economy - The Mallard

The Riots: a working-class view

By John C Hartley — 2 months ago

Back in the fourteenth century, England’s lowest class enjoyed the greatest piece of luck it has ever had: the arrival of the Black Death. True, most of us were wiped out, but life became so much better for those who survived. Anyone who wanted our labour now had to compete for it and offer more than their competitors did. These inducements (today we call them wages) went up and up because workers had become so scarce. Such was the plight of the working class in those days that it took a lethal disease that wiped out half of humanity to improve our lot; something which should teach us the importance of the size of the labour pool: how the amount of available labour can be balanced to give both sides a fair deal, or skewed one way or the other to cause economic and social disruption.

Since 1997, the year of the coming to power of New Labour, it has been the policy of every government to saturate the British economy with workers from foreign sources, thus greatly expanding the amount of available labour. This means every lower-skilled, less educated, less qualified worker’s bargaining position and job security were jeopardised. It should be obvious that in a free market – in fact in any endeavour where there is competition – there will be rivalry between the contenders. There will be resentment toward challengers who threaten one’s standard of living, or even one’s very capacity to earn a living. Recently this resentment boiled over and numerous riots occurred around the country. They happened because of what has taken place in Britain over decades: the reckless pursuit of profit by means of reducing labour costs at the expense of (and with no concern for) social cohesion. A ruthless, imported form of capitalism has taken over and sacrificed a section of what is supposed to be one nation in order to benefit another part of that nation. The Left of yesteryear called this class conflict, a term which our modern and very bourgeois Left do not care to use these days; they prefer cultural conflict to class conflict, possibly because so many modern Leftists are themselves millionaires and discussions about wealth inequalities would embarrass them. Populists describe the division of the classes as the elite versus the people, and the American Right has enjoyed success with this message, but whichever terminology one prefers, it is clear that here in Britain what was once arguably one nation has now unarguably been cleaved in two.

Although Labour has traditionally been the party of mass immigration, for the last fourteen years immigration ballooned while a Conservative party was in power. The drama of small boats ferrying illegal migrants across the channel was really just a footnote to (and perhaps a distraction from) a large amount of quite legal immigration rubber-stamped by the Tories. The simple truth about immigration is this: enormous numbers of foreign workers come and settle in this country because British politicians want them to. Mass immigration means there is no pressing need to innovate, no need to invest, no need to waste money training or educating British people, no need to worry about productivity: one can merely import cheap ready-mades, and then carry on importing them. It is the easy option and our politicians have been taking it for years. Any economic growth Britain has achieved has been a sham; merely a growth in population. The group which has suffered most is of course the working class, those who are most vulnerable to low-skilled immigration; a working class that these days has little to no political representation.

Jacob Rees-Mogg recently condemned the working-class rioters, saying that such behaviour might be justified in a dictatorship but not in a democracy like Britain, where peaceful protest is permitted. The problem is of course that protesting achieves nothing. In fact, in modern Britain, voting achieves basically nothing. In 2016, during the referendum on our membership of the European Union, the Leave campaign was only put on the path to victory when the focus was changed from important but philosophical arguments about sovereignty to the issue of immigration. After the vote was won, however, a strange thing happened. ‘I never claimed immigration would come down,’ said Daniel Hannan immediately after the electorate had voted to get immigration down. David Davis said that immigrants would be ‘needed for many years’ and Michael Gove praised how immigrants raised educational standards. If one examines the promises made by Brexiteers one sees that they were never promises. They were not even clear statements, merely hints that could be interpreted in different ways. None of the Brexiteers promised to stop immigration. None of them even promised to reduce it. They promised merely to control it. The word ‘control’ is loved by politicians because it means everything and nothing at the same time. Voters took it to mean that immigration would be reduced, but it could just as easily have meant that it would be left as it was. Perhaps, it could mean that it would be increased – which, incredibly, is what happened, despite a majority in the highest turnout for a UK-wide referendum in British electoral history.

