The latest figures for GDP growth show the year to August has delivered reasonable growth in services led by computing and digital services. This is the biggest part of our economy so overall growth remains better than the sluggish main EU economies whilst remaining below digital leaders USA. Production industries have been flat, whilst construction has fallen.
The collapse of new housebuilding is dragging down growth. There is no sign of a surge in new Council housing which Labour promised and used to get the OBR to up their forecast a little on the back of the promised package of measures. Rising government borrowing rates knocking on to mortgage rates are holding back private housing work.Labour will discover wanting more Council houses rather than Housing Association ones means far fewer new homes with public money .far more of the cost of a new Council home than of a new Housing Association one counts as public spending owing to the absence of private sector money in the Council home.
The new Chancellor has allowed some speculation on new and higher taxes whilst apparently realising that is a bad idea which hits confidence and stops new investment. He said he could not rule out harmful tax rises, then later did rule out Capital Gains Tax , leaving open other feared tax rises. Labour had anyway ruled out any increases in the three main taxes in their Manifesto showing you can rule out tax rises. What a stupid muddle.
There is no sign of a plan to control runaway benefit spending, no wish to find the much needed extra money for defence that John Healey resigned over. Most commentators think the forecasts will find the Treasury too close to the minimum level of reserve for comfort. The latest rumour is yet more tax on banks. They already pay 3% more as a supplement on the standard 25% Corporation Tax, and pay a levy on their balance sheet. These two bank taxes already make it less worthwhile to keep and use money in London. If John Healey makes it worse more banks might divert more capital abroad.That will be another anti growth policy.
October 18, 2026
Everything Reeves and Starmer did was anti-growth and it seems Burnham and Healey are set to continue with this deluded agenda. For growth we need to abandon Net Zero, the workers rights bill, the tenants rights bill, the abolition of non doms, the wars on motorists, the hard working and the self employed, the vast market rigging in energy, healthcare, housing, education, banking… we need to stop low skilled net cost and often criminal immigration and reduce taxes and the size of the state. We also need to cut benefits and make work pay. We are in a doom loop and spiralling towards to doom. This government has a duff compass on every issue.
October 18, 2026
Yes we have GDP growth but not per capita which is more important. We are getting poorer annually because the only growth is immigration and government borrowing.
It can only be a matter of time before the Bond vigilantes strike and inject some sense into the government.
October 18, 2026
Ian the migrants in France are doing their best to help the construction industry.
I’m sure this will catch on.
October 18, 2026
In a way you have to admire the French people, not that they riot and set fire to properties but that they make it clear to the government what their red lines are and cross them at your peril.
October 18, 2026
and needing to create jobs for the Fire Service?
October 18, 2026
It’s amazing that as a whole this labour government can’t see the difference between motivating the economy and drowning it in debt.
They have never learned the basics of handling money, for sure, with so many supported by the unions that is no surprise.
I’m thinking of sending every MP a link to Adam Smith’s Wealth of Nations Graphic Novel.
(Economics for MPs(Dummies)
https://www.adamsmith.org/books/preview-adam-smiths-the-wealth-of-nations-a-graphic-novel?utm_source=substack&utm_medium=email
October 18, 2026
You make an assumption that they can and will want to read a book! Marx they might be familiar with but after that…?
October 18, 2026
Take a look at the link – agreed the original book is a tough one to get through, but the above is done in comic graphics, so even labour MPs can get it
October 18, 2026
Labour are, as expected, proving even worse than the 14 years of the net zero, tax to death, open borders Con-socialists. The Sunak Hunt Con-Socialists who even gifted them their huge majority six months early.
October 18, 2026
The majority was gifted by the truss face plant. The conservatives were -11% at the nadir of Boris Johnson’s shambles. By the day he left office they were -5%. The face plant had the same effect as did the erm fiasco in 1992. From that moment there was no chance of anything other than a Labour victory. The only hope now is that either by means of some deal or really well organised tactical voting we can get rid of Labour. Look at France to see where this philosophy of ever more statism leads. We may be heading that way if we don’t get rid of the socialists, who are even in the uk increasingly pandering to the islamists as in France. Dangerous times.
