Economics Observatory | Insights on the UK and global economy

What future for residential property taxation in Britain?

Council tax is unpopular, unfair and overdue for reform. An alternative would be to fund statutory services through central government, introduce a modest local service charge, and absorb stamp duty and capital gains tax on housing into a single recurrent residential land and property ownership fee.

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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.

DATA HUB

Nuclear warhead stockpiles

The nuclear map is shifting.

Russia and the USA still hold the lion’s share of global nuclear warheads — but their dominance is declining.

In 2000, China had fewer than 1% of global warheads (≈350). By 2024, that share climbed to over 5% (≈500).

Other countries like India, Pakistan, and North Korea are also growing their arsenals, reshaping the global nuclear landscape. The Cold War’s two-player world is giving way to a more multipolar nuclear era.

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Energy & climate change

‘Backyard wildlife’: has the pandemic reconnected us with nature?

As lockdowns have changed the ways in which people spend their time and money, many have made a priority of engaging with the local natural environment. This has led to investments in nature, increases in wildlife populations – especially birds – and improvements in wellbeing.

MAGAZINE

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If the government decides to raise taxes after the pandemic, an alternative to taxes on work or spending could be a one-off wealth tax. A well-designed tax of this kind could raise significant revenue in a fair and efficient way without excessive administrative costs.

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.

Families & households

What are the effects of youth club closures in the UK?

The widespread closing of youth clubs during the 2010s, driven by government austerity measures, led to falling educational performance and increasing rates of youth offending. The long-term financial implications – through reduced lifetime earnings and higher crime-related costs – are also stark.

Public spending, taxes & debt

Might the UK really need a 1970s-style IMF bailout?

Given the precarious state of the UK’s public finances, there has been speculation about whether a loan from the International Monetary Fund will be needed, as happened in 1976. What’s really required is a reformulation of the fiscal framework to establish a credible commitment for fiscal policy.

Business, big & small

Fast fashion: what are the true costs?

The cost of living crisis has led to an explosion in the fast fashion industry. Buying cheap, low-quality clothes allows people to update their wardrobes regularly at a modest cost. But this comes at the expense of both the environment and the wellbeing of garment workers in developing countries.

Energy & climate change

How does fast fashion affect the environment?

The fast fashion industry is characterised by both overproduction and overconsumption. The sector is harmful to the environment, requiring enormous quantities of natural resources and creating substantial waste. Policy-makers could promote a more circular economy to reduce the damage.

News

Reap what you sow

Farming doesn’t just feed us: it powers economies, employing millions of people and shaping how we all live. But key challenges – including climate change and increasing barriers to cross-border trade – raise questions about how to provide a sustainable food supply for a growing world population.

Productivity & growth

Boosting agricultural productivity: what lessons from policies in Uganda?

Uganda’s smallholder farmers continue to struggle with low crop yields. The government has tried public subsidies for key inputs in order to boost productivity. But the success of these policies relies on programme design and implementation, as well as the availability of complementary services.

Trade & supply chains

How are US tariffs reshaping global agricultural trade?

Global agriculture has been hit by US tariffs on goods exports. Farmers in the United States now face diminished access to international markets, while many people in developing countries are at greater risk of food insecurity as prices for grain and fertiliser rise.

Aid & international development

Asylum seekers in Europe: where do people go and why?

As millions of people cross dangerous terrain to seek refuge in Europe, understanding the factors that drive them to go to particular places is crucial. It is also important to assess whether certain policies in destination countries deter or attract asylum seekers.

Science, technology & innovation

How vulnerable is the UK’s food system?

In an age of trade wars, armed conflict, pandemics and climate change, too little attention is being paid to the vulnerability of the global food system. The UK is not immune to the risks, which could lead to food shortages and civil unrest in the next ten to 50 years.

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