With free movement from the EU interrupted, workers were now imported from the rest of the world. Migrants from very distant and very different cultures would come here in increasing numbers; and because these people were from such distant parts of the world they belonged to different races. This meant that unlike the Poles, the Hungarians, the Lithuanians etc., these foreign migrants would be instantly recognisable as such, from a distance, without them having to utter a single foreign-accented word. And so it is that riots which are economic in cause, which are the consequence of choices made by governments, can appear to be purely racist uprisings – and safely dismissed as such by sanctimonious politicians and their media. By these means a truth has been officially established: that the riots were a temporary madness caused by wicked fascists exploiting the gullibility of working-class people.

The truth however is that in this democracy which Jacob Rees-Mogg believes we live in; the working class are not allowed to vote in their economic interest. Their voice and their interests are repressed. In any general election in the UK there are only ever two parties that have a chance of being elected: the Labour Party, which enthusiastically believes in immigration, and the Conservative Party which believes in it with equal enthusiasm but pretends not to. There has been a convergence of self-interest. First, the greed of a Conservative Party that cares only about its enrichment and which despite its reputed belief in “faith, flag and family” is happy to see the British natural environment, British culture, British traditions, British family life, British history, British ownership, British democracy, British self-respect and the British working class all ruined, each of them being sacrificed in the scramble for quick profit at any cost. And then there is the greed of the Labour Party. This party is, in material terms, as rich and privileged as the Conservatives but is greedy too for moral glory. It wants to be loved by people who matter (educated, cultured people of taste) and so it haughtily condemns the primitive rage of the uneducated people with ugly lives and values who live below. By the magic of media, the material self-interest of the privileged becomes a noble cause. The expansion of the labour pool and the crippling of the bargaining position of British workers is shown as a moral crusade; the pursuit of diversity, the bringing about of a glossy-eyed, handholding, multi-coloured, multi-lingual paradise in which the elite are ‘enriched’ by other cultures while the ferocious competition for jobs pauperises the working class.

Democracy is more than just a word. It is the most efficient way of organising a society ever devised. It balances competing interests by making them visible and enabling them to negotiate. It vents the pressures that create conflict. What the people would have wanted, and would have accepted had anybody in our alleged democracy bothered to ask them, was a moderate level of immigration that would have benefited a moderated capitalism; a capitalist system in which those enjoying extreme levels of wealth and those suffering extreme levels of hardship were both pulled back toward a civilised mean; a more cohesive, moderately patriotic Britain in which all get a just share of everything; in which those who do more and achieve more rightly get more, but not an immoral amount more. In other words, a Britain that was one nation – not the theatre of tribal warfare it is today.

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The UK’s Place in the World: Strategic Industries, China, and Sovereignty

By Daniel Evans — 7 months ago

This article was originally published on 17th November 2021.

The Brexit-leading Conservative government wants to back up the talk of the referendum campaign. Now that the UK has Brexited there’s a practical need to set a plan of action and follow it. A lot of intellectual work was taken care of by just following whatever the EU position was.

Global Britain, sovereignty, trade deals, etc., OK. What’s the plan? Some of that’s answered implicitly. Elizabeth Truss as Secretary of State for International Trade was busy doing trade deals. AUKUS speaks to diplomatic, defence, and geographical focus. COP26 – the UK is supposed to make its name on climate stuff. OK.

This is what the Prime Minister says the plan is. Some key points: greater engagement in the world, securing the UK’s status as a “Science and Tech Superpower by 2030,” and a “tilt to the Indo-Pacific.” This is still getting ahead of itself.

A recent announcement about an old deal, about an investigation into the Nvidia takeover of Arm (originally a British microchip design company, taken over by the Japanese SoftBank) is a good enough starting point for something to think about.

The Cameron and May governments were very permissive of a lot of foreign investments and takeovers e.g. Chinese nuclear power projects, Huawei and 5G, invitation into the Northern Powerhouse. A lot of people are still angry at the sale of state assets under Right to Buy to British people. Why does the sale of much, much larger British companies/assets to foreign interests provoke almost nothing? What about foreign ownership in the housing market, for that matter?

At least the Johnson government has revisited some of these blunders. It also hasn’t put a complete stop to a lot else which contradicts its strategic review. For example, the Chinese takeover of British Steel, the Chinese takeover of the UK’s largest microchip producer, and the Chinese takeover of a major UK graphene producer. Sort yourselves out!

