Examples Flashcards
Give an example of the CMA preventing Vodafone & 3 from merging
CMA says too much market share
Companies say they’ll have 11Billion investment
CMA says companies always say that but they will try to find a legally binding contract saying they have to invest if they merge
Why has the Heathrow expansion been delayed over the years and why is it happening now
Environment concerns - lawsuits due to noise & environmental activists
The government now believes that growth is the primary objective now, and ‘all other objectives are secondary’ (specifically the environment), therefore this may reduce the difficulty in gaining planning permission across the UK as the can’t just change the law for Heathrow
What opportunities does the Heathrow expansion provide
Raise employment levels (government has argued it could create 100,000 jobs)
Improve the supply side of the economy
What is the idea about ‘Europe’s silicon valley’
Government has vowed to build Europe’s Silicon Valley between Oxford and Cambridge by improving the infrastructure between the two cities, incentivising firms to set up there
What is the impact on planning permission in the UK from the Heathrow expansion
May reduce the difficulty in gaining planning permission across the UK as they can’t just change the law for Heathrow
Give an example of the UK prioritising investment to ensure more efficient SSP’s.
Astrazenica cancelled their £450m investment due to a lack of government funding
If AstraZeneca had invested it would have generated jobs & multiplier effect etc
However AstraZeneca still invests over £2.5bn in the economy so the effects of this new investment may not be as dire.
The governments reason was that it ‘didn’t add up for the taxpayer’, meaning that the government thinks the benefits of investing in AstraZeneca are less than investing the same sum in other areas of the economy. This indicates the government is focusing on its priorities to ensure more effective SSP’s.
Give a real world example of tariffs having a negative impact related to American
Speculation around the introduction of tariffs on China Canada and Mexico by America caused the global stock market to fall, further supporting the economic argument that tariffs have a negative effect
How may Heathrow worsen regional inequality
By prioritising the south east as a target area for growth
Give 5 changes to the benefits system which took place in march
- Going to be harder to claim PIP , which is a non means tested benefit that supports those who with health conditions that is currently worth £108 a week
- There will be a PIP assessment process review
- Universal credit basic rate will rise to £775 by 2030
- Disability U.C top ups are going down
- New benefit called unemployment insurance will be introduced, which is a merger of job seekers allowance and employment support allowance
Rachel reeves said ‘growth is our number one priority’- how does the budget conflict with other macro policies
Spending at the tune of £40b shows the government is willing to create inflation in the short run, yet also growth. Which suggests the government is prioritising growth over inflation
How is the OECD’s December predictions going against what the target of the budget.
The target of the budget is growth through investment - thus targeting long run growth as well as short run since it’s capital spending
OECD:
Expects 0.9% growth in 2024, down from 1.1%
Predicts 1.7% in 2025, up from 1.2%
In 2026, they expect 1.3% growth
The OECD may not be taking into account the fact that government investment will be successful.!
What did the OBR say about predicted growth this year in the spring statement
The Office for Budget Responsibility (OBR) has downgraded predicted growth for this year from 2% to 1%
What did the OBR say about predicted growth over the next 4 years in the spring statement
Upgraded estimated growth for the next four years, to 1.9% next year, 1.8% in 2027, 1.7% in 2028 and 1.8% in 2029
What is the new forecast for average inflation this year as mentioned in the Spring statement
Inflation is forecast to average 3.2% this year, up from 2.6% previously forecast, before falling back to 2.1% in 2026 and then hitting the government’s 2% target in 2027
What is the OBR’s predictions on the effect of the changes to England’s planning laws on housing (SPRING STATEMENT)
The OBR has estimated changes to England’s planning system announced last year will boost housebuilding by 170,000 over five years
What is the forecast for the effect of the changes to England’s planning laws on growth
The changes are forecast to grow the size of the economy by 0.2% by 2030, and 0.4% by 2035
