My previous blog post showed that, based on some reasonable assumptions, the Chancellor could have to find another £30 billion from tax increases. It is hard to see how this can be done without touching the big revenue raisers – namely income tax, National Insurance (again), and VAT. Indeed, earlier this month the Chancellor reportedly asked the … Continue reading How might the Chancellor fill a £30 billion hole?
Tag: VAT
Why the UK should cut tariffs on the US, not raise them
The siren calls for retaliation against the US if President Trump imposes new tariffs on the UK remind me of this exchange from 'Braveheart'.... Longshanks: Archers! English Commander: I beg pardon, sire. Won't we hit our own troops? Longshanks: Yes... but we'll hit theirs as well. The serious point here is that tariffs hurt people … Continue reading Why the UK should cut tariffs on the US, not raise them
What will Labour do on tax?
Just in case Labour forms the next government (it’s wise to be prepared for all eventualities!), here’s a rundown of their stated plans on tax, and what they might actually do in power. It’s only fair to start with what’s in the manifesto. The short answer is ‘not a lot’. The permanent tax measures include: … Continue reading What will Labour do on tax?
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
Plain-speaking Economics 