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Reform/Farage - economic policies don’t add up.

(297 Posts)
Wyllow3 Tue 18-Jun-24 13:50:18

The Institute for Fiscal Studies thinktank has published its assessment of Reform UK's tax and spending plans and it says they “don't add up”. And they are not just relatively unrealistic, it says. It says the costings are out “by a margin of tens of billions of pounds per year

details:

Reform UK proposes tax cuts that it estimates would cost nearly £90bn per year, and spending increases of £50bn per year.

It claims that it would pay for these through £150bn per year of reductions in other spending, covering public services, debt interest and working-age benefits.

This would represent a big cut to the size of the state. Regardless of the pros and cons of shrinking the state, or of any of their specific measures, the package as a whole is problematic.

Spending reductions would save less than stated,

and the tax cuts would cost more than stated, by a margin of tens of billions of pounds per year.

Meanwhile the spending increases would cost more than stated if they are to achieve their objectives …

Even with the extremely optimistic assumptions about how much economic growth would increase, the sums in this manifesto do not add up. Whilst Reform’s manifesto gives a clear sense of priority, a government could only implement parts of this package, or would need to find other ways to help pay for it, which would mean losers not specified.

petra Fri 21-Jun-24 17:27:07

MaizieD

petra

Sorry, that link isn’t the one, either.

Thanks for trying, petra Your first link sort of worked on my laptop, but I couldn't find the video. However, I found some of his earlier views of the BoE and they agreed more or less with people I follow. grin

I thought they would. I always read your posts relating to finance. Your replies are written in words of one syllable that I can understand.
Im not very good at numbers but I know how many beans make 5.

Amalegra Sat 22-Jun-24 11:22:01

Like Reform or not, they are tapping into a stream of anger in the electorate that is not being addressed by any of the other parties. Of course they will not form a government and it is unlikely that they will get many MPs due to our electoral system. What they are doing is shaking up the neo liberal establishment which, let’s face it, hasn’t brought this country to a very good place. It will be interesting to see what happens. The political landscape is certainly overdue for change, isn’t it?

MaizieD Sat 22-Jun-24 11:34:39

It's my impression, Amalegra that Farage created that anger way back during his anti EU days and is now feeding it for all that it's worth. He sets up straw men to feed the anger. Straw men like this 'neoliberal establishment' . What on earth is that when it's at home?

ReadyMeals Sat 22-Jun-24 11:42:52

For the past several years I have been in despair at the push to cut taxes. I want our country to have a good health service, good state schools and plenty of social housing for those who need it. And I want well resourced armed forces. I want everyone over a reasonable income level to pay a little more to create a country we can all be proud of.

Wyllow3 Sat 22-Jun-24 11:49:22

MaizieD

It's my impression, Amalegra that Farage created that anger way back during his anti EU days and is now feeding it for all that it's worth. He sets up straw men to feed the anger. Straw men like this 'neoliberal establishment' . What on earth is that when it's at home?

Yes, what on earth is this "neoliberal establishment?" please?

Germanshepherdsmum Sat 22-Jun-24 11:52:57

Just ‘a little more’, ReadyMeals? More like a lot more I think.

ninamoore Sat 22-Jun-24 11:53:32

Can’t believe anyone with a caring attitude would vote for this Gammon. He supports Andrew Tate for one. Please don’t associate yourself with Farage until you’ve done your research.

Annma Sat 22-Jun-24 11:58:52

Of course Reform policies don’t add up, the party exists to put a spanner in the works and sew dissent and hate.The BBC and right wing press made Farage and his Nazi mates seem respectable.He is constantly on television and when properly challenged on any issue it comes down to immigration every time.It is astounding that so many people are taken in by his awful policies.My husband was in hospital recently and a good proportion ofthe medical staff were from abroad, and they were great.The NHS would collapse without these people..

Plunger Sat 22-Jun-24 12:06:25

No parties promises add up. Where are these dentists, doctors, nurses, teachers, houses etc going to magically appear from. Who ever forms a government will quickly back track and blame the proceeding one. It won't be just this time but happens with every change of party in power.

undines Sat 22-Jun-24 12:14:29

Who funds the Institute of Fiscal Studies Think Tank? Beware, oh! beware of vested interests.
Not saying I support Reform, just saying....

leeds22 Sat 22-Jun-24 12:18:43

We have a Reform and Brexit supporting 'friend' who thinks Rishi is a socialist and proudly announced that he will be helping Reform distribute leaflets, etc. Quite frankly, neither of us want to be anywhere near him at the moment. Is Farage's aim to split the Tory vote, help Labour to a landslide and then offer himself as the saviour of the Conservatives? Any mention of Farage and Reform depresses me.

