Readers' letters: History shows tax cutting doesn’t work

As Liz Truss and Rishi Sunak battle it out to be the UK’s next Prime Minister, history tells us that tax cuts, a key battleground in the debate, are the worst way to tame inflation.

As with the First World War, a global conflict is driving up prices and the best that can be said is that at least we are not facing 25 per cent inflation as we did in that war, while in the Second World War inflation reached a paltry 17 per cent.

For those who favour tax cuts, recent history indicates that this could be the worst thing to do. One only has to cast an eye back to Anthony Barber, Edward Heath’s chancellor, who faced the same spectre of stagflation as we do today.

High inflation was failing to drive economic growth and Barber initiated an economic policy not so far different to that which we are witnessing being debated by the Tory leadership hopefuls today.

Aiming for 10 per cent economic growth over two years, in a “dash for growth” Barber cut income tax, overhauled levies and liberalised banking.

Government borrowing ballooned then the bubble burst as sterling plunged and inflation climbed, then the Yom Kippur war triggered the oil crisis of 1973. While in other nations inflation fell, in the UK it rose to First World War levels, accompanied by two recessions.

Before the next Prime Minister looks to loosen the purse strings, the tales of Tory chancellors past should act as a wake-up call.

Alex Orr, Edinburgh.

Why not build a Gyle student campus?

Regarding new proposals to build more student accommodation on London Road, wouldn’t it be better if they made a large student campus out at the Gyle?

There are loads of empty offices out there now that could be converted into student accommodation and there’s the shopping centre and already a large pub, as well as a tram and a bus service to get into town or even out to Riccarton.

Students always say they are in debt, so surely going to a pub is a luxury now.

I’m sure they will do most of their drinking in their student digs or at the universities’ facilities provided for students.

Edinburgh City Council and the universities need to get their thinking caps on and come up with innovative ideas instead of the same old, same old stuff and build affordable housing for the young people who were born and brought up in Edinburgh and want to still live here.

Mrs Susan Smart, Penicuik

We need government of national unity

On our TV screens the rivals for Tory leadership smirk as they focus on weak points in their opponent's armoury.

Liz Truss is enjoying her position as the one in the lead, who can afford to sound bold and confident. But will she make U-turns on her U-turns or will she give us the crisis management this country needs?

A confident Gordon Brown noticeably enters the ring, proposing that government and COBRA should immediately be grappling with the economic devastation ahead of us. His unsmiling face shows him to be the adult in the room.

The smirking Tory candidates just don't seem to get it. Soon an energy bill strike may bring more that 1 million unpaid bills.

Soon many on fixed income will envy the better off tax payers who will get real help with their bills. It will get messy.The central bank will continue to raise interest rates. Inflation will persist. A tanking economy will continue into recession despite tax cuts.

Only a government of national unity can make the wise decisions. Sadly our candidates believe in posturing, not unity.

Andrew Vass, Edinburgh.

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