Latest news with #economicstrategy
Daily Mail
4 days ago
- Business
- Daily Mail
'Mistakes, rookie errors'- Former BoE chief economist Andy Haldane slams Rachel Reeves's budget: MAGGIE PAGANO
The verdict was devastating: 'There's been mistakes, rookie errors. The black hole announcement sucked the confidence from business and consumers. The Budget compounded that felony. It's not been the sort of thing we need to get the animal spirits in the country going and, therefore, the country growing.' The criticism of Labour's economic strategy is all the more powerful coming from Andy Haldane, the former chief economist of the Bank of England, who knows a thing or two about what's happening in the weeds of the country. More pertinently, Haldane also knows the impact that his excoriating critique of Rachel Reeves will have on economic sentiment and the financial markets. He's never been one to mince words – his speeches while at the Bank were not only entertaining but as sharp as a razor and always on the money. Luckily, Haldane – potentially the best governor of the Bank we never had – hasn't lost his touch one jot. In fact, the once chief executive of the Royal Society of Arts seems to be running in top gear as his LBC radio interview yesterday showed so vividly. You could almost hear the sucking of cheeks when saying: 'It's been a disappointing almost 12 months. I think everyone would say that. 'Business would plainly say that. The City would say that. Citizens would say that. I think back benches would say that.' And so say all of us. When asked if Reeves is doing enough to encourage growth, Haldane replied starkly: 'Not even close.' His precise words are worth repeating: 'To be clear, by growth I don't mean something as arid as GDP. I mean people's living standards, people's sense of things getting better in their community.' Yet Haldane holds out some crumbs of comfort if Reeves changes tack, particularly now the economy is slightly perkier. The many policy mistakes – such as the winter fuel allowance – should be corrected to avoid making a bad situation worse. Even the latest small rise in defence spending won't have much impact; a few jobs outside of the South East but not enough to get growth going. Yet if the Government were to increase defence spending to 3 per cent – if not 3.5 per cent – Haldane says, then Reeves could find the money to do so as the growth dividend from such a rocket boost would pay for the extra borrowing. Surprisingly, Haldane doesn't diss Nigel Farage's latest economic forecasts. He agrees with the Reform UK leader's plans to remove the two-child cap on benefits and new policies to attract more foreign capital and talent to the country – fundamental to growth. Counterintuitively, he wants politicians to go bigger, bolder and come up with a credible plan with money and words behind it. 'Go big and go bold or go home.' Quite. He criticises them all, arguing that initiative after initiative over decades have all been sub-scale and failed to trigger growth. How right he is. And unusually for an economist, he's ahead of the curve. Back in June 2021, he predicted that inflation was rising fast – less than a week after the Bank dismissed inflation as transitory. More recently, he's been in favour of faster interest rate cuts. What are Farage and Kemi Badenoch waiting for? They should be racing against each other to persuade Haldane to help come up with such a plan. In return, they could dangle the top job at the Old Lady. Machin's worth it There are two sorts of companies: those that have suffered a cyber attack and those that don't know they have suffered a cyber attack. That's the reality. Which is why any suggestion that Stuart Machin, chief executive of Marks & Spencer, doesn't deserve his latest £7.1million pay package because of the recent cyber-hack is way off beam. Machin's pay deal – which includes fixed pay and pensions of less than £1million – is based mainly on long-term bonuses, and most of it won't be paid out for at least two years. It also relates to the year before the attack paralysed M&S's online sales. Over that time, shares rose by a fifth and the retailer continued to up its game. He deserves every penny.