Strategic Industries and China

Start with making a proper assessment of the UK’s assets. What are you working with?

The Johnson government is promising to do a lot of things differently to the Cameron and May governments. When William the Conqueror took over as CEO, he did an inventory check, right down to the kinds of cheese in England.

Napoleon was notoriously obsessed with information.

In the autumn of 1811, the peak of Napoleon’s empire (has France been as well-governed since?) the emperor visited 40 cities in 22 days. This is despite losing three and a half days of travel to gales and floods. He would prevent mayors from giving great speeches and instead ask them questions. Population, death, revenues, forestry, tolls, municipal rates, conscription, civil and criminal lawsuits. Even about how many sentences passed by mayors were annulled by the Court of Cassation, and whether mayors had found means to provide suitable lodgings for rectors.

Would Mayor Johnson have fared well under Napoleon’s questioning? Prime Minister Johnson? Sure, why not? The information Napoleon was looking for gave him clues about the state of the empire, its operational effectiveness, happiness of its citizens, its direction, its capabilities, and what he could draw on. What are the revealing questions you could ask today?

A country’s strategic industries are certainly different from the 1800s.

The pandemic alone should’ve taught the UK that the entire west relies heavily on China for production of a lot of basic medicines. That’s concerning. It certainly relies on China for a lot of manufacturing of basic but important medical equipment too. Mark Zuckerberg’s Meta virtual/augmented reality news is also something to think about.

How comfortable is the UK with the idea of China controlling a lot of technology manufacturing, and easy access to intellectual secrets/innovations?

China is very good at controlling actual reality let alone a virtual one. The China-Taiwan tensions keep brewing. China’s been threatening Taiwan that its military won’t stand a chance if it invades. China is threatening that any outside interference will mean paying a price. Meanwhile, the world relies on Taiwan for semiconductors which go in everything. Xi promises that China and Taiwan will be reunited.

How is Hong Kong doing?

Strategic industries are no longer just about simpler things like coal and steel production for tanks and munitions. They’re also about the materials and methods of fourth and fifth generation warfare, like rare earth metals and this sort of thing.

It seems the Johnson government is at least a little but wiser to China.It’s hard to believe how cosy Cameron was prepared to get with Xi Jinping. They wanted to make Macclesfield (of all places!) the end point of the Belt and Road Initiative.

Have a look at this selfie. Cameron, soy-faced, submissively leaning in. Sergio Aguero’s having a great time, that’s fine. Xi looks like he’s holding his tongue. It’s not a meeting of peers. One has real power and the other doesn’t. This is a picture of the Emperor of China wondering how much longer he has to humour the Gap Yah guy. Is Cameron oblivious? If he is, he’s like that guy who thought he made friends with a wild Alaskan grizzly and got eaten. Does he understand what kind of animal he’s dealing with? Of course, Xi is a silly willy nilly old bear.

If Cameron wasn’t oblivious, was he just resigned to the idea of securing British comfort as a supplicant to China?

When did the west start calling Xi “President” and stop calling him “Chairman”? “Zhuxi” means “Chairman”. Xi is still “General Secretary” of the Chinese Communist Party, a title which originates with Stalin’s own role as General Secretary. That title has its own interesting history. Does “President” hide his shame? Why is the UK still sucking up to a communist by using a less embarrassing and false translation of his title?

Anyway, never mind China, what about everyone else?

Sovereignty

The UK doesn’t need to pursue absolute autarky, but it will have to think about what its strategic industries are and how much control it wants over them for how much independence.

Alignment with the US-led order has been convenient for the UK’s comfort. Countries which don’t submit to the US (e.g., Russia, Iran, North Korea, Iraq, Syria, Venezuela), find themselves poorer and squeezed. They haven’t helped themselves either. The obvious exception is China. Is it too big? Did Nixon miscalculate? The US was supposed to be a military power, China an economic one. That unspoken deal doesn’t seem to be holding. That calculation is probably changing too for everyone else as the US becomes relatively weaker and China relatively stronger.

