There is a big question for any autumn Budget - should @RishiSunak raise taxes (either immediately or deferred a few years)
My bit on that gives a resounding "no" as an answer
ft.com/content/8260fe…
My bit on that gives a resounding "no" as an answer
ft.com/content/8260fe…
@RishiSunak The immediate priority for economic policy is health.
We don't know the scale of persistent coronavirus economic damage
We don't have sensible medium term forecasts
So we can't know the scale of necessary tax rises
We don't know the scale of persistent coronavirus economic damage
We don't have sensible medium term forecasts
So we can't know the scale of necessary tax rises
It is honestly fine to have a Budget with palpably unsustainable public finance forecasts in these circumstances
The fiscal rules have a "comply or explain" element - now is the time to explain
And build the case for necessary tax rises which have the least economic costs
The fiscal rules have a "comply or explain" element - now is the time to explain
And build the case for necessary tax rises which have the least economic costs
Any Budget which pretends to know the future sustainable fiscal position would not be credible.
Politics might suggest there are gainst from tax increases well ahead of the next election. But this is inherently risky from an economic standpoint
Politics might suggest there are gainst from tax increases well ahead of the next election. But this is inherently risky from an economic standpoint
Ultimately good economics is good politics.
Good economics says wait
ENDS
Good economics says wait
ENDS
