There are things that money just can’t measure, and nature is valuable because it can’t have a priceThere are some things that money can’t buy; there are others that it can but shouldn’t. The boundary between these two categories isn’t fixed and is in any case constantly disputed. Some things can’t be bought because they seem impossible, like a return ticket to the moons of Jupiter, or a live woolly mammoth. But it’s perfectly possible that technology will advance to the point where these are possibilities and then people who can afford them will want them too. The one thing that a fortune will never be large enough to buy is the possession of a conscience.Those who have money tend to believe it should have the ability to buy anything. But freedom for the rich diminishes the liberties and security of the people without money. If money can buy good health, as the inequality statistics show that it can, the poor may find they have no access to medical care at all, as the horrors of the American health care system illustrate today. So any civilised society has rules about things (among them justice) that money is not allowed to buy.Related: Great Barrier Reef valued at A$56bn as report warns it's 'too big to fail' Continue reading...

The pound rose above $1.29 after the Bank of England governor said some removal of monetary stimulus could become necessary

Jeremy Corbyn has linked tragedy to Conservative spending cuts but PM says matter has arisen after decades of neglectTheresa May and Jeremy Corbyn have clashed over whether the tragic deaths of 80 people in Grenfell Tower fire is “one of the disastrous effects of austerity” or has been developing as a result of decades of neglect dating back at least to Tony Blair’s government in the 2000s.Related: Grenfell Tower tragedy shows effects of austerity, Corbyn tells May Continue reading...

Any change to rates would be linked to economic activity and Brexit outcomes, but Bank governor says still ‘too early’ to make that callThe governor of the Bank of England has sent the pound higher on the foreign exchanges after he warned that the continued growth in the UK economy would eventually lead to higher interest rates. Sterling rose by almost a cent against the dollar to stand at a post-election high on remarks seen as bringing forward the date of the first increase in the cost of borrowing since the start of the financial crisis 10 years ago.Although Carney broadly reiterated his “wait and see” approach to interest rates, the pound was trading at just below $1.30 amid speculation that the Bank’s monetary policy committee would over the coming rescind the emergency quarter-point cut in interest rates after last summer’s Brexit vote.Related: Bank of England deputy opposes rate hike, as UK house prices rebound - business live Continue reading...

Two years ago, Jeremy Corbyn challenged political orthodoxy by not attacking benefits claimants. Now public opinion has aligned with his stanceDo you resign yourself to public opinion as it is now, or do you attempt to change it? That is a question that has long divided Britain’s left and produced two competing strategies. The “centrist” approach is one that amounts to resignation. Voters are where they are, and it is largely futile to campaign to change minds when Labour is in opposition. It will simply render the party out of touch. A longstanding centrist argument was that the public believes austerity is unfortunate but necessary, and so economic credibility is defined by signing up to spending cuts. Labour’s left, on the other hand, refutes this pessimism. Public opinion can change – and dramatically so – if the counter-arguments to rightwing orthodoxy are heard loudly and forcefully.Related: Dear Andrea Leadsom, shrinking the state is the opposite of patriotism | Polly ToynbeeRelated: Clinging to austerity will kill this government – the small-state dream has evaporated | Paul Mason Continue reading...

Despite Justin Trudeau’s efforts to stress his country’s female-friendly credentials, a new report has identified a ‘substantial gender gap’ in its workplaces. Is Canada’s feminist image too good to be true?Canada’s prime minister is a self-proclaimed feminist. Two years ago, Justin Trudeau’s appointment of the country’s first gender-equal cabinet made headlines worldwide. Recently, his government has released what has been called the “first feminist foreign aid policy”.But now Canada’s own record on gender equality has been called into question by a perhaps unlikely source. The McKinsey Global Institute, a research arm of the corporate consultancy giant, has declared that the country’s workplaces have a “substantial gender gap”.Related: 'Let women eat cake too': why equality is not a zero-sum gamePay matters, but so do working conditions. Many jobs that women work in are precariousRelated: The study that shows life is a lot more unequal than you (probably) think Continue reading...

