The UK’s £45 Billion Tax Cut Isn't Radical Enough

The market meltdown triggered by British Prime Minister Liz Truss’s radical plans to slash taxes partly reflects two broad critiques of her approach to fiscal policy: that her £45 billion ($50 billion) in tax cuts will be socially divisive (and perhaps usher in a Labour government) and that it’s economically illiterate.

The real weakness may be that she’s not being radical enough. In fact, let’s put the fish on the table: There is no way that Britain is getting radical, tax-cutting, growth-driving Conservative government without opening up a big, smelly discussion about the National Health Service. Health and social care account for about 20% of government spending; excluding pensions and benefits, the figure is more like 40%. Truss can’t be a radical liberalizer without addressing this line item.