The government's total lack of public investment combined with prolonged tax cuts and cutting public spending has led to a slowdown in overall economic activity, increasing job losses, decreased consumer confidence, and a strain on public services. All these factors have weakened the UK economy's ability to innovate, compete globally, and sustain long-term growth.
It would be nice to know what the IFS would direct investment towards to lessen the burden for future years. For example, maybe Debt repayment Housing supply Urban Transport Do they have a model we can play with? It’s all about choices, right?
Biggest bang for buck has to be debt the interest is crippleing us at the moment. If we where an individual we would be going to debt relief with the sort of debt to earnings we have but no one wants the uk to default on its debt.
Very Interesting video reading between the lines taxation policy needs a very good looking at as all the spending taxes add to the burden on the less well off significantly add to that the wealthy who pay taxes on capital gains at quite a low rate by comparison to income tax and even then only when they realise the gain. The New Statesman Di an interesting piece highlighting that Rishi Sunaks effective rate of tax on his earnings was only around 23% as the majority was capital gains on the sale of some share asset realising the gain so you can argue the asset rich are benefitting from generous tax treatment, though however you configure taxation individuals will adapt to pay as little as possible hence why individuals incorporate themselves to pay themselves in dividends to avoid higher rates of income tax and benefit from allowable buisness expenses. Rich individuals are very agile when it comes to hanging onto wealth.
Should be windfall taxing the banks anyway because the interest rate hikes have flushed them full of money as a result of supply side inflation caused by the energy crisis and put the bankers bonus cap back on, profiting from an energy crisis just like the energy sector.
what difference could be made to lical authorities by reforming the council tax system to something that was relevant to modern with 1million £ + property owners paying higher rates .
😳 shocking but not suprising, Unbelievable how government just feeds itself …how about a deep dive on the growth of individuals employed by government and the increases in recurrent expenditure
I saw a graphic which compared the cost of electricity generation between gas, wind and solar. One of the things that struck me was that the cost of gas generation had a compnent labelled 'carbon' and I was told that this represented carbon tax. Without this, gas would have been the cheapest way of generating electricity by far. This amount was nearly half the total cost and was bigger than the actual cost of the gas. I don't fully understand how carbon tax works but I'm told that it filters down into almost everything we spend our money on. A bit like VAT I suppose. Isn't this a hidden tax? No wonder we have the most expensive electricity in Europe.
1.30 minutes in I think that was quite misleading.. I no he's being broad and vague to get the conversation up and running, but there own IFS statistics clearly show Total managed expenditure trended upwards from 2010 to 2020... in other words government spending nominally increased year on year... Percentage comparisons are missleading as the government has very little to do with GDP or inflation..I'd like to no what there definition of austerity is? In my opinion austerity is to vaugh of a word to be using for an organisation like the IFS.
3.35 minits in what relevance does gdp vs total government expenditure ratio have????? These metrics are absolutely useful for nothing when gdp falls of a cliff and the government defecit rises 10X from 30 billion to 300 billion in 2020??? Why are these data points the benchmarks when there clearly not something you can build a conclusion on alone??????
Nothing about the widening gap in wealth between the average person and the extremely rich. It would be nice to have some changes that mean that the extremely rich have to work to earn their income.
You didn't mention pointless government waste, HS2, PPE that doesn't work, the Rwanda scheme. What if there was a serious penalty, like capitol punishment, for egregious squandering and wasteful spending. Seriously, all governments waste money, and you clever guys and gals know that, I'd like to see a podcast covering some of the less cost-effective spending areas and your one-line examples of refactoring those, maybe a top 10 or 15.
Nobody has mentioned VAT we pay 42 % tax not 20. They should halve tax as many will then boost economy by spending. taxing makes folk hide their money. my grandad hid his in the fifties in a washing dolly. so there!
The conservative's record on tax has been appalling. George Osborne was a terrible chancellor and the ones that followed weren't much better. They all talked a good game but didn't do enough to get the country into be financial shape. Now we are doomed to loonie Labour
Like i said in my comments total government spending never went down.... camron's government said they where going to balance the books... they never did... lockdown give the tories a reason to borrow more than all the years from 2010 to 2020 combined... or multiple times more than the labour government from 1997 to 2009... there has been no fiscal responsibility for 2 decades... the public wants more for less...untill that changes we are stuck with politicians who are happy to increase spending and the liabilities of the state because that is the concensus, because nobody wants to loose out and actually be a little more independent and responsible for there own outcomes... never have there been so many dependents on the the state and expecting more in the future
Rachel Reeves seems to be more responsible than most. At least she will not give the Magic Money Tree the same shaking as Lizzy Truss did - and we all know what happened next.
This lady's entirely right about the Corp Tax cash cow. We left the UK last year because of Corp tax and, particularly, regulation. We were getting less for the risk and being strangled with unproductive paperwork. We now life in a country with no Corp tax and much lower levels of regulation. So much happier - we feel free to grow in every sense (the business, freedom of speech, no woke nonsense). We would strongly advocate that people give it a go. Our new geography is also English speaking so no friction from our perspective.
No major English-speaking country has eliminated corporation tax entirely. So you probably buggered off to Singapore, Bahamas, Bermuda, or the Cayman Islands, which are renowned tax havens. While tax havens may offer tax advantages, they face significant drawbacks such as economic instability, limited employment opportunities, reputational risks through scandals, policy constraints, brain drain, and an overdependence on foreign capital. This can undermine their long-term sustainability and development prospects.
The government's total lack of public investment combined with prolonged tax cuts and cutting public spending has led to a slowdown in overall economic activity, increasing job losses, decreased consumer confidence, and a strain on public services.
