Just want to give folk a perspective on where the country is with borrowing costs. Since Labour came to power last year 30 year Gilt Yields have steadily risen from 4.25% to 5.5%. The Government borrowed a further £18bn last month for public finances. The Office for National Statistics said interest payments on the £2.7 trillion of debt hit £8.4bn last month. Someone somewhere has lent us a lot of money to have that sort of repayment scheme!!
I have also been looking at what has been happening with small business. I am aware of several ‘one man bands’ struggling with lack of work and indeed one has shut up shop and gone back to working for a large company, complete with having to get somewhere at specific times!! Another outfit now does most of its work online and is spending much of that time on overseas business.
Non of this is good news but I have a plan!!
Reform want to raise the threshold for paying tax from the current £13k to £20k so that £7k is now tax free at a former rate of 20%. That £7k will almost certainly be spent and guess what VAT is!!? 20%. So the government get the tax still from VAT instead of income tax but crucially more money has been spent in the economy. BINGO.
And you could go on holiday with that!!