Liberal Democrats propose reversing bank tax cuts and introducing a windfall tax on profits to address UK's high household debt.

The Liberal Democrats propose reversing bank tax cuts and introducing a windfall tax on profits. This comes as western governments and central banks often increase interest rates to encourage saving and reduce spending, relying on the population's debt to do so. With UK average debt per household at £64,296 and the country owing nearly £2 trillion, increasing rates would hurt the population via higher mortgage costs. The question remains whether the Lib Dems' tax proposal is a sensible strategy.

June 14, 2024
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