Britain ‘taxing itself to death,’ Burnham warned
One of the US’ leading economists has warned Andy Burnham that Britain is “taxing itself to death” in a major intervention ahead of the October Budget. Arthur Laffer, a former economic adviser to three presidents, has warned that the UK is in a “death spiral” ahead of his visit to the country. He wrote in [...]
Renowned economist Arthur Laffer has cautioned British politician Andy Burnham that the UK risks "taxing itself to death" in an effort to gain favor before the October Budget. In a piece for The Telegraph, Laffer, who has advised three US presidents, warned that the country is "in a death spiral" and that its current economic policies are not productive.
Laffer argued that taxing is not a pathway to prosperity and that Britain is "taxing itself into death," with the root cause of the problem being lackluster growth rather than insufficient revenue. He urged Burnham not to pursue further tax hikes in the upcoming Budget, as it would only exacerbate the perception that the government is losing control of the public finances.
Laffer's comments come as global borrowing costs have risen to record levels due to concerns over inflation stemming from the Iran war and increased spending on artificial intelligence. UK yields on government bonds reached a record high last week, mirroring the situation in the US, and casting a shadow over Burnham's first parliamentary term as Prime Minister.
To alleviate investor concerns, Lord Jim O’Neill, a former economic advisor to Burnham who declined a formal government position, suggested that the Prime Minister should take swift action to address fiscal issues such as the triple lock or welfare spending excesses.
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