The latest fiscal pledges from Sajid Javid and John McDonnell are similar in some respects, but very different in others. In short, both the Conservatives and Labour are planning to ramp up government spending, especially on investment, and have proposed new fiscal rules which should allow them to do so. However, Labour’s plans are much … Continue reading Why I prefer the Tories’ new fiscal rules to Labour’s
Tag: Fiscal Policy
On the morning of 13th March the government confirmed that it intends to eliminate 87% of tariffs on goods imported into Britain, but only if the UK leaves the EU without a deal, and only for an initial 12 month period. This plan therefore raised just two cheers from me. However, as I write this, … Continue reading Why we should cut tariffs, whether others follow or not
In a thought-provoking blog for the New Economics Foundation (NEF), Alfie Stirling has made the striking claim that the cumulative effect of austerity since 2010 has been to reduce the level of UK GDP in 2018/19 by 4.7%, or almost £100 billion. This is equivalent to “around £1,500 for every woman, man and child this year alone”. … Continue reading Is the UK economy £100bn smaller because of austerity?