Category Archives: NEF
Transport for London has decided not to give Uber a new license, though its application (Uber requires drivers and users to have a smartphone) will still be operational in London while Uber appeals against the decision. Problems have arisen partly due to the company’s policy of not finding out whether the prospective driver has a criminal record.
An Uber executive from the scandal-prone company is said to have advocated hiring investigators to “dig up dirt” on journalists who criticize them. A commissioner in Virginia who opposed Uber was flooded with emails and calls after the company distributed his personal contact information to its users in the state.
Uber has been banned from or – due to legal restrictions – has voluntarily pulled out of Alaska, Oregon (except Portland), Vancouver, Bulgaria, Denmark, Hungary, Italy, German, London, the Northern Territory in Australia, Japan, and Taiwan.
The New Economics Foundation has called for a mutually-owned, publicly-regulated alternative to Uber, providing better working conditions for drivers and higher safety standards for passengers.
Stefan Baskerville (NEF: Unions and Business) said: “Digital platforms are here to stay and technology cannot be reversed. The question now is how they should be controlled and by whom, as well as the standards they set and how they treat people. It is time to develop alternative models which put people back in control”.
As NEF points out, drivers in different parts of the UK are developing their own platforms
In 2015 Cab:app was co-founded by London taxi driver Peter Schive, who said: ‘Cab:app draws on the heritage and expertise of the black cab industry and translates it for the digital world.
Other early examples included the Bristol Taxi App – abbreviated to Braxi – which will only employ drivers licensed by Bristol City Council. Farouq Hussain, ‘one of the brains behind the app’, described it as being “just like Uber, only local”, with no surcharge and 25% pay cut. He added: “Our app takes the best of Uber and makes it local”.
The most recent: in June Anlaby-based 966 Taxis in Hull designed and launched its Uber-style app which they believe could transform the service. Alice Martin (NEF: Lead for Work) said: “TFL’s move will send ripples across the country where there has been a recent surge in private hire licenses given out to support Uber’s growth, particularly in the Midlands, Yorkshire and the North West” adding:
“We’ve been working with drivers in different parts of the UK who are developing their own platforms. The time has come for the Mayor to back a better alternative to Uber and lead the way for other local authorities to do the same”.
Jeremy Heighway writes:
Years ago (but still after the dawn of apps) I thought about putting some effort into an app that would be more closely related to hitch-hiking than getting a taxi.
Basically, new trips by car should not be generated (aside for slight detours), and drivers would only be sharing the costs of trips they would have made anyway – and not making an actual profit.
I hope that a new platform manages to get the idea across that socially and ecologically sound mobility is not via job and journey creation using cars, but more efficient vehicle use.
This extract from the message sent by Fernanda Balata (New Economics Foundation) is about community groups around the world taking action on climate change and driving initiatives towards cleaner and more affordable energy opens:
“Take the inspiring example of Brighton, which is host to the UK’s first community funded, zero emissions, solar-powered bus.
“The bus used to run on regular diesel, but has since been converted to a 133 kWh electric vehicle by Magtec in Sheffield. It is powered by a 21kW solar array on the roof of the bus depot, installed by Brighton Energy Coop and part-funded by Viper IT Solutions, Infinity Foods and Buddies Cafe as part of an M&S Energy crowdfunding campaign last year.
“Elsewhere in the UK, the company Pixie Energy has just launched an East Anglian Energy Market Innovation Project. The project wants to identify new local models for the energy industry and drive a power revolution in the region.
“But once again, local efforts are facing unnecessary odds.
“The government has already taken a backward step by making cuts to Feed-in Tariff (FIT) subsidies, putting community energy projects across the country at risk and preventing others from launching. .
“The energy regulator, Ofgem, has added to local generators’ troubles. Last month, it cut some of the financial support that local energy generators rely upon to produce power close to those who use it, which helps to save costs across the national network.
“Ofgem says that the level of payment given to local generators is distorting the market and if no action is taken the distortion will increase. But, being local rewards, these incentives were not open to owners of big central power stations, such as the Big Six, who currently dominate the market. In fact, they are so powerful that Ofgem itself states that its decision was driven by an industry proposal.
“Local energy generators help incentivise the transition to local, clean, smart energy systems, effectively disrupting the current model that gives the Big Six so much control over our energy”.
The full message can be read here.
Marc Stears: firstname.lastname@example.org writes:
This election is about power, and about Brexit. It’s about the right to shape Britain’s relationship with the EU and the rest of the world.
But it is also about the right to try to shape our country’s future at home. Because the way Britain works right now is simply not accepted by millions of people.
People yearn to gain some purchase on the places where they live, and the forces which shape their lives. People want control over what matters to them – their work, their homes and families.
