The Labour Party manifesto commitment has numerous spending commitments. These are financed by a mixture of government borrowing and tax increases. Would the increase in spending and borrowing lead to higher interest rates? In summary – the most likely effect would be a short-term fiscal expansion, which could lead to higher growth, a rise in …
The arguments for and against the legalization of cannabis and the taxation of the good by the government. Legalising cannabis and placing a tax on the good has several advantages Advantages of legalising cannabis 1. The Government can raise revenue from the tax. Because demand is likely to be inelastic, the tax revenue could be …
Why is there No Money Left?Watch this video on YouTube Last July, the new Chancellor Rachel Reeves, announced winter fuel payments for pensioners would be means tested. She hoped this brave and bold decision to stabilise Britain’s finances would be welcomed as a sign Labour were a serious government full of serious people. Labour Ministers …
Is UK Debt Getting Out of Control?Watch this video on YouTube The start of 2025, saw UK bond yields soar to the highest level since 2008, causing the media to panic the UK was heading towards another debt crisis – worse than Lizz Truss, some papers rather hysterically claimed. Since 2003, UK debt has risen …
A frequently asked question is – Who does the UK borrow from? Who owns the UK’s government debt? (Asset Purchase Facility = Bank of England) UK government debt is primarily held by: Private financial institutions – banks, pension funds, investment trusts and also private households. 28% is held by overseas investors (e.g. American investment trusts/Japanese …
Hampshire is one of the more prosperous parts of England, average house prices are over £400,000, but Hampshire County Council has the largest deficit in the UK. Like many local councils, it is at risk of bankruptcy. The council is spending more, but residents appear to be getting less. In 2011, the council spent 52% …
In the past 15 years, there is a general sense that many public services have been deteriorating. This isn’t just pessimism but backed up by longer waiting lists, crumbling infrastructure, even a record number of potholes. But this fiscal blackhole is likely to get worse before it gets better. The Hidden Financial Black Hole Waiting …
In the post-war period, the UK economy grow at 2.5% a year, but since great financial crisis, growth has slowed down markedly. 13 Years of Economic Decline – Is Conservative Government to Blame?Watch this video on YouTube The OECD report that since 2010, the UK has seen growth of just 0.1% in average wages, significantly …