Evidence does not suggest Britain is at the sweet spot on the Laffer Curve where raising it will cut revenue, nor that doing so will harm investment.
The former will help to rebalance the economy and boost ‘levelling up’, but the latter will squeeze the foreign investment ‘global Britain’ needs.
The Budget was, if truly honest, a sign that the Government shuns spending cuts and embraces tax rises – which is ultimately unsustainable.
Preventing as much long-term damage to the economy as possible now should be the Chancellor’s priority.
It’s a dangerous game, relying solely on polling to judge the state of public opinion: it never tells the full story.
He is well-placed to knock on the doors of individual member states, as the Government and the Union lock horns over free movement.
Conservative messaging implies an implicit belief that there are no major state functions ripe for reform in any fiscal repair.
It will probe whether or or not Sunak can prepare the country for that future – and perhaps succeed Johnson himself, “one fine day”.
Perhaps the simplest way of putting it is: it’s all about economic credibility, stupid. Because come 2024, it certainly will be.
“Given the shock we have had, it would be brave for people to know exactly what was going to happen in three years.”
But Dodds also says that she “would be concerned at additional taxes on businesses right now, clamping down on confidence in our recovery.”
We need to have a debate about which taxes are least damaging to economic growth. Over the long term, corporation tax ranks as being one of the worst.
If the Government rolls back protectionist legislation left over from our EU membership, this booming export sector can reach new heights.
The final part in ConHome’s series this week on the future of the United Kingdom.
Doing more to incentivise recruitment is not only good for the Armed Forces, but benefits the rest of society too.