Voters tell Reeves: Cut taxes and energy costs to boost ‘poor’ UK economy
British voters want Rachel Reeves to cut taxes and reduce energy costs in order to focus on growth as a majority of people felt the UK economy was “poor”, new research has shown.
Polling by Freshwater Strategy for the Institute of Economic Affairs (IEA), a free market think tank, suggested that the vast majority of Brits wanted the Labour government to focus on economic growth more than it currently does.
The findings back up the Labour government’s primary mission, which is to grow the UK economy.
But respondents in a survey and focus groups suggested that voters supported small-state policies to deliver improved growth as much of the public were confused about measurements used by the government to track achievements.
Polling found that 77 per cent believed energy costs should be reduced while 72 per cent backed lower taxes for workers. A slightly lower portion, 66 per cent, backed tax cuts for businesses.
When faced with a direct choice, Britons backed economic growth even if it led to some environmental damage while most also wanted energy to be cheaper even if it meant slower progress to net zero.
Taxes and energy costs top Brits’ priorities
Respondents to the survey of 3,000 voters were also more likely to say that GDP growth benefitted the government more than individuals.
In a damning indictment, nearly two thirds of people (65 per cent) rated the UK economy as “poor” but over-estimated the average wealth of Brits compared to Germans, Australians and Americans.
Kristian Niemietz, editorial director of the (IEA), said the lack of progress made in the last 18 years “should be the number one public policy issue of our time”.
“While political discourse in Britain may not always reflect it, Britain is clearly not a country that is comfortable with economic stagnation and relative decline,” Niemietz said.
“We still have the social expectations associated with a growing economy. What we do not have is the economic performance to match those expectations.”
Middle East war rattles finance chiefs
Low sentiment across the public reflects wider pessimism among business leaders, with one survey of 79 chief financial officers suggesting that confidence had fallen to a six-year low.
Deloitte’s finance chief survey suggested that the war in the Middle East had weakened top business leaders’ hopes of an economic recovery as geopolitics was cited as the top risk.
Levels of concern around geopolitics were at a record high, according to the survey, while rising energy prices and the prospect of higher interest rates were also among the top risks.
Deloitte UK chief economist Ian Stewart said: “Rarely in the last 16 years have UK chief financial officers been more focused on cost control than today.
“This challenging environment is prompting chief financial officers to scale back expectations for margins and sharpen their focus on cost reduction and cash conservation.
“The immediate priority for finance leaders is to strengthen balance sheets in the face of external headwinds.”