Recorded on September 27 2022.

 

Kwasi Kwarteng's fiscal announcement has caused quite the storm, with the removal of the 45p rate of income tax and abolition of the cap on bankers' bonuses drawing mixed reviews.

The Chancellor's bold tax cuts have sent shockwaves through the foreign exchange market, causing the pound to slump to record lows.

However, the question remains, will these reforms bring about long term growth rates of 2.5%?

In this episode of the IEA podcast, IEA Head of Public Policy Matthew Lesh sits down with Tom Clougherty, Head of Tax at the Centre for Policy Studies, to answer this question.