The Tory former chancellor was told during an interview on Sky News this morning that the current tax burden is 36 per cent of GDP and it is set to rise to 38 per cent.
Asked if the UK was close to a “counterproductive” tax burden level, Lord Hammond said: “Yeah, I think we are. I think that there is a danger that taxation becomes so high that it interferes with the normal operation of the economy and it drives people to make investments and to carry out entrepreneurial activity elsewhere.
“The problem of course is worse than it sounds because we have also got a demographic profile that is going to see demand for public services pushes still higher. We have got the huge cost of the energy transition to finance.
“And we have also got to invest more in defence as the world has become a more dangerous place around us.
Everything gets replaced at some point. So, wait until it needs to be replaced then replace it. Job done.
This is also what the Nobel winner for the economics of climate change said we should do too. So why isn’t that the plan?