UK: Chancellor still spiking the punch bowl
- The government’s support package needs to move on to encouraging an efficient reallocation of resources to what the post-Covid world needs. A “Kickstart†and traineeship scheme have this in mind but mostly encourage low-skilled working.- Efforts continue to focus on stimulating the economy back to where it was before, with a high deadweight loss in many cases. A targeted VAT cut is at least much better than a headline trim and should knock ~30bp from the Aug-Jan RPI rate.
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