October 18, 2026
Liz Truss lost the narrative mostly because the Bank of England shafted her infant government but also because she alienated the treasury and the OBR. Proof as George Osborne and Girdon Brown demonstrated that the politics is as important.
Liz Truss’ principles and ideas would have paid dividends given time.
October 18, 2026
Agree – her efforts were totally under-valued.
October 18, 2026
Liz Truss’s idea was to lower taxes and make up the difference with more borrowing. If she and Kwarteng had resolved to rein in spending coupled with lowering taxes that would have had more credibility.
Reply Indeed. I took to her ideas for public spending reduction to offset loss of tax revenue but she did not use them.
October 18, 2026
The additional spending was to offset gas and electricity prices and was temporary. It would have been better to just let the chips fall where they may but the something must be done brigade wasn’t having any of it. She targeted growth rather than cost savings in the first instance. Growth by letting people keep more of their own money.
October 18, 2026
R,
At the moment, I don’t think voting will get rid of them. The right is split. Labour is offering possibilities to tempt coalition if they don’t win outright.
Farage and Reform are under attack. Paleoconservative magazine ‘Chronicles ‘ states that Reform was matching Restore to an extent – but had redlines.
Farage now even has a ‘Friends of Israel’ group like the rest of the uniparty. So much for Britain First !
“Reform UK operates as a containment party. Farage knows how to tap into the anger that’s simmering beneath the surface over mass immigration. He gives it a slogan and a place to march—always careful never to let things go too far. He lets the public shout and wave their fists, so long as it’s all kept within the taped-off area marked “acceptable dissent.” Lowe’s Restore Britain attempts to move beyond those heavily policed guardrails—framing citizenship not as a mere piece of paper, but as a living, breathing expression of rooted culture, an ancestral inheritance with boots firmly in the soil, and a thousand years of unbroken national tradition.
A year ago, the political and media class routinely characterized Farage and Reform UK as “far right.” Now they are circling the wagons around them to neutralize Lowe and Restore Britain.
Lowe is a no-hoper apart from Great Yarmouth.
However, he can queer the pitch for Farage
There are no signs of rapprochement between Tories & Reform.
This is all good news for Labour.
October 18, 2026
So Tesla CEO Elon Musk unveils a futuristic “flying” car that can launch itself into the air using rocket-inspired thrusters — and can hit 60 mph in under a second.
Would be interesting to see how many miles per gallon it does, circa 1 MPG in flying mode perhaps? So rather a large fuel tank needed even for a range of 20 miles – not even really possible with a battery? Likely to exceed emissions regulations by 200+ times of so.
Tesla’s trailing price-to-earnings (P/E) ratio is approximately 336 to 341 as of October 2026, reflecting a stock price around $352 to $358. I suppose these circus acts help maintain these PEs. I would not to be investing, even at 1/50th of that PE I would be reluctant. But as they say markets can often remain irrational for longer than you can remain solvent. Many good small UK companies struggle to be sold on PE above 5 such is the lack of confidence in Labour and the UK.
October 18, 2026
its only powered by compressed air and batteries, so most of the pollution is at the power stations as per any electric car, plus the battery disposal issues etc.
October 18, 2026
Compressed air would only last for a few yards of flying the cylinders are heavy and rather dangerous in crashes – so just a gimmick.
October 18, 2026
well they use compressed nitrogen tanks in their space stuff, so it will be similar tech, and within limits it is useful. the batteries can recharge the compressed air. and they will be compressing the air much more than usual things we are accustomed to. but sure not long flights.
October 18, 2026
Like the new domestic lifts which are wonderful.
October 18, 2026
We need a domestic lift for our economy.
October 18, 2026
A UK scientist has the best description. He stated that it was not a “Flying Car” but a “Falling Gracefully Car”
I very much liked his distinction… 🙂
October 18, 2026
The cost of falling gracefully would be one hell of a lot of otherwise pointless, costly and redundant weight!
October 18, 2026
A Briefly Levitating Car?
October 18, 2026
The world still seems to love these circus acts – especially the good ones, and that makes great PR for the company.
