Freezing income tax bands leaves the wealthiest unaffected, while Rachel Reeves’ deference to the bond markets is another gift to the rich, writes Steven Methven.
I hope someone in the treasury is working out what it would cost to default on the national debt
It would most likely cost multiple pension funds, multiple banks, the pound, and hundreds of billions in increased interest rates. Then we have no money and borrowing is too expensive, so we don’t get to have a deficit. So that’s at least another £100b of cuts or extra funding we would need pretty much immediately.
When interest paid on public debt for the last two years has coincidentally also been £100b you can see why the idea came into my head. It’s consistently getting worse as well.
It would most likely cost multiple pension funds, multiple banks, the pound, and hundreds of billions in increased interest rates. Then we have no money and borrowing is too expensive, so we don’t get to have a deficit. So that’s at least another £100b of cuts or extra funding we would need pretty much immediately.
Probably not worth it, on balance.
When interest paid on public debt for the last two years has coincidentally also been £100b you can see why the idea came into my head. It’s consistently getting worse as well.