Stephen Millard's picture
Affiliation: 
National Institute of Economic and Social Research
Credentials: 
Visiting Professor, Durham University Business School

Voting history

Assisting Households Facing Rising Energy Costs

Question 3: Should a windfall tax be used to (fully or partially) finance support to households?

Answer:
No
Confidence level:
Confident
Comment:
Although windfall taxes are economically efficient, if energy companies expect their profits to be subject to a windfall tax whenever prices rise, they will be disincentivised from investing. And this is particularly important as we want them to be leading investment into the green technologies that will help the UK move towards net zero.

Question 2: Which of the following is the best way to address the impact of rising energy costs on household finances?

Answer:
Conditional/targeted transfers
Confidence level:
Very confident
Comment:
There are two issues here. We should let the price mechanism work to determine overall demand for energy, which is why I would not support a cap. And we should deal with the issue of the poorest households being hit particularly badly via redistribution.

Question 1: Overall, which of the following best characterises how the government’s proposed energy policies will leave the average UK household over the medium term:

Answer:
Worse off
Confidence level:
Very confident
Comment:
They will be better off relative to the counterfactual of 'no support'. But energy prices are still rising and this means the average household will be worse off.

Levelling Up Productivity Gaps in the UK

Question 2: Which policies could best help reduce regional productivity disparities?

Answer:
Devolution of fiscal and administrative power
Confidence level:
Confident

Question 1: What is the primary factor driving regional productivity disparities in the UK?

Answer:
Agglomeration Effects
Confidence level:
Confident