For now, easy prosperity clearly hasn’t been everything to every country. Not everyone follows the first rule of the Satanic bible. All hail GDP, the one true measure of successful government! Sovereignty means answering to nobody else, and that’s valuable too. It has also meant that these countries develop and control a lot of their own technology. Russia and China in particular. Though it’s also a US protectorate, Israel is notable too for its self-reliance and the level of independence that affords it, regionally, at least.

Can the UK become a “Science and Tech Superpower” by 2030?

For everything it would need to achieve that, how much does it need to learn? How much of the basics does it need to relearn? Outsourced manufacturing and international, mobile academia are not a stable starting point. Knowledge fades with the people who have it, who today can move and work from anywhere.

What ties these people to the UK? What stops them from working for someone else?

The UK’s place in the world will be affected by how much it can bring under its own control.

What’s the plan?

Does anyone have any confidence that there’s any one person in the government who properly understands 1) the UK’s own state of affairs, 2) how that sits internationally, 3) what the reasonable goals are, 4) how to work toward them, and 5) has the power to make it happen?

Until the UK has that it is getting ahead of itself in any discussion about what its place in the world should be.

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The Hidden Costs of Exporting CO2 Emissions

By Macaulay Nichol — 1 year ago

Introduction

As the world grapples with the urgent need to combat climate change, discussions surrounding CO2 emissions and their impact on the global economy has taken centre stage. One contentious issue that has emerged is the concept of CO2 import tariffs. Such tariffs would aim to address the soaring demand of exporting carbon emissions to countries like China and India while seemingly reducing emissions domestically. However, I will proceed to argue that this approach harms the British economy and businesses alike, creating an illusion of progression in a desperate ploy for Western nations to ‘feed their image‘ on the global stage, this issue has also exacerbated the case to accelerate the implementation of CO2 import tariffs – levelling the playing field for sustainable, British industrial goods.

The Mirage of Reduced Emissions

The introduction of CO2 import tariffs, scheduled for 2026, is undoubtedly a step in the right direction, however, there is a growing consensus that these tariffs should be implemented sooner rather than later, with more stringent fees. The primary reason for this urgency is the alarming trend of British businesses struggling to compete with offshore prices, due to their minimal to no CO2 regulations in countries like China and India.

Statistics will tell the same story: Over the past decade, European nations have made significant strides in reducing their CO2 emissions. For instance, the European Union’s emissions fell by 24% between 1990 and 2019. However, as a result of these reductions, imports from Asian nations, particularly China, have surged. In 2019, the UK alone imported goods worth £49.5 billion from China, a significant portion of which was produced in industries with higher CO2 emissions. This shift in emissions from the West to the East raises critical questions about the effectiveness of domestic emission reduction efforts.

Yes, it is obvious Western nations have made a conscious effort to drastically manage C02 emissions, however it cannot be denied that this effort has a little to no effect on global emission rates. Since 2005 for the US and 1990 for Europe, CO2 emissions have operated at a downward tangent, however at the same time both China and India have increased their emissions year on year – with no reduction.

Levelling the Playing Field

The argument in favour of accelerating CO2 import tariffs rests on the premise of creating a level playing field for sustainable goods. British companies that have had to adhere to stringent environmental regulations have faced a significant competitive disadvantage when competing against products manufactured in countries with laxed emission expectations. This not only harms domestic businesses, but also undermines the goals of reducing global emissions, thus the only identifiable solution would be to either reduce our own emission regulations, or introduce a boarder tariff, pinpointed at nations with subnormal CO2 rates.

Through imposing these higher import tariffs on goods produced in extreme CO2-emitting countries, the UK can incentivize foreign manufacturers to adopt cleaner manufacturing practices, actively reducing global emission rates – rather than feeding our emissions elsewhere. Such tariffs would reflect the true environmental cost of the imported goods, reducing the price advantage enjoyed by high-emission industries abroad. This, in turn, would encourage British consumers to choose more sustainable options, fostering a transition towards cleaner and greener products. But that isn’t the only benefit! As a result, one would expect us to become more self-sufficient, and as a nation be less reliant overseas and more focused on our own industrial goods.

