Category: Poverty

The pros (and cons) of cutting VAT

Liz Truss is apparently mulling the ‘nuclear’ option of cutting the standard rate of VAT by five percentage points to support the economy. This has triggered a predictable backlash from my fellow policy wonks, led by the Institute for Fiscal Studies (IFS). However, in these extraordinary times, every lever may have to be pulled. The … Continue reading The pros (and cons) of cutting VAT →

When facts change, fiscal policy should change too

Putin’s murderous assault on the people of Ukraine is a threat to peace and security worldwide. But someone also has to worry about the impact on the UK economy. The fallout should prompt a rethink of the response to the cost of living crisis and the tax hikes planned for April. The catastrophe in Ukraine … Continue reading When facts change, fiscal policy should change too →

Is inflation really a lot higher for poorer people?

The Office for National Statistics will shortly be publishing new figures on inflation rates for different types of household. They will also be updating the method for collecting individual prices from supermarkets. However, anyone hoping for evidence that inflation is much higher for low-income households is likely to be disappointed. In particular, the anti-poverty campaigner … Continue reading Is inflation really a lot higher for poorer people? →