Globe and Mail
30-05-2025
- Business
- Globe and Mail
Letters to the editor, May 30: ‘If the price of my house stabilizes or even falls, I'll be delighted'
Re 'Throne Speech pledge to find public-service savings alarms labour leaders' (May 28): Mark Carney was elected as Prime Minister in large part because of the perception he has the skills and experience to lead Canada through the difficult economic times ahead. Before the ink was even dry on the throne speech, some labour leaders have expressed concerns over his proposal to find savings in the public service. He hopes to balance the operating budget by cutting waste, capping the public service, ending duplication and deploying technology, all in an effort to improve productivity. There are no proposals for massive layoffs or indiscriminate firings, as we have witnessed with DOGE and Elon Musk to the south. All I can say is give Mark Carney some slack to come up with a successful overall economic strategy before condemning individual policies. Michael Gilman Toronto Re 'Canadian Medical Association to file legal challenge over Alberta law limiting access to treatment for transgender youth' (May 28): This is not the first time the Alberta government has interfered with the doctor-patient relationship. Several years ago, it directed what could or could not be prescribed to another vulnerable group: drug users. Had the Canadian Medical Association stepped in at that point, perhaps the United Conservative Party would have stopped there. But now: Which vulnerable group is next? Robyn Kalda Toronto Re 'To make housing more affordable, drop the tax hammer on real estate investors' (Report on Business, May 27): The housing crisis should have been seen as an example of expecting too much from the housing market. Markets rely on supply and demand to determine price. Those who need housing must be able to pay market price. This is how markets work, so why do we expect it to provide any form of housing to those who can't afford to buy or rent? Governments should accept that it is their responsibility to provide for basic needs beyond one's capacity to pay, through regulations and by devoting resources exclusively to non-market housing. There are a great many ways to successfully integrate public and co-operative housing into neighbourhoods. The private sector would build them all, and make profit doing so, but never collect rent or profit once built. Bill Jennings Kingston Houses as investments have made prices skyrocket. Tax breaks for these owners now feel like obscenities: We should end write-offs for mortgage interest and fully tax capital gains. Investors own roughly one-quarter of houses in Canada. They have been the keenest buyers, driving prices up and up and up. I am in my 70s and, like so many boomers, entered the housing market back when houses were reasonably priced. If the price of my house stabilizes or even falls, I'll be delighted. I want the next generation to have the opportunity I had to own a house. Houses should be for living in, not juicy investments. Jack Hanna Ottawa In the 41 years that I have owned my house, by my calculations, prices in my area have increased an average of about 6.5 per cent a year, while wage growth has averaged much less. Until those curves converge or, better still, cross, I don't understand how the problem will be solved. William Love Burlington, Ont. Re 'Corporate property owners fueling housing rent increases in Toronto' (Report on Business, May 21): The vast majority of Ontario rental units are subject to rent control, with rent increases tightly regulated. Recent reports – even from our members – show that rents in some areas, including the Greater Toronto Area, have begun to decrease, showing market forces at work: Supply and demand, not individual providers, set rental prices. While valid concerns about affordability are raised, it's vital to recognize the role all rental housing providers play in meeting demand for quality homes. Focusing solely on real estate investment trusts or institutional owners overlooks the broader reality: Market dynamics drive price fluctuations, not business models. Addressing affordability requires an all-hands-on-deck approach by all levels of government. Streamlining approvals, reducing costs and supporting investment will help bring more housing to market. Blaming professional housing providers distracts from the real, collective action needed for lasting solutions. Tony Irwin President and CEO, Rental Housing Canada; Toronto Re 'Public good' (Letters, May 22): A letter-writer advises that 'we who contribute gladly to medical training should have a significant role in dictating how doctors are paid.' One could substitute any number of professions here: lawyers, veterinarians, accountants, architects, engineers, to name a few. Members of these other professions have multiple options for remuneration in their careers. They may have private practices; they may bill government; they may work in either private industry or government for a salary; they may do contract work, etc. All of this liberty, despite the public purse funding a significant percentage of their education costs. Why single out the medical profession with this type of medieval criticism? Anyone who has received a postsecondary education in this country has benefited from government underwriting a significant percentage of that education. This idea is an extremely old chestnut, long past its best-before date, and should be put to bed. K. M. Peckan MD; Waterloo, Ont. Re 'Sir John A. Macdonald statue to be uncovered at Queen's Park, sparking new tensions with First Nations' (May 28): I was disappointed to see that some opponents of uncovering the statue of Sir John A. Macdonald are warning that further vandalizing or even toppling could follow. Those genuinely seeking reconciliation should recognize that it is a two-way street. Macdonald's faults have been acknowledged, but then so have his enormous achievements, not least his role in the creation of the country we love and enjoy today. Can we not find a way to have these perspectives peacefully co-exist? A wise poet once observed that 'to err is human, to forgive divine.' Scott James Toronto While, like all of us, Sir John A. Macdonald had his flaws, he was a great man and the founder of this fine country. Let us move resolutely from self-flagellation to taking pride in our history. Biff Matthews Toronto There is no doubt that Sir John A. Macdonald drank too much and his views of Indigenous people were at odds with today's opinions. Still, he is the father of our country and deserves perpetual recognition for that. If we need a police officer there 24/7, it would be worth it to see him again. A. P. Bell Toronto Letters to the Editor should be exclusive to The Globe and Mail. Include your name, address and daytime phone number. Keep letters to 150 words or fewer. Letters may be edited for length and clarity. To submit a letter by e-mail, click here: letters@
Telegraph
25-05-2025
- Business
- Telegraph
Rayner: I never want to be Labour leader
Angela Rayner has insisted she 'never' wants to be leader of the Labour Party. The revelation that Ms Rayner sent a secret memo to Rachel Reeves, the Chancellor, pressing for tax rises instead of spending cuts has triggered a firestorm in Westminster. The memo, seen by The Telegraph, was submitted in mid-March before Ms Reeves unveiled her Spring Statement on March 26. Ten proposals were made: eight tax rises and two benefit changes. Asked by Sky News if Ms Rayner leaked the memo herself as a 'kind of mini manifesto', Ms Rayner said: 'Absolutely not. And I don't want to be leader of the Labour Party. I'm very happy and honoured. 'I'm very happy and honoured to be Deputy Prime Minister's country. And I've got a lot in my in-tray to prove that I can do the job that I'm doing and deliver on the milestones for people in this country. That's what I'm interested in.' Pressed on her lack of leadership intentions, Ms Rayner said: ''I have no desire to go for the leadership of the Labour Party. My desire is to deliver for the people of this country who have given me opportunities beyond what I could have dreamed of.' The leaked memo revealed a split at the very top of Government on economic strategy. Ms Reeves ignored the proposals for her Spring Statement, but it is yet to be seen what makes her Autumn Budget.