Addressing Arguments Against CO2 Import Tariffs

Some argue that Western nations have enjoyed an unfair advantage for centuries and that it is now their responsibility to bear the economic costs of climate change. While historical inequalities can indeed be argued, I would contend that any attempts to do so would be in vain, combined with a lack of understanding that if tomorrow we relaxed all of our climate regulations (which is a lot), then our economic situation would soar higher – deceitfully so – than fellow European nations.

Picture a scenario where the UK could potentially usher in a wave of economic benefits – via little to no climate regulations. Industries seeking lower production costs might see the UK as a more attractive destination, enhancing our global competitiveness. Sectors with high energy consumption, like manufacturing and heavy industry, would find it financially advantageous to operate in a less regulated environment, resulting in greater job creation. Does that sound familiar? Because this is precisely how China and co have operated over the last 20 years, summarizing why their economy has taken such a colossal leap.

Arguing that because of historical inequalities we should just expect Western nations to continue to lose business and incur high costs for the sake of climate change, and only to see reduced emissions move elsewhere, simply ignores the interconnectedness of our global economy. The environmental damage caused by unchecked emissions in one part of the world ultimately affects us all. By exporting emissions to countries with fewer regulations, we are merely shifting the problem, not solving it. If global emissions continue to rise, while our own emissions head towards net zero, it begs the question: what is the point in all of this? Why persist in regulating our businesses to the brink of collapse, relinquishing our capacity to sustain our domestic market, and fostering an import-dependent culture, all while our endeavours seem to yield no significant results?

Conclusion

To conclude, it is undeniable that CO2 import tariffs represent a crucial tool in addressing the harmful practice of exporting emissions to countries with non-existent regulations. While there is a similar scheme set to be introduced in 2026, there is a compelling case for their acceleration and strengthening of this. The fact of the matter is that European nations’ reduction in CO2 emissions has only led to a surge in imports from high-emitting countries, highlighting the need for immediate action and showcasing to other nations that the only way to grow their economy is to mass produce (with high CO2 costs) for the sake of us Western nations to ‘look good on the global stage’.

These tariffs are not about punishing other nations, but rather about creating a level playing field for sustainable and British goods. They will encourage cleaner production practices globally and drive the transition to a more sustainable and equitable global economy.

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Britain Is No Longer a Land of Opportunity

By Sarah Stook — 1 year ago

A recent viral tweet showed two doctors leaving a hospital. They’ve surrendered their licenses to practice medicine in Britain and are instead heading off to work in Australia. It’s not unusual- the majority of foreign doctors in Australia are Brits. The problem lies in the fact that young, educated doctors do not see themselves thriving in Britain. Our pay and conditions are not good enough for them.

Are you annoyed at them for being educated through taxpayer funding before going abroad? Many are. Are you understanding as to why? So are others.

Whilst this particular tale does come down to problems with the NHS, it’s also an example of what is wrong with Britain at the moment. People, especially younger ones, haven’t got the opportunities that they should have. There is no aspiration. There is a lot to reach for and not a lot to grab.

What has happened?

Wages and Salaries and Income, Oh My!

A recent investigation by a think tank has revealed that 15 years of economic stagnation has seen Brits losing £11K a year in wages. Let’s put this into perspective. Poland and Eastern Europe are seeing a rise in GDP- Poland is projected to be richer than us in 12 years should our economic growth remain the same. The lowest earners in Britain have a 20% weaker standard of living than Slovenians in the same situation.

That’s a lot of numbers to say that wages and salaries aren’t that great.

By historical standards, the tax burden in the U.K. is very high. COVID saw the government pumping money into furlough schemes and healthcare. As the population ages, there is a further need for health and social care support. This results in taxes eating into a larger amount of our income. In fact, more adults than ever are paying 40% or above in taxation. It’s a significant number. One might argue that this does generally only apply to the rich and thus 40% is not a high amount for them, but is that a fair number?

With inflation increasing costs and house prices rising (more on that later), a decent standard of living is beyond the reach of many. This is certainly true for young people. With wages and salaries falling in real time, we do not have the same opportunities as our parents and grandparents. Families used to be able to live comfortably on one wage, something that is near impossible. Our taxes are going on healthcare for an aging population.

