The Tax-Happy Economic Advisory Board Behind Rachel Reeves
As Rachel Reeves sharpens her knives for the “painful” Autumn Statement, Guido thought he’d dig into those on her economic advisory council at the Treasury. Unsurprisingly, they’re a troupe of tax-hiking, anti-Brexit, climate crusaders…
Leading this merry band is John Van Reenen, a relic from the Blair years. Van Reenen’s greatest hits include papers arguing that the low top-rate income taxes have little benefits for innovation, and argues for higher fuel prices to stamp out what he calls “dirty innovation.” Perhaps that’s where the rumoured fuel duty hike might be coming from. He’s also a vocal Brexit basher, pushing for a “soft Brexit”— rejoining the Single Market. According to him, the so-called benefits of Brexit, like trade deals with non-EU countries, are hardly worth the paper they’re written on…
Then there’s Neil Amin Smith, former Labour staffer and moonlighting member of Clean Bandit, who has been singing the same tune: more taxes. He’s proposed letting councils slap a 3p surtax on the basic income tax rate, suggesting tax devolution that allows councils to control part of the income tax schedule. It’s no surprise he’s on Labour’s side, writing in 2019: “Ultimately there is only one way of increasing the funding available across government – higher taxes.” Guido wouldn’t be shocked if he was playing that line to Reeves as we speak…
Anna Valero is another anti-Brexit crusader who’s joined the Chancellor’s echo chamber. She’s often spoke about the “chaos” of Brexit “threatening” the UK’s economy. Valero’s another one who’s been pushing Net Zero, arguing the UK should invest £26 billion a year in a low-carbon economy instead of tax giveaways. She’s also poured cold water on tax cuts in general, claiming they don’t spur growth. With advisers like these, it’s no wonder the Autumn Statement is shaping up to be a tax hike bonanza. The “party for growth”, everyone…
