The old saying that a ‘week is a long time in politics’ can rarely have been more apt. The changes in Westminster have been overshadowed by the transition in the Monarchy. But the new Prime Minister has also begun to tackle the challenges facing the UK economy. The first big policy announcement was a freeze … Continue reading What have we learned from the first week of ‘Trussonomics’?
Tag: inflation
The pros (and cons) of cutting VAT
Liz Truss is apparently mulling the ‘nuclear’ option of cutting the standard rate of VAT by five percentage points to support the economy. This has triggered a predictable backlash from my fellow policy wonks, led by the Institute for Fiscal Studies (IFS). However, in these extraordinary times, every lever may have to be pulled. The … Continue reading The pros (and cons) of cutting VAT
Would more tax cuts be inflationary?
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?
The seven tactics that Remainers use to discredit Brexit – and why they’re wrong
Brexit has hardly featured in the race to become the next Prime Minister, but the Conservative Party is still divided on the best way forward. The new leader will be under great pressure from many quarters to keep the UK economy as close to the EU as possible, rather than pursue the ambition of a … Continue reading The seven tactics that Remainers use to discredit Brexit – and why they’re wrong
Plain-speaking Economics 