The Anonymous Widower

Will Osborne Abolish Tax On Savings Interest?

This is said in this article in The Independent.

Tax on income from savings will be abolished for millions of people in the Budget today as George Osborne woos pensioners and “hard-working taxpayers” ahead of the May general election,The Independent has learnt.

So is the paper right?

It would make a lot of sense.

1, It would certainly encourage saving.

2. Encouraging saving may mean that more money will go into peer-to-peer lending, which will help lower interest rates for borrowers and give the banks a bit of a kicking. So a by-product of abolishing tax on savings interest could be better availability of finance for individuals and businesses.

3. I can see those who provide homes for savings like banks, building societies and peer-to-peer lenders getting increasingly innovate in finding ways to create high-interest, instant-access accounts.

4. It could put a lot of financial advisers out of business, as if say you had a lump sum to invest, you could easily work out what would be the best savings account, to keep the money until you need it.

5. But surely, the biggest benefit will be that as savings will now be held in an account, that doesn’t carry any tax, it will simplify tax accounting and returns for banks, building societies and savers alike.

If he does do it, then just imagine how any party who put it back would fare in an election!

On a personal note, if it does happen, I’ll be putting more of my money into Zopa!

March 18, 2015 Posted by | Finance, World | , , , , | Leave a comment

George Osborne Sets Out His Vision Of Yorkshire

This article in the Huddersfield Examiner is entitled Chancellor George Osborne to set out long term economic plan for Yorkshire during visit to West Yorkshire.

Read it and there are some interesting snippets, that he believes will be part of a long term plan for Yorkshire.

One of them is this.

We will also increase speeds on the East Coast Mainline to 140 mph

It is already planned and if and when it happens it will significantly reduce journey times all the way up the line between London and Edinburgh.

George is not actually promising anything for which funds have not been allocated, but his words show he understands the value of infrastructure, something that can’t be said for all Chancellors of the Exchequer since the Second World War.

The one thing that George or any future Chancellor can ensure, is that by not cutting funds they will get this valuable project carried out!

 

 

February 7, 2015 Posted by | Transport/Travel | , , , | Leave a comment

Rail Minister Hints At More Diesel Multiple Units

In this article in Rail Magazine, Claire Perry, a rail minister, hints that there may be some more new build diesel multiple units (DMUs). This was said.

Rail minister Claire Perry has dropped a strong hint that the Government is prepared to look again at the possibility of ordering diesel multiple units to beat overcrowding and plug a short-term gap.

It would seem to be logical, if you look at the UK rail network in say 2030 or even a couple of decades after that.

I think it is unlikely that all the small branch lines in the UK, like St. Ives or those in North Norfolk will either be electrified or closed. The only permanent solution will be some form of battery or flywheel two or three coach train with a small on-board diesel engine, which has a range of say forty or fifty kilometres.

So as the dreaded Pacers can’t be made compatible to the new disability regulations and should have been scrapped years ago, unless you employ the Bulgarian and Rumanian Armies to put up electric wires all over the country, something else needs to be done.

If an order for enough two and three car Class 172 trains, were to be announced soon, the closet trainspotter that is George Osborne, will be able to show many diverse parts of the country that he means business. Incidentally, in The Times yesterday, there is a long article by Janice Turner about spending two days following George Osbourne. This is the last paragraph.

Approaching St Pancras, Osborne frowns out of the window. “One of these,” he says, “is the Francis Crick building, a medical research institute, the first thing we approved when we took office.” Down on the concourse, he points to a half-built skyscraper. “There, that’s it,” he says, with satisfaction. And I realise this is how he wants to see himself in the story, striding off back to the Treasury with his brown government box, a man of glass and concrete, if not human hearts.

So does this partly explain, why under the Cameron Government we’ve seen such a spurt in infrastructure, with quite a bit of that for rail? All politicians like to leave a legacy, but it’s just that some leave much better legacies than others.

An order for Class 172 trains, would tick an awful lot of boxes.

  • As on the Gospel Oak to,Barking Line (GOBlin), they make an excellent stop-gap train prior to electrification, in that they create good publicity and ridership for the line. It could be argued that the GOBlin wouln’t have been slated for electrification, if London Overground and the Class 172s hadn’t done such a good job on what was one of the worst communter lines in the UK.
  • The trains are British-built in Derby by Bombardier.
  • As they are already designed and built, the design and certification doesn’t feature on the critical path.
  • There is a lot of expertise already in their operation and maintenance.
  • They are an easy replacement operationally for a lot of the Pacers and Sprinters.
  • If we make a mistake and order too many two-car sets, I suspect they can be easily lengthened to three-cars.
  • At the present time, a lot of engineers are working hard to keep the old trains running and trying to get them updated. Ordering new Class 172 trains, would mean that they could do more worthwhile jobs for which there are skill shortages in the UK rail industry.
  • In 2018, hopefully London Overground won’t need their eight sets, so those lines currently served by Pacers and Sprinters, will be getting some Class 172s anyway.

