Brexit and the waning days of the United Kingdom

[Tamas]

UK bank shares jump after 'avoiding budget tax raid'
Shares in UK banks have jumped at the start of trading, following reports that they will be spared from a tax raid in the budget.

Splendid, tax raise for me is more guaranteed by the day!

One thing perhaps Labour could take from Fidesz' playbook is the sector taxes. Orban's people would raise taxes on banks and telecom companies. It was very obvious, and came to be, that they'd need to increase prices/interest charged so at the end of the day it'd be the consumers paying the tax, but the majority of the electorate could not make that "complex" connection of the banks being told to pay more and their own personal financial situation becoming a bit worse.

[Sheilbh]

I have a slight sense of foreboding that the budget might be a bit of a disaster. I'm a little concerned that moving to the smorgasbord approach of lots of little tax rises will possibly backfire in a day or two - I could be wrong I just feel it might go the way of the pasty tax/omnishambles budget of being a bit too clever by half.

Meanwhile the OBR (who should not be this important) is apparently going to downgrade its growth forecast for every year to 2031 which will have an impact on "headroom" in future budgets (thisis all a ridiculous prospect). But also not particularly great in a government that has said it is "laser-focused on growth".

Speaking of growth the government task force on nuclear reported back yesterday with a realy highly praised report that made a lot of actionable recommendations that seemed to make a lot of sense. So inevitably I see Robert Peston today giving an update

Robert Peston
@Peston

John Fingleton's review for the government of how to reduce unnecessary barriers and costs for nuclear power development is a tour de force, a compelling road map for how to accelerate important infrastructure investment in the UK - which is the sine qua non of improving growth and living standards (read John's nutshell below).

For the last eight weeks he was assured that the prime minister and chancellor would accept and implement the recommendations in full. He even tweaked an important clause at the government's request, to give them a bit more flexibility over the means to implementation.

I understand he has now been told that at the budget tomorrow the welcome will be conditional, subject to further work and review - because the Chancellor has been nobbled by a legal and planning adviser, who claims the Fingleton recommendations somehow breach the UK's environmental, trade  and human rights obligations.

He and his colleagues believe this is nonsense. They examined the legal considerations in their assessment.  But they fear that yet again the dead hand of official caution has squashed - potentially for months and years - important growth-enhancing investment.

At some point this parliament I hope the government will discover they have a majority in a sovereign parliament and can just do things

Semi-relatedly having delayed defence spending announcements for a year while they did another Strategic Defence Review...

Starmer promised to spend big on defense but Britain's arms industry is still waiting

Six months after a major inquiry into how the U.K. would meet geopolitical threats, many in the industry complain they haven't received the certainty they need about where the British government plans to invest. 

https://www.politico.eu/article/keir-starmer-britain-arms-industry-defense-whitehall-armies-sdr-nato/

I've complained about this before but I think the commitment on defence (which took a big fight by the MoD v the Treasury) is still incredibly inadequate for the European security situation:

U.K. Prime Minister Keir Starmer's Labour Party has made a lot of noise on defense since entering government last year, plundering the aid budget to get defense spending to reach 2.6 percent of GDP by 2027 and a promise of 3.5 percent by 2035.

Industry figures complaining of repeated deferrals, decsions not being taken, actual contracts not being awareded - which all seems like a repeated pattern with this government. They don't actually seem to like choosing and making decisions.