Former head of policy for David Cameron believes people are willing to see taxes go up to fund NHS and social careOne of the key architects of David Cameron’s austerity programme has suggested the government must consider tax rises and increased spending on public services to respond to overwhelming pressure on social care, schools and the NHS.Oliver Letwin, former chancellor of the Duchy of Lancaster who was Cameron’s head of policy, said he believed most people were prepared to see a modest rise in tax bills in order to fund investment in public services, but stopped short of saying that should mean an end to the public sector pay cap.Related: Social mobility: radical reform urged to repair divided BritainRelated: Here’s what the Queen’s speech needed to say – but didn’t | Jonathan Freedland Continue reading...

Soaring temperatures and rising inflation deliver biggest rise in more than five yearsBooming sales of ice-cream, gin and cider during the heatwave have combined with a jump in inflation to deliver the biggest rise in supermarket sales in more than five years.Sales revenue rose 5% in the 12 weeks to the end of June, the biggest increase since March 2012, in stark contrast to the 0.2% decline a year before, according to the latest market share data from Kantar Worldpanel. Continue reading...

Bank of England brings forward annual stress tests as it grows anxious over lenders’ exposure to consumer creditThe Bank of England is to force banks to strengthen their financial position in the face of a rapid growth in borrowing on credit cards, car finance and personal loans.The intervention by Threadneedle Street means banks will need to set aside as much as £11.4bn of extra capital in the next 18 months and is intended to protect the financial system from the 10% rise in consumer lending over the year.Related: Central banks raise alarm over new crash after steep rise in lending Continue reading...

UK government will spend £802bn this year, so funds ‘not much more than rounding error’, says IFS deputy headThe deal to spend an extra £1bn over two years in Northern Ireland will do little to disturb the public finances.Of the funds, about £400m will be directed at new physical infrastructure, £150m on better broadband, and £40m will tackle deprivation. Another £350m will be spent on health and education services. Continue reading...

UK central bank has ordered British banks to set aside more capital, and rushed forwards its consumer credit stress tests

The leader of the House of Commons accuses broadcasters of not being patriotic – yet the Tories have betrayed the nation through cuts to our most valued services and institutionsPatriotic? Who? Not the Tory Brexiteers who have brought this country so alarmingly low. While EU politics are rebooted with new Franco-German confidence, our government is only saved by the Democratic Unionist party. Ignominy doesn’t get much more mortifying than that.Related: Peston on Sunday gives Leadsom's call for patriotism a droll replyRelated: Remainers need a more patriotic tune to challenge a hard Brexit | Rafael Behr Continue reading...

Hung parliament, pay squeeze and housing slowdown took consumers’ spirits to lowest level since Brexit vote, says pollConsumer confidence slumped in the 12 days after the general election to its lowest level since the aftermath of last year’s Brexit vote, as households were unnerved by the impact of a hung parliament.A poll by YouGov found that consumers feared the unstable political situation would hit house prices and dent their living standards, which have already come under pressure in recent months from high inflation and sluggish wages growth.Related: Business Today: sign up for a morning shot of financial news Continue reading...

Deloitte study finds 47% were considering leaving after Brexit, while overall one-third of non-British workers could leaveOne third of non-British workers are considering leaving the UK, with highly skilled workers from the EU most likely to go, according to new research into the impact of Brexit on the jobs market.The consultancy firm Deloitte found 47% of highly skilled workers from the EU were considering leaving the UK in the next five years. In a report on Tuesday, it warns of serious implications for employers, raising the pressure on ministers to come up with sensible immigration plans and to find ways to improve the skills of UK workers and make better use of robots in the workplace.Related: Business Today: sign up for a morning shot of financial news Continue reading...

