The Liberal Democrats were the first party to unveil their manifesto and the first party to break ranks and declare increases in tax, or sort of. Ed Davey announced that they would reverse tax cuts to banks and introduce a windfall tax on profits. Obviously, the Liberal Democrats can do this as they have little chance of gaining a majority. But does it make sense?
As we have seen with recent inflation, the Pavlovian response of western governments and central banks is to increase interest rates to encourage saving and reduce spending.
