Teflon Teather’s u-turn in the sky

The curbing of emissions from aviation is an important issue for any government. Not only does aviation stimulate the economy, the market mechanisms often advocated to curb such emissions can impact negatively both on those hoping to fly as well as those economies dependent on the transportation of tourists… The Liberal Democrats were acutely aware of this when pledging to scrap the air passenger duty (APD) during the election as a means of protecting Caribbean voters.

Coalition gives up on tackling bankers’ bonuses as 2010 total set to hit £7bn

It’s hardly a surprise, but the coalition has decided that it has done as much as it intends to tackle excessive bankers’ bonuses, even at a time when small businesses continue to suffer as banks refuse to lend. Most banks will not pay out their bonuses for 2010 until February 2011 but the Treasury minister Lord Sassoon’s declaration in the House of Lords this week indicates the government is satisfied that its ‘work’ on City bonuses is complete.

Minister: Local Enterprise Partnerships lack “a clear focus” on growth

In a searing critique of government policy, business minister Mark Prisk has written to his boss, Vince Cable, warning that the introduction of Local Enterprise Partnerships (LEPs) across England to replace the eight regional development agencies has generated “considerable friction” from the business community, running the risk that they “become detached from this policy heralding likely failure [of LEPs] in large parts of England”.

Not so NICE: Warning of drug industry influence on NHS

No-one likes to talk about rationing health services, especially politicians. Yet rationing decisions are necessary in all health systems without limitless budgets, since demand will always exceed supply. The question is: who makes the decision, and on what basis?

Cameron’s election speechwriter slams immigration cap

There’s a punchy Evening Standard column from Ian Birrell today challenging the government’s immigration cap as “the sort of gesture politics that makes some sense in opposition but turns out to be nonsense in government”. The author might claim to know something about the pressure to make such political gestures, having been David Cameron’s speechwriter during the 2010 election campaign.

Political will at home is key to climate change talks

With less than one month to go until the return of the UNFCCC Climate negotiations, many are beginning to ask the question: Will the UN climate talks help save the planet or is it time to look elsewhere? Guppi Bola looks ahead to the Cancun conference.

Ireland left with nowhere to go, damned if it does, damned if it doesn’t

If Ireland tightens fiscal policy to reduce the deficit, output growth will be even weaker in the short-term, pushing the deficit back up again. And if it cuts taxes or increases spending to boost economic activity, the deficit will also increase. It is damned if it acts, and damned if it doesn’t. Unfortunately, the only way out may be recourse to the IMF.