Tax allowance

The unions, Ed Balls, the Taxpayer’s Alliance, Tim Montgomerie and Guido have all come out against a rise in VAT.

The possible flaw in their argument is taking the tax rise in isolation. They’re assuming every option for spending restraint is an alternative. The brutal fact is we’re probably going to implement all the cuts they can think of, dream up a few more, and raise taxes. That’s how big the hole is.