Economics News Shorts (28 January -2 February 2024)

Here are the links to our Economics in the News shorts for this week.

Big Hike in UK Water Bills as Regulators and Bosses Dine Out

The average annual water and sewerage bill is expected to rise by 6% in England and Wales to £473. Many be will annoyed that regulators and water company executives recently dined together at the Royal Automobile Club in London to discuss how to quell public anger on the sewage crisis. This is an egregious example of regulatory capture.

Bank of England Holds Interest Rates at 5.25%

The Bank of England has voted 6-3 to keep UK policy interest rates at a 16-year high of 5.25%. But rates may well start heading lower in the early summer if inflation falls back to target and settles there.

UK Public Sector Corruption at All-Time High (New Data)

Concerns of corruption are at an all-time high as the UK falls to their lowest ever score on key index in the newly-published Corruption Perceptions Index from Transparency International. Controversies over the awarding of multi billion pound PPE contracts during the pandemic are one factor behind the UK's falling ranking.

IMF Downgrades UK Economy and Warns Against Tax Cuts

In their latest World Economic Outlook, the IMF Downgrades UK Economy and Warns Against Tax Cuts.

UK Population Projected to Rise 6.6 million by 2036

Here is a quick short on the latest UK population projections. Between 2021 and 2036, the UK population is projected to grow by 6.6 million people (9.9%) from an estimated 67.0 million to 73.7 million. Natural population growth is likely to add around half a million people, net immigration might be closer to 6 million. Naturally, these are long run projections built on a number of assumptions that inevitably will turn out to be different.

Off-Peaky Blinder? Will Cutting London Tube Fares on a Friday Work?

The London Mayor - up for re-election in May 2024 - has announced a 3-month trial scrapping peak Tube and Rail fares in London. Passenger numbers are just 73% of the pre-pandemic level on a Friday. Will the move encourage more people to enter the capital or will the lure of working from home remain strong? Time will tell! What do you think?