All the day’s economic and financial news, including a TUC conference on insecure work and reaction to Italy’s €17bn taxpayer-funded bank deal

Putting jobs and the economy at the top of the Brexit agenda means staying in the single market. Such a move would now attract cross-party supportAs Jeremy Corbyn has argued over Brexit, Labour must prioritise jobs and the economy, and that, for 50 Labour parliamentarians who have signed a new statement, means staying in the single market and the customs union – something the TUC and business also want.It’s the largest, richest market in the world: with more than 500 million people, and worth £11tn – fully a quarter of global GDP. It accounts for half our trade, and a surplus in services of £17bn.Related: As Labour politicians, we reject a hard-right Brexit, and defend the single market | Stephen Doughty, Chuka Umunna and othersDoes the single market mean uncontrolled EU migration? No.Related: Can Brexit be stopped? The answer is in our hands | Jonathan Freedland Continue reading...

Bankers warn that high-risk borrowers pose danger to stability of global financial markets

Hard, soft or left? One year on and theories abound, but politicians are yet to define their vision for the shape of Britain’s post-EU futureFew predicted it at the time, but the real effect of the EU referendum a year ago has been political rather than economic. One prime minister has resigned and another has been so badly mauled that she may not survive much longer. Britain is closer to having a Labour government with a radical leftwing agenda than it has been for decades.

Governor Mark Carney likely to use financial stability report to highlight risks from rising borrowingWe have heard plenty from the Bank of England’s monetary policy committee of late, with its members divided over how to set interest rates in a post-referendum Britain. The debate centres on when to raise borrowing costs from their record low and whether the economy – and squeezed consumers – can take it.This week it will be the turn of the Bank’s financial policy committee to hold forth. Its twice-yearly financial stability report will be presented by the governor, Mark Carney, on Tuesday and he is likely to use the health check to highlight the problem of consumer debt burdens in the UK. With real incomes squeezed, households have been dipping into savings and maxing out their credit cards. Continue reading...

David Davis was kidding himself when he told European politicians they were powerless to prevent Britain extracting a good trade dealThe investment plans of Jaguar Land Rover are unlikely to be an isolated reaction to Brexit. Last week the carmaker revealed amid a fanfare of publicity that it would be hiring 5,000 extra engineers and, with less fanfare, that it would begin work on its next-generation electric car in Austria.Very simply, the company appears to have made a judgment that for the next two to three years the pound will remain low and, with this discount in place on its exports, it will profit from shifting a huge volume of diesel cars from factories in the West Midlands and Merseyside to the rest of the world. Continue reading...

Nine years after the global economy almost imploded, bankers are finally in the dock. But we are still at great risk of a banking calamityIf you had told people in the City at the height of the financial crash in 2008 that it would take almost nine years for the first top bankers to face prosecution, few would have believed you. If you had then said that this first prosecution would relate to suspected fraud over one bank’s supposed attempt to avoid nationalisation – rather than the crash itself – the bankers involved in the crisis would have laughed in disbelief: surely, they aren’t going to let us get away with that?Related: Senior Barclays bankers charged with fraud over credit crunch fundraisingThere was too little political capital and almost no political will to break up the banks and make them simple again Continue reading...

All the day’s economic and financial news, including new GDP figures from France, and a healthcheck on eurozone companies

European Central Bank’s bid for more powers represents challenge to City’s dominance of £880bn-a-day businessLondon is facing renewed pressure over its dominance of the €1tn (£880bn)-a-day euro clearing market after the European Central Bank set out proposals aimed at giving it more oversight of the lucrative business.The move by the Frankfurt-based ECB – the central bank for the 19 countries using the euro – follows a report by the European commission that called for the EU to have more powers over clearing of financial products denominated in euros after Brexit.Related: Business Today: sign up for a morning shot of financial news Continue reading...

