The Chancellor is facing growing calls to ‘bite the bullet’ and raise the basic rate of income tax in the November Budget. This would carry huge economic and political risks, but Rachel Reeves may have left herself with no choice. It is already likely that the freeze on personal tax thresholds will be extended for … Continue reading Raising income tax would be an act of desperation
Tag: government borrowing
The case for a late Budget
The Chancellor has confirmed that the date of the Autumn Budget will be Wednesday 26 November. This is relatively late, raising fears that a longer period of speculation and uncertainty will undermine confidence even further, but there are always trade-offs. I can think of five reasons why waiting might make sense. First, and perhaps most … Continue reading The case for a late Budget
How could a bond market crisis unfold?
The yields on UK government bonds, commonly known as “gilts”, are now consistently the highest among the G7 group of advanced economies. Why is this, and why should the rest of us care? The numbers alone are disturbing. The cost of new government borrowing for ten years is now around 4.8% in the UK, compared … Continue reading How could a bond market crisis unfold?
A bitcoin windfall won’t save the Chancellor
This weekend the Sunday Telegraph reported that Rachel Reeves is eyeing a “£5bn Bitcoin sale” to ease the pressure on the public finances. Some commentators have grasped the wrong end of the stick here; one-off sales of financial assets could not be used to fill a “black hole” under the current fiscal rules, at least … Continue reading A bitcoin windfall won’t save the Chancellor
Plain-speaking Economics 