Why investors hate the UK PM’s biggest tax cuts in decades

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 90%

Australia Headlines News

Australia Latest News,Australia Headlines

The Bank of England is tapping the brake, Liz Truss is hitting the accelerator. Nobody knows which way the economy will go, and the markets want to get off.

| Britain’s new prime minister, Liz Truss, has a penchant for cosplaying Margaret Thatcher. But so far, there isn’t much policy resemblance to her fiscal disciplinarian idol.

Removing the top rate of tax just hands more money to those who already have plenty, rather than unlocking consumer spending power.Cutting stamp duty will merely increase the price of houses, rather than boost money in people’s pockets. This is the bit economists will watch with morbid fascination. If the levers of economic policy are being pulled in opposite directions - or, to use another mechanical metaphor, if you are hitting the brake and the accelerator at the same time - what happens?

But a government tax-cutting and energy-spending binge will be highly inflationary if nothing is done to ease supply pressures. Reaganite conservatives would welcome all this largesse and optimism. Thatcherite conservatives will be wondering how, and when, it all gets paid for.Kwarteng’s bet is that his policies will stimulate growth, and growth will fix the budget.

Source: Financial Digest (financialdigest.net)


Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

A lesson for 'no one left behind' AlboMP & JEChalmers 240 billion in high income tax cuts or 240 billion invested in life changing services like Medicare, NDIS,Aged,hospitals,social housing,retire debt. No budget issues Jim when 240 billion blown on high income tax cuts. smh.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in AU

Australia Latest News, Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Suncorp says ANZ or flying solo better than regional bank dealAt the financial conglomerate’s annual meeting, shareholders wanted to know why they didn’t get to vote on the proposed bank sale.
Source: FinancialReview - 🏆 2. / 90 Read more »

Facing calls to resign, World Bank president changes answer on climate crisisHis views drew scrutiny earlier in the week after he refused to say during a public event whether he believed fossil fuel burning was warming the planet. God forbid if you have a different opinion. BBC News 🇬🇧 中国のウイグル強制収容所 Uyghur concentration camp in China china TBS 報道1930 報道特集 テレビじゃ流れない話 Woke mob bullies.
Source: abcnews - 🏆 5. / 83 Read more »

‘He’s magnetic’: Bunnies bank on Latrell to deliver gloryLike the most magnetic player in the AFL, Buddy Franklin, there is a lot of showman in South Sydney’s Latrell Mitchell.
Source: FinancialReview - 🏆 2. / 90 Read more »

Did the Reserve Bank's money printing cause inflation? The bank says it's complicatedThe Reserve Bank says it's too simplistic to say that its money printing caused this inflation, writes Gareth Hutchens Typically money printing inflates asset prices. Not everyday goods/services. No one rushes out to buy more petrol or iceberg lettuce because they have suddenly have more money. Most of the goods/services inflation we are seeing is due to increased energy input costs. It is not complicated. You print money and it makes more money for the same goods so we get inflation. Duh !!
Source: abcnews - 🏆 5. / 83 Read more »

Equities slow to get the Fed’s messageOPINION: The sharemarket appears to be struggling to synthesise key signals from data releases and messages from the US central bank.
Source: FinancialReview - 🏆 2. / 90 Read more »