The only problem, is unlike Ford Escorts, you can’t just whistle them up immediately. But according to Wikipedia, there has been a lot of talk about potential orders, so hopefully Bombardier at least have a plan to start production in a timely manner. Given too, that the extra carriages for London Overground, are now being manufactured and delivered, Bombardier may have no capacity constraints.

One of the great advantages of at least creating a few standard Class 172s, is that they could be used initially on the worst lines for overcrowding and service, or to promote new services. But say if you put a a set on Burnley to Manchester via Todmorden, would the new route and trains cause overcrowding, just as it has on the Overground?

I wouldn’t be surprised if George Osborne announces some of these trains in his Autumn statement on December 3rd. Even a small number could have a significant effect!

The new Bacon Factory Curve may have had a significant effect on train services in the Felixstowe area, but a new two-car class 172 between the seaside town and Ipswich would probably have more perceived effect on the people of the area.

So will George’s legacy be in fifty years time, the railway commentators and bloggers of that time complaining about the ancient stop-gap Class 172 trains still trundling up and down the branch lines? And will these commentators be praising them, just like I and so many commentators today, praise the nearly fifty-year-old stop-gap Inter-City 125s, still speeding us to Wales, the West |Country, Nottingham and Scotland.

November 9, 2014 Posted by | Transport/Travel | , , | 1 Comment

Is George Osborne A Closet Trainspotter?

We all know that sometimes George Osborne travels by trains, due to the story about tickets.

But does the Chancellor’s interest in trains and all things rail go deeper?

The reason I say this, is that since he has been Chancellor, the UK rail network has seen unprecedented investment.

If you read an account of his early life and education on Wikipedia, there is no clue there. But then if you live a substantial part of your early life in London, it must implant at least some thoughts in your mind, that public transport is good and necessary. It certainly did with me and I can think of a couple of my friends, who have also been seduced by the philosophy of London Transport and its successor, Transport for London.

But look at the rail projects, that have been given approval or firmly backed since he became Chancellor.

I won’t count HS2, as if you believe the Labour Party, that would be starting if they were now governing the country. I think the only thing that will derail HS2, is another 2008-style crash of the banking system.

London’s two major cross-London lines; Thameslink and Crossrail, could have been cut back in scope, but Crossrail if anything has got slightly bigger. This in part, is due to the way that the project is managed and partly financed. I hope some of the lessons learned on this project, are applied to projects like HS2 in the future.

Perhaps the most important project that has started to grow since 2010 is the Northern Hub. And grow it is! More lines seem to be marked for electrification and stations for rebuilding, every few months or so. He even seems to be taking the lead on creating HS3 across the Pennines. You could argue that as a Northern MP, he’s only looking after his consituents’ interests or has his eyes firmly on the 2015 General Election.

But whatever you say, Manchester and Leeds will have a fast electrified connection by 2018, because Osborne has provided the funding for the electrification on all the main lines from Blackpool, Preston and Liverpool in the east to Manchester and on to Leeds in the East. I wouldn’t bet against that by 2020, Network Rail’s engineers have stretched the electrification to Hull.

I would also argue that he has backed the full modernisation of the Great Western Main Line. Given the economic situation, cutting back the electrification to Bristol could have been a prudent decision, as it would have cut out the difficult Severn Tunnel electrification.

But this project has survived intact. Would a less rail-friendly Chancellor have insisted on cutting the project back?

The long-awaited electrification of the Midland Main Line was announced in 2012.

It could be argued that if you were electrifying the Great Western Main Line, then the Inter City 125s, released from that line could have been used to improve services on the Midland Main Line.

Many politicians would have used that argument in the past. Probably both Harold Wilson and Margaret Thatcher would have done that, as they are reported to have not thought much of trains.

Under the current government, some other substantial but low-profile projects have been proposed and funded, and in some cases even started.

The Electric Spine is an £800million project to connect Southampton to the Midlands and the North by an all-electric railway up the spine of England. The line will be mainly for freight and when completed will take lots of trucks off the roads.

Linked to the Electric Spine is the first part of the East West Rail Link, that will eventually go between Ipswich to Oxford, via Cambridge, Bedford and Milton Keynes.

