UK budget: no game changer – Michael Roberts

“This budget is no game changer for working people – or for that matter for British capitalism.”

“Given a low growth, low productivity economy, all Reeves can do is to try and raise taxes and government borrowing to fund more spending on public services.  She has opted to do this by hiking social security contributions paid by employers for each worker they employ.  This will supposedly bring in £25bn.  Reeves is also raising taxes on capital gains that rich investors pay when they sell their financial assets.  And very rich foreigners can no longer claim ‘non-dom’ status to avoid paying tax on overseas earnings if they live in the UK. 

“But there is no wealth tax on the very rich (which could easily raise £25bn a year); there is no increase in taxation of rapidly rising corporate profits (that stays at 25%) and tax-exempt thresholds are not being raised with inflation until 2028, so most working people will pay more tax out of any increase in wages.  There will be a “crackdown” on welfare benefit fraud to get £4bn year, but only a vague commitment to tackle widespread tax avoidance and evasion (which loses the government some £25bn a year).”

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