Responding to Chancellor Jeremy Hunt’s Autumn Statement,
Mark Littlewood, Director General at free market think tank the
Institute of Economic Affairs, said:
“The Autumn statement is a step in the right direction towards
lower taxes and economic growth, but not a leap.
“The introduction of permanent 'full expensing' will encourage
businesses to invest in buildings, structures and equipment. The
110 supply side reforms, encompassing benefits, financial
services and planning, will help boost growth. Cuts to national
insurance return a substantial sum to the pockets of the average
worker.
“Nonetheless, amidst the rhetoric about tax reductions, this
government is presiding over one of the heaviest tax burdens in
the past seven decades. The frozen income tax thresholds amount
to a stealth tax increase of around £40 billion annually by some
estimates. The Chancellor is essentially taking with one hand and
giving back with another.
“There was also shockingly little about reducing government
spending. The splashing of taxpayer cash for frivolous purposes,
like on the Hay Festival, is hardly fiscally responsible. The
rapid increase in the minimum wage risks businesses cutting jobs
and hours of some of the most vulnerable workers, including those
with less skills and the young.
“There is far more work to be done to reduce the tax burden,
decrease spending, cut red tape, and reform public services."
