James Forsyth James Forsyth

Michael Fallon calls for a revival of shareholder capitalism

In the Budget debate today, Michael Fallon made his first intervention since resigning from the government over misconduct allegations. Fallon’s contribution was broadly loyal to the government, taking the fight to Labour in his typical style. But he said he’d seek an opportunity in the near-future to talk, with greater freedom than collective responsibility had allowed, about the appropriate levels of defence spending needed to deal with today’s threats.

Fallon had four policy proposals to make. First, he argued that the National Insurance threshold should be raised in line with the income tax one. He pointed out that we are now in a situation where some low paid workers are paying as much in NI contributions as they are income tax. Second, he argued for a way of taxing digital companies that would level the playing field between them and high street stores.

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