Britain’s autumn statement got business taxes right

You DO NOT have to be an economic historian to know that politicians like to cut taxes before elections. On November 22nd Jeremy Hunt, Britain’s chancellor of the exchequer, announced tax cuts worth £18bn (0.7% of GDP), 14 months at most before Britain goes to the polls. Mr Hunt said he was able to loosen the purse strings because of his sound economic stewardship. One of his measures was indeed a striking example of sensible policymaking. Unfortunately, the rest of the budget leaves a mess for the next government, which surveys suggest is very likely to be formed by the Labour Party.