The private financial system on its own cannot perform well to support the real economy or implement a new industrial strategy. It does not fund sufficient long-term investment in risky innovation, neglects key sectors, including both physical and social infrastructure, and fails adequately to support small and medium sized enterprises. Therefore the National Investment Bank (NIB) will be a valuable instrument for a Labour (and other future) governments to help achieve increased investment for making the UK economy more dynamic, greener and fairer.Read More
It has long been assumed that government spending is financed by taxation. This should be challenged, because it is not true. A clear understanding of the mechanisms for funding public expenditure is essential to implementing a sound fiscal policy. The question to be asked is this:
What is the appropriate and effective mechanism for funding public expenditure?Read More
The 2017 Labour Manifesto calls for a National Investment Bank (NIB) and a network of regional development banks. A ₤250 billion “National Transformation Fund” would be focused on infrastructure and housing, and NIB would provide ₤25 billion/year lending to small businesses, including coops, and to contribute to “transforming our financial system”.
But how best to ensure that access to affordable credit is provided to the small and medium enterprises most in need of it?Read More
Tax is an effective tool available to any government to implement its social and economic policies. The current institution for collecting taxes, HM Revenue and Customs, does not allow effective use of the tax instrument.Read More