The UK Labour party has struggled to forge a recovery for the beleaguered economy. Rachel Reeves is intent on reducing the government deficit. Her first attempt involved increasing the National Insurance contributions made by businesses – in effect, raising a payrolls tax. In short, a reason for companies unsure about recruiting in a slow growth economy to err on the side of caution. Now, there’s talk of tax rises. Steve and phil talk about the impact on growth of added more to the consumer’s tax burden, and the impact it’ll have on money in circulation. Then there’s the confusing idea of increasing savings as though that’ll drive investment which will add to economic growth. That might be the case if the money was invested in new businesses, rather than inflating share prices and other financial instruments, which all deflect money from the real economy.

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