I have a major problem with the huge corporate donations that Labour have been taking, including from the pro Israel lobby, hedge fund managers etc etc……The destruction of this country is due to Tories setting policy for their backers and not for the people…..we can not have Labour doing the same.
All nice and simple but the money men are needed to invest in the country. The task is to create a situation where they will do that here. All pundits say the same thing in this area. It needs economic stability. a situation where taxation levels continue to drift up to record levels is not stable especially as a number of UK related aspects are not working correctly. Even the IMF have stated in the recent past that the UK must sort the social side out. That will include the NHS. The lot in other words.
Pundits also all say that the gov must invest itself to promote growth. It tends to kick things off.
So what is Reeves at. As she has spoken a bit now she aims to achieve a situation where taxation covers the country running aspects. The bulk of that is personal taxation, For instance 2% of NI is worth £20b. Raising that amount via the other taxation areas is not simple. They can only be pushed so far. Eg
In 2024-25 we estimate that CGT will raise £15.2 billion. This represents 1.3 per cent of all receipts and was equivalent to £530 per household and 0.5 per cent of national income.
So doubling it still wouldn't raise £20b. It's a broad area and yes she may alter it and similar. The IFS reckon some areas do need updating. Those changes may not be popular.
She will not want to borrow to run the general country aspects. She needs to consider general welfare costs and the rate they escalate at. This is the tough decision area. Where the money goes can be another one.
Borrowing. There can be scope for more of that but too much can have Truss like market reactions. Only do that in areas that promote growth.
So the IFS view is some new taxes that wont raise all that much and lots of small changes that total to a significant amount, Past having the actual budget they can not say more than that,
No austerity. All that means is expenditure will continue to increase rather than being cut. Just a broad rather than specific area view.
LOL All totally different to many years of the Tory ideas. You might say Labour is trying to face up to a real solution. The main Tory idea is cutting taxation solves all. Well it hasn't has it and it's gone up dramatically anyway.
news.sky.com
