Tag Archives: chris giles

Labour’s VAT cut: bad economics and disingenuous politics

In the run-up to today’s county council elections, Ed Miliband has been taking to a wooden pallet in towns and villages around the UK, telling anybody who would listen about Labour’s plan to rescue the British economy by temporarily reversing the 2.5 percentage point increase in the rate of VAT.

Desperate, though, to avoid admitting this would involve a significant increase in borrowing, he’s been telling us that this would actually be a free tax cut because the economic growth that resulted from it would increase revenues by more than the upfront cost.

That unlikely-sounding claim was given short shrift by …

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Welfare: right policy, wrong reasons?

Many column inches have been filled with comment over the government’s decision to restrict a number of benefits and tax credits to increases of 1% over the next couple of years.

This piece (£), however, by the FT’s economics editor, Chris Giles, warrants a special mention, not least because it is makes some interesting points that nobody else seems to have done.

Here’s a (fairly lengthy) extract:

In any case, good evidence exists on living standards to assess the merits of restricting benefit uprating. According to the most recent year of data, 2010-11, the crisis has caused real household net incomes around the

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The Weekend Debate: Bank of England independence – an economic success story or a well-intentioned failure?

Here’s your starter for ten in our weekend slot where we throw up an idea or thought for debate…

The Liberal Democrat 1997 manifesto said the following:

We will turn the Bank of England into a UK Reserve Bank, free from political interference. We will charge the Bank with keeping inflation low and make it accountable to Parliament for achieving this goal.

Of course after Labour’s landslide victory in that election, one of Gordon Brown’s first decisions as chancellor was to borrow this Lib Dem policy and essentially transfer responsibility for monetary policy to the Bank of England.

Most Labour politicians look back on …

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Recent Comments

  • User AvatarSara Scarlett 26th Oct - 1:47am
    I have to admit I don't agree with the grounds on which they were protesting. Just seemed like a bunch of vague, unhappy lefties being...
  • User AvatarSara Scarlett 26th Oct - 1:23am
    Stephen [Tall], Some good points. I'm not entirely convinced by 6. Although I do see it's merits. I'd like to see the devolution of power...
  • User AvatarCharlie 26th Oct - 1:07am
    Glenn From my time at university and discussion with many charity /ngo workers. An example is golden rice which through genetic modification has much greater...
  • User AvatarSarah Noble 25th Oct - 11:24pm
    Callum: mind you, that would mean that a) the SNP would have to drop their policy of abstention on English matters and more importantly, b)...
  • User AvatarCaron Lindsay 25th Oct - 11:21pm
    I think it's fair to say that I am not a fan of the Labour Party. One of their first acts in government was to...
  • User AvatarStevan Rose 25th Oct - 11:18pm
    Since only the already relatively decentralised matters of education and NHS gained majority support amongst members of the party most in favour of localism, does...