Sunak summer budget doesn’t seem to have impressed too many economists.
At a practical level, the measures to try and encourage people to spend in ailing businesses like entertainment don’t appear attractive enough to provide the stimulation he says is needed. A £10 voucher is what most people can download every time they go out to eat anyway.
I suspect that the reduction in VAT will not be passed onto the customer, but used to prop up a failing business, so the business may totter on for a bit longe4 but won’t attract more custom because of lower prices.
Stamp duty holiday. This represents a considerable saving particularly for the first time buyer, but I think the main reason for the slow down in the housing market is uncertainty over jobs and redundancies already made. No amount of stamp duty holidays will solve that problem.
Home improvements in the form of grants towards home insulation. Two birds with one stone here. Help towards the UK emissions target and help for the construction industry.
I am sure that this will prove a winner, particularly if the poorest households get 100% grant, although I’m unclear whether this is going to happen. There have been a number of these sorts of initiatives over the years, but they always seem to Peter out after a while.
All in all, I think that there is nothing to disagree with the thrust of Sunak ambition, but imo it isn’t ambitious enough.
The U.K. is in for the perfect storm during the beginning of next year and needs far more ambitious plans than those put forward by this government.
This is where a “new deal” in all its ambitious glory would have saved the UK.
Once again headlines by this government fall far short of reality.