The Rest Is Money 106. How Much Pain Is Rachel Reeves Inflicting?
Oct 31, 2024
The podcast dives into the potential harsh effects of recent budget changes on small and medium businesses. It questions whether the tax increases will significantly burden working people and scrutinizes the Office for Budget Responsibility's projections on economic growth. The discussion further unfolds the dynamics of political accountability in fiscal policies and highlights a major financial shortfall linked to past governance. Special focus is also given to how national insurance impacts public sector wages and investment strategies, raising concerns about sustainability.
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First Female Chancellor
- Steph McGovern felt emotional seeing Rachel Reeves deliver the budget.
- It was a significant moment for women as Reeves is the first female chancellor.
Risky Budget
- The budget includes the biggest tax rises in recent times and a significant increase in public expenditure.
- This stimulus will likely lead to higher inflation and higher interest rates for longer.
Business Tax Burden
- Businesses are shouldering most of the tax burden, including increased employer's national insurance contributions and capital gains tax.
- HMRC's limited capacity influenced the decision to avoid more complex capital gains tax reforms.