Britain presently needs government support rather than belt-tightening. But the chancellor sees a benefit in raising taxes now so he can cut them to boost Conservative prospects ahead of the next election
The centrepiece of the government’s economic strategy is to bring the rest of Britain level with London and south-east England in terms of wealth and opportunity. The public remains concerned about regional and income gaps. “Levelling up” – however genuinely believed by some people – is a facade. Boris Johnson’s slogan requires a shift in the scale of public spending that his policies will not concede in substance.
Last November, Rishi Sunak announced he would slice £10bn from departmental budgets in 2021, despite the prime minister ruling out cuts to public services. The chancellor hints that tax rises are needed now to bring down the deficit, a policy that owes more to austerity economics than Mr Johnson cares to admit. It is progressive to raise taxes on the wealthy or on excess business profits because it makes for a fairer society. But it is not progressive to do so to “balance the books”.
