National Insurance Increases to Backfire on Brits
"[W]e're seeing wholesale changes in the way that the economy is working", Crowther says. "So, we're seeing changes in COVID. The market is starting to increase to get an improved market in terms of earnings, that's actually still very early. Yet we've got a lot of people with money saved up in bank accounts throughout the COVID period. So, quite naturally, what's happening now is people want to spend that money, but the products and services available to spend it on are not yet at full capacity. So, what that's doing is increasing inflation".
What Options Does the BoJo Gov't Have?
"Naturally, the only way to fulfil all the initiatives are significant increases in taxation, along with cutting back on programmes, though what the cutbacks would be is a challenging issue", believes Sheheryar Banuri. "Nevertheless, it seems clear that there are significant difficulties ahead, and can really only be dealt with by a combination of increasing taxation, cutting spending and programmes, and structural reforms".