The Spring statement

Today the Chancellor should confirm what the published figures have been telling us for some time. The deficit is lower than planned as his fiscal squeeze has been tougher . The government has collected more tax than planned, despite shortfalls on Stamp Duty and VED where they put rates up too much. Lower corporation tax rates and higher income tax allowances have helped or not impeded  increased revenue from both sources.  As a result of a combined monetary and fiscal squeeze the economy has slowed more than is desirable, at the same time as the Euro area economy has been hit by recession and slowdown.

What should he do about this? First, he should express concern that a slowdown is happening and signal he intends to do something about it. The Fed in the US has backed off from a monetary tightening that was damaging the US outlook, the Chinese authorities have announced tax cuts and monetary relaxation to deal with their slowdown and the European Central Bank has announced more cheap loan facilities for commercial banks in their territory. Where is the UK response?

Second, he should cut tax rates for Stamp Duty and VED where high rates have cut revenues. CGT is another one where a high rate is deterring  property sales. These cuts would boost revenue more. He should remove VAT from green products and from domestic fuel to celebrate our exit from the EU and relieve fuel poverty.  He should cut income tax further, and make a substantial reduction in business rates. He can afford to reduce his total tax demand, as well as cutting rates that will raise more money.

Third, he should increase spending where a good case can be made for better public service as a result. Social care, schools and the police are three priority areas where asking for bids for more money to improve services would be a  good idea.

The Chancellor lets the story run in the press that he will spend more if we vote for the Withdrawal Agreement. Now he has to make up his mind what to do knowing the result of the vote.  He could afford to spend even more and tax less  if we  just leave without the Agreement, as we will save all that money that otherwise goes to the EU.




Ask the same question and you get the same answer

The crushing defeat for the Withdrawal Agreement again should come as nu surprise. It united Remain and Leave voting MPs, as it is such a bad proposition for the UK.

We now know the government is not going to whip the Conservative party after all for the votes to come on Wednesday and Thursday. It is odd that a government which has constantly confirmed No deal is better than a bad deal, and asserted we will leave on 29 March 2019 is now not going to whip its party to support those two central policies that are very popular with many Conservative voters.




Emmbrook Infant School Judged Outstanding by Ofsted

I am delighted to learn that Emmbrook Infant School has been judged Outstanding by Ofsted following its inspection in January.

Many congratulations to the Headteacher Corrina Gillard, the governors and all of the school’s staff for their achievement and I hope that they have a wonderful ‘Ofsted Celebration Day’ on 2 April.




UK grows faster in January

The UK economy grew faster in January, and is now growing faster than the Euro area, France, Germany and Italy. Thanks to Brexit!

The latest annual figures for the main advanced economies shows tax cutting USA way out ahead with 3.1% gr0wth in  2018, the UK at 1.3%, France at 0.9%, Germany at 0.6% and Japan at 0.3%. Italy has spent the last half year in recession.




The interpretative statements

If these new texts change something, then why isn’t  that  reflected in a changed text for the Withdrawal Agreement?

I have not had a reply to my letter to the Attorney General about the other aspects of the Agreement which concern me, and received no good answer when I raised these points last night following the government Statement.  Parliament should be shown the legal advice on EU determination of the payments under the Agreement, the role of the ECJ in disputes and the capability of the EU to legislate against UK interests throughout the negotiation period or so called transition.