The IFS is warning that the unelected Government’s radial financial plans to be part of their mini-budget is likely to cause further deterioration in the £GBP. Irresponsible borrowing, as we have already documented, i.e. borrowing on behalf of taxpayers to protect energy company windfall profits instead of making sensible one-off regulatory taxation to protect the national interest, in order that the UK is seen by ‘investors’ as a safe haven, free of the shackles of Government interference and annoying priorities like health, security and reducing actual taxes over the long term.
The new Chancellor, Kwasi Kwarteng, last seen laughing at the Queen’s funeral, has blocked the OBR publishing its assessment of the impact of tax cuts on the economy’s ability to grow and the likely increase in the government debt interest bill.
Removal of stamp duty (not charged on the first house purchased, so it only applies to the already wealthy) from house sales will reduce taxation by a further £10.6B, and is completely non-productive and regressionary.
Sarah Olney, the Liberal Democrat spokesperson on the Treasury, business and industrial strategy, said: “This government has lost all sense of fiscal responsibility. Future generations will be paying off the Conservatives’ debt for years to come with no guarantee of economic growth.”https://www.theguardian.com/business/2022/sep/21/uks-mounting-debts-unsustainable-if-sweeping-tax-cuts-go-ahead-warns-ifs-mini-budget