Press "Enter" to skip to content

Opinion Please, Tories. Don’t fall for the supply-side snake oil.

David Rothkopf: Don't buy the supply-side snake oil idea that tax cuts pay for themselves. He says U.S. experience should not give British conservatives comfort. Britain's recent fiscal history is remarkably similar to that of that of the United States, he says. Britain would finance the proposed cuts the old-fashioned way: by increasing public-sector borrowing. The next Conservative prime minister should instead look for ways to generate new investment that will generate jobs and take pressure off the public fisc, he writes. Rothkapf: Ban on fracking, for example, should be repealed, but it would create high-paid working-class jobs, lower energy prices and improve national security.

The next PM must favor the Tories’ new working-class voters, says David Cameron. Truss’s proposal to reverse the hike in National Insurance contributions is politically sound. The VAT is a regressive tax, hitting those with lower incomes harder than the well-to-do.