss as such.
And the Chinese are *not* interested in paying so-called “scientists” to go out and “find” new species in front of the proposed route for any new road or rail.
The latest is that the “snail darter” didn’t exist – it was part of an existing species that wasn’t endangered. The guy who “found” it basically made it up.
China is building about 3000 kilometres a year of High Speed Rail a year, 10,000 kilometre of freeway a year. Plus about two thirds of the worlds ships.
But do the Chinese people need them? Maybe there’s things the actual Chinese might prefer. All of them are costs unless you can prove they’re a benefit.
Let them demand bat tunnels all they like, and if they pay for them, they can have them.
It’s never ‘they’ though is it? Always ‘us’.
do the Chinese people need them?
Much of the time, no. Most of the useful high speed lines were completed years ago. And there’s millions of apartments, office buildings and malls which have been built (not necessarily by the state but often by SOEs) which are not needed.
BiS, I think the distance Shanghai to Beijing is about 1,400 kilometres, both cities have a population of over 25 000,000, and have over 40 high speed trains a day. Beijing to Chongquing (population 30,000,000. China is a large country, with a bout 1,4 billion people Good infrastructure is clearly important. Well worth a visit!
More leeches!
Stat!
All growth depends on cheap energy. Making energy expensive and unreliable will strangle growth.
I think it’s a mistake to include the point about school uniforms, this is actually a good thing, it’s a move against anti-competitive/monopolistic behaviour. Schools that require branded items effectively force parents into paying a premium through their preferred supplier when perfectly suitable equipment can be obtained elsewhere for a much lower price.
It is to emphasise the level of detail they’re trying to regulate at….
I was amused (being somewhat distant) to read that the 60 fire engines sent by Oregon to assist in the southern California wildfires had to stop in Sacremento for a Department of Transport inspection before they could continue south. They must be inspected again before they can return home, apparently with any problems they’ve picked up during their stay fixed before that can happen.
And best wishes for good luck have already been offered to those seeking rebuild permits . . .
Bats don’t need tunnels – and HS2’s £100m bat tunnel isn’t going to protect them.
Blow up the planning system.
No, just No! Reform it, radically even. But in a small, densely populated island, some form of planning and development control is essential for civilised life.
@ Theo
Once you give the pen pushers an opportunity to interfere, they’ll push for the remit to be expanded until we’re back to square one.
No, the only answer is to remove all regulation.
“No, the only answer is to remove all regulation.”
Well all that will do is give the control freaks a chance to come back with even more stringent regulation, once the free for all has created chaos. When sewage has backed up into your toilet for the 5th time this month because the new housing development slightly up hill from you has piped all its sewage into the existing system despite it not having any extra capacity, you’ll vote for anyone to promises to fix it, even it means Communism.
I don’t know if you’ve noticed, but lots of private businesses are run by psychopathic arseholes, and will do anything to make a few quid. Remove all regulations from them and they’ll sell you brake pads made out cheese if they can.
No, the only answer is to remove all regulation.
That’s pure idiocy, not the minimal state. Remove all planning regulation and anarchy will follow as x burns down y’s huge extension/house/factory etc…
So, what’s good regulation and what’s bad?
Not overloading drains would seem to be good. Not allowing an overbearing extension also sounds okay.
I assume some of the “planning” regulations must be bad because we’re complaining that it holds back the UK productivity.
What about the size of the toilet cistern? Can we allow people to use extra water if they need to flush a massive brown trout? Or is that wasting precious water?
And who gets to decide what are good and bad regulations? The fuckwits who came up with (and/or enforce) the current list or someone else?
Good luck with teachers wages! Only two options there…you cut Academy wages to LEA levels, or raise LEA wages to Academy levels. Option 1 will see mass walkouts, Option 2, well, the money isn’t there.
My ex wife, who’d only worked in a bog standard Comprehensive for a year and a bit after her PGCE, before moving to the soon to be opened Academy doubled her wage overnight. I’d love to see how Labour are to square that circle
“ , what’s good regulation and what’s bad?
Not overloading drains would seem to be good”
Using over loading of drains as an excuse to blocking a development – bad, saying that we can’t stop you if you meet this regulation – good. The next problem is making sure that the regulation isn’t isn’t made unnecessarily restrictive or expensive is the next problem.
Joe Smith
That less regulation is good is not equivalent to or implies that no regulation is better. Duh!
And regulation is a necessary condition of social life. How it’s agreed and determined is up for some discussion.
Duh!
“I assume some of the “planning” regulations must be bad because we’re complaining that it holds back the UK productivity.”
The things that are holding back housing developments are a) a lot of the environmental and eco-nonsense stuff, b) the fact that council planning departments make a snail look like Lewis Hamilton when it comes to dealing with large planning applications, and c) the lack of basic infrastructure capacity for water, power and sewage disposal. . All the other stuff is a bit of a bind, but not actually much of a problem. Whether a cistern has to be X cubic centimeters or can be the size of a large suitcase is neither here nor there, its not going to slow things down much, or add drastically to the costs. Having to find hundreds of acres of extra land to provide ‘Bio Net Gain’, or ‘Nutrient Neutrality’ will, as will waiting for 3 months for the council to process some small part of the planning application, because everyone dealing with it is either on holiday, sick or on maternity leave, or WFH, ie skiving. Equally waiting for those well known semi-nationalised industries the utility companies to install sewers, cable and pipes tends to hold things up a bit too (and of course all their work is hampered by exactly the same planning problems the house builders have – all their infrastructure has to go through the same planning process as well, and adhere to all the environmental bollocks too). .
Solve those three problems and you’re a long way to getting more houses built. Of course if you weren’t importing a city the size of Nottingham each year you might not need so many houses anyway………but thats a different argument.
How did it work in the 1930s then? All the 1930s properties around where I am have proper drains, gas ‘n’ leccy supply, decent space standards, large light-entering windows, well insulated, airy rooms, etc. etc.
“making sure that the regulation isn’t isn’t made unnecessarily restrictive or expensive is the next problem.”
No, it’s the only problem.
We have around 80 years experience with the TCPA which demonstrates that regulation ratchets one way.
You won’t turn it back to any sensible level because of a myriad of interconnected legislation and special interest groups.
If any part of the solution requires the blob to give up even a tiny bit of power, then it won’t happen.
Dear Mr Worstall
We are saved! Our beloved government™ has a Plan!
https://www.gov.uk/government/news/prime-minister-sets-out-blueprint-to-turbocharge-ai
It will be a Great Leap Forward! A Dash For Growth!! The White Heat of Technology!!! AI will
killsave us all!!!!DP
And nuclear electricity will be too cheap to meter. Remember that?