Economics Observatory | Questions and answers about coronavirus and the UK economy

What would be the effects of abolishing or reforming inheritance tax?

Inheritance taxes aim to raise revenue and reduce inequality of opportunity arising from differences in parental wealth. But current UK policy has little impact on social mobility. Scrapping the tax would benefit the wealthiest, while reforms could reduce unfairness and negative economic effects.

1-3 October 2024 Bristol

Attitudes, media & governance

Wellbeing policy: what lessons from the Nobel laureate Daniel Kahneman?

The late Daniel Kahneman was awarded the economics Nobel Prize in 2002 for influential research on how people make decisions. His work on wellbeing has also had wide impact, including on what official statistics measure and evaluation of the effects of policies on people’s life satisfaction.

DATA HUB

UK business demographics

Yesterday, the ONS published new data on business demography in the UK, revealing that the construction industry saw the most growth in 2023 with 4,560 new active enterprises.

Close behind, the health industry experienced notable expansion, with business births outpacing closures by 4,335.

Despite 44,050 new wholesale trade and retail enterprises, the industry as a whole contracted with a net decrease of 3,515. The most significant decline was observed in the transport and storage sector, with a net total of 10,720 firms no longer active.

Schools, universities & training

UK higher education finance: what’s the problem and what can be done?

The tripling of tuition fees in 2012 put universities in a strong financial position. But since then, fees – and the maintenance loans that support students – haven’t kept up with inflation. Now, students face real hardship and some universities seem to be in deep financial difficulties.

MAGAZINE

Read the latest edition of our magazine here

Aviation is a truly global industry, with airlines competing at home and abroad on price and quality, but also subject to a complicated mixture of domestic and international regulations. A country’s airports constitute a big part of the economy, contributing to trade, tourism, education and more.

Transport & infrastructure

Visitor caps: what potential impact on the world tourism industry?

Caps on the numbers of visitors allowed at certain destinations aim to relieve pressure on hotspots of overtourism. Their introduction presents an opportunity for other places to attract more tourists and students, boost their economies and promote a more sustainable and equitable tourism industry.

Jobs, work, pay & benefits

What do we know about labour market power in the UK?

The ability of powerful firms to set pay and other working conditions is a growing concern for economic researchers and policy-makers. Much of the evidence is from the United States, where labour market institutions and policies are very different. Hence the need for emerging UK-specific analysis.

Jobs, work, pay & benefits

Good work: what do we know about the quality of UK jobs?

The quality of jobs in the UK is generally good: by many measures, it has even improved over the last five years. But there are a number of concerning trends that could lead to more mediocre jobs, and away from enriching work and employees who are happy and fulfilled.

Energy & climate change

Climate change: what are the economic impacts and potential solutions?

To stand a chance of meeting the net-zero ambitions of the Paris Agreement, a multi-pronged approach to curbing climate change is needed that permeates all sectors of our society and economy. Done well, this comprehensive approach will ensure a just transition.

Energy & climate change

Missing capitals: how should we think about the modern wealth of nations?

Conceptions of wealth tend to focus on financial assets. But prosperity also depends on natural capital, human capital, social capital and intangible capital.

Energy & climate change

What are the economic effects of extreme weather caused by climate change?

Human-made climate change is increasing the likelihood or intensity of extreme weather events. The costs of these disasters – and their effects on equality – are being underestimated, and greater urgency is required to implement mitigation policies.

Energy & climate change

How should a national energy efficiency policy be targeted ahead of winter?

Rising gas and electricity prices have affected millions of UK households and increased rates of energy poverty. Energy efficiency policies should make a priority of support for the most vulnerable, particularly low-income households and those with disabilities or long-term illness.

Energy & climate change

Frontline stories: protecting biodiversity

Ahead of COP26, the climate change summit in Glasgow in November 2021, Richard Davies talked to Dr Jane Goodall DBE, one of the world’s leading environmentalists, founder of the Jane Goodall Institute and a United Nations Messenger of Peace.

Energy & climate change

How can climate promises be met while maintaining fiscal sustainability?

While the public finances in many countries are now under great pressure, this is no time to forget commitments to tackling climate change. Indeed, conditional on action being taken early, governments’ support for the transition to net zero could ultimately improve fiscal sustainability.

Energy & climate change

How does uncertainty about the future affect climate change policy?

Uncertainties about the future mean that the design of climate policy is a challenging task. Being able to make adequate predictions of different potential scenarios is vital for building effective tools for both climate mitigation and climate adaptation.

All Answers