Headroom is no room
So the Chancellor now has more “headroom”, just because the new financial year is upon us. Since the Chancellor sets a five year target for borrowing as the years roll by he gets another 5 years to bring borrowing down, meaning technically he now has more room for manoeuvre.
This is a purely technical feature of the tax system and as the IFS points out just about the last thing any responsible Chancellor would do would be to splurge it on tax cuts.
So we can happily expect another round of tax cuts, just before the election. despite the fact that everything from the roads, to the NHS and defence are in desperate need of more spending.
For the Tories this has a double benefit, they expect grateful voters to forget the NHS and vote for them because of unaffordable tax cuts and they also get to spend all the money before Labour get into power.
There seems there is always room for shameless, damaging, dangerous cynical, party political advantage for the Tories, when it comes to the nation’s finance, health and defence.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media
Always thought Hunt was the ultimate Slov