OL’s tax team have asked you to write a short article to be placed on the firm’s internal intranet site. You have been asked to:
(a) Choose two fiscal policy measures deployed by the UK government in response to the pandemic and explain the economic rationale for their use. When selecting the measures please consider (b) and (c), selecting measures that illustrate the points you wish to make.
(b) Analyse whether the measures you chose at (a) were effective in the short term (less than 12 months). Use economic data to support your evaluation.
(c) Critically evaluate whether the fiscal measures you identified are likely to stimulate the economy in the long term and/or whether they carry the risk of causing problems in the economy.
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