Let’s start with the good news. This change of Prime Minister undoubtedly makes a difference for the better. The Conservatives have finally found a leader with a decent chance of making it until the next General Election, providing some much-needed political stability. The financial markets have reacted positively too: the pound has strengthened, the cost … Continue reading Rishi Sunak offers greater stability, but also more pain
Tag: income tax
Can ‘Trussonomics’ survive?
The new Government is clearly in an almighty mess, but I’ll leave the political commentary to others. Here are some thoughts on the economics and the markets. Let’s start by summarising what went wrong. The tipping point was the mini-Budget in September. The mistake here was not the Energy Price Guarantee, or the cancellation of … Continue reading Can ‘Trussonomics’ survive?
Two cheers and one boo for the Budget
On balance, I think Rishi Sunak got more things right than wrong in Wednesday’s Budget. Let’s start with a couple of positives. First, he extended the most important support measures, including the uplift to Universal Credit and the furlough scheme, until the end of September. This is probably longer than strictly necessary because the remaining … Continue reading Two cheers and one boo for the Budget
Is there any case for tax increases now?
Few people outside the Treasury think that now is a good time even to be talking about raising taxes, let alone actually doing so. Nonetheless, it seems almost certain that the Chancellor will start down this road in Wednesday’s Budget. This may not be as mad as it sounds. The arguments against immediate tax hikes … Continue reading Is there any case for tax increases now?
Plain-speaking Economics 