"Writing for Conservative Home, the former Chancellor said it was now "all but nailed on" that Reeves will raise taxes by £30bn in November's Budget - pushing the overall increase in Britain's tax burden to £70bn in just 13 months. He argued that while ministers focus on who the losers will be - pensioners, homeowners, savers - the greater danger lies in the long-term drag on economic growth."
"Hunt pointed to OECD data showing that between 2010 and 2019, countries with lower public spending such as the US, South Korea and Australia grew on average 2% faster than high-spending nations such as Finland and Denmark. He argued that high taxation discourages investment, crowds out private capital and ultimately stifles "animal spirits" - the entrepreneurial energy John Maynard Keynes once said was essential for capitalism."
A projected £30bn tax rise in November's Budget would push Britain's tax burden up by £70bn in 13 months. High taxation is said to discourage investment, crowd out private capital and ultimately stifle entrepreneurial "animal spirits" necessary for capitalism. OECD data from 2010–2019 indicate countries with lower public spending such as the US, South Korea and Australia grew on average 2% faster than higher-spending nations like Finland and Denmark. Workers in lower-tax OECD economies reportedly work about 260 more hours annually than those in high-tax countries. Welfare incentives risk reducing labour supply, with some claimants projected to earn more from benefits than full-time national living wage employees. A decade of phased tax cuts in Mississippi is credited with higher growth, wages, investment and lower poverty.
Read at Business Matters
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