The joint team from No.10 and the Treasury working to prepare the Budget has apparently decided to junk the plan to raise the basic and higher rates of income tax. The official line is that this is not a “U-turn” because this plan was just media speculation and never official policy. Pull the other one. The speculation … Continue reading This is no way to run a Budget!
Category: financial markets
Rachel Reeves sets the scene – for big tax rises?
Rachel Reeves’ Scene Setter speech today was clearly designed to pave the way for big tax increases in the Budget. But there are plenty of moving parts and much could still change, even now. The Chancellor put her excuses in early (blaming everyone else), attempted a positive spin (tough choices are “necessary” to protect the NHS and … Continue reading Rachel Reeves sets the scene – for big tax rises?
“What economists do”
In case of wider interest, here are the slides from a talk I gave yesterday at a sixth form college in Cambridge, arranged via Speakers for Schools. What economists do (Sep 2025)Download
Raising income tax would be an act of desperation
The Chancellor is facing growing calls to ‘bite the bullet’ and raise the basic rate of income tax in the November Budget. This would carry huge economic and political risks, but Rachel Reeves may have left herself with no choice. It is already likely that the freeze on personal tax thresholds will be extended for … Continue reading Raising income tax would be an act of desperation
Plain-speaking Economics 