You cannot tax your way to a strong and healthy economy, says Jacob Rees-Mogg

The government has promised there will be no return to austerity, as well as assurances there will be lower borrowing, spending and debt.

The Labour manifesto already included £9bn of tax rises, but £16bn will have to come from somewhere else if Reverends Starmer and his Chancellor Reeves are to carry out their promises to the electorate.

But having written off spending cuts and borrowing, the only option left is to take more of your hard earned cash, leaving you with less of your own money and no members of the House of Lords to provide you with a fancy new wardrobe

The risk to Britain’s future is significant.

Tax rises never create a prosperous economy on their own; there is only so far money can be taken without it being replaced. As Mrs Thatcher prophesied: "You cannot tax your way to a strong and healthy economy."

For the economy to grow and flourish, it needs investment; and investment requires a fertile economic landscape attractive to investors who believe that they will make a profit.

Taxation needs to be structured to distort economic activity as little as possible.

It also needs to be globally competitive. A combination of high rates and stealth taxes means the UK fails on both counts and this reduces our long term economic trend growth rate.

It’s time for free market, supply side economics, which is the one way to boost growth without a fiscal cost.

Unfortunately the government is going the opposite direction.

The proposed additional rights for employees will deter companies from taking people on. What appears to be protections are in fact obstacles to job creation and risk abolishing the UK’s competitive Labour market. This will remove the one last remaining advantage over other countries.

As the Sun memorably said in its 1992 front page ‘Will the last person to leave Britain please turn the lights out?’