One of the central arguments of Rishi Sunak’s campaign to become the next Prime Minister is that it would be irresponsible to cut taxes further until inflation is under control. Of course, there are risks here, but my view is that they are worth taking. For a start, it is not clear that tax cuts … Continue reading Would more tax cuts be inflationary?
Category: Applied economics
Is Liz Truss on the right track on ‘Covid debt’?
Liz Truss has pledged to put Covid debt on a ‘longer-term footing’ as part of her bid to become the next Prime Minister. The details are sketchy, but the proposal seems to be to extend the maturity of £311 billion of pandemic-related borrowing to lock in low interest rates, and to slow the pace of … Continue reading Is Liz Truss on the right track on ‘Covid debt’?
Making the case for tax cuts
Everyone is supposed to have their 15 minutes of fame. Perhaps I have just had mine, after the contenders for the Tory leadership were invited to endorse the ‘Charter for tax cuts’ that I co-wrote for Conservative Way Forward. It was certainly pretty cool to be namechecked at the launch event on Monday both by … Continue reading Making the case for tax cuts
Is ‘Brexit Britain’ really the ‘sick man of Europe’?
If you believe some of the headlines, the global economic shocks are already hitting ‘Brexit Britain’ much harder than other countries. Even the Bank of England governor, Andrew Bailey, has warned that inflation is set to be higher for longer in the UK, and growth weaker. The IMF, OECD and currency traders all apparently agree, … Continue reading Is ‘Brexit Britain’ really the ‘sick man of Europe’?
Plain-speaking Economics 