ADVERTISEMENT
  • Africa
  • World
  • Our Shows
    • Entrepreneurship
    • Destination Business
    • 101business TV Show
Business 360 News
  • Home
  • News
  • Markets
    • Stocks
  • Finance
  • Economy
    • Political Economy
    • Energy
    • Maritime
    • Agribusiness
    • Insurance
    • Real Estate
  • Tech
    • ICT
    • Solar Energy
    • Electric Vehicles
    • Blockchain
    • IoT
    • AI
  • Sports
  • SMEs
    • Success Stories
    • Start-Ups
    • Entrepreneurship
  • Business Travels
    • Aviation
    • Tourism
    • Hospitality
  • Lifestyle
    • Healthconomy
    • Art
    • Entertainment
    • Fashion
    • Luxury
  • NGOs
  • Business 360 Weekly
No Result
View All Result
  • Home
  • News
  • Markets
    • Stocks
  • Finance
  • Economy
    • Political Economy
    • Energy
    • Maritime
    • Agribusiness
    • Insurance
    • Real Estate
  • Tech
    • ICT
    • Solar Energy
    • Electric Vehicles
    • Blockchain
    • IoT
    • AI
  • Sports
  • SMEs
    • Success Stories
    • Start-Ups
    • Entrepreneurship
  • Business Travels
    • Aviation
    • Tourism
    • Hospitality
  • Lifestyle
    • Healthconomy
    • Art
    • Entertainment
    • Fashion
    • Luxury
  • NGOs
  • Business 360 Weekly
No Result
View All Result
Business 360 News
No Result
View All Result
Home Economy

Cutting UK taxes now would be a mistake says IMF

Business 360 by Business 360
July 18, 2022
in Economy, News, World
0
Cutting UK taxes now would be a mistake says IMF

Tax cuts are being promised by several Conservative party leadership hopefuls, but a top official at the International Monetary Fund has warned it might be better to raise them instead. “I think debt-financed tax cuts at this point would be a mistake,” said Mark Flanagan, who leads the Fund’s UK team, speaking to BBC News.

The leadership contest has reignited the fierce debate over tax cuts. Calls to tackle the soaring cost of living are growing louder. While the former Chancellor, Rishi Sunak, has argued against cutting taxes, other candidates have touted promises including cuts to the basic rate of income tax and further cuts in fuel duty.

Tax breaks could offer some relief for households struggling to cope with the steepest increase in food and energy bills in decades. The IMF is among the groups predicting the UK could see the slowest growth and most painful inflation of any G7 nation in 2023, thanks, in part, to reliance on fossil fuels, a big driver of inflation.

However, Mr Flanagan said tax cuts could be misguided and might even boost inflation by strengthening spending. Money raised through tax, he argued, could instead be used to invest in the country’s long-term future

The poorest households in France are now 25% better off than their UK counterparts. Many economists believe the UK’s challenges are very deep-rooted – with economic growth lagging behind many competitors since the 2007 financial crisis.

Torsten Bell, from the Resolution Foundation think tank, said this lag had “widened inequality” ever since. The poorest households in France are now 25% richer than their UK counterparts, he said, meaning that UK households have been left less resilient to cope with the current cost of living shock.

The chief executive of Legal & General, Nigel Wilson, is among those who believe the UK’s longer term underperformance reflects a chronic lack of investment. “I think [the UK] is full of potential but we’ve had massive underinvestment for 30, 40 or 50 years in skills, in infrastructure… as a consequence we’re a low wage, low productivity, low growth economy, fraught by political infighting. “

The IMF’s Mr Flanagan said public money would be better channelled into projects that focus on sustained long-term economic prosperity – and that might need higher taxes. “The UK does have a below-average tax ratio relative to the rest of the Organisation for Economic Co-operation and Development. You can’t have it both ways,” he said.

“At some point you have to decide, do we want to invest in the climate transition? Do we want invest in digitalisation? Do we want to invest in skills for the public. Well, if you do you need the resources to do it. And the way to realise those resources is to lift the tax ratio a little bit.”

Previous Post

Group tasks FG on incentives for Manufacturers

Next Post

UK set to have world’s biggest biggest automated drone superhighway

Business 360

Business 360

Next Post
UK set to have world’s biggest biggest automated drone superhighway

UK set to have world’s biggest biggest automated drone superhighway

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
NCAC inaugurates Creative Industry Sub-Committees

NCAC inaugurates Creative Industry Sub-Committees

September 20, 2020
#EndSARS: Protesters receive heavy gun fire at Lekki toll gate

#EndSARS: Protesters receive heavy gun fire at Lekki toll gate

October 21, 2020
COVID-19: Churches comply with strict measures as worship centres reopen in Lagos

COVID-19: Churches comply with strict measures as worship centres reopen in Lagos

August 10, 2020
SMEs in Nigeria must be ready to grow with or without Government …Evans Edozie, C.E.O., Cospharma Nig. Ltd.

