Browsing: UK politics

Unlocking Labour’s investment dilemma

Politics

“In the standard textbook model that Reeves would have learned at Oxford and the London School of Economics in the late 1990s, business investment is a reward for governments that behave nicely. Investors want low tax rates, flexible markets and, above all, stability. Any hint of an increase in borrowing and they will spook, worrying that government debt will spiral out of control. In this kind of model, even austerity can be expansionary, as it demonstrates to the business community that the fiscal authorities are really committed, even at the expense of electoral pain.”

Labour warming up for tax rises

Politics

“Labour will never have a better chance to make big, ambitious changes. Rather than playing up the gloom, the government could be telling a positive story about the benefits a pro-growth agenda will bring – as they have with planning reforms. Just as building more houses spreads ownership, jobs and opportunities, boosting public sector productivity would result in a leaner, more effective state that better serves British interests. Instead, we are getting a warm-up for a much more predictable second act: Tax rises are coming, look behind you!”