Category: Fiscal Policy

Is the Treasury ‘crying wolf’ over the debt interest bill?

The latest data on the UK’s public finances have provided more ammunition for those arguing that the government cannot afford to cut taxes. However, the economic reality is far more nuanced – especially when it comes to debt interest payments. The bad news is that the government borrowed another £14.0 billion in May, £3.7bn more … Continue reading Is the Treasury ‘crying wolf’ over the debt interest bill?

Has UK inflation already peaked?

After a long period where almost everyone has been too complacent about inflation, the tide may finally be about to turn. Inflation is now set to peak sooner and fall faster than many expect – even in ‘Brexit Britain’. Admittedly, this is partly a reflection of just how far inflation has already risen. The headline … Continue reading Has UK inflation already peaked?

An online sales tax would be more trouble than it is worth

The UK government has been consulting on the concept of an ‘online sales tax’, or OST, which could raise £1-2 billion annually to help pay for a reduction in business rates for physical retailers. I submitted a response to the consultation, which is available here... ost-consultation-response-20-may-2022-julian-jessopDownload

Why Sunak is (still) right to reject a windfall tax on energy companies

The Labour Party and LibDems are continuing to push hard for a ‘one-off’ windfall tax on the profits of North Sea oil and gas companies. These businesses are indeed likely to make more money than even they had expected, thanks to the surge in global energy prices. The European Commission has also supported the idea … Continue reading Why Sunak is (still) right to reject a windfall tax on energy companies