Yes, UBI could be an important part of a radical agenda. But beware: its proponents include neoliberals hostile to the very idea of the welfare stateFor some time now, the radical left has been dipping its toes in the waters of universal basic income (or unconditional basic income, depending on who you talk to). The idea is exactly as it sounds: the government would give every citizen – working or not – a fixed sum of money every week or month, with no strings attached. As time goes on, universal basic income (UBI) has gradually been transitioning from the radical left into the mainstream: it’s Green party policy, is picking up steam among SNP and Labour MPs and has been advocated by commentators including this newspaper’s very own John Harris.Supporters of the idea got a boost this week with the news that the Finnish government has piloted the idea with 2,000 of its citizens with very positive results. Under the scheme, the first of its kind in Europe, participants receive €560 (£473) every month for two years without any requirements to fill in forms or actively seek work. If anyone who receives the payment finds work, their UBI continues. Many participants have reported “decreased stress, greater incentives to find work and more time to pursue business ideas.” In March, Ontario in Canada started trialling a similar scheme.Related: The Greens endorse a universal basic income. Others need to follow | Jonathan BartleyWhat’s needed is not the arbitrary adoption of UBI, but a conversation about what a welfare state is for Continue reading...

Order books at highest level for 29 years as CBI warns government to put ‘economy first’ in Brexit talksBritain’s manufacturers are enjoying the strongest demand for their products in almost 30 years as a recovering global economy and a weaker pound boost order books.The monthly snapshot from the CBI found that export and total order books were both at their highest for decades – providing some hope that a stronger manufacturing sector would cushion the effect of higher inflation on consumer spending.Related: Brexit economy: UK faces slowdown amid living standards squeeze Continue reading...

The era of the dinosaur vanity project is over – money is desperately needed to redress the effects of austerity. Tough decisions are neededThey haven’t gone away. The great spending dinosaurs of the political dark ages, back before June 2017, are still roaming the jungle. Theresa May’s first decision as prime minister, to approve the £18bn Hinkley Point nuclear power station, is still crashing about Whitehall. Now the national audit office (NAO) has added its voice to those calling it a really bad deal. The project now has no independent supporters.Hinkley was a hangover from when Whitehall’s energy department took leave of its senses and approved anything that looked remotely “green”. It just passed the bill to the Treasury. The Treasury then passed the risk to Chinese investors and French contractors. The risk proved so great that these backers swiftly passed it back to the Treasury and future British taxpayers and energy users, in loan guarantees and sky-high prices. Continue reading...

It’s been a poor year for the pound, savers and UK-focused retailers but firms with sizeable foreign earnings have prosperedBritain’s consumers and UK-focused firms are among the biggest losers one year on from the shock Brexit vote that drove the value of the pound to its lowest level in more than 30 years.On the first anniversary of the EU referendum, financial services company Hargreaves Lansdown said clear winners and losers have emerged, with the pound taking the biggest hit on the markets. Blue chip companies with a large proportion of foreign earnings are among the biggest winners.Related: Business Today: sign up for a morning shot of financial newsRelated: UK households cut back as Brexit effect on pound hits living costs Continue reading...

Outgoing external rate-setter says Bank of England policymakers are wrong in assessment of economic conditionsA Bank of England policymaker has heaped further pressure on Mark Carney, the governor, with a warning that the central bank’s policymakers have failed to spot an inflationary spiral that needs to be choked off with an immediate increase in interest rates.In the same week that Andy Haldane, the chief economist, said he was considering voting for an increase in rates before the end of the year, Kristin Forbes, an outgoing member of the monetary policy committee, used her valedictory speech to say the governor and a majority of the other MPC rate-setters were wrong to believe inflation would peak soon and then retreat, allowing rates to stay low. Continue reading...

