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

How do bond markets react to election results?

The outcome of the UK general election did not come as a surprise. Labour’s win seems to have already been ‘priced in’ to bond and stock markets, which means there has been little reaction on either. The same cannot be said for recent parliamentary elections elsewhere in Europe.

Nations, regions & cities

The 2024 Olympics: will home advantage boost France’s medal count?

The 2024 Olympics begins soon in Paris, the third time that the summer event has taken place in the French capital. The last time the city hosted was in 1924, when France finished third in the medal table. Home advantage won’t guarantee success this time around – but history is on their side.

Inequality & poverty

What has happened to child poverty in the UK over the last 30 years?

Growing up in poverty has highly detrimental impacts on children’s development and their wellbeing in later life. In the UK, where rates of child poverty have been rising sharply in recent years, particularly for those in large families, targeted policy interventions could make a big difference.

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Child poverty

Amid pressure to remove the two-child cap on benefits, the government has launched a new Child Poverty Unit. The cap, introduced by the Conservative government in 2017, means that families do not receive additional child tax credit or universal credit for third or fourth children born after April 2017.

Over the last two decades, relative child poverty - the proportion of children in households with equivalised incomes below 60% of the median - has fallen slightly, though there has been a mild upward trend since 2013. Increases in the poverty rate for households with three or more children have been offset by a reduction for those with one or two children.

To find out more about child poverty in the UK, read this Economics Observatory article detailing its history over the last 30 years.

Business, big & small

Why are company bosses paid so much?

Every year, large sums of money are paid to the leaders of the UK’s biggest companies. Some commentators describe these pay packages as being exorbitant, while others believe that today’s levels of executive remuneration are fit-for-purpose or should be even higher.

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A long-run perspective confirms that the generally low quality of UK management helps to explain the poor performance of companies and the wider economy. Improvement could come from better dissemination of modern management practices, alongside high-quality training and development programmes.

Productivity & growth

Twenty-five years of devolution: what progress on productivity and skills?

Northern Ireland has poorer productivity than the other two devolved nations. At a recent event in Belfast, researchers, politicians and policy officials discussed the roles of skills, training, childcare and apprenticeships in boosting the nation’s economic performance.

Nations, regions & cities

What is devolution, how is it changing and where might it go next?

Recent UK governments have ‘devolved’ power to Scotland, Wales and Northern Ireland. This is a simple idea, but the UK brand of devolution is complex. Its stability has been threatened by both the Covid-19 pandemic and Brexit.

Nations, regions & cities

How have the institutions of UK devolution affected economic performance?

It is sometimes argued that the experience of devolution for Northern Ireland, Scotland and Wales implies that the regions of England need greater decentralisation to improve policy delivery and economic outcomes. But the evidence from the devolved nations after 25 years is much more ambiguous.

Attitudes, media & governance

What happened in the 2024 UK general election?

Ten charts tell the story of Labour’s landslide victory in the UK’s 2024 general election, putting it in historical perspective and, in the data on turnout, revealing the disengagement of many voters.

Business, big & small

Do managers matter?

The productivity of UK firms depends on them being well managed. This makes improving management practices a critically important issue both for business leaders and for policy-makers seeking to boost the country’s overall economic performance.

Pensions, savings & investment

How do elections affect the stock market?

Uncertainty around elections – and the potential policy decisions of new governments – can lead to fluctuations in the stock market. Over the longer term, the party in power seems to make limited difference to the performance of shares in publicly listed companies.

Data stories

Euro 2024 final update: is football coming home?

With each stage of this year’s European Championship, the probability of football coming home has risen. While Spain are favourites to win the final on Sunday, England have a 27% chance of lifting the trophy without a shoot-out – and around a 41% chance allowing for extra time and penalties.

Families & households

How could the early years budget be better targeted to reduce inequality?

High-quality early education boosts children’s development, family income and national productivity. But current public spending on it in the UK is not targeted towards the most disadvantaged families. Policies to reshape early years investment could help to reduce, rather than widen, inequalities.

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