Inheritance tax is a fundamentally bad tax and raising its threshold makes economic as well as political sense. But exempting “family homes” entirely is more problematic and potentially distortionary. Kemi Badenoch announced today that the Conservative Party “would abolish Inheritance Tax on the family home and raise the individual threshold to £500,000. This will mean … Continue reading Two cheers for Kemi Badenoch’s inheritance tax plans
Tag: investing
Weekly wrap – Government policies continue to do more harm than good
Including thoughts on the “productivity puzzle”, bond yields, monetary policy credibility, and how the government’s clumsy interventions are still costing jobs and adding to rental inflation... Theme of the Week This week’s most interesting economic story was worth a piece of its own: “Six questions and answers on the new productivity data”. In short, the … Continue reading Weekly wrap – Government policies continue to do more harm than good
Why the Bank should follow the ECB and hike rates
There are strong arguments against raising UK interest rates as far as the markets are currently expecting. But I do not believe these arguments are sufficient to justify not raising rates at all... This is an extended version of my submission to the Shadow Monetary Policy Committee run by CityAM, where I reluctantly voted for … Continue reading Why the Bank should follow the ECB and hike rates
Bank of England edges closer to an autumn hike
A small rate rise soon could be preferable to larger increases later - a case of “a stitch in time saves nine”. However, subdued money growth and strong competition should help keep inflation down. The Bank of England’s MPC left UK interest rates at 3.75% today, as expected, but the 6-3 split was more hawkish. … Continue reading Bank of England edges closer to an autumn hike
