Tory hopefuls aren't grasping these taxing issues

TAX is the top talking point in the Tory leadership race. Apart from the current frontrunner, Rishi Sunak, all the other contenders are pledging immediate, deep cuts to the headline rates of both personal and corporate taxation.

- Ryan Shorthouse

Such tax-cutting would lead to the Treasury losing tens of billions of pounds in revenue. Unless spending on public services is to be strangled, these promises will have to be paid for by bigger borrowing at a time when our public sector net debt is at historic highs,. There is a genuine risk here. If our fiscal deficit spirals, investment in our country could dwindle.

Ah, but tax cuts will stimulate economic growth, comes the counterargument, eventually paying down the public debt. But their effect on growth will be marginal at best,. The truth is that growth is projected to be absent or anaemic for the foreseeable future.