The Bank of England’s chief economist is right to say a casualised, de-unionised and atomised labour market has weakened workers’ ability to bid up wages. He’s wrong to say it may be time to raise interest ratesLife is getting interesting at the Bank of England. Next month will mark the 10th anniversary of the last time the technocrats of Threadneedle Street raised the official cost of borrowing, but the chances of an interest rate rise are higher than they have been for some while. Mark Carney, the Bank’s governor, thinks the time is not yet ripe for a tightening of policy. He used his delayed Mansion House speech in the City of London this week to voice concerns about the negative impact of higher inflation on consumer spending and the uncertain effects of Brexit negotiations on the economy. But three of the eight members of the Bank’s monetary policy committee took a different view, and they were almost joined by a fourth, the Old Lady’s chief economist, Andy Haldane, who said the time was fast approaching when he would vote for an increase. Mr Haldane’s intervention was significant, not just because he has hitherto been seen as one of the MPC’s most prominent “doves”, nor because his intervention came little more than 24 hours after that of his boss. Rather, it was because the bombshell was dropped at the end of a speech that seemed to argue the opposite.For years, the Bank of England has been trying to find the answer to a puzzle: why is wage growth so weak even though unemployment keeps coming down? Britain currently has its lowest jobless rate since the mid-1970s, but there has been no sign of an acceleration in earnings growth. Quite the contrary, in fact. At least part of the answer, according to Haldane’s analysis, stems from structural changes in the labour market: a decline in union membership; more self-employment; more zero-hours contracts and more part-time and temporary work. The clock has been turned back not one century but three, so that the world of work in 2017 bears more than a passing resemblance to Britain as it was before the Industrial Revolution. There were no trade unions. Most people were self-employed or worked in a small business. The Uber drivers of that era were the agricultural workers hired only when there were cows to be milked or crops to be harvested. In those pre-industrial days, the relationship between wages and unemployment was strikingly similar to the one seen since the recession of 2008. Continue reading...

Protest, for better employment rights, is latest in series that has hindered rubbish collection in major cities in GreeceGreece has been hit by fresh strike action as thousands of public sector workers marched through Athens in protest against the debt-ridden country’s austerity programme.Related: Creditors agree terms to disburse Greece's €8.5bn bailout funds Continue reading...

All the day’s economic and financial news, as the CBI reports that UK manufacturing picked up in June

Last week’s bailout is only a short-term compromise – the two creditors must work together on a proper solutionThe International Monetary Fund has resurrected an old technique – commonly used in the 1980s during the Latin American debt crisis – that would allow Greece to avoid a payment default next month on debt owed to European creditors. The reprieve also gives the IMF and its European partners time to sort out their technical differences on the struggling country’s growth and budget outlook. But the fund’s elegant compromise still leaves Greece under the shadow of an enormous debt overhang; reducing it requires that Europe find a way to set aside national politics and act on the basis of economic logic and necessity.Europe and the IMF have been unable to reconcile two views of Greece’s debt sustainability, with the two sides’ differences spilling over into the public domain. Guided mainly by a cash-flow analysis, European authorities argue that low interest rates and long maturities have made the nation’s debt sustainable. But the fund notes that, at almost 200% of GDP, Greece’s stock of debt deters investment and capital inflows. For the IMF, meaningful debt reduction is critical for generating the confidence and credibility needed to break Greece out of a prolonged period of impoverishment.Related: Creditors agree terms to disburse Greece's €8.5bn bailout fundsRelated: The eurozone must reform or die | Kenneth Rogoff Continue reading...

Two former members of Bank of England’s interest rate-setting committee discuss the outlook after the general electionProfessor of economics at Dartmouth College, New Hampshire, and member of the Bank’s monetary policy committee from June 2006 to May 2009Related: Brexit economy: UK faces slowdown amid living standards squeeze Continue reading...

The latest monthly Guardian analysis finds households experiencing rising costs and firms concerned over political uncertaintyBritain’s vote to leave the EU has squeezed living standards, hit consumer spending and dampened the country’s growth prospects, a Guardian analysis of economic news over the year since the referendum shows.One year since voters narrowly opted for Brexit, the Guardian’s monthly tracker of economic news paints a gloomy picture, with households facing rising costs and firms fretting over falling demand and political uncertainty.Related: 'Markets don’t like chaos' - experts debate Brexit Watch dataRelated: How has the Brexit vote affected the UK economy? June verdict Continue reading...

