New start

Dominic Thomas
August 2024  •  2 min read

New start?

Do I dare ‘get political’ and risk offending you? Assuming you have pretty thick skin and are not easily offended … I’m going to proceed.  I’m rather glad to see the back of the last Government. I appreciate that many people believe the narrative that Conservative governments are good at managing the national finances and Labour governments are not, however I don’t see any evidence to support this over the last 14 years or so.

In practice we saw a Conservative government launch a half-baked referendum on leaving the EU and ending our working relationship. Sure the EU has its faults, but not a single proponent had any real idea or plan for non-membership other than some rather Victorian notions of empire. I’m not sure that anyone could be worse than the collection of PMs that we have had over the last 14 years, who largely seem to be self-serving and unable to convey any vision.

So we have a new PM and Chancellor, the first female Chancellor in English history. It’s probably fair to say that this Labour leadership are right-leaning centrists and appear eager to reassure the public that they can handle our finances wisely, with economic growth being obviously important. We will see how this shapes up in practice.

Public spending can only really happen with public money, which is of course taxation and loans (Government debt). It is of course divisive political opinion about whether Government debt used to fund public spending creates wealth. On the one hand, better infrastructure and a healthy, educated workforce generate the conditions for growth and therefore more tax collected; on the other hand, debt needs to be repaid and the matter of how much and how quickly is of course the domain of spin doctors to suit your chosen narrative. Practically, we know on a personal level that spending more than you earn and building debt isn’t a great idea, but then this is public money – personal overspending is generally about consumption not investment into the hardwiring of our system (which is quite a different matter).

The truth is that life and politics are nuanced. Rarely is anything simple or either/or. All of us now have a refreshed understanding of inflation and for me, this is probably the more important element of the economics. Every year brings new challenges and we are undoubtedly at a watershed moment in technological advancement, perhaps the degree of change is as it ever was – overestimated in the short term with its impact underestimated in the long term.

We shall see how Mr Starmer handles the pressure compared to his predecessors.

New start2024-08-02T17:28:14+01:00

The Autumn Statement – the Ghost of Christmas Past

Dominic Thomas
Nov 2023  •  2 min read

The Autumn Statement – the Ghost of Christmas Past

We are in the closing weeks of the year. Our thoughts turn to Christmas celebrations and perhaps looking ahead to the New Year. The familiarity of our traditions poses a challenge to attempts to change them, yet even the harshest of men, Mr Scrooge, managed to pay attention to what is important and change his behaviour.

I don’t think it is contentious to say that the Conservatives are a party of tax cutting and yet we currently have one of the highest rates of personal taxes in the main economies. Few of us enjoy paying taxes, perhaps because often it seems that our hard-earned money is wasted on expensive ideas and ‘kit’ that doesn’t work very well at all … anyone tried the NHS IT system or indeed any ‘converting to digital’ Governmental system, let alone the military’s ability to spend a fortune on malfunctioning weaponry to cite just a couple of examples. We all have opinions. (As an aside the Power of Attorney system is going digital in 2024, so I urge you to sort yours before they muck it up and make the backlog even longer).

The Conservatives came to power in May 2010, admittedly with the assistance of the LibDems, but then we have had an entire mess of Government ever since.

According to Jeremy Paxton in 2018, David Cameron was the worst Prime Minister since Eden:

“[He] got to the top of a tree in order to set it on fire and cleared off, put the interests of his party before the country and decided to have this referendum, believed one thing was the only right outcome for the country, didn’t campaign for it, got the opposite outcome and XXX off. It doesn’t seem like leadership to me”.

Given the PMs we have had since 2018, Cameron might actually look a lot better, the bar seems woefully low, anyway, for now Cameron is back, this time as Foreign Secretary.

The backdrop of a Covid enquiry which merely proves what most of us thought, that Mr Johnson is an unreliable character (I am being polite), we have the prospect of an election looming by the end of January 2025. The Labour party seems set on sabotage and the plethora of political open goals being squandered is lamentable. The traditional approach of appealing to the notion “everyone has their price” is in the hands of the Chancellor, who is being tempted to cut taxes now that inflation appears to be returning to a more comfortable figure (4.7% October 2023 ONS).

Which of us doesn’t want to pay less tax? In an environment of rising prices, seeing your net pay remain pitifully stagnant is irksome. Yet we also know that tax pays to keep society running in some vaguely civil way. We can all find things to disagree with, it’s almost a rite of passage into a fifth decade. It’s clear that ‘the system’ doesn’t work for all, and indeed seems to generally work best for the few. The sadness is that there seems to be so few alternatives to the binary choices we have here in the UK; stuck in traditions that don’t work for the good of the country. Creativity and visionary leadership remain sadly elusive.

There was a time when the economy was thought about as a way of serving society, yet here in 2023 we are evidently a society that is serving the economy. There is no good reason why this cannot change, and despite experience, I remain an optimist in a sufficient number of decent people.

For the record, I have no intention of offending your political beliefs, but I do think we all deserve rather better than we have had. On 22 November 2023 we shall get further notice …

The Autumn Statement – the Ghost of Christmas Past2025-01-23T10:49:36+00:00
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