Do we want old people to die? Of course not. We just do not have the benefits that they did. Our income is going towards their comfort. Pensioners have higher incomes than working age people.

Compared to the United States, Brits have lower wages. One can argue that it is down to several things- more paid holidays and taxpayer funded healthcare. That is true, and many Brits will proudly compare the NHS to the American healthcare system. That is fine, but when the NHS is in constant crisis, we don’t seem to be getting our money’s worth. The average American salary is 12K higher than the average Brit’s. The typical US household is 64% richer. Whilst places like New York and San Francisco have extortionate house prices, it’s generally cheaper across the US.

Which brings us onto housing.

A House is Not a Home

Houses are expensive- they are at about 8.8% higher than the average income. This is compared to 4% in the 1990s. That itself is an immediate roadblock to many. Considering how salaries have stagnated, as discussed in the previous section, it’s only obvious that homeowning is a dream as opposed to reality.

Rent is not exactly affordable either. In London, the average renter spends more than half of their income on rent. Stories of people queuing for days and landlords taking much higher offers are commonplace.

House building itself is not cheap- the price of bricks have absolutely rocketed over recent years. Factors include a shortage of housing stock and increased utilities. House building itself is also not easy.

NIMBYs have an aneurysm at the thought of an abandoned bingo hall being turned into housing. MPs in leafy suburbs push against any new developments, lest their wealthy parishioners vote for somebody else. Theresa Villiers, whose constituency sees homes average twice the U.K. mean price, led Tory MPs in an attempt to prevent house building targets.

We get the older folks telling us that we just need to work harder. It’s easy for them to say, considering a higher proportion of our income is needed to just get a damn deposit. If we’re paying more and more of our income on rent, how can we save?

Playing Mummy and Daddy

The ambition to become a parent is something many hold, but it is again an ambition that is unattainable. Well, the actual having the child part is easy, but it’s what comes after that makes it tough.

Firstly, we cannot get our own homes. Few want to raise their children in one bed flats with no gardens. To plan for a child is to likely plan a move.

Secondly, childcare is very expensive. Years and years ago, men went to work and women stayed home with the children as a rule. Of course, that did not apply to the working class, but it was a workable system. Nowadays, you both have to work. Few can survive on a single income from either parent. Grandparents are often working themselves or simply don’t/can’t provide babysitting duties. This leaves only one choice- professional childcare. The average cost of childcare during the summer holidays is £943. Some parents pay more than half of their wages on childcare.

Thirdly, as has been said, everything is more expensive these days. One only has to look at something basic like school uniforms- some spend over £300 per child. It’s not cheap to look after adults, let alone children.

The Golden Years

The focus of this piece is generally on young and working age people, but the cost of social care is pretty bad. With the costs of home and residential health care increasing constantly, it means that many will lose their hard earned savings. Houses must be sold and pensions given up. It is unfair that we must work all of our lives but then leave nothing for our children if we wish. Whilst residential homes are alien concepts to many in cultures where they look after the elderly, many factors in the U.K. mean that it is more common.

On balance, pensioners are better off than the young, but what about those who need care? It may be bad now, but what about when we ourselves are old? We will likely still be working at 70 and having to pay more for our care.

The Party of Aspiration and 13 Years of Power

The Conservatives have always called themselves the party of aspiration. They’ve been in power for 13 years, eight of which were without a coalition party. The Tories won a stunning majority in 2019 under Boris Johnson. They’ve had the opportunity to do something about this but haven’t. It’s amazing that they wonder why young people don’t vote for them anymore.

Let’s not pretend Labour and the Lib Dems are any better either. The Lib Dems won the historical Tory seat of Chesham and Amersham partially by appealing to those worried about new housing. Labour’s plans aren’t particularly inspiring.

We cannot dream in Britain anymore. The land of hard work and fair reward is no more. We must simply sit by as our wages stagnate, houses get too expensive and the opportunity for family passes us by. Our doctors head to Australia for better pay and better conditions. Countries that would see immigrants come to us for a better life are seeing their own economies grow.

People shouldn’t be living with roommates in their 30s when what they want is a family. We deserve to work hard to secure a good future. We don’t deserve for our income to go on poor services and for our savings to go on residential care.

