Mark Carney has been given a pretty weighty task as he starts his tenure as governor of the Bank of England. In recent weeks, almost every time the chancellor or one of his aides has been asked about the prospects for growth, he has mentioned Carney and his track record of boosting the economy through unusual monetary policy tools.
Already we may have started to see signs of this, with Carney’s highly unusual first statement in which he said expectations of interest rates in 2015 were “unwarranted” – in effect a guarantee of long-term low rates.
But Lord Mandelson, Labour’s former business secretary, and a prominent pro-European, wants Carney to pay attention to what is happening on the other side of the channel too. Read more
The planned high speed rail project from London to the midlands and the north is starting to look very uncertain indeed.
After the news last week that the estimated costs have spiked by £10bn since the beginning of the year, we then revealed in the FT that the government’s cost/benefit analysis assumed that no one would work on a train, increasing the apparent benefit of getting to your destination more quickly. Another chunk was taken out of the expected returns.
Now it seems that, having proposed the scheme in the first place, Labour is also getting cold feet. Lord Mandelson, the former business secretary who does not usually have much truck for nimbyism, launched a bitter attack on the project in this morning’s FT. He writes: Read more
Amid the genteel surroundings of the Park Lane Hotel ballroom last night at the CBI’s annual black-tie dinner, Lord Mandelson was at his waspish best.
His keynote speech was ostensibly about Britain’s role in Europe, but he couldn’t resist throwing in a few barbed remarks about his Labour colleagues, both past and present. Departing from his pre-prepared script, the former business secretary had this to say about Gordon Brown, the man he served so closely in the dying days of the Labour government:
I can’t remember which who the member of the government was who claimed we abolished boom and bust. Well, we abolished boom…
I dropped into a speech by Lord Mandelson this evening organised by Progress at Portcullis House in Westminster. He was fairly calm and restrained, but made a few interesting points:
* Politics needs more people from the real world, not just party apparatchiks and former union chiefs in the Westminster bubble. Labour needs politicians “from every region and every social background,” he said. True – but the point would be more forceful coming from someone with a different background. Read more