Luke's Columns

Expectation management is an important skill for every entrepreneur. Customers need to know when their goods are arriving; staff need to know whether or not they will receive a bonus; and shareholders need to know that budgets are going to be met. Some would argue that setting expectations well…

Reactions by governments and scientific advisers to Covid-19 fall largely into two categories. The first set of interventions — lockdowns and physical distancing — are medieval, and almost certainly lead to a greater toll of net harm caused than benefits gained. The second — developing new vaccines at breakneck…

During these desolate days of lockdown, it has been difficult to find interesting places open to the public. Somewhere you can usually access freely is a cemetery. It feels somehow apposite, when the whole nation is obsessed by disease and death, to spend a little time wandering among the…

A government quango called the Office of Tax Simplification recently published a report compiled for the chancellor about reforming capital gains tax. There are, apparently, concerns that the current system for individuals may distort behaviour. The Treasury is interested in tax yield and compliance costs; we should all be…

This has been a difficult year for most of us. Worries about the future, loneliness, and a growing sense of despair have gripped millions who have been separated from family and friends, evicted, lost their jobs, fallen ill, seen their businesses go broke or all their dreams destroyed. One…

All of us suffer from cognitive biases. These are systemic distortions to rational thought that very often deliver bad outcomes. They are the basis for much of the field of behavioural economics, and can help to explain why individuals, organisations, institutions and even whole nations sometimes make such terrible…

Buying is a vital but unglamorous discipline in almost every business. These days it is known by the slightly posher title of procurement, but the nature of the job remains the same: to source goods and services used by a company. Buying spend can represent up to 70% of…

A book called Exit, Voice, and Loyalty by Albert Hirschman sums up the choices we each face during this incredibly difficult time. We can speak up and attempt to resist the awful mistakes being inflicted on society by the authorities; we can remain “loyal” citizens and passively comply with…

Covid-19 and lockdown have affected businesses in many ways. Some have been forced to suspend trading, furlough staff and rely on government handouts to survive. Some have remained operational but face higher costs and lower productivity thanks to social distancing, absenteeism and other frictions caused by regulations and fear….

For many people in business, the past six months have demonstrated the advantages of government lobbying. Certain industries have benefited from state subsidies, tax breaks and assorted support. And although schemes such as the government- backed emergency loans and furlough have been universal, others have left out some sectors….