The Tories have had thirteen years to sort it out. Labour and the Lib Dems have had chances to put their plans across. Our politicians care more about talking points and pretty photo ops than improving our lives.

Let us have ambition. Let us seek opportunities. Let Britain be a land of opportunity once again.

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Britain needs a Flat Tax

By Macaulay Nichol — 1 year ago

The concept of progressive taxation, once lauded as a pillar of leftist ideology, aimed to embody progressiveness by imposing a heavier tax burden on the wealthy. It was envisioned as a means to uphold public services, with the wealthiest individuals leading the chariot, paying heinous tax rates of up to 45%.

However, this philosophy ignores a critical flaw. As the belief that only the affluent bear this burden is far from reality, as shockingly, a staggering 32.32% of the tax-paying population find themselves trapped in higher tax brackets, far beyond a mere trickle.

With a significant 53.1% of the UK’s tax revenue directly fuelled from just 32.32% of the tax-paying population – or in other words, a mere 18.1% of the UK’s total population -, it becomes clear that we have overlooked the potential to invigorate our financial system, through putting more money in the hands of the people. By doing so, we could meet the demands of the free market and stimulate economic growth, something which UK markets have so greatly been missing out on.

While decreasing the top rates of tax may seem delusional given the economic situation and current governmental regime, there remains a possibility worth exploring—a flat tax system. In a society where absolute fairness is demanded, regardless of common sense, one must question why society would reject such a concept. A flat tax is undeniably the fairest and most equal method of taxation, aligning with the very meaning of the word ‘fair’:

“fair, just, equitable, impartial, unbiased, dispassionate, objective mean free from favor toward either or any side. fair implies a proper balance of conflicting interests. a fair decision. just implies an exact following of a standard of what is right and proper.” [Definition of the word ‘fair’ [Merriam-Webster, 2023]

Therefore I ask, why not give a flat tax a chance? It treats everyone equally, regardless of socioeconomic background, offering an undeniable sense of absolute fairness. However, doubts arise when considering its feasibility, more particularly its success within the UK. While some countries, such as Russia and Ukraine, have implemented a flat tax providing positive outcomes, it is essential to acknowledge that the UK’s financial sector could potentially be destabilized by such a system. The financial sector not only sustains thousands of jobs but also serves as the lifeblood of the nation’s capital. Nonetheless, this does not mean that a flat tax is impossible for the UK.

Russia’s flat tax rate of 13%, introduced in 2001, led to an increase in tax revenue, alongside improvements in overall tax compliance and efficiency, supported by OECD. This simplification of the tax system was hailed as a significant success, considering the many complex loopholes which existed before its introduction.

Regrettably so, implementing a 13% tax rate across the UK would not be so easy, especially with the UK public’s insistence on retaining the NHS; therefore, I would propose a higher rate, potentially around 20%, tooling HM Treasury to strike a balance between taxation and state spending.

Through adopting this alternative approach, we would aim to solidify the medium in-between sustaining key public services and ensuring maximum disposable income, which after all, would be better reinvested throughout the UK’s markets, taking away a degree of power from the state. Through this, the basic tax rate would also remain the same (at 20%), effectively eliminating the higher tax bands of 40% and 45%.

The math behind this proposal makes sense, as a flat tax rate of 20% would lead to a decrease of approximately £49 billion in tax revenue compared to our current progressive system, representing a decrease of only 6.26%.

While losing out on £49 billion may seem significant, it would position the UK as one of the most attractive nations for wealthy investors, providing a clear economic incentive as compared to other competing nations. Fostering and enabling a true post-Brexit economic plan, which would provide the investment the UK so desperately needs.

To put this into perspective, HS2 is set to cost between £72-£98 billion, whilst yearly funding for the NHS costs £160 billion; this further solidifies the point that £49 billion is a figure which the government could work with, an amount which would allow the UK economy to grow out of stagnation and thus establish an empire of investment, indeed signalling to the world that we are ‘actually’ open for business.

As Friedman argued and I alike, we should focus first on economic restoration, above all else, and what better way to do so than restimulate our markets with more disposable income to spend across the nation.

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