The unwinding of @budget2020 continues. The situation demands the whole package to go, not just bits here & there. The creeping U-turn just encourages MPs & others to demand more. And it is unlikely that the markets will respond well to the uncertainty created by slow change.
https://twitter.com/benrileysmith/status/1580864760073326593
Will the reversal of the Corporation Tax reduction effect growth? This question is difficult to answer because it involves comparing anticipation in 3 periods, before @budget2022, up until now, & after the reversion.
However, what stands out is the volatility of policymaking, which damages govt credibility & is likely to lower expectations for investment and lower economic growth.
The original ⬆️ in Corporation Tax was unlikely to have much effect on growth: 1. The rise merely brings the UK into line with other OECD economies. 2. Evidence on the relationship between the tax & growth is mixed. 3. Any growth that might result will not be green growth.
#TheGrowthPlan, which is yet to be disclosed in detail, is holed below the water already. The govt incompetence has damaged investor confidence, weakened likely investment growth, & therefore reduced economic growth. #PostTruthEconomics
Natural tranquility in Scotland 
The Whitehall farce continues. While I was away in Scotland, the #TheGrowthPlan & #budget2022 continue to be shredded by expectations of market turmoil tomorrow. Hunt as a new Chancellor, but also the shadow PM? One item after another scrapped from the budget. New fiscal rules?
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