For the chancellor to yield to his rightwing obsessives would be bad economics and bad politics
Few things in British politics are more glumly predictable, whatever the economic and political circumstances, than Conservative MPs and their rightwing media echo chamber demanding budget tax cuts. Reducing the tax burden for the less well-off undoubtedly has a place in an even-handed approach to Britain’s economic challenges. The tax system also needs reform. But renewed backbench calls for cuts in personal taxes in advance of Jeremy Hunt’s pre-election budget reveal a party that has learned nothing.
It is only 18 months since Liz Truss and Kwasi Kwarteng brought the UK economy to its knees by pursuing exactly this approach. Sterling crashed to its lowest level against the dollar in half a century after they declared their tax-cutting budget was just the start. Borrowing costs spiralled. The package also inflicted what may prove to be irreparable damage on the Tory party’s electoral standing. For the chancellor to do anything next week that smacks of that approach would be both reckless and unjust.
Continue reading...from The Guardian https://ift.tt/YdtcOXm
Comments
Post a Comment