Election 2010: Crystal ball time for tax policy
The election result remains unclear but regardless of the final result, there will be tax increases predicts Simon Sweetman.
So, at this point in time (Friday morning), as the Lib Dem dream melts away like it always does, it looks like we will see a Cameron government with a less than overall majority. What can we expect?
Michael Portillo recently said this:
"I suspect at the end of the day there will be a lot less cutting than politicians are saying right now and a lot more tax increasing that politicians are also saying right now. And that’s simply because cutting is very, very hard. It’s only been done twice, after the first and second world wars, and unless the state of sterling requires it I can’t see it happening again now".
He is, of course, right. Cutting public expenditure is not only very hard but all the parties rely on “efficiency savings” that they know cannot be realised. Some of them may also realise that big cuts in public expenditure now will plunge us into the dreaded double dip....