The British elite and the socialist budget

Labour raises tax, wages, spending on services and borrows to invest. What’s not to like?

As an anti-populist, I tend to shy away from using the term “elite”. But when self-selected Brahmin class of rich people and their journo friends decide to throw a mass-psychological tantrum because Labour has raised taxes, I think using the correct term is important.

After Rachel Reeves’ budget triggered a small rise in gilt yields, you could almost feel the right wing media willing a Truss-style bond market meltdown. It hasn’t happened, but they will go into this week still hoping for it.

Meanwhile the Tories’ attack lines — that Labour was dishonest at the election, it won’t fulfil its growth mission and could wipe out British farming by hiking inheritance tax — are being loyally echoed by the broadcasters.

Fuelling the tension is the Office for Budget Responsibility, which has refused to model key aspects of the economic rationale for Labour’s budget, on the grounds of s longstanding bias towards skepticism over whether investment can boost long-term growth, and the belief that the Bank of England will probably counter-act many of the positive effects.