The Guardian's got advice for Rachel Reeves. It's presented as a speech.
https://www.theguardian.com/commentisfr ... really-say
we’ll levy a modest charge on financial trades that enrich the few but not the many.
I've never really got this. Lots of things enrich the few, but we don't put special taxes on them. Can't we just tax the income of the said few? As far as I know, most people who do these trades are taxed in normal ways.
I want to thank the Bank of England’s governor and the monetary policy committee for the work they have done. But independence must never mean isolation. So today we are establishing a new Bank concordat, ensuring that the pace of quantitative tightening and debt issuance is in the public interest. If the economy operates below its potential, the Bank’s current duty to support the government’s economic policy will stand alongside its duty to maintain price stability. That is not politicisation – it is partnership in service of the common good.
Politicization is in the eye of the beholder, but this sounds like quite a big change to independence. Would there not be a market reaction against that?
Productivity comes from steady demand, investment and decent work. So we will pilot a regional job guarantee, offering jobs to all at a living wage in local green and care projects – rebuilding communities, securing incomes and achieving stability through full employment. In a volatile world, Britain cannot build its future on imported growth. Our new Agency for Public Investment will back homegrown industry and enterprise so that value and jobs stay here, not overseas.
What does this mean? State owned solar panel factories, making solar panels at far more than they cost to import? Net Zero is expensive enough already. "Make this ourselves, solve unemployment" sounds like clever joined up government, but it's like saying British Rail could save money if it baked its own pies. In terms of extra investment in places that need it, I don't get what's wrong with standard stuff like fixing up the roads and high street.
To those who cry “too much borrowing”, I say this: we’ve paid billions to banks for money we created during quantitative easing. That waste ends today. The Bank will adopt a tiered-reserve system, saving taxpayers £20bn a year. This will help to end austerity and fund public services
She ended austerity in the first budget, why would she say this? The rest of it is a Dicky Tice politics. The money paid to banks on interest isn't free money for them- the bank's money comes from people putting money in banks, and those people need to be paid interest. This isn't money that can be taken without knock on effects.
I fear any attempt at spending a lot more money with nobody like us paying more tax aren't going to work.
- By Youngian