"The Office for National Statistics (ONS) latest report shows that growth is down to just 0.1%, unemployment is up to 5% and the expectation is it that this will not improve. The economy is in a downward spiral; Labour cannot pull the country out of the fiscal black hole with tax rises alone, ultimately, spending needs to come down and fast."
"Although investing in the NHS and taking away the 2-child benefit cap is politically popular; it will not directly grow the economy and is yet another increase to public spending that the Government must find a way to pay for. The Chancellor likely will need to increase income tax bands and break Labour's election tax promises to cover this and other existing costs - but a cycle of increasing taxes to pay for rising public spending is not sustainable."
"The fall in Gross domestic product (GDP) in the manufacturing sector is particularly concerning, some of which is no doubt to due to the problems at Jaguar Land Rover and other factors beyond the Government's control. But the blame for this also lies with tax decisions made in last year's Budget, which increased the financial burden for businesses and individuals."
Growth is down to 0.1%, unemployment is up to 5% and expectations indicate no improvement. The economy is described as in a downward spiral and tax rises alone cannot pull the country out of the fiscal black hole. Public spending must come down urgently despite politically popular measures such as NHS investment and removing the two-child benefit cap. The Chancellor may need to increase income tax bands and break election tax promises to cover costs, but a cycle of higher taxes to fund rising spending is unsustainable. Falling manufacturing GDP, partly linked to Jaguar Land Rover and recent tax decisions, raises concern. A robust long-term fiscal strategy is needed to incentivise and attract investment.
Read at London Business News | Londonlovesbusiness.com
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