Tuesday, 24 December 2024

Cutting taxes, increasing taxes, nothing works in UK

We here in the UK have had two people with bright ideas for the country's economy and both have failed. First we had Liz Truss who as the briefest of prime ministers, instructed her chancellor to announce a staggering tax-cutting Budget which sent the stock market into a whirl going downwards to rock bottom; and now we have Rachel Reeves, new Labour chancellor who announced the opposite, raising taxes, especially for employers and the same thing has happened, a threatened recess and a bewildered stock market. Both ladies wanted growth in the economy and both got it wrong. The forecast for the Rachel Reeves economny is so bad that we are promised zero growth. ZERO GROWTH! This is either economic incompetence or just pure naivety. How is it possible that the head of the Treasury can believe that raising the tax burden on businesses - by increasing the national insurance contribution for employees - will persuade companies to go on a big recruiting drive and expand investment? Of course, higher taxes has meant that businesses have retracted, have stopped recruiting and stopped investment. Which means, among things, that tens of thousands of highly talented and qualified young people, bursting with expectation after graduating from university, cannot find jobs. Disaster all round. And there is no sign of any improvement in the wind. In fact, there is already talk of more taxes to come. Can we please have someone in charge who actually knows what he or she is doing?

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