All these factors have weakened the UK economy's ability to innovate, compete globally, and sustain long-term growth.
It would be nice to know what the IFS would direct investment towards to lessen the burden for future years.
For example, maybe
Debt repayment
Housing supply
Urban Transport
Do they have a model we can play with?
It’s all about choices, right?
Biggest bang for buck has to be debt the interest is crippleing us at the moment. If we where an individual we would be going to debt relief with the sort of debt to earnings we have but no one wants the uk to default on its debt.
Very Interesting video reading between the lines taxation policy needs a very good looking at as all the spending taxes add to the burden on the less well off significantly add to that the wealthy who pay taxes on capital gains at quite a low rate by comparison to income tax and even then only when they realise the gain.
The New Statesman Di an interesting piece highlighting that Rishi Sunaks effective rate of tax on his earnings was only around 23% as the majority was capital gains on the sale of some share asset realising the gain so you can argue the asset rich are benefitting from generous tax treatment, though however you configure taxation individuals will adapt to pay as little as possible hence why individuals incorporate themselves to pay themselves in dividends to avoid higher rates of income tax and benefit from allowable buisness expenses. Rich individuals are very agile when it comes to hanging onto wealth.
Should be windfall taxing the banks anyway because the interest rate hikes have flushed them full of money as a result of supply side inflation caused by the energy crisis and put the bankers bonus cap back on, profiting from an energy crisis just like the energy sector.
what difference could be made to lical authorities by reforming the council tax system to something that was relevant to modern with 1million £ + property owners paying higher rates .
😳 shocking but not suprising, Unbelievable how government just feeds itself …how about a deep dive on the growth of individuals employed by government and the increases in recurrent expenditure
I saw a graphic which compared the cost of electricity generation between gas, wind and solar. One of the things that struck me was that the cost of gas generation had a compnent labelled 'carbon' and I was told that this represented carbon tax. Without this, gas would have been the cheapest way of generating electricity by far. This amount was nearly half the total cost and was bigger than the actual cost of the gas. I don't fully understand how carbon tax works but I'm told that it filters down into almost everything we spend our money on. A bit like VAT I suppose. Isn't this a hidden tax? No wonder we have the most expensive electricity in Europe.
1.30 minutes in I think that was quite misleading.. I no he's being broad and vague to get the conversation up and running, but there own IFS statistics clearly show Total managed expenditure trended upwards from 2010 to 2020... in other words government spending nominally increased year on year... Percentage comparisons are missleading as the government has very little to do with GDP or inflation..I'd like to no what there definition of austerity is? In my opinion austerity is to vaugh of a word to be using for an organisation like the IFS.
I Did not realise that the IFS has no charts on nominal Total managed expenditure... they only publish ratios with this data within it...????
Inflation
3.35 minits in what relevance does gdp vs total government expenditure ratio have????? These metrics are absolutely useful for nothing when gdp falls of a cliff and the government defecit rises 10X from 30 billion to 300 billion in 2020??? Why are these data points the benchmarks when there clearly not something you can build a conclusion on alone??????
Nothing about the widening gap in wealth between the average person and the extremely rich.
It would be nice to have some changes that mean that the extremely rich have to work to earn their income.
You didn't mention pointless government waste, HS2, PPE that doesn't work, the Rwanda scheme. What if there was a serious penalty, like capitol punishment, for egregious squandering and wasteful spending. Seriously, all governments waste money, and you clever guys and gals know that, I'd like to see a podcast covering some of the less cost-effective spending areas and your one-line examples of refactoring those, maybe a top 10 or 15.
Nobody has mentioned VAT we pay 42 % tax not 20. They should halve tax as many will then boost economy by spending. taxing makes folk hide their money. my grandad hid his in the fifties in a washing dolly. so there!
The conservative's record on tax has been appalling. George Osborne was a terrible chancellor and the ones that followed weren't much better. They all talked a good game but didn't do enough to get the country into be financial shape. Now we are doomed to loonie Labour
Like i said in my comments total government spending never went down.... camron's government said they where going to balance the books... they never did... lockdown give the tories a reason to borrow more than all the years from 2010 to 2020 combined... or multiple times more than the labour government from 1997 to 2009... there has been no fiscal responsibility for 2 decades... the public wants more for less...untill that changes we are stuck with politicians who are happy to increase spending and the liabilities of the state because that is the concensus, because nobody wants to loose out and actually be a little more independent and responsible for there own outcomes... never have there been so many dependents on the the state and expecting more in the future
Rachel Reeves seems to be more responsible than most. At least she will not give the Magic Money Tree the same shaking as Lizzy Truss did - and we all know what happened next.
This lady's entirely right about the Corp Tax cash cow. We left the UK last year because of Corp tax and, particularly, regulation. We were getting less for the risk and being strangled with unproductive paperwork. We now life in a country with no Corp tax and much lower levels of regulation. So much happier - we feel free to grow in every sense (the business, freedom of speech, no woke nonsense). We would strongly advocate that people give it a go. Our new geography is also English speaking so no friction from our perspective.
Is this your way of outing yourself as a tax haven user? cool man :/
Tax haven
No major English-speaking country has eliminated corporation tax entirely.
So you probably buggered off to Singapore, Bahamas, Bermuda, or the Cayman Islands, which are renowned tax havens.
While tax havens may offer tax advantages, they face significant drawbacks such as economic instability, limited employment opportunities, reputational risks through scandals, policy constraints, brain drain, and an overdependence on foreign capital.
This can undermine their long-term sustainability and development prospects.