Deficit reduction plan is too modest

Mark Littlewood writes for The Guardian

The chancellor needs to create the fiscal room for substantial and meaningful tax cuts. His deficit reduction plan is veering worryingly off course not because it is too radical, but because it is too modest.

He needs to reduce public spending further to allow the basic income tax threshold to be raised to about £12,000, to ensure the 40p rate does not apply to those on middling incomes and to abolish the 45p additional rate altogether.

Tobacco and alcohol duties, which hit the poor disproportionately, should be frozen or reduced. Sadly, we are likely to be presented with an unimaginative and insignificant budget, which will do little to promote the economic growth the UK so badly needs.

Read the full article here.

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