This week, Richard commented on the appointment of John Healey as the new Chancellor of the Exchequer but Andy Burnham's first announcement on cutting VAT on electricity bills is welcome, but is entirely unfunde - as Darren Jones pointed out in this X.com message - meaning taxes or borrowing will have to go up:
Mr Healey was liked at Defence Secretary but found himself unable to convince either the former Chancellor or the former Prime Minister to take the steps needed to fund an increase in defence expenditure.
Let us hope that now he has the key role of Chancellor himself that he will look for ways to reduce welfare expenses to pay for more defence. Kemi Badenoch has already committed the Conservatives to support this move.
One note of caution: yet again we have a senior economics role going to someone with no private sector experience.
Our businesses are cutting back under the burden of high taxes, unemployment is up up up. Let us hope Mr Healey secures some junior ministers with that experience.
This morning, there has been sharp criticism by former Chief Secretary Darren Jones who points out that the government’s first announcement doesn’t add up.
Why did no one check the numbers?
To be fair to the new Chancellor, this looks to me like a No10 initiative that he has to front up. Mr Healey deserved a better start from No10.
