Category: UK economy

Why it would be wrong to equalise capital gains tax and income tax

In principle, taxing income from labour and capital equally might appear to be fairer, simpler, and more efficient. In practice, it would almost certainly be none of these things. Wes Streeting has proposed a “wealth tax that works” as part of his Labour leadership pitch, by equalising capital gains tax (CGT) with income tax. Or in … Continue reading Why it would be wrong to equalise capital gains tax and income tax →

How much should we worry about surging gilt yields?

Investors are mainly being spooked by global inflation fears, not UK politics. But the additional uncertainty created by the crisis in the Labour government is definitely not helping! Once again, UK government bonds (aka gilts) are making the news again, and not in a good way. The yields on these bonds can be read as … Continue reading How much should we worry about surging gilt yields? →

“As good as it gets” (reprise)

The strong growth in UK GDP reported in the first quarter will not be sustained. At best the economy is set to stagnate again in the second quarter, and possibly in the third too. Some good news for a change. The first official estimate for the first quarter confirmed that the UK economy made a flying start … Continue reading “As good as it gets” (reprise) →

Rachel Reeves can’t escape blame for this mess

Now, perhaps more than ever, Britain needs a stronger Chancellor The question no longer seems to be whether Keir Starmer will survive, but when and how he will go, and who will succeed him. Even if the Prime Minister clings on for a few more weeks or months, his authority is shot. Either way, the … Continue reading Rachel Reeves can’t escape blame for this mess →