Archive for category Tax and Spend
North Eastern industry to be decimated – and for what?
Posted by David Merlin-Jones in Announcements, Economics, Environment, Politics, Tax and Spend on 02/06/2011
The government’s green taxes will spell the end for Britain’s chemical industry, which employs 200,000 directly, an additional 400,000 indirectly, and accounts for 15% of UK exports. The sector, much of which is found in North East England, will be the victim of the race to cut emissions by 34% from 1990 levels by 2020: more than any other country’s target. Moreover, this approach by the ‘greenest government ever’, will actually undermine the UK’s ability to reduce its greenhouse gas (GHG) emissions and will smother the emerging low-carbon economy at birth.
Chain Reactions, published by independent think-tank Civitas, draws on the example of the economically vital but energy-intensive chemical industry because, while it is disproportionately affected by energy bills, it also produces a myriad of environmentally-beneficial products such as catalysts and insulation. David Merlin-Jones, author of Chain Reactions, argues that the best way to tackle climate-change is not through the hasty decimation of industry but the long-term nurturing of existing low-carbon innovation as found in the chemical sector.
Taking the ‘I’ and ‘me’ out of investment
Posted by Stephen Clarke in Economics, Politics, Tax and Spend on 31/05/2011
Last Wednesday saw the Government release provisional business investment results for the first quarter of 2011. They indicate that, in general, investment is falling across the British economy with only manufacturing bucking this trend by increasing investment by 14.8% compared to a year ago. According to one commentator the results mark a record low. Yet while they paint a bleak picture of the British economy, the current remuneration of Britain’s top executives belies this impression.
Localism: don’t forget the democracy
Posted by Stephen Clarke in Economics, Politics, Tax and Spend on 16/05/2011
An important, and relatively uncontentious, area of coalition policy is its localism agenda. Seemingly supported across the political spectrum, is the idea that more decision making should be devolved to those who have a greater understanding of the challenges and issues facing localities – local governments not Whitehall. In a recent paper entitled: ‘The American Recovery and Reinvestment Act: Public Sector Jobs Saved, Private Sector Jobs Forestalled’, two American economists Timothy Conley and Bill Dupor, indirectly demonstrate the importance of democratic accountability when devolving power.
It’s growth, stupid
Posted by Stephen Clarke in Economics, Politics, Tax and Spend on 08/04/2011
Yesterday I was fortunate enough to attend the British Chambers of Commerce annual conference. It provided an opportunity to hear the views of the business community and what the Government is doing to stimulate and facilitate economic growth. It also provided an opportunity to hear from the opposition, courtesy of Ed Miliband MP, about Labour’s proposals for economic growth.
Why the Laffer curve should not be laffed at
Posted by Stephen Clarke in Economics, Politics, Tax and Spend on 28/03/2011
Last week saw George Osborne announce his second budget. Some applauded it as being pro-growth and supportive of the private sector. This assessment is debateable, and in the important area of tax there were few significant decisions taken, other than the reduction of corporation tax by 2% with a proposal to reduce it eventually to 23%. Tax is a contentious issue, however some figures published by the Harvard Economist Greg Mankiw indicate that the chancellor could go a good deal further in simplifying the British tax system and reducing tax rates.
The 2011 Budget – a response
Posted by David Merlin-Jones in Economics, Politics, Social Security, Tax and Spend on 23/03/2011
‘The Budget for Growth’ was how Chancellor George Osborne described it. Really? Of timid growth perhaps, but not the real growth Britain needs to see. Moreover, it has prioritised unrealistic green targets over economic development – a highly unwise manoeuvre. Below, the good, the ok and the really bad points of The Budget are unravelled. Read the rest of this entry »