Comments: High taxes reduce UK's magnetism

David, do you honestly beleive that the rhetoric of lower spending growth will be as as tight as the PR people would suggest, or will it be similar to Gershon: an excercise in PR than in efficiency?

And what about all that spending using the PFI credit card, and the current account deficit?

Posted by Ash at March 11, 2007 11:31 AM

You're right to be sceptical about cost and efficiency savings though I think the spending slowdown is genuine - it has to be. PFI is indeed a factor, though it has the virtue of maintaining capital spending during times of squeeze. In the old days, public sector investment was the first casualty of any squeeze.

Posted by David Smith at March 11, 2007 04:56 PM

Business organisations complain about the complexity of the tax system then at every opportunity propose adding further obscurities. Businesses locating overseas because of the exchange rate know that blaming regulation and taxes is politically acceptable.

Remember that, as businesses themselves, the business organisations make a great deal of money out of seminars telling businesses how to navigate the tax and regulatory system. If it was too simple, that revenue stream would lessen.

Posted by Paul Bivand at March 12, 2007 02:06 PM

David,

What IMF report is this from?

Thanks,

Nick

Posted by Nick at March 12, 2007 10:26 PM

It is called the IMF's Article IV surveillance on the UK economy:

http://www.imf.org/external/pubs/cat/longres.cfm?sk=20488.0

Posted by David Smith at March 12, 2007 11:00 PM