Yahoo
24-05-2025
- Business
- Yahoo
The Plan to Dismantle the IRS Is Already in Motion, Says Former CIA Insider
New federal strategy could shift tax burden away from citizens—and tap into buried national wealth BALTIMORE, May 24, 2025 (GLOBE NEWSWIRE) -- After more than a century of collecting wages from American workers, the Internal Revenue Service may soon be facing extinction. That's the claim from Jim Rickards, a former CIA advisor and legal strategist to the White House and U.S. Treasury. According to Rickards, the plan centers around a three-part strategy: Eliminate income taxes for the middle class Redirect revenue through tariffs on foreign imports Monetize the $150 trillion worth of mineral wealth locked beneath U.S. soil America's Middle Class May Finally Be Off the Hook The proposal—now being shaped by Trump's economic team—would end federal taxes on wages, tips, and Social Security for Americans earning under $150,000 per year. And according to Howard Lutnick, Trump's Commerce Secretary, the goal couldn't be clearer: 'Presidents' goal is very simple. To abolish the Internal Revenue Service and let all the outsiders pay.' Instead of taxing everyday Americans, the government would collect from international trade. But what no one has said yet is the potential Rickards sees in resource royalties—particularly from vast, untouched deposits on federal land. The Untapped Treasury Beneath Our Feet Rickards ties the feasibility of the plan to a recent legal shift: the 2024 Supreme Court decision that overturned the Chevron Doctrine. That ruling stripped federal agencies of their ability to block resource development—unlocking what Rickards calls America's 'forgotten reserve.' 'This is real, physical wealth,' he explains. 'Copper, lithium, uranium—enough to fuel A.I., energy, defense, and wipe out the national deficit.' Estimates value these assets at $150 trillion, with documented concentrations including: $3.1 trillion in Nome, Alaska $7.35 trillion in Midland, Texas $516 billion near the Salton Sea Rickards outlines the full implications in a new briefing The American Birthright, which connects the Supreme Court ruling, the mineral reserve, and a plan to replace income tax with a sovereign wealth strategy. About Jim Rickards Jim Rickards is a former legal and economic advisor to the CIA, Pentagon, and U.S. Treasury. He now serves as editor of Strategic Intelligence, a financial and geopolitical research service focused on American economic resilience and wealth protection. Media Contact:Derek WarrenPublic Relations ManagerParadigm Press GroupEmail: dwarren@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
22-05-2025
- Business
- Telegraph
Angela Rayner's leaked memo: read in full
The revelation that Angela Rayner sent a secret memo to Rachel Reeves pressing for tax rises instead of spending cuts has triggered a firestorm in Westminster. Here, The Telegraph publishes the note in full, allowing readers to see all the details of what was being proposed by the Deputy Prime Minister behind closed doors. The memo was submitted in mid-March before Ms Reeves, the Chancellor, unveiled her Spring Statement on March 26. Ten proposals are made: eight tax rises and two benefit changes. It reveals a split at the very top of Government on economic strategy. Ms Reeves ignored the proposals for her Spring Statement, but it is yet to be seen what makes her Autumn Budget. ALTERNATIVE PROPOSALS FOR RAISING REVENUE This note sets out ten proposals that would be popular, prudent, and would not raise taxes on working people. There are also some more radical and new proposals that may be more difficult to implement and/or contentious - but which would be worthy of careful consideration: 1. Raise the bank surcharge to 5% ● When corporation tax increased in April 2023, the previous Chancellor cut the banking surcharge paid by banks on profits from 8% to 3% as an offsetting measure. Reinstating the surcharge at 8% could be worth £1.5bn a year, based on the OBR forecasts from the time of the cut, though clearly this could create competitiveness risks. However, even a smaller increase of the surcharge to 5% could still raise £500-700m a year and only take the rate of tax paid by banks on their profits back to the 2008 levels of c.30%. 