UK Politics

You have to understand that these articles and especially the discourse on the internet are full of hyperbole and overreaction.

There's also questions about whether this black hole even exists.

Population and GDP wise, its a bigger relative sum. However, it doesn't really cost that. It meant they could expense equipment down immediately against tax. However, the usual way is to expense it over a number of years with a depreciation scheduke. So they have a lower tax bill now to encourage investment, but they will still pay the same amount of tax overall, just delayed.

Its more that the scheme was not very successful. However, given that it effectively cost nothing except the borrowing costs on 20b, and maybe have cobtriubuted 10billion, it could be beneficial. In the context of budgetary concerns, a lower return than hoped is poor spending and policy. Framing it as a big giveaway is disingenuous though.

the thing is, it’s a gap between the money the government is spending and the amount of money it gets through taxes and other incomes each year.

So it’s money that has to be borrowed from folks, every year to keep things going as they are. And each time that money is borrowed it needs interest paid on it which makes the problem worse. Especially with the high interest rates around the world.

So british people are working hard, paying their taxes and a percentage of those taxes is going towards servicing debt that has been built up, by poor spending decisions in the past.

It’s like payday loans for governments. you’ve either got to get spending under control, make more money somehow (tricks in the car park or maybe sell crack) or eventually reach the end of the road.