At the New Economics Foundation, we are fighting for real control. That means:
* Building power in our workplaces, where new technology is combining with the old power of capital.
* Real choice over where we get to live, in the face of a vicious housing market which continues to deny so many of us a decent, affordable home.
* Revitalised local communities, which are so often overlooked by top-down efforts at regeneration.
* Fair access to essential services like energy, rather than allowing six giant companies to dictate terms to everyone.
* A reformed financial system, so that banks can start to serve the public interest and not just their own.
In the latest New Economics Foundation mailing there is a useful summary of these five omissions. One question asked by MacFarlane* is “What about the housing crisis?”
The Chancellor failed to mention housing even once, despite the fact that we are in the grip of a serious and escalating housing crisis. One of the things fuelling that crisis is the fact that the government is insisting on selling off public land rather than using it to help deliver more genuinely affordable housing.
At the current rtate, the new homes target on sold-off public land will not be met until 2032, 12 years laer than promised. And the majority of homes being built on the land sold are out of reach for most people — only one in five will be classified as ‘affordable’. Even this figure is optimistic as it uses the government’s own widely criticised definition of affordability. If the government ended the public land fire sale they could use that land to partner with local authorities, small developers and communities themselves to deliver the more affordable homes people need.
According to the latest Nationwide House Price statistics, as most people cannot afford to buy now even with a mortgage, cash buyers such as second homeowners and buy to let landlords are propping up the market. Things are getting worse for people left at the mercy of this failing market. The Chancellor could have put a stop to the fire sale of public land yesterday, but instead he acted as if there were no housing crisis all.
*Laurie MacFarlane is an economist whose work focuses on reforming the financial sector and the economy to align with long term interests of society. Before joining NEF he was Head of Analysis at the Water Industry Commission for Scotland, an economic regulator which ensures that water customers receive value for money and led a small team of economists undertaking economic and financial analysis and engaging with industry stakeholders. He also spent one year in the Markets and Economics division at Ofwat, where he worked on establishing the recent water company price determinations. He has worked closely with Common Weal, a progressive Scottish think tank which aims to promote a new vision for economic, social and cultural development in Scotland and has a particular interest in analysing the links between UK housing crisis, the finance system and inequality.
Read more here: http://action.neweconomics.org/people/entry/laurie-macfarlane
As John Nightingale who sent the link says, this ‘reads well’:
Each year the Financial Times conducts a survey of leading economists on the UK’s upcoming prospects. The New Weather Institute is part of that survey and predicts a bumpy ride. A lot of the FT material sits behind a paywall, so for interest here are the answers we gave to their questions (which are themselves interesting in terms of locating mainstream concerns) on issues ranging from economic growth, to Brexit, monetary and fiscal policy, inflation, immigration and, unavoidably, Donald Trump.
How much, if at all, do you expect UK economic growth to slow in 2017?
It is time to stop measuring the health of the economy using orthodox economic growth measured by fluctuations in GDP as the primary indicator. By mistaking quantity for quality of economic activity, worse than telling us nothing it can be actively misleading. It tells us nothing about the quality of employment, the intelligence of infrastructure, the economy’s resilience, the environment’s health, or the life satisfaction of the population. As the United Nations Development Programme pointed out (as far back as 1996), you may have growth, but it might be variously jobless, voiceless (denying rights), ruthless (associated with high inequality), rootless (culturally dislocating in the way that fed Brexit, for example) or futureless (as now, based on unsustainable resource use). All of this said, I would expect the undifferentiated volume of UK economic activity not to rise significantly over the course of 2017. If anything, the opposite is more likely due to a combination of the instability resulting from the lack of clarity over Brexit, and the unknown global impact of a rise in economic nationalism in the United States under a Trump Presidency.
Compared to what you thought 12 months ago about the UK’s long-term economic prospects outside the EU, are you now more optimistic or more pessimistic than you were?
I am more pessimistic than 12 months ago. Official optimism from the UK government over negotiating Brexit appears either disingenuous or extremely naïve to anyone with a wisp of experience of trade negotiations. If it is a case of being disingenuous to save political face, the sheer lack of public realism demonstrates a kind of poor management of expectations that is likely to feed a creeping disillusionment in the process, as deadlines are missed and compromises made. If simply naïve – and it is publicly recognised that Whitehall chronically lacks negotiating capacity – it raises the spectre of levels of incompetence that make it impossible to be optimistic about the UK’s long-term economic prospects.
Inflation has started to increase in recent months. To what extent do you expect inflation to rise in 2017?
