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: Fiscal Policy
Why Rachel Reeves has to increase taxes on motorists
The Daily Telegraph has reported that electric vehicle (EV) drivers will be hit with a new pay-per-mile tax in the Budget. Needless to say, this is not going down well with motorists, especially in rural areas, with some already describing it as a ‘poll tax on wheels’. But the context is important. In my view, pay-per-mile charges … Continue reading Why Rachel Reeves has to increase taxes on motorists
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?
November Budget needs to be big and bold
A year ago, the Chancellor promised that the £40 billion of tax increases announced in her first Budget would be a “one-off”. But it is now almost certain that her second Budget next month will deliver more of the same. What’s gone wrong? The technical answer is that OBR is expected to predict that the … Continue reading November Budget needs to be big and bold
Plain-speaking Economics 