Tax and Fiscal Policy

UK fiscal woes go much further than the ‘mini-budget’

Matthew Lesh writes in City AM

IEA Head of Public Policy Matthew Lesh has been quoted in City AM arguing that Liz Truss’ discredited ‘mini-budget’ is not to blame for the dire state of the public finances.

Matthew wrote:

“The UK’s lacklustre growth cannot be blamed on Truss – whose supply-side reform policies had the explicit goal of reversing the UK’s woeful trajectory. In fact, Hunt’s decision to maintain the corporate tax hike is a key reason for less growth, at least according to analysts at Goldman Sachs.”

Matthew concluded:

“It may be tempting to blame Truss’ premiership for our current predicament. But this distracts from the need to address the much deeper structural issues. Whether rushing to put up taxes and cut spending is the right answer, however, is much less clear.”

You can read Matthew’s full piece here.