The minor movements of inflation to a shred over 1 percent keep rates at historically very low levels. A bit more spending on shoes, clothes and furniture barely constitutes even cause for comment. You could say that the rate is rising because it doesn’t have much else to do. With broader economic uncertainties so strong, we are still in touching distance of a deflationary environment. And, with high consumer debt levels still worrying the Bank of England, the low inflation rate stands to exacerbate debt burdens. With the economy in a kind of limbo due to the opaque future ushered in by our unknown future relationship with the EU, I expect inflation to do nothing more dramatic than it has done for most of the last twenty years in an upward direction. But there is always a danger that it might weaken further, which will be a much bigger problem.
In December, the Monetary Policy Committee said the next interest rate move could as easily be up as down. Will there be a shift in this monetary policy stance by the end of 2017?
There is a strange and tenacious myth in economic commentary that a single, meaningful interest rate prevails across the economy. In practice, of course, this is nobody’s. What matters to the economy is that cheap, patient money is available for things that matter, such as building a resilient and efficient low-carbon infrastructure. Equally, the cost of money for risky and potentially damaging activities should be high. Unfortunately because of broader policy, pricing and market failures the opposite is often the case. Hence, tax breaks, subsidies and the way investment portfolios get managed means that money flows cheaply in fossil fuel infrastructure and operations. At the same time, necessary and successful emergent sectors like solar and other renewables can still struggle for affordable, patient capital. The privatisation and weakening of the mission of the Green Investment Bank is deeply concerning in this regard. Once again, prevalent economic uncertainties seem to be having the effect of putting everyone, the MPC included, on ‘watch’, and unlikely to do anything radically different in the ‘phony war’ period of approaching Brexit negotiations.
Immigration is likely to be central to the Brexit negotiations in 2017. How much do you think immigration will change and what effect do you think this will have on the UK economy?
It is tempting to ask how will we know how much immigration will change? Statistics are notoriously unreliable and, as the Financial Times has pointed out, become ‘less reliable the more detail you look for.’ A significant proportion of immigration is unrelated immediately to Brexit negotiations, though not to broader government policy. But on this, the government appears deeply divide, such as differences in approach to the control of foreign students between Philip Hammond, Theresa May and Amber Rudd. If anything, far from being downgraded by the Brexit debate, the economic importance of immigration to key UK sectors has been made more acutely obvious, ranging from higher education, to food, retail and a range of other service industries. Importantly, many of the drivers of population movement from inequality to conflict and environmental degradation show no sign of lessening and, if anything, growing worse. The tone and promise of government policy seems mostly to affect the degree of xenophobia experienced by immigrants rather than significantly changing their numbers. With all these things in mind, I doubt trends in immigration will change much in 2017 and that this will buoy-up a UK economy facing a wide range of threats.
Fiscal policy: Philip Hammond is expecting government borrowing to fall in 2017. His new fiscal rules provide headroom for more borrowing than currently forecast. To what extent will he need to use it and why?
The UK is weighed-down with an aging, creaking, high-carbon infrastructure. The case for public investment as necessary to rebuild the foundations for a modern, clean and efficient economy to underpin our quality of life is overwhelming. The cost of money for conventional borrowing is cheap. And the decision by the Bank of England to expand its quantitative easing (QE) programme from £375 billion to £445 billion in the wake of Brexit, demonstrates that public money creation is also possible when the situation demands it. Up to date, QE has benefited the banks, and the holders of certain assets, with broader economic benefits being questionable. But, as Mark Carney has previously indicated, there is no reason in principle why it cannot be used in a more intelligent and focused way to aid the productive, low carbon economy. I and others have consistently argued that far more good could be done if the same basic mechanism was used, for example, to capitalise a much larger and more ambitious green investment bank via bond purchases. The work subsequently undertaken such as large scale energy efficiency retrofitting of the UK housing stock and the roll out of renewable energy would generate good quality local employment and better prepare Britain for the future. There is no sign yet that the government intend to seize this opportunity and rather too many signs that any borrowing that is undertaken will not be put to as good use.
How do you think Donald Trump’s presidency will affect the UK economy in 2017?
The effect of Donald Trump’s presidency on the UK economy in 2017 will be as unpredictable as the bounce of an American football. Nobody seriously can know what it will be, other than increasing general levels of uncertainty, because nobody seriously believes that Trump himself knows what he will do in office. We can speculate that his brand of economic nationalism will be tempered by the full realisation of China’s leverage over America, just as we can question its initial sincerity. Especially as even as he was tub thumping against China, branded Trump products were available which carried globalisation’s legendary Made in China mark.
However, combined with the sentiments unleashed by Brexit, and the UK government’s active new embrace of industrial strategy, it is possible that the economic pendulum may swing back some degrees from globalisation toward localisation. Done in a purely autarchic way this might be negative. Done with respect to international cooperation and obligations, and to help build a more environmentally sustainable economy, it could snatch success from the jaws of chaotic self-destruction.
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