How has the economy reacted to the vote to leave the EU on 23 June 2016? Each month we look at key indicators to see what effect the Brexit process has on growth, prosperity and trade in the UK Continue reading...

The US president says he does not want poor people managing the economy. Trump told a rally of his supporters in Cedar Rapids, Iowa, on Wednesday, he feels a ‘very rich person’, such as former Goldman Sachs president Gary Cohn, was better qualified to be in charge of commerce

Andy Haldane says rise in self-employment and drop in union membership mirrors weak workforces of pre-1750 eraThe lack of wage growth in Britain’s economy is the result of turning the clock back to the days before the Industrial Revolution when there were no trade unions and self-employment was rife, the chief economist of the Bank of England has suggested.Andy Haldane said the current relationship between pay and employment had more in common with the period between 1500 and 1750 than in the subsequent period, because in the post-1750 era, collective bargaining and the expansion of full-time paid employment meant workers were able to secure generous pay awards when labour was scarce.Related: Business Today: sign up for a morning shot of financial news Continue reading...

I recently decided to abandon the rules that govern nature for the rules that govern people and markets: economics. Why would I do such a thing?I love physics. Brick by brick, you can build new theories from established ones and know that they will apply not just on Earth but throughout the entire universe. The upsides are incredible: I worked on the theory and simulation of plasmas (the stuff stars are made of) for nuclear fusion. If nuclear fusion succeeds in its objectives, it could mean the end of our reliance on fossil fuels, the end of climate change, and energy security for at least millions of years. The experiments in fusion push the limits of nature. Every time Lawrence Livermore National Laboratory’s Ignition Facility in California fires its fusion laser, the world’s most energetic, material is heated from 18 degrees above absolute zero to hotter than the centre of the sun in just a few nano-seconds. The work was as exciting and intellectually rewarding as you might expect.As quantum mechanics brought down classical mechanics, the financial crisis has led to a reappraisal of macroeconomicsRelated: A new CERN experiment targets even higher energies (eventually) Continue reading...

All the day’s economic and financial news, including a new healthcheck on Britain’s public finances

Figures show slowdown starting to hit public finances, but public borrowing fell in May in boost for Philip HammondThe government’s spending deficit is on course to worsen this year as official figures show the economic slowdown is beginning to take a toll on the UK’s public finances.As ministers struggle with demands for higher spending on health, police and social care, the Office for National Statistics (ONS) said public borrowing was narrowly lower in May than the same month last year. Public sector net borrowing excluding the nationalised banks was £6.7bn, down from £7.1bn a year earlier and slightly below the consensus expectation of £6.8bn.Related: UK deficit falls in boost for Philip Hammond - business live Continue reading...

Andy Haldane reveals he seriously considered opposing governor Mark Carney in MPC vote earlier this monthSigns of a deepening rift on the Bank of England’s monetary policy committee have emerged after Threadneedle Street’s chief economist revealed he seriously considered opposing the governor, Mark Carney, and voting for an interest rate rise earlier this month.Just 24 hours after Carney said the state of the economy and the uncertainty caused by Brexit meant borrowing costs should stay on hold, Andy Haldane said it would be prudent to tighten policy before the end of the year.Related: Bank of England says interest rates should be kept on hold amid Brexit uncertainty Continue reading...

Policymakers must act before the lack of productivity and real wage growth causes further political upheavalsIn all major economies, the so-called productivity puzzle continues to perplex economists and policymakers: output per hour is significantly lower than it would have been had the pre-2008 growth trend continued. The figures are stark, particularly so in the UK, but also across the OECD. And while it goes without saying that economists have many ingenious explanations to offer, none has yet proved persuasive enough to create a consensus.According to the UK’s Office for National Statistics, output per hour in France was 14% lower in 2015 than it would have been had the previously normal trend growth rate been matched. Output was 9% lower in the US and 8% lower in Germany, which has remained the top performer among developed economies, albeit only in relative terms. If this new, lower growth rate persists, by 2021 average incomes in the US will be 16% lower than they would have been had the country maintained the roughly 2% annual productivity gain experienced since 1945.Related: UK economy will slow amid Brexit talks and pay squeeze, warns CBI Continue reading...

