Rachel Reeves Contradicts Herself on Borrowing for Tax Cuts in Same Interview

Rachel Reeves is continuing Labour’s long-standing tradition of being utterly inconsistent on tax, though has now begun pirouetting on policy within the same interview. During her Today outing, the Shadow Chancellor slammed the Tories for having “fanned the flames… [with] more unfunded tax cuts, which has resulted overnight in the pound falling to an all-time low against the dollar.”

So far, so good…

Minutes later, however, she suggests Labour would pay to keep the new 19% basic rate of income tax by borrowing:

“In emergency situations – and we are absolutely in a national emergency at the moment – you can borrow”

Labour is mitigating this hypocrisy by claiming the difference between Labour and the Tories is that she would not borrow on the same scale as Kwasi and Truss. Labour have accepted well over 90% of the tax cuts. They are only rejecting one, the top rate cut, which has a revenue impact of approximately £600 million out of £26 billion…

Meanwhile, Guido also spots Rachel Reeves is now arguing that cancelling the planned corporation tax rise is “wrong”, and Labour wants to see the rate rise in April. This is the same Rachel Reeves that led Labour MPs through the No Lobby in 2021, opposing Rishi’s hike to Corporation Tax…

mdi-timer 26 September 2022 @ 10:55 26 Sep 2022 @ 10:55 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
NEW: Privileges Committee Rejects Lord Pannick’s Criticisms of Boris Stitch-Up

The Privileges Committee has, unsurprisingly, rejected Lord Pannick’s damning criticism of its ongoing investigation into whether Boris misled the House during Partygate. Committee figures already indicated they’d reject it, and now they’ve found the legal advice to back it up…

“The Committee rejects Lord Pannick’s criticisms… The Committee accepts the view of its impartial legal advisers and the Clerks that Lord Pannick’s opinion is founded on a systemic misunderstanding of the parliamentary process and misplaced analogies with the criminal law.”

The committee’s response also makes clear that they believe Lord Pannick’s opinion that this stitch-up could have a “chilling effect on Ministerial comments in the House” to be “wholly misplaced and itself misleading.” Read the report in full below…

 

mdi-timer 26 September 2022 @ 09:34 26 Sep 2022 @ 09:34 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Rich’s Monday Morning View

Bonus special FX cartoon:

mdi-timer 26 September 2022 @ 08:29 26 Sep 2022 @ 08:29 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Go Big or Go Into Opposition: 2.5% Growth Target Decides Next Election

“Chancellor Kwasi Kwarteng will struggle to hit his target of boosting annual UK economic growth to 2.5%” writes the FT’s Chris Giles in an article that is representative of much of the broadsheet commentary since Friday, with the honourable exception of the Telegraph. Starmer is, at the time of this going to pixel, not planning to reverse Kwasi’s tax cuts or the now cancelled tax rises he’d already opposed, with the result that the Labour Party is quibbling with very little of the changes. It boils down primarily to their rejection of the abolition of the 45% rate bringing the top rate of income tax down to 42.5% (including NI). This has a revenue impact of some £625 million out of £26 billion in tax savings for 2022/23. Starmer’s Labour Party is not opposing the tax cuts in general.

So the the dividing line between the parties is: Will “new era” economics work and crank growth up to 2.5% before the next election?

Not a chance say Rachel Reeves and the assembled hardline-centrists of the broadsheet punditry, plus all the orthodox economists from the IFS, Institute for Big Government and gloomy Torsten Bell with his distribution charts. Kwasi and Liz say it will work. It won’t surprise co-conspirators that Guido thinks it is less of a gamble than the BBC’s Faisal Islam reckons. Barring oil going to $300 or some other catastrophe, it is far more likely to work than the doomsters would have you believe. If Kwasi and Liz fail to hit the 2.5% target they have set for themselves, they will deservedly lose the next election. The choice now is pull out all the stops and go for growth, or go into opposition…

mdi-timer 25 September 2022 @ 17:14 25 Sep 2022 @ 17:14 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Rayner Promises to Follow Ukraine’s “Anti-Corruption Blueprint”

Transparency International ranks the UK as the eleventh least corrupt country in the world on their corruption perception index. Ukraine on the other hand is ranked 122nd out of 180 countries. Hardly surprising when 23% of public service users in Ukraine paid a bribe in the previous 12 months according to the anti-corruption organisation. Yet Angela Rayner reckons Britain is more corrupt than Ukraine. Bold claim.

mdi-timer 25 September 2022 @ 12:22 25 Sep 2022 @ 12:22 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Kwasi Suggests More Tax Cuts Coming Within a Year mdi-timer 25 September 2022 @ 10:19 25 Sep 2022 @ 10:19 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments Previous Page Next Page