I’ve talked about the upgrade of the GNGE before and this mainly-freight line will take a lot of freight off the East Coast Main Line to improve the passenger trains between London,Newcastle, Leeds and Edinburgh. As we’ve managed without it for years, will we be missing it, if it wasn’t upgraded.

In the last few days, there has been announcements concerning the Cornish Main Line and the Glasgow Airport Rail Link.

But George Osborne has also been lucky in that more and more passengers want to use the railways, and engineers have come up with better and more affordable ways of increasing capacity and providing better trains and stations.

As an example of the latter, the actual trains are a major cost of any new project with a typical coach sometimes costing £1.5million. We have a shortage of diesel trains on the one hand, and on the other there are some old electric trains that are being replaced by shiny new ones. But we are lucky in that a lot of these older trains were well-built in the 1970s and 1980s, often from body shells based on the legendary Mark 3 coaches, so they can be refurbished to be virtually as-new trains. We are also very good at taking these old trains and making them comfortable, as anybody who has ridden an Inter City 125 will testify.

So what projects do I think we’ll see announced before the General \election in 2015?

I suspect, it will be a lot more of the same, spread around the UK.

Over the last few years, one of the things we’ve seen is a host of smaller projects, that remove bottlenecks, like the Hitchin Flyover, the Bacon Factory Curve and the Todmorden Curve, to name just three of several. I suspect various rail companies have been pushing for some of these schemes for many years and now that they have been completed, they will have all the costs, engineering and statistics to show where else, flyovers and curves could be built to improve the railway.

There will also be quite a few extensions to electrification, as when you are doing this, often you can feed the new wires from the current infrastructure, so you don’t need expensive new systems to connect them to the UK’s electricity grid.

And what about some new stations, as often they are a very good way of increasing capacity without building new rail lines or adding new trains. Retailers have long recognised that smart new stores attract footfall and I suspect it’s the same for railways.

It was interesting to note that the announcements about Glasgow talked about improving the buses. If we integrated buses and trains properly with good maps and  information on how to use buses, with special attention for visitors, everyone would benefit.

So what specific projects might be announced.

I will start with East Anglia, an area I know well.

In East Anglia, the freight routes out of Felixstowe are busy, so I wouldn’t be surprised to see the line from Felixstowe to Peterborough being electrified, especially if when it was opened up to take the large freight containers, they made enough space for the electric wires. There might also be some selective reopening of lines across the Fens, so that freight trains can reach the GNGE without going through Peterborough.

But the flagship project will be Norwich in Ninety. It has a good ring to it, won’t be that expensive, as it could probably be achieved using the existing trains, with perhaps new motive power and a Chiltern Railways-style refurbishment. Being cynical, it would probably ensure more votes, than any other similar-sized project.

Without doubt in Kent, the Marshlink Line will be electrified, as it would enable fast trains to London from Hastings, Bexhill and Eastbourne, and also open up all sorts of possibilities along the South Coast.

As you move along the coast, there might be odd pieces of electrification infill and tidy-up, but probably nothing major, except perhaps the Oxted Line to Uckfield

Further west, I would electrify Basingstoke to Exeter, if for no other reason, than to release the Class 159 for service elsewhere.

Will there be a plan to reinstate the continuation of this line to Plymouth, after the troubles of last winter at Dawlish? I would have thought, that if it was in government thinking, at least a study would have been announced. But then you wouldn’t show your hand too early.

Reading the magazines and web sites, it would appear that there could be extensions to electrification, around big cities like Birmingham, Liverpool, Manchester and Leeds. I’ve left out Csrdiff, as many of the Valley Lines there are being electrified, as was announced in 2012. Liverpool, which I know well could be a big beneficiary, as there is a lot of scope for electrifying through to Preston to avoid the change of train, I performed at Ormskirk on this trip.

One thing that will happen is that George Osborne will sign the death warrants for a lot of the Class 142Class 143 and Class 144 Pacers. Several of these are on lines, which will be electrified, so they will be replaced by younger and hopefully refurbished Class 315  and Class 319 electric trains. Some of the Pacers will be refurbished or cannibalised for spares, but as all fall foul of the disability regulations, many will be scrapped. The difference will be made up with an order for some new Class 172 or similar from Bombardier, which could be the last diesel multiple unit order placed by railways in the UK. That could be a good political point to use against the Green Lobby.

It has been announced that the new franchise for Thameslink called Govia Thameslink Railway, will also be buying new trains for the Gatwick Express and the Great Northern suburban routes. The plans are detailed here.

