The Treasury has warned of "inevitable" tax rises as Prime Minister Rishi Sunak seeks to fill a "black hole" in public finances. Mr Sunak and Chancellor Jeremy Hunt met on Monday to discuss options for the financial statement on 17 November. They agreed "tough decisions" were needed on tax rises, as well as on spending. The Treasury gave no details but said "everybody would need to contribute more in tax in the years ahead".
A Treasury source did not put a figure on what they called "the fiscal black hole", but the BBC has previously been told it may need to be at least £50bn.
So, two of the richest men in Parliament met on Monday and decided we all needed to pay more in Tax to pay for a disaster of their making. 2020-21.
There is an old saying that you can’t squeeze blood out of a stone.
For many of our fellow citizens the proposed increase in taxes coupled with sky high energy prices will be the last straw. Let us have no doubts increase in Taxes will see a reduction in State Revenue (see the Laffer curve). Businesses will close because it will be pointless working harder for less. Unemployment will rise as businesses will relocate elsewhere. This then places a greater demand for unemployment benefit.
Is it not truly revolting that those who enjoy the benefit of living off the the state as public servants can demand the rest of us should make sacrifices to keep them in a job. I use the word ‘revolting’ in its truest sense there will be a revolt between the haves and have nots of living off the State. Bastiat’s ‘great fiction’ writ large.
Without a concomitant reduction in the size and scope of the State, tax increases will lead to social discord not seen since the seventeenth century.
On the subject of social discord, I caught ten minutes of the hapless Suella Braverman at the the despatch box yesterday evening, trying to defend the shambles left behind by Priti ‘PR’ Patel on immigration.
I will leave you this thought, as 38,000 migrants have this year have crossed the channel , including 2% of all Albanian men ( a safe EU country).
William the Conqueror’s army is said to have included not only Normans, but also men from Brittany, Aquitaine, France and Maine. The latest thinking is that his forces had between 5,000 and 7,000 men.
Andrew Withers FRSA