What does Boris Johnson’s resignation mean for the economy? The pound started its rebound yesterday from a two-year low against the US dollar after Johnson resigned. A few economists were quick to point out though that it had dropped so much, there was only one place it could really go: up.
It’s very likely this leadership race turns into a competition over who would cut taxes hardest and fastest, which is no bad thing
Had Johnson managed a few more months in the role, we would have almost certainly seen some deficit-financed tax cuts, led by the new Chancellor Nadhim Zahawi. ‘We were 24 hours away from reversing the corporation tax hike,’ one minister tells me, which will rise from 19 per cent to 25 per cent for large companies. There is heavy awareness in the Prime Minister’s circles that he will be leaving office with the legacy of having taken the tax burden to a 72-year high (take a look at Michael Simmons’s write-up of Johnson’s premiership in seven graphs here).
Comments
Join the debate for just $5 for 3 months
Be part of the conversation with other Spectator readers by getting your first three months for $5.
UNLOCK ACCESS Just $5 for 3 monthsAlready a subscriber? Log in