There are also those projects that for years successive governments have placed in the box marked, Leave For The Next Government. In that category, I would place the Digswell Viaduct, the problem of getting freight trains from the London Gateway through or around the capital to the Midlands and the North, the rebuilding of Euston station, whether HS2 is built or not,  and what to do with the remaining level crossings. Plans need to be put in place for all of these and many other projects that governments have ducked for decades.

If I was George Osborne though, I’d have one big worry.

Whoever wins the election in 2015, will be the biggest beneficiary of all this planned spending, as many projects like Crossrail, Thameslink and the Great Western Main Line, will be fully implemented just before the 2020 General election.

On the other hand perhaps, Noel Coward had it right, when he told Mrs. Worthington to not put her daughter on the stage. Now, she should send her to a good University to do engineering, so she could help the UK rail industry spend its money wisely.

 

July 5, 2014 Posted by | Transport/Travel | , , , , | 3 Comments

Crossrail Of The North

Is it farther between Liverpool and Hull or from London to Norwich?

Actually, they are about the same being around two hundred kilometres for both.

But compare the train times between the two city pairs.

Liverpool to Hull takes three and a quarter hours, with at least one change, whereas London to Norwich takes five minutes under two hours.

Actually, the London to Norwich service hasn’t improved much since the 1960s, as British Rail’s aspiration then had the catchy phrase of a two-hour, two-stop service.

Since then the line has been electrified and a typical train stops up to six times on the route, with eight coach services running twice every hour.

You might think, that being that the line runs across the flat East Anglian countryside that it is a railway on which high speeds of the order of two hundred kilometres per hour are possible.

But you’d be wrong, as the line isn’t straight and the maximum speed is only a hundred and sixty!

Even so, plans are afoot to do the London to Norwich trip in ninety minutes, probably using the current trains, albeit with perhaps some new locomotives.

All this shows what a disgrace the rail routes across the North of England are.

Few are electrified and trains are often scrapyard specials. There are some new trains, but these are seriously overcrowded.

Politicians should hang their heads in shame.

At least George Osborne seems to be thinking about it, judging by reports on the BBC this morning.

The North of England needs a high frequency and high capacity, world-class railway linking the main cities together. As with London to Norwich, Liverpool to Hull should be at least twice an hour in ninety minutes or less. It should all be possible with good 1980s, let alone the best modern, technology.

 

June 23, 2014 Posted by | Transport/Travel | , , , | 6 Comments

Is The Gospel Oak To Barking Line Going To Be Extended?

London needs houses and one of the best places to build them is in the East near the Thames in Barking. The developments are talked about here.

Development has been a bit slow, as the area is badly served by public transport and the Mayor and the GLA have pushing for better rail links to the area.

One plan was to extend the DLR and the other was to extend the Gospel Oak to Barking line of the Overground.

According to this report in the Standard last night, it would appear that the Overground is to be extended. Here’s the first bit.

George Osborne will signal a £150 million rail link to speed up the construction of thousands of new homes in the capital in his Budget this week, it is revealed today.

The Chancellor is expected to indicate he is keen to extend the Gospel Oak to Barking Line — nicknamed the Goblin Line — to Barking Riverside.

It would help unlock up to 11,000 new houses, offices and shops planned in a redevelopment that aims to transform a 350-acre site of industrial and brownfield land.

I wonder how many other projects like this, will turn up between now and the next election? This project is quoted as costing £150million, but as it makes 11,000 new homes viable and probably creates quite a few jobs, this surely is the sort of project that has a high benefit to cost ration. It also has the Overground-factor in that when it opens, it’ll probably attract far more passengers than expected and everybody will say why wasn’t it done years ago.

There are some interesting ones that have been proposed. Some of the ones I like are upgrading of the Marshlink Line and the Tees Valley Metro, both of which I’ve experienced in the last few weeks. None of the ones here, are big rail projects, where lots of new track and new trains are required.

I suspect that after seeing George Osborne’s backing for the Northern Hub and railway electrification in general, I have this feeling that after the Gospel Oak to Barking line announcement, that the budget may have some rail infrastructure surprises from the reinstatement and upgrading of lines to the building of new stations and the refurbishment of old ones.

One thing that seems to have happened in the last few years, is that now the passenger and freight flows on our railways are getting more stable and predictable, Network Rail has implemented some projects like the Hitchin flyover, where the msin purpose, is to make the important lines more reliable and less subject to delay.

March 18, 2014 Posted by | Transport/Travel | , , , , | 2 Comments

More Peer-to-Peer Lending Speculation

Over the last few weeks various respected publications have speculated that peer-to-peer lending will soon be allowed to be wrapped up in an ISA. There have been articles in The Independent and the Daily Telegraph. Both papers are not noted for printing rumours and gossip.