October 18, 2026
Toyota Motor Corporation’s trailing P/E (Price-to-Earnings) ratio is approximately 8.17 to 8.58, and its forward P/E ratio is around 10.22 to 10.94 compare to Tesla’s 330+ !
October 18, 2026
The flying car is all about the fun meter. 11 out of 10.
October 18, 2026
I suspect this coming budget will have some elements of ‘Feel Good’ about it.
Healey will try to foist some small relief on us as though it would shake up the markets, more good headlines and soundbites than substantive. Something to cheer about – HA, but primarily he will tighten our purse strings even more. He will find ways.
Hard to say if any of these tactics will improve the mood of the markets. If it doesn’t the markets may force an early election, which would not be a bad thing as long as the Tories and REFORM have enough time to burst the shaky Burnham bubble.
October 18, 2026
In the light of the French news, it’s a shame that our PM is called Burn’em.
But God does send us these little clues.
October 18, 2026
I am flabbergasted that the Pat Mcfadden quote ” every meeting I have is about who wr can tax to pay benefits to others” is not more prominent in any debate about the budget.
The Conservatives left Labour a sickness, in work and out of work benefits system ripe for expansion, paying many two and three children families the equivalent of a £50,000 wage and more.
Benefits are too generous, government is too large with 29% employer pension contributions and, as written here often, spending greater sums in government is given more weight than spending wiser.
We’re doomed I tell ye, doomed.
Politicians have to be stopped from bribing their voters and that includes unaffordable tax cuts.
October 18, 2026
It’s all Thatcher’s fault. That will be trotted out again.
October 18, 2026
Tax cuts will always be unaffordable because politicians can always find a bin to throw the cash at.
They must learn to tighten their belts.
October 18, 2026
And they want to save the High Street by an online tax… What about reducing business rates and free parking to help….
October 18, 2026
Why expect sensible policies from Labour? They would struggle to grow a daffodil, let alone the UK economy.
October 18, 2026
Yes! – How many times have they proved themselves economically eliterate?
October 18, 2026
We have a Labour government so the budget will be yet another Tax and Spend fest. The scary part is, Labour are convinced by their own propaganda, that the Public Sector are the key driver of economic growth. They think it is vindicated by the reported slowly rising GDP. What they have failed to compute is a GDP growth of 2% /annum in an economy experiencing inflation of 3%/annum is a shrinking per capita economy. We are all becoming poorer under Labour. I am being generous with 2% growth the actual figure forecast for this year is 1.3% falling to 1.2% in fiscal year 2027. while inflation stays at 3%+ IFS data.
October 18, 2026
House Building has only slowed because the demand has been driven from the Market Place. No one is going to build when the economy has enforced the removal of money from it. You don’t build a house, spend money on materials and labour that will not find a buyer, pay the bills, the debts, the interest on the debts that is commercial suicide.
The major builders have their ‘land banks’ with planning approved (another misnomer) that will keep them busy for the next 10 years. But ask them to kill their business because of a spiteful, hateful government – is not a runner
October 18, 2026
Without answering all the valid points, I would prefer to turn it around – Controlling Expenditure. The missing link, the important over-ride when you suggest a Budget, budgeting. The part that the majority of Households in the UK pursue to keep themselves afloat. It is why the majority don’t think this UK Parliament is not fit for purpose
For you have money to spend on all sorts of aspirations, it is first earned. Parliament, its Government works on the maliciously damaging principle of just spend, spend, spend. Then tries to dream up, concocted tax to get them off the hook.
What is missed out of this ‘bigotry’ first brigade that inhabits Parliament, is the every penny they take in tax is a penny removed from the bit of the economy that could be funding their dreams. They are through ineptitude and incompetence ‘shooting the Country and its people in the foot’
The classic but by no means exclusive is the so-called ‘eco-warrior’ projects, this Parliament and its predecessors followed as first principle the need and desire, to cancel industry, offshore industry, ditch our own oil, gas and so on – then ban this, ban that before viable alternatives were widely available. These were the sole money earners to fund the change in direction – they don’t even today ‘get it’. Look at elsewhere in the world those condemned as the big polluters, they have money, earnings and are funding changes without punishing their people, their countries. But No, in the UK it is punishment ill-thought through punishment first, then Oh! we have an election coming we need to be in power at all costs. What can we manipulate to save our jobs?
