LETTER: Sick of illiterate economic policies


In response to Mark Spencer’s column on the Budget.

The Lifetime ISAs are in my view dreadful.

Why should taxpayers with little-to-no disposable income, i.e. families and those over 40, subsidise the savings of a single 30-year-old with enough disposable income to save £4,000 a year at an eye watering 25 per cent interest rate?

Business rates cuts are pointless. Once current contracts expire, the landlords will increase their rents as they already know that their tenants can afford to pay that fixed cost. Rates get capitalised into rent. Basic economics that has been known for years so all it has done is take money from government pockets and put it into landlords. Well done, George.

Sugar tax is a ridiculous gimmick targeting such a small range of products and will have zero impact on obesity. If you truly wanted a sugar tax then there would be a flat tax rate on all products containing sugar based on, say, a per gramme basis. Coke bad; Greek yoghurt with honey, good.

Same sugar content.

‘Fuel duty frozen again’ as though it’s some wonderful gift you’ve bestowed upon us. No, you’ve simply decided not to take more money off us.

Tax thresholds raising is massively behind the times. You’ve heard of fiscal drag, I take it? Just because governments haven’t been raising tax rates, doesn’t mean they’re not taxing us more.

You’ve still done nothing about NI thresholds. These should be brighter in line with tax thresholds and then NI abolished entirely and rolled into income tax. It’s called honesty and transparency. I’m not expecting either of those things any time soon.

I say all this as a Tory voter who’s sick of economically illiterate policies. His one saving grace is that he’s not John McDonnell.

Financial realist

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