Above all, this was a Budget for a bigger state. Public spending will be even higher, financed by large increases both in taxation and in government borrowing. In addition, the Budget continues the steady ratcheting up of state intervention and regulation, including another large increase in minimum wages. This is very hard to square with … Continue reading First thoughts on the Budget
Category: Taxation
False economies on spending could be just as damaging as tax hikes
So far, the speculation ahead of the Budget on 30 October has focused on the scramble to find tax increases that might not breach Labour’s manifesto commitments, while still having some chance of actually raising some money. This is clearly not going well. Rachel Reeves may end up as the only economist in the country … Continue reading False economies on spending could be just as damaging as tax hikes
Labour’s first 100 days – the economy
In response to overwhelming public demand (not really!) here is my take on the impact that the incoming Labour government has had on the UK economy. Clearly, it’s early days and there is still all to play for, but the initial signs are not encouraging. The obvious place to start is the health of the … Continue reading Labour’s first 100 days – the economy
Yes to a ‘step increase’ in public investment – but only a small one
Eight prominent economists have written a letter to the Financial Times arguing that the UK needs a ‘step increase’ in public investment in order to boost growth and to fix social and environmental problems. There is clearly something in this, but many risks too. As the writers correctly note, there is an emerging consensus that … Continue reading Yes to a ‘step increase’ in public investment – but only a small one
Plain-speaking Economics 