So, Liz Truss and Kwasi Kwarteng have made their first big U-Turn. After announcing with great fanfare that abolishing the 45p tax band was crucial to enabling economic growth, the chancellor has started the Conservative Party Conference by stating that this particular tax cut was in fact a distraction from the Government’s overall growth policy… Continue reading Lessons from a U-Turn: How do you make decisions?
Just some quick notes about what has been happening with the currency and what that directly has to do with us. Let’s simply things down for explanation. Supposing the £1 is trading at $2. It obviously affects when you go on holiday because you want to get as many dollars when you go so you… Continue reading Why the dollar/pound exchange rate matters
I’ve been reflecting a little more on the debate around the Chancellor of the Exchequer’s statement last Friday and what is now becoming referred to as “Trussonomics.” You will remember that my assessment was that it was economically illiterate and politically stupid. Perhaps you thought that harsh. Perhaps not given the even stronger assertions from… Continue reading Further reflections on Trussonomics
One of the measures that the Chancellor of the Exchequer announced in his financial statement on Friday was a 1p cut in the basic rate. This was already planned but has been brought forward a year. I want to highlight some of the challenges around decisions concerning taxation when the aim is to help those… Continue reading How helpful will a 1p tax cut be?
Today, the Chancellor of the Exchequer is making a special announcement about his fiscal plans. We are not allowed to call it an emergency budget though. He does so, primarily to give a bit more detail about how the Government are going to help with the energy crisis. This is part two following on from… Continue reading What should the Chancellor do about recession?