Nissan: The Shape of Things to Come

Watching Jon Snow present the C4 news yesterday evening was a delight.  What the hell's going on here, he blustered - GDP up!  and Nissan investing!  - but, but, ... how can this be?  It's supposed to be all doom and gloom - the government is obviously cheating!!

Jon-boy, this is war.  Whatever the government did or didn't do for Nissan, there'll be many a dark deed done on the road to a successful escape from the clutches of the Commission.  It gladdens the heart to see that some proper pragmatists are settling down to their three-year-long task of doing Whatever It Takes.  Perhaps the wretched remainers in the ranks of the Civil Service are being brought to heel.  Or side-lined.  Whatever: they'll get the message if it's relentlessly reinforced at every turn.  Johnson / Davis / Fox maybe up to the task after all.

The EC will get the message, too.  You won't talk to us?  You hold out nothing better than 'Britain must be punished'?  Why then, we'll cut our deals somewhere else.

Altogether more annoying was the spectacle of Hammond studiously avoiding any sign whatsoever of pleasure at the news.  He has every right to be cautious: but his sour, pessemistic line went beyond prudent management of expectations.  Being charitable, he must have signed off on whatever 'deal' was done for Nissan, which is the main issue on the practical side. 

But rhetoric matters, too.  Churchill, who never failed to give his listeners a blunt understanding of just how tough things were going to be, also never failed to give them a vision of ultimate victory, with a credible display of his personal conviction and determination.

He wasn't much given to toleration of obstructionist attitudes, either.  Get with the programme, Hammond - this is entirely do-able.  

ND

Will anything happen with Hammond as Chancellor?

I am hearing that the new Chancellor is not planning to do much with the Autumn statement. Really as a new Government in fact, one would have expected quite chance of doing something radical to show a difference to Osborne's non-austerity austerity.


Instead, there is a huge problem with Heathrow where Theresa May is very exposed in her own constituency of Maidenhead, who are deeply anti-expansion. Yet Gatwick seems to be off the menu as BAA have been so successful with their lobbying for Heathrow or bust.


In terms of the economy, it desperately needs some change of tack from the low-rates, low-savings, low growth model created by the Cameroons.


The chance is to boost growth by raising infrastructure spend and relaxing planning laws further. Also to end the pensions triple lock which is denuding many areas of Government of any cash.


However we are likely to get further tax cuts for business, which have so little impact on business investment when personal taxes are so high (most business are privately owned, the personal tax always ends up being key for 99% of people).


Then there is the long overdue review of both public sector pensions provision and the personal tax code including NI. If not now, when?