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Richard Kendall asked about frozen tax thresholds, which mean pay rises can see people drawn into paying higher rates of income tax.

A smaller workforce means the government raises less income tax and National Insurance, which it uses to pay for services like the NHS.

Interest rate cuts as well as a $12bn income tax relief provided to individuals in the federal budget "augurs well for supporting domestic consumption demand", according to the report.

What about cranking up income tax, national insurance or VAT?

At her first Budget the chancellor rejected, for example, extending the Conservative freeze to income tax thresholds by another two years.