2. Remove Inheritance Tax (IHT) Relief for AIM Shares completely ● Shares designated as 'not listed' (notably AIM shares) receive 50% relief (reduced from 100% relief at Autumn Budget). Removing the relief completely for AIM shares could raise between £100m-1 billion per year. External tax expert, Dan Neidle, argued in favour of such a change, saying, 'AIM yields are currently depressed by market valuations driven by the tax benefit, not fundamentals. This is an unhealthy state for any market to be in.' 3. Remove the dividend allowance ● Tax is not paid on dividend income that falls within your income tax Personal Allowance. There is also a £500 dividend allowance each year. You only pay tax on any dividend income above this. It was reduced from £2,000 to £500 over the past few years but removing it altogether would be worth £325 million a year, according to HMRC data. 4. Freeze the additional rate income tax threshold ● The additional rate of income tax (45%) applies to income above £125,140. The Chancellor has announced that income tax thresholds will remain frozen until 2028 before being uprated. Continuing to freeze the additional rate threshold in cash terms rather than uprating it with inflation from April 2028 could raise revenue and would be consistent with the manifesto. 5. Annual Tax on Enveloped Dwellings. ● The Annual Tax on Enveloped Dwellings could be increased. Our main arguments to increase this tax are that (i) we are leaving money on the table by setting it too low, potentially c.100-200m a year; and (ii) the people who pay it are nearly exclusively living in big homes in exclusive London postcodes (over 8 in 10 are in London and over 7 in 10 in Westminster or Kensington and Chelsea). 6. Close the commercial property stamp duty loophole ● Stamp duty on commercial property purchases is up to 5% - but a lot of transactions place the property in an offshore company and sell the shares in the company, in order to pay no stamp duty. This is an obvious loophole, impossible to explain to the public, and external experts estimate closing it could raise up to £1 billion a year from the commercial property market. 7. Move higher and additional rate Dividend Taxes closer to Income Tax: ● Both the higher and additional rates of dividend taxes are set lower than income tax - Higher rate: 33.75% (vs. 40%); and (iii) Additional rate: 39.35% (vs. 45%). Whilst HMT would need to consider the implications for investment, it is worth considering whether closing this gap could raise significant income and provide a logical alignment of the tax system. 8. Reinstate a pensions lifetime allowance: ● In March 2023, then Chancellor Jeremy Hunt announced the abolition of the pensions lifetime allowance. The lifetime allowance was a limit on the total value an individual's private pensions could reach before high tax rates were applied. One option would simply be to reinstate the lifetime allowance at around its previous level of £1,073,100. Costing such a reform is difficult, but given that the OBR's assessment was that abolishing the allowance cost £800 million a year, reversing it might be expected to raise almost as much. Another option would be new higher lifetime allowance, for example the last Labour government set the lifetime allowance at £1.8 million in April 2010, although that would raise less than the 800m. Two additional proposals are worth potential consideration but would be more contentious, and potentially take longer to deliver or implement: 9. Reverse the changes to the High Income Child Benefit charge. ● High Income Child Benefit Charge provides for Child Benefit to be clawed back through the tax system from families where the highest earner has an income above a set threshold. At Spring Budget 2024, the previous government increased the threshold from £50,000 to £60,000 and made changes to the taper rate - as a result the system was made more generous to families, with their child benefit only withdrawn completely when their income reaches £80,000. These two changes were forecast to cost c.600m a year, which could be saved if they were reversed on the grounds that they added to the welfare budget without being properly funded. 10. Tighten migrant access to the welfare system: ● Migrants who have spent 5-10 years in the UK generally receive access to a broad range of welfare entitlements. Indefinite leave to remain in the UK confers access to core welfare entitlements such as Universal Credit, and 10 years of National Insurance contributions confers eligibility for some state pension provision. Those who arrived in the UK during the period of very high immigration in the past few years will become eligible for indefinite leave to remain over the course of this Parliament. ● The Spring Statement could announce a review of entitlements with a target saving to be delivered in time for the Spending Review or Autumn Budget, and include Universal Credit and state pension entitlements. The review could also consider whether further rises in the Immigration Health Surcharge should be implemented (currently set at £1,035 and raising c£1.7bn a year). DHSC figures shows that this only just covers the estimated average annual cost of treating migrant patients.
