Experts react to Reeves: The finances might be worse than expected – but tax hikes are still coming July 30, 2024 While Rachel Reeves laid out a fiscal inheritance that was worse than many had anticipated, tax rises are almost certainly on the way, economists and experts have said in reaction to the Chancellor's speech today.
Treasury fails to deny capital gains tax hike as Reeves readies ‘broken’ finances warning July 28, 2024 Rachel Reeves is set to warn of the "broken" state of the UK's public finances in a speech on Monday, as rumours of a hike in capital gains tax continue to swirl.
Fiscal prudence? The iron chancellor doth protest too much July 24, 2024 Rachel Reeves’ decision to expand the powers of the OBR suggests apprehension, not confidence, writes Tim Focas. Rachel Reeves has promised to be an “iron chancellor” embodying fiscal constraint and discipline. Yet, her first legislative move to enhance the powers of the Office for Budget Responsibility (OBR) raises questions about her own confidence in living [...]
Tedium alone won’t restore confidence in the economy July 23, 2024 The theory of Ricardian Equivalence posits that financing public spending out of taxes or borrowing will have the same overall economic consequences. This, David Ricardo argued in 1820, was because rational consumers understand that debt will eventually have to be paid off. They will therefore set aside current income in anticipation of future tax rises. [...]
King’s Speech: Labour to legislate OBR fiscal lock to boost ‘market credibility’ July 17, 2024 Labour will legislate for a fiscal lock to require the OBR to provide an independent assessment of any major tax and spending plans.
OBR, workers rights and planning: What to watch out for in the King’s Speech? July 16, 2024 Labour will set out their programme for government on Wednesday, when King Charles will deliver the King’s Speech as part of the state opening of Parliament.
Why Jeremy Hunt’s hopes of another round of tax cuts look remote April 23, 2024 Although these figures do not directly feed into Hunt's fiscal headroom at the next fiscal event, it is a sign of just how little wiggle room the Chancellor will have to cut taxes.
Forecasts by the Bank of England and the OBR are drifting apart. Is it a problem? April 9, 2024 Economic forecasts by the Bank of England and the Office for Budget Responsibility are drifting further apart. Chris Dorrell explains why this could be a problem
UK economy nearly a third smaller thanks to ‘catastrophically bad’ productivity slowdown March 12, 2024 Since the financial crisis, productivity growth in the UK has slowed significantly from its pre-2008 trend and has fallen behind international peers.