SMEs in Nigeria must be ready to grow with or without Government …Evans Edozie, C.E.O., Cospharma Nig. Ltd.

September 21, 2020
‘The existence of a production hub in Nigeria will go a long way for the Fashion Industry’. FUNMI RUFAI LADIPO, President Fashion Designers Association of Nigeria.(FADAN)

‘The existence of a production hub in Nigeria will go a long way for the Fashion Industry’. FUNMI RUFAI LADIPO, President Fashion Designers Association of Nigeria.(FADAN)

25
Goldlink’s restructures board

Goldlink’s restructures board

10
Airtel Africa Plc gets admitted to the NSE Main Board

Airtel Africa Plc gets admitted to the NSE Main Board

6
Stallion Tank Farm resumes operations

Stallion Tank Farm resumes operations

3
Access Bank partners with AfriGOpay to boost Nigeria’s payment ecosystem.

Access Bank partners with AfriGOpay to boost Nigeria’s payment ecosystem.

March 30, 2023
Elon Musk, Experts urge halt to AI training saying AI systems with human-competitive intelligence can pose risks to society and humanity

Elon Musk, Experts urge halt to AI training saying AI systems with human-competitive intelligence can pose risks to society and humanity

March 30, 2023
Maximizing opportunities in a challenging economy-Joshua Solomon tells his story.

Domestic airfares jumped by 66% in 2022 – NBS

March 29, 2023
Nigeria needs $2.3tn to address infrastructure deficit-FG

FG $22bn loan request rejected by Chinese bank – Reps

March 29, 2023
Business 360 News

Business 360 News is a Business and Financial News Platform with an SMEs drive. Published by 360 Network Limited, and created with the aim of disseminating unbiased business stories to readers within and outside Nigeria, providing in-depth analysis of our stories from a critical perspective against the backdrop of realities, actualities, objectivity and balance.

Follow Us

Browse by Category

  • Africa
  • Agribusiness
  • AI
  • Art
  • Arts
  • Aviation
  • Blockchain
  • Business 360 Weekly
  • Business Travels
  • Capital Market
  • Corporate
  • Destination Business
  • Economy
  • Education
  • Electric Vehicles
  • Energy
  • Entertainment
  • Entertainment
  • Entrepreneurship
  • Fashion
  • Fashion
  • Finance
  • Health
  • Hospitality
  • ICT
  • Insurance
  • IoT
  • Lifestyle
  • Luxury
  • Maritime
  • Meetings
  • News
  • NGOs
  • Political Economy
  • Real Estate
  • SMEs
  • Society
  • Solar Energy
  • Sports
  • Start-Ups
  • Stocks
  • Success Stories
  • Tech
  • Tourism
  • Transportation
  • Uncategorized
  • World

Recent News

Access Bank partners with AfriGOpay to boost Nigeria’s payment ecosystem.

Access Bank partners with AfriGOpay to boost Nigeria’s payment ecosystem.

March 30, 2023
Elon Musk, Experts urge halt to AI training saying AI systems with human-competitive intelligence can pose risks to society and humanity

Elon Musk, Experts urge halt to AI training saying AI systems with human-competitive intelligence can pose risks to society and humanity

March 30, 2023
  • Africa
  • World
  • Our Shows

© 2022 Business 360 News - Business, Finance And SMEs News | Design by Manifest!

No Result
View All Result
  • Home
  • News
  • Markets
    • Stocks
  • Finance
  • Economy
    • Political Economy
    • Energy
    • Maritime
    • Agribusiness
    • Insurance
    • Real Estate
  • Tech
    • ICT
    • Solar Energy
    • Electric Vehicles
    • Blockchain
    • IoT
    • AI
  • Sports
  • SMEs
    • Success Stories
    • Start-Ups
    • Entrepreneurship
  • Business Travels
    • Aviation
    • Tourism
    • Hospitality
  • Lifestyle
    • Healthconomy
    • Art
    • Entertainment
    • Fashion
    • Luxury
  • NGOs
  • Business 360 Weekly

© 2022 Business 360 News - Business, Finance And SMEs News | Design by Manifest!