Now the Herald joins in, with a long and thoughtful article, that says that social lenders savers could be rewarded with tax relief.

I think that if George Osborne do what is being rumoured, it would be good for savers and good for those in need of loans at affordable rates.

March 15, 2014 Posted by | Finance | , | Leave a comment

Could Hebden Bridge Be The UK’s Second City?

This sounds like the sort of idea dreamed up by someone, who really does think that Yorkshire is the centre of the earth.

But the BBC has published a piece entitled The Case For Making Hebden Bridge The UK’s Second City by Evan Davis on their website.

This extract sums up his logic.

The suggestion that it is Britain’s second city came from resident David Fletcher, who was active in the 80s saving the town’s old mills and converting them to modern use.

His point is that Hebden Bridge is an inverted city with a greenbelt centre and suburbs called Manchester, Leeds and Liverpool.

His point was that the real second city of the UK is a northern, trans-Pennine strip that extends the relatively short distance across northern England, joining the built-up areas that lie second, fourth and sixth in the UK ranking.

I think he has a point and treating the area from Liverpool and Blackpool in the West to Leeds and Sheffield in the East, as a megacity, may be a very good idea.

Davis says that it would need a lot of infrastructure, and there would be rivalries and infighting.  But there’s enough of that in Manchester already, with one of the worst bus systems in the UK.

To be fair to Network Rail, their plans for the Northern Hub, very much fit the proposal for the Northern megacity and the government, especially in the statements of George Osborne, seem to be backing them.

Is there anything I’d like to see in the North?

I would like to see London’s local transport information systems and ticketing imposed on the North. And probably on everywhere outside London as well.

  1. I should arrive at any station and be able to find my onward route, by foot, bus or tram without difficulty or bothering any of the station staff.
  2. If say, I wanted to use a bus where my bus pass is valid, I would just touch in with my pass. Every town or city seems to use a different system.
  3. If I need to pay for my ticket, then I would just touch in with a contactless bank card.
  4. All buses would have fully disabled access and at least a separate entrance and exit, like most buses in London.
  5. I should also be able to find out the next bus, with a simple text-based system, based on five digits for the stop and a short text code. If larger London can do it, why do cities like Leeds have a system that is so difficult.

I shall be watching Evan Davis’s program tonight with interest.

Don’t forget there would be one great argument for making Hebden Bridge the UK’s Second City.  It would eventually stop all the arguments.

You also have to ask, whether other megacities could be created.

  1. Newcastle-Sunderland-Middlesbrough
  2. Glasgow-Edinburgh
  3. Wolverhampton-Birmingham-Coventry
  4. Southampton-Portsmouth-Brighton

Are four that come to mind.

March 10, 2014 Posted by | Transport/Travel | , , , , , | Leave a comment

Osborne Says Redevelop Euston Before HS2

There is an article in the Standard, where George Osborne says priority should be given to the redevelopment of Euston station, before HS2 is constructed.

I use the station several times a year and compared to Kings Cross, Liverpool Street, Paddington, Waterloo, Marylebone and St. Pancras, it is totally inadequate. It is even worse at the moment, than London Bridge, which is currently a building site.

What makes it so bad, is the lack of connection to the Circle line and the endless dingy walks from the other Tube lines to the station. There is no disabled access to the Underground.

There is a lot of scope to do this rebuilding right. These factors should be considered.

  1. The effect of the Croxley Rail Link to Watford Junction, which should be completed in 2017.
  2. Any development at Watford Junction, that could ease pressure on Euston.
  3. Could Willesden Junction be used to take passengers off the West Coast Main Line?
  4. Should an Old Oak Common station be built?

Properly planned, rebuilding of Euston,. adds a whole new dimension to HS2. It even questions whether HS2 terminates at Euston!

Could George Osborne’s view on Euston station be coloured, by his own personal experience and those of his constituents?

It doesn’t matter to me, as redeveloping Euston station is good sense, for all sorts of reasons!

 

February 21, 2014 Posted by | Transport/Travel | , , , , , | Leave a comment

Co-op Bank Debt Is Rated Junk

This report, says that the Co-op Bank‘s debt isn’t very highly rated.

I wouldn’t know whether it is going bust or not, but because of its political leanings and links to the Labour Party, I bet that management of the bank, wish that George Osborne wasn’t Chancellor.

What I find strange about the bank, is that why some of my left-leaning friends, who support Labour, bank with other banks, like Lloyds, Barclays or HSBC.

May 10, 2013 Posted by | Finance, News | , , , | Leave a comment