OECD education director welcomes scheme but questions government’s decision to focus on working parentsThe government’s plan to provide 30 hours’ free childcare has been criticised by a leading global education expert for failing to target the most disadvantaged families whose children stand to gain the most.

While its residents are exempt from some of the government’s harshest welfare policies, it’s pretty much business as usual for everyone elseWhile the ideological certainties underpinning the past six years of cuts may seem to be unravelling, the day-to-day reality is that it is pretty much business as usual.Related: Look at Grenfell Tower and see the terrible price of Britain’s inequality | Lynsey Hanley Continue reading...

Sector’s jobs swell by 40,000 in 12 months and productivity returns to near peak, with voter support for government helpAustralia’s manufacturing industry could be poised for recovery, according to a new report, which says the sector is enjoying its largest improvement in employment conditions in a decade.It says Australian manufacturing jobs have swelled by 40,000 in the past 12 months – the second-largest number of new jobs created in any industry – and productivity has returned to near its previous peak.Related: Looking for the cause of low wage growth? It's underemployment | Greg JerichoRelated: Universal basic income could greatly improve workers' lives, report argues Continue reading...

The Bank of England governor says Britain’s economy can’t handle higher borrowing costs yet, as he gives his delayed Mansion House speech

We oppose the Brexit policy being dictated by the Tory right. Leaving the single market would cost public services £31bn. Our party should fight thatJeremy Corbyn has rightly said that Labour’s position on Brexit is to focus on a deal that prioritises jobs first. We are all united behind that goal. For us that means membership of the single market. A country can be a member of the single market without being a member of the EU and we must be clear – “access” to the European single market is both different and inferior to “membership” of the single market. Why? Because if we leave the single market, whatever the level of access is negotiated, working people across Britain will be worse off and revenue to the exchequer will plummet – revenue the next Labour government will need to bring an end to years of damaging Tory austerity.Related: Labour is clear: Brexit would be better with single market membership | Chuka UmunnaRelated: Theresa May can still shape Brexit. But she may not have the skills | Martin Kettle Continue reading...

Rolling coverage of the day’s political developments as they happen, including Philip Hammond, the chancellor, giving his Mansion House speech.

Chancellor says Britain is weary of austerity as he sets out Brexit path that includes pledge to keep borders openA Brexit deal that puts jobs and prosperity first is the only way the UK will be able to deliver the strong growth that will enable it finally to escape from the long years of austerity, the chancellor has said.In his strongest call yet for a managed approach, Philip Hammond said a comprehensive trade agreement, a transitional deal after the 2019 deadline for the end of talks, and a commitment to keep borders open should form a three-point Brexit plan for Britain.Related: Business Today: sign up for a morning shot of financial news Continue reading...

Focusing more on appearances than outcomes is perilous. The Grenfell Tower fire has shown up the shortcomings of stretched public authorities putting up a frontAs the flames that engulfed Grenfell Tower died down, the blame game had already begun. One thing everyone has pointed to is the new facade on the building. Residents called it “the plastic”. It has since emerged that similar cladding was a factor in fires in tower blocks in France, and is banned from use in tall buildings in the US – and the UK, according to the chancellor (though this is denied by those who installed it).But “the plastic” was not the only potentially dangerous facade at Grenfell Tower. Residents saw the installation of the cladding as part of deeper processes of gentrification and even racial and class cleansing. Lacklustre concerns around fire safety were another facade. Following a fire at Lakanal House in 2009 in Camberwell, London, which killed six people, the authorities knew there were potential fire risks in tower blocks. Instead of responding immediately, the government created another facade – an inquiry that took four years and came to conclusions that were not fully acted on. And then there was the facade of accountability, such as forums set up by the local council to listen to local residents. The council did very little listening and, as a consequence, repeated concerns about fire safety went unheeded. Continue reading...