I start by saying £3 trillion. That is the debt this country is heading towards gently which is 94% of our Gross Domestic Product (GDP). Being a labour government means one simple answer—raise taxes—make everyone pay more to cover their poor management.
Lets look at one example of this. Raising Stamp duty on valuable homes and imposing a surcharge on second homes plus a mansion tax has led to one thing—a slump in house values in London, and an exodus of affluent people. As a consequence tax receipts are down. WELL DONE!!
Now lets look at trends with spending by the government. Oh. The government borrowed £1.8Billion in July—£700million more than last year—why—Welfare benefits up £2billion. (As said previously they should change their name to the ‘Welfare Party’)
What’s the consequence of this? Well there are several:
- Yield on 10 year guilts is above 5%
- For 30 years it is 5.8%–Liz Truss territory
- Businesses in ‘critical distress’ passes 50,000
Time and again this Labour Government, in office a short time, have seen a need to just tax their wy out of a situation and business is bearing the brunt of this. They don’t seem to realsie where their income comes from. One business employing 50 people has seen its National Insurance contribution climb by £10,000 per month. The result? Stalled investment and when a staff member leaves they are not replaced.
We have also just seen a dramatic move by Ineos. Vynova Runcorn has gone into administration. It processes brine into Chlorine and caustic soda. This may sound boring to you all but 98% of the chlorine made is used in drinking water treatment and it is absolutely of key critical importance to public health in this country—well done Labour—killing the country off by the back door!!