We are being crucified by a Parliament and its chosen Government that is total, completely and utterly out of its depth
October 18, 2026
You will not get any real growth until companies and individuals are allowed to keep much more of their earned money.
That increase will now need to be very, very significant, because so much of it has been taken away in the last decade by all governments, in order to fund their own excessive expenditure and lack of any real sensible financial management.
Most of us run our own financial affairs in a sensible manner, so it really does stick in the throat when Government cannot manage the Countries finances, increases the debt, but expect us out here to pay for their own incompetence.
Why should the taxpayer be punished for our politicians utter financial incompetence.
October 18, 2026
It’s worse than that – the debt is being stored up to pass down to the next generation. With a reduction in the productive population, less will bear more until the whole thing breaks and there is a settlement of debt. Misery for those who have to endure it, but hey-ho they would likely do the same to their children – human nature.
October 18, 2026
A subject which deserves considerable comment are the plans which I believe are now being scrutinised by the House of Lords to lower the voting age to 16. I am against it in principle and believe it should never have been lowered to 18 because voting ideally requires judgement and experience of life is a key component for acquiring
judgement. That apart I accept there is a strong case for allowing all adults to vote but none for allowing children to vote. So if there are to be votes for 16 year olds, 16 year olds should also have full adult rights, including the right to buy alcohol and cigarettes, go to the pub, drive, see all films at cinemas and join the armed forces and marry (and indeed no age exemption for Council Tax). Full rights for 16 year olds is an arguable, consistent position, especially as the trend over the last several decades has been to infantilise children. Furthermore if 16 year olds get the vote some major political party will soon propose to lift all the above restrictions on 16 and 17 year olds to get their votes. So society should decide now whether it wants full adult rights for 16 year olds including voting rights or no voting rights before full adulthood at 18. So I ask the House of Lords to amend the bill to include full adult rights for 16 year olds and see what The House of Commons wants to do with that necessary corollary to votes at 16.
October 18, 2026
Over my many years of existence the debate about mature decision-making has exercised minds.Where to
set the franchise age? The only valid age must be that at which young men and women may be called-up
to serve the country.It was always military need but perhaps this may be extended to include any other
important requirement.I leave that undefined. 18y/o is sufficiently mature and fit for service
October 18, 2026
Sometimes people understand management, real budgets and getting ahead
UK population 70million and in massive debt and cant manage anything the Irish Republic 5.5million people running a budget surplus, paying their way and moving forward
Ireland’s tax-cutting surplus Budget shows Britain how it’s done – https://www.telegraph.co.uk/news/2026/10/18/ireland-tax-cuts-budget-growth-business-investment-uk/
It would appear that one country’s Parliament hasn’t a clue and the other one understands their job
October 18, 2026
The blame game is part and parcel of those out of their depth. Those in the UK Parliament that shrug their shoulders and say ‘it’s not me’ need to take look in the mirror. We have 650 MPs charged with managing the UK on our behalf, we lend them our powers to empower them then pay them a wage to do a job. That is the only job they are asked and expected to do – they fail
The basket case that the UK has become is managed and owned by those individuals we entrusted to manage for the whole country and its people.
A sloppy ‘bigoted’ ideological approach just wont cut it in a modern world.
October 19, 2026
We are going to have a fortnight of….
The full monetary sovereign MONOPOLY ISSUER of the £, that keystrokes £’s into existence. How will it find £’s ?
It’s absurd.
Why China is winning and the union is breaking up.
Future historians will likely struggle to understand this period at all. They will observe a sovereign currency issuer voluntarily constraining itself with obsolete doctrines inherited from fixed exchange rate systems, while simultaneously insisting those constraints were natural economic laws.
They observe a sovereign currency issuer acting as if it is a country in the Eurozone.
Perhaps they will conclude that ours was not an age of economic scarcity so much as an age of institutional superstition.
It’s complete madness.