Budget 2021 expert reaction: Will public stomach higher taxes to fund spending splurge?
Faisal Sheikh, Lecturer in Accounting and Finance at the University of Salford Business School, reacts to the Budget, announced by Chancellor Rishi Sunak today.
Faisal said: “I predict that from a policy perspective monetarism will remain on the backburner and Keynesian economic policy (high spending underpinned by burgeoning taxes) will remain ‘King’ for at least a generation. The question is whether the British public can stomach tax rises which are currently funding the continued spending spree?
“The most eye-catching announcements are an extra £4.7bn for children’s education, an extra £2bn for further education and significant cut in Air Passenger Duty which be welcomed by the battered travel and tourism industry. There is also Christmas cheer with a cancellation of a planned rise in the duty on spirits, wine, cider and beer.
“Personally I find the cut to Air Passenger Duty problematic given that we are experiencing irreversible climate change and scientific experts are warning of mass environmental upheaval such as desertification and acute water shortages.”
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