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The press release issued by the IEA on 21 October 2022.

Commenting on the Labour Party’s proposal to ban fracking, Andy Mayer, Energy Analyst at free market think tank the Institute of Economic Affairs, said:

“Banning fracking means risking freezeouts.

“The UK has more than enough gas under our feet to last 50 to 100 years. Gas currently supports 40 per cent of our power system, 85 per cent of domestic heating and most heavy industry. Without affordable alternatives or storage, fracking remains essential for our energy security, and this will remain true for the next 20-30 years.

“The Opposition’s proposal to ban it means substituting expensive, dirtier imports, and losing any tax revenues from development. It increases the risk of the most vulnerable freezing to death next winter. It destroys a potential source of funding for the low carbon transition and increases the national debt and our exposure to volatile international energy prices.

“Advocating this policy during an energy and debt crisis for short-term advantage in marginal seats with a vocal minority opposed to development of any kind, is exactly the kind of politics that have led to the current mess.”

The press release issued by the IEA on 20 October 2022.

Mark Littlewood, Director General at free market think tank the Institute of Economic Affairs, said:

“I’m very sorry the PM’s efforts to move the U.K. in a pro-growth, low-tax, pro-enterprise direction has failed. She had a difficult hand to play, but she also played the hand badly. However, her successor will face the same problems she did. I hope they share her analysis, but they will also need to display an ability to deliver on serious reform”

The press release issued by the IEA on 20 October 2022.

Commenting on the introduction of the Transport Strikes Bill, Professor Len Shackleton, labour market expert at free market think tank the Institute of Economic Affairs, said:

“This Bill has been promised for three years but despite its general intention, it is still unclear how the obligation to provide a minimum service will be determined, how the conflicting needs of different groups of customers will be reconciled and how the plan will be proof against inevitable legal challenges.

“A further period of consultation will take months, if not years, and is likely to fall foul of a general election. This effort appears to be a box ticking exercise to show that at least one government commitment has been met.

“The Department for Transport has form with putting off decisions: it has still not spelt out what shape Great British Railways will take, again something which should have been decided at least two years ago. The main lines of the Williams-Shapps report had been laid out well before it was published.

“This dilatoriness is also found in the Department’s response to the continuing strikes. Even were this Bill magically to achieve its objective in time for the next round of strikes, the public would not be satisfied with a 20 per cent service, no doubt conducted by an uncooperative staff.

“No real attempt is being made to reach a definitive settlement and the government seems content to let industrial action drag on until Christmas. Meanwhile the prospect of achieving an efficient modern railway system worsens by the week, as revenues fall through the floor and more and more customers decide that they can live without trains.”

The press release issued by the IEA on 19 October 2022.

Commenting on the latest ONS inflation data, Christopher Snowdon, Head of Lifestyle Economics at free market think tank the Institute of Economic Affairs, said:

“Double digit inflation in September is what was expected and it will get worse before it gets better. It is particularly concerning to see food and soft drink inflation at nearly 15 per cent.

“In real terms, interest rates are currently at minus eight per cent. The Bank of England keeps saying that it will not hesitate to raise rates and yet it consistently does far too little far too late.

“The two per cent target is laughable. This inflation is clearly not transitory. People will continue to see their salaries and savings eaten away until the Bank of England starts taking it more seriously.”

The press release issued by the IEA on 17 October 2022.

Commenting on Chancellor Jeremy Hunt’s statement, Mark Littlewood, Director General at free market think tank the Institute of Economic Affairs, said:

“The Energy Price Guarantee was always an unnecessarily expensive programme, representing perhaps the single biggest welfare scheme in British history. As many of us said at the time, it is absurd to subsidise wealthy households to keep heating their swimming pools. A more targeted approach from next year is warmly welcome and will save significant money.

“There is a clear need to improve the government’s fiscal position to calm the gilt markets – it’s disappointing, however, that so much of the heavy lifting will come from higher taxes. The central lesson from this episode is that the government cannot keep living beyond its means.

“The risk of raising taxes is that they put Britain back on the path towards a high tax, low-growth economy. As Goldman Sachs warned yesterday, higher corporate tax rates could deepen any forthcoming recession and ultimately damage the government’s fiscal position.

“The Chancellor has said it was irresponsible to fund tax cuts through debt. However, we must also end the fiction that we can keep funding day-to-day public spending through debt forever more as well. The government may have abandoned much of the central tax elements of their growth strategy, but that makes it even more important to get on with regulatory reform.”