This episode of Trading Up Unpacked digs deep into the controversial "Spend Now, Pay Later" Budget, described as the "Klarna" budget, focusing on increased spending and backloaded taxation. Jim Fitzpatrick and Richard Ramsey explore the fiscal strategy of freezing tax thresholds, which functions as a hefty stealth tax, dragging more people into higher payment bands. Economists criticised the measures, noting that the OBR stated none of the proposals would have a material impact on economic growth.

We discuss how complex tax "cliff edges," such as the punishing 62% marginal tax rate faced by some earning over £100,000, serve as a "tax on ambition," disincentivising work and career progression. This environment may fuel a concerning demographic trend: net emigration. Over 109,000 more UK citizens left the country than arrived, three-quarters of whom were under the age of 35.

The conversation turns to the Northern Ireland housing crisis, where residential property prices have surged by 45% since 2020, yet house building levels remain critically low. We examine how the "no water charges" policy, while politically popular, starves infrastructure of funding, contributing to the severe housing shortage and exploding private sector rents. Finally, we analyse Northern Ireland's peculiar and antiquated licensing laws, highlighting anti-competitive behaviour and how it creates strange outcomes such as the bizarre case of a new Lidl supermarket in Dundonald that's opening an on-site pub.

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