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: Rishi Sunak
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?
Why Sunak is (still) right to reject a windfall tax on energy companies
The Labour Party and LibDems are continuing to push hard for a ‘one-off’ windfall tax on the profits of North Sea oil and gas companies. These businesses are indeed likely to make more money than even they had expected, thanks to the surge in global energy prices. The European Commission has also supported the idea … Continue reading Why Sunak is (still) right to reject a windfall tax on energy companies
Tough times ahead, but Britain is still doing better than the EU
It is astonishing how many people are willing to claim that the UK would not be facing a cost of living crisis if Brexit had not happened, or if the Tories were not in power, and that the Chancellor has done nothing to help. This is – to use a technical economics term – cobblers. … Continue reading Tough times ahead, but Britain is still doing better than the EU