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Telegraph readers on Rishi Sunak's mini-Budget: 'With every word, he adds more to our national debt'

Chancellor of the Exchequer Rishi Sunak delivers a summer economic update in a statement to the House of Commons - House of Commons/PA
Chancellor of the Exchequer Rishi Sunak delivers a summer economic update in a statement to the House of Commons - House of Commons/PA

Chancellor Rishi Sunak unveiled his plan to kickstart the economy on Wednesday just four months after his last budget.  Included in Mr Sunak’s ‘mini-Budget’ were a number of tax cuts, including a cut to stamp duty and VAT, as well as new incentives for home buyers and a jobs retention bonus for companies that bring employees back from the furlough scheme.

The Chancellor also announced that everyone in Britain will get an 'eat out to help out' discount, funded by the government, which will give Britons 50 per cent off meals from Monday to Wednesday at eateries that opt in for the scheme.

Emphasising that Wednesday’s set of announcements were aimed at giving “businesses the confidence to retain and hire”, Mr Sunak revealed a ‘Kickstart scheme’ that will directly pay employers to create new jobs for any 16 to 24-year-olds at risk of long-term unemployment.

Telegraph readers have had their say on the Chancellor’s latest plans and have offered predictions on how the UK’s economy will fare in the months and years to come following the devastating impact of the coronavirus pandemic.

Read on to see what your fellow readers have had to say and then share your own opinions in the comments section below.

'Scrapping stamp duty and other minor taxes is win win'

@Alastair Harris:

“Scrapping stamp duty, and other minor taxes is win win. It will make our ludicrously complex tax code less complex. It will reduce the costs of complying with it. It will remove distortions to markets and it will increase economic activity and hence the overall tax take.

“Stamp duty. Employers NI. Inheritance tax. Capital Gains tax. Revenue taxes on fuel, booze, gaming machines. It could be a long list!”

'Every time Sunak opens his mouth more money is added to our debt'

@Steven Goodban:

"It is no good hoping that you can rebuild our economy as it was. Times have changed. Once the Chancellor realises this we can look to build a new economy.

"We must get back to making more and importing less and stimulate demand for those products. Keep throwing money at various 'bits' and products will end up costing a fortune for almost zero gain.

"Anyone with an ounce of sense would wait and see how all this profligacy will be paid for. Sunak has driven a coach and horses through this country’s finances. Every time this guy opens his mouth another few billion is added to our debt."

'Young people needs places to live, not just jobs'

@Ateuchus Scara:

"The one thing that prevents young people from being productive is the lack of suitable accommodation. You cannot function without an address. They need somewhere to live and work.

"Cheap homes and work hubs in places where there are opportunities and openness to new possibilities. These are more important that swathes of neo-Georgian estates in places with no public transport, nor adequate utilities, supporting dying industries with people who have been trained to be employees rather than employers."

What should the Government's financial plans focus on?
What should the Government's financial plans focus on?

'Won't make much difference'

@Richard Lindsay:

"I'd now be very happy to see Stamp Duty go entirely, it's an absurdly regressive tax, but on its own it won't make much difference: prices will simply rise to accommodate and it will do nothing to address the real housing problems which are the general shortage and the difficulty of getting on the ladder at all."

'We could make a success of Brexit yet'

@james Bednarik:

"During Britain’s most successful 100 years when we ruled the waves government spending totalled around about 10 per cent of GDP. Today we are at about 40 per cent and rising.

"Cut government spending. Let private enterprise rip and see the results. We could make a success of Brexit yet. Won’t happen though, the government will make sure of that.

"These minor tax breaks at the fringes do nothing to the overall picture. You are simply subsidising the relatively well off with tax perks which everyone including people who will never buy houses have to pay for.

"Cut government spending to 10 per cent of GDP and we will rise again. Let us decide how we want to spend our money."

'Improving energy efficiency of homes is a great idea'

@Somerset Boy:

"Improving energy efficiency of homes is a great idea, whether by reducing VAT or grants.  It keeps money in the UK, creates local jobs and has a significant long term environmental, economic and social benefit."

'Rishi has found Labour's magic money tree'

@Maurice Hastings:

"Wow, so Rishi has really found Labour’s magic money tree. Who would have guessed that house sales fell in May (in the middle of lockdown)? Or that prices fell for the first time in 8 years?

"We need to fix that immediately; we can’t have house prices falling under any circumstances.

"The first reaction will see house prices rising, followed by a massive slump. All magnified by Rishi and his magic money tree. Well done Rishi and Boris."

'A large amount of investment is required'

@Arnold Layne:

"It's easy to forget that the country was not doing just fine pre-Covid. The Red Wall voted the Tories in to finish Brexit and level-up the country. Large parts of England and its infrastructure had deteriorated to the point that it looks jaded and grubby.

"We do indeed live in pothole patch-up Britain with its dowdy towns and grim former seaside resorts. A large amount of investment is required. "

'The state is out of control'

@Jonny Newell:

"We are in a situation where the state is out of control. The largely needless jobs they create from our money have to be justified, hence they create schemes which do far more harm than good. Individuals and companies alike find it hard to make investment decisions given the constant shifting of the goalposts and this creates significant economic damage."

'Is anybody else rather disappointed?'

@A C H Melchett:

"According to Mr Sunak, the economy contracted by the same amount it had grown over the previous 18 years - 25 per cent.

"Is anybody else rather disappointed to know that this world leading economy only grew by 25 per cent in almost two decades? That's something like 1.2 per cent annualised growth. If I'd invested in the stock market and had an investment returning only 1.25 per cent per annum I'd be seriously concerned."

What do you think of Rishi Sunak's latest set of announcements? Let us know in the comments section below.