One of the central arguments of Rishi Sunak’s campaign to become the next Prime Minister is that it would be irresponsible to cut taxes further until inflation is under control. Of course, there are risks here, but my view is that they are worth taking. For a start, it is not clear that tax cuts … Continue reading Would more tax cuts be inflationary?
Tag: energy bills
If you believe the media coverage of the latest consumer confidence surveys, household spending is set to collapse under the weight of the cost of living crisis, dragging the UK economy into a deep recession. But how reliable are these signals? As always, it is worth digging past the headlines. The GfK measure of consumer … Continue reading Weak consumer confidence doesn’t necessarily signal recession
The energy regulator Ofgem is about to announce what is likely to be a very large increase in the cap on domestic gas and electricity bills, to take effect from April, prompting a scramble for ways to limit the damage. The Times is reporting that officials are finalising plans to limit the damage for a … Continue reading New energy rebates would mean ‘pay less now, but more later’