The Telegraph, July 25
SIR – The economy of the United Kingdom is struggling. It is suffering from high inflation and weakening domestic demand.
The policy solution necessitates a tighter monetary policy from the Bank of England to control inflation and a looser fiscal stance, focused on targeted tax cuts, to address weakening growth.
Thus, timely, targeted and fully affordable tax cuts are needed.
Given the nature of our inflation shock – driven by global supply-side pressures and previously lax monetary policy – targeted tax cuts will not be inflationary. The domestic economy is not overheating.
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