Latest Issue
Special Reports
Latest Special Report

The duel: are tax rises now inescapable?

Post-Covid, are taxes hikes essential to fund the future? Or should we abandon “deficit fetishism” and spend our way to prosperity?

Photo: Dominic Lipinski/PA Archive/PA Images

Yes—Jonathan Portes

Over a mere four months this summer, the government borrowed £150bn, pushing the UK’s debt-GDP ratio over 100 per cent for the first time since the Chatterley trial, the Beatles’ first LP and (for Larkin) the dawn of sexual intercourse. Does the highest debt ratio in over half a century mean taxes must go up? On its own, absolutely not. At current long-term interest rates, we can finance the extra borrowing for well under £1bn a year—a rounding error.

Register today to continue reading

You’ve hit your limit of three articles in the last 30 days. To get seven more, simply enter your email address below.

You’ll also receive our free e-book Prospect’s Top Thinkers 2020 and our newsletter with the best new writing on politics, economics, literature and the arts.

Prospect may process your personal information for our legitimate business purposes, to provide you with our newsletter, subscription offers and other relevant information.

Click here to learn more about these purposes and how we use your data. You will be able to opt-out of further contact on the next page and in all our communications.

More From Prospect