MayBee70 Sat 22-Jun-24 12:28:49

Plunger

No parties promises add up. Where are these dentists, doctors, nurses, teachers, houses etc going to magically appear from. Who ever forms a government will quickly back track and blame the proceeding one. It won't be just this time but happens with every change of party in power.

Actually there was a news item on Ch4 news last night that said there were many (I can’t remember the exact figure) locum doctors who are desperate to work but can’t find employment. And my daughter wants to get back into teaching if schools have proper funding again. Class sizes, lack of resources etc drove her out of teaching a few years ago. Of course, we did lose a lot of NHS staff from the EU because of the elephant in the room that is Brexit but a better working relationship with our closest neighbours will help that.

cc Sat 22-Jun-24 12:39:17

Germanshepherdsmum

They won’t be in government anyway.

My only concern is that is they do have MP's elected they may form part of a government in the event of some kind of coalition of our current opposition parties. Hopefully their number of members will be small enough to avoid them having any influence on policy.

MaizieD Sat 22-Jun-24 12:42:42

cc

Germanshepherdsmum

They won’t be in government anyway.

My only concern is that is they do have MP's elected they may form part of a government in the event of some kind of coalition of our current opposition parties. Hopefully their number of members will be small enough to avoid them having any influence on policy.

I don't think that any of the current parties not in power would have anything to do with Reform. Apart, perhaps, from the DUP, who also want to turn the clock back to a non existent golden age...

MayBee70 Sat 22-Jun-24 14:40:48

Not being in government still doesn’t mean they won’t be dangerous because they get inside peoples minds and cause division.

MaizieD Sat 22-Jun-24 15:10:59

I agree, MayBee. But have they achieved peak division yet? Do you think there is more to come?

MayBee70 Sat 22-Jun-24 15:54:00

MaizieD

I agree, MayBee. But have they achieved peak division yet? Do you think there is more to come?

I hope not. But Farage gets so much exposure. Far too much imo.

Dinahmo Sat 22-Jun-24 16:03:37

undines

Who funds the Institute of Fiscal Studies Think Tank? Beware, oh! beware of vested interests.
Not saying I support Reform, just saying....

FYI

How we are funded. IFS is non-profit and non-political and receives funding from a range of sources, including the Economic and Social Research Council, UK government departments, foundations, the European Research Council, international organisations, companies and other non-profit organisations.

BevSec Sat 22-Jun-24 16:04:07

Readymeals, it will be a lot more tax and will it be spent on improvements in services etc?

BevSec Sat 22-Jun-24 16:07:11

Judybloom, I so agree with everything you have said. Well done for expressing it so well!

Dinahmo Sat 22-Jun-24 16:09:04

David49

Posted too soon

20 yrs ago borrowing was below 40% of GDP now it’s close to 100%, it was 80% before Brexit. I would like to think growth does happen but it’s going to be an uphill battle. Finding the money in addition to the infrastructure improvements we need is going to be a challenge.

You clearly haven't read the many posts concerning the borrowing. it has gone up and down since the end of the 17th C and has on occasion been repaid.

Dinahmo Sat 22-Jun-24 16:12:36

BevSec

Readymeals, it will be a lot more tax and will it be spent on improvements in services etc?

If it isn't spent on those things, what do you think it will be spent on? Or will it be kept in a special pot to benefit a small number of people? Higher salaries, bonuses and pension schemes for MPs perhaps?

MaizieD Sat 22-Jun-24 16:27:17

Dinahmo

BevSec

Readymeals, it will be a lot more tax and will it be spent on improvements in services etc?

If it isn't spent on those things, what do you think it will be spent on? Or will it be kept in a special pot to benefit a small number of people? Higher salaries, bonuses and pension schemes for MPs perhaps?

What I am trying to say is that government spends first, then taxes to control inflation.

It stands to reason that government spending will increase tax receipts because there will be more people in receipt of what the government spends, either directly paid (like public sector workers) or indirectly by either running a business that the government purchases goods and services from, or being employed by such a business, or providing goods and services to the people with the extra money they have been paid, or who have been employed as a result of increased government spending.

I'm wondering if this is too complex for people to understand?

There is no need for the government to tax people any extra.

BevSec Sat 22-Jun-24 16:38:21

Dinahmo how did you guess!

Dinahmo Sat 22-Jun-24 16:49:07

MaizieD I think that for too long people have believed Thatcher's dictat and it is difficult for them to accept that she could have been wrong when she likened governing to house keeping.

Most of us, with more money in our pockets do like to spend occasionally, not just save.