Ed Balls Calls for Tax Cuts to Boost Growth from Zero

Ed Balls was on the Marr show this morning and also has an article in the Sunday Times ahead of the budget, advocating tax cuts to boost growth. He repeats his long-standing call for a reversal of the consumer whacking VAT hike and comes over like a born-again Nigel Lawson in his article:

…cut the basic rate of income tax by 3p for a year. Or raise the income tax personal allowance to more than £10,000… It would be better to cut VAT now — it’s fairer and quicker and would help pensioners and others who don’t pay income tax. But any substantial tax cuts to help households and stimulate the economy would be better than doing nothing.

Tax cuts won’t scare international bond markets, even the austerity friendly IMF is advocating a VAT cut for Britain, government gilts are propped up by QE (for now) so the issue of bond market vigilantism doesn’t arise.

It was a mistake to hike VAT and it is a strategic error to burden industry with crushingly high green taxes and penal marginal income tax rates of over 50% discouraging entrepreneurs from coming to invest in Britain. If the government is going to miss the deficit target, and it is, miss it because the government slashed taxes to grow the economy. The international bond markets will forgive a finance minister with a growing economy who misses his deficit target, they won’t forgive a finance minister with a contracting economy in any circumstances. Chancellor Zero knows that with no growth there is no hope for the deficit.



Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Jeremy Corbyn:

“I’m not a defender or supporter of ISIS.”

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.

Facebook

Corbyn and Sturgeon At Same Event Corbyn and Sturgeon At Same Event
Updates: Who’s Standing? Who’s Standing Down? Updates: Who’s Standing? Who’s Standing Down?
Tories Mistakenly Share Private Conference Call PIN with Opposition Tories Mistakenly Share Private Conference Call PIN with Opposition
Len and Seamus’s Champaign Celebration Len and Seamus’s Champaign Celebration
Campaign Report: 48 Days To Go Campaign Report: 48 Days To Go
Campaign Report: 49 Days to Go Campaign Report: 49 Days to Go
Listen: Dawn Butler Car Crash Interview Listen: Dawn Butler Car Crash Interview
Manifesto Lookahead: Six Tory Policies in Peril Manifesto Lookahead: Six Tory Policies in Peril
McVey for Upminster? McVey for Upminster?
Watch: Corbyn Crowd Boos and Shouts Down ITV Question Watch: Corbyn Crowd Boos and Shouts Down ITV Question
Coalition of the Others Still Behind Tories Coalition of the Others Still Behind Tories
NEC Swerves Corbyn Loyalty Pledge NEC Swerves Corbyn Loyalty Pledge
Watch: Barry Gardiner Loses It on Sky News Watch: Barry Gardiner Loses It on Sky News
CCHQ Caught on Hop: Not Enough Tory Candidates CCHQ Caught on Hop: Not Enough Tory Candidates
Campaign Report – 50 Days to Go Campaign Report – 50 Days to Go
PMQs Sketch PMQs Sketch
Osborne Quits as MP Osborne Quits as MP
Will Tories Drop MOAB on Corbyn? Will Tories Drop MOAB on Corbyn?
Corbyn Getting Beers in Early Corbyn Getting Beers in Early
Labour Staff Told: No Slogan, No Key Seats List, No Budget Labour Staff Told: No Slogan, No Key Seats List, No Budget