Corey Clark’s Post

Facing the daunting task of finding an extra £16 billion to fulfil the UK government’s promises, Chancellor Rachel Reeves must balance tight restrictions on borrowing, spending, and debt. The Institute for Fiscal Studies (IFS) warns that without tough decisions, public services could face cuts. With higher post-pandemic debt, inflation, and an ageing population, Reeves may need to look towards higher earners to shoulder more of the tax burden. This Budget could shape the UK’s economic future—stay tuned for the impact! 🚀📊 #UKBudget #EconomicPolicy #Leadership #TaxPolicy #FiscalChallenges

ELECTION SMOKE AND MIRRORS: THE VITAL ISSUES BEING OVERLOOKED A general election is a key part of democracy. It lets people choose leaders they trust and get rid of those who’ve lost their confidence without any chaos. Right now, the British general election isn't hitting the mark. It should be sparking important discussions about big challenges the UK faces, like boosting economic growth, dealing with an ageing population, increasing investment, funding the green transition, enhancing defence spending, and creating a fairer tax system. These are big issues that need real solutions, not just the same old approach. But none of the major political parties are really addressing these concerns. The IMF points out two major problems: a big drop in labour productivity growth and improbable fiscal forecasts. To stabilise debt, we’ll need higher taxes and spending cuts—there's no way around it. The Labour party is likely to win and will need to tackle these issues head-on. Their manifesto talks about stability and planning reforms, which is good, but like other parties, it lacks concrete plans for delivering public services and fixing fiscal problems. The IMF criticises Labour’s vague spending promises and minimal tax increases. While vague promises might win votes, they don't prepare the public for the tough actions needed. If politicians keep dodging the truth, public distrust will only grow, hurting our democracy. Voters deserve honesty about the difficult times ahead, but they’re not getting it. #programexecution #planning #estimating #honesty #election

Britain’s next government faces a significant challenge as a thinktank warns of a £33bn hole in public finances. The Resolution Foundation cautions that without addressing this gap, severe austerity measures may be inevitable. The current debate on funding election pledges is deemed detached from reality, with promises reliant on challenging cuts. Stay informed: [Link to the full article here]. #UKGovernment #PublicFinances #Austerity #ElectionPromises

The US election is less than seven weeks away. There have been two quite remarkable Presidential debates. Nevertheless, many key policy issues remain unanswered. For example, the USA confronts an unsustainable rise in government debt, which is being ignored. Remedying the problem inevitably will involve higher taxes and unpopular spending cuts. Will a market crisis be required to get started (remember Liz Truss)? Implications for the global economy and financial markets, and for the unprepared US public? All considered. Most importantly, Vote! #economy #debt #uselection #election2024 #kamalaharris #trump #budget #deficits #inflation #Fed #taxes

The UK is grappling with significant fiscal challenges, as outlined in a recent piece by Bloomberg. With a ballooning budget deficit and national debt at 100% of GDP, Chancellor Rachel Reeves faces the difficult task of balancing the books while addressing critical under-investment in public services. From adjusting the way the government measures debt to taxing banks’ profits from central bank reserves, Reeves may need to take creative steps to free up much-needed cash. But these options, while bold, won’t come without consequences - considering the £16 billion budget shortfall and fulfill Labour’s promises on public service investments. #UKEconomy #PublicFinance #Budget2024 #RachelReeves #LabourParty #FiscalPolicy #PublicSpending #DebtManagement #CreativeEconomics

After the July General Election, the UK needs a new fiscal framework and bolder action if we are to stimulate economic growth, productivity, and increase living standards, argues Adrian Pabst in the New Statesman. Adrian Pabst, Professor of Politics at the University of Kent and Deputy Director of the National Institute of Economic and Social Research (NIESR), asks: "But what way is there around this – isn’t Britain trapped in a dilemma between unpopular tax rises or a smaller state? Is the choice really between an even higher burden on working families or a return to austerity that would punish them and the poorest in society?" This, he argues, is a continuation of 'Osbornism' which mandates sticking rigidly to the fiscal targets of limiting the annual budget deficit to 3 per cent of GDP and reducing debt as a share of GDP over five years. The '3 per cent rule' is mirrored across the EU, but like in the UK, many states have failed to meet it. #Growth #GeneralElection #Investment #Productivity https://lnkd.in/dPmaedFt

Labour the new nasty party? Indeed very difficult decisions however to penalise borderline pensioners is without a doubt a mistake by the chancellor expect some level of walk back. The underlying point being overlooked is where will growth come from with cancellations of infrastructure projects? Labour can not keep blaming historically financial mismanagement by the Tories with no growth on the horizon the UK economic outlook will simply become a debt management plan. Where is the detail of the plan for growth let’s see some innovations let’s see the detail because if it is not made clear the so called wall of investment waiting for stability in the UK economy will not materialise.

Commenting on today's UK Budget, London Business School's Dr Linda Yueh writes in Forbes: "With a UK general election looming this year and the British economy officially in recession in the second half of 2023, today’s Budget was a particularly tricky one. It had to be both short-term to support demand in the economy, such as via a further cut to National Insurance, but also long-term to support economic growth, all in the context of limited ‘fiscal headroom’, the amount that the government can spend and still meet its own fiscal rules." #ukeconomy #UKBudget2024 #recession #UKgeneralelection https://lnkd.in/dC3UMmNT

'There's not a huge amount of money...' were the words Britain's latest chancellor of the exchequer, Rachel Reeves, stated on the day Labour won the General Election. It has been 70 days since Labour took control, but how long is it going to take before we see the UK in a healthier financial state? That is something we will have to wait and see. At the start of July, interest rates were at their highest level for 16 years, and a cost of living crisis is still very much going on. The time to manage finances wisely is now, but Labour insist there is a brighter future. With a government budget round the corner, how do you feel about the future of the UK economy under Labour? . . . #FXtrading #currencyexchange #moneytransfer #forex #currency #internationalpayment #financetips #UKeconomy

With the recent news of a General Election - what does this mean for investments? 📈 In this race, the economy is likely to be a key battleground. However, St James' Place Head of Economic Research, Hetal Mehta, notes: “Fiscal policy will be highly constrained for whoever wins. Even with very loosely binding fiscal rules, an increase in spending will almost certainly need to be matched by tax increases. We don’t think it’s likely that a Labour government would roll back on the recent tax cuts for those of working age, but an increase in wealth taxes may be the path of least resistance, especially if the government has a large majority.” Although the upcoming UK election will generate a lot of headlines, patience will be a key virtue for investors. #GeneralElections #UKPolitics #UKElection #GeneralElection #AnglianWealthManagement