Writing in the latest issue of the (UK) Spectator (the article is hidden behind a pay-wall), the magazine’s editor, James Forsyth, maintains that Osborne has been radical with yesterday’s Budget. The article is entitled “Osborne goes for growth.” And he says among Treasury officials “there’s a realization that three percent growth won’t come without reform: there’ll be no reward without political risk.”
And the reform he’s talking about? The cut in the higher rate of income tax and the two percent reduction in the corporation tax rate. As I argue below, both were sensible cuts but hardly radical and should have gone further. They are not going to secure for the country three percent growth per year. Much more than that is needed to unleash the animal spirits.