This FT article ‘Sunak faces worst hit to UK finances since second world war’ is worth reading – not so much because it indicates that Sunak has got pretty much everything wrong about money that it is possible to get wrong but also because these misunderstandings have lead him to think the rich have to pay…
When the chancellor delivers his statement to the House of Commons next Wednesday, the spending plans will be based on forecasts showing the economy will still be suffering the effects of coronavirus by the likely time of the next election in 2024.
The Office for Budget Responsibility, which independently produces the government’s forecasts, is on course to follow the Bank of England in predicting the UK economy will contract close to 11 per cent in 2020, the worst annual performance for more than 300 years.
Brexit will only add to this of course. Yet this is the party of ‘fiscal rectitude’ which is usually a cover for Maggie’s handbag.
So hurray for wanting the rich to pay… But they are wanting them to pay for the wrong reasons. It is not that they are a source of money, it is simply that money should be more equitably distributed and because it hasn’t been, tax is needed to assist that progress.
After all even the German government has as a result of the pandemic, abolished their deficit laws.
It is though still, monumentally depressing that we are told that the state finances are like a household – and in spite of this, government allocation of billions to dubious friends seems to be fine.
And that, the FT doesn’t even mention.