Death, taxes and childbirth! There’s never a convenient time for any of them!” Mark Twain

Global stocks continue to recover from the minor sell-off last week, helped by another encouraging employment report from the US. Despite the understandable caution from the scientific advisors, the news this week has been positive. Infection rates are falling and the percentage of the population vaccinated is increasing.

The Bank of England did as expected, and left rates unchanged. However, they did keep a small window open by asking UK banks to prepare for the possibility, in the future, of negative interest rates. They left themselves enough leeway before they would consider a move to hopefully ensure that the recovery will be taking hold and the necessity will go away. Financial stocks in Europe had a decent day post the announcement reflecting the optimism that we will avoid having to pay to deposit our money in a bank. Technology shares continue to be delivered for investors as PayPal performed well post its earnings, underlying its strong share price start to the year.

There is little evidence at present to divert one’s view that a combination of monetary stimulus and the continued delivery of vaccines will support economic recovery.

The question remains how all the support for the economy will be paid for. We have highlighted, what should almost be an unthinkable policy for a Conservative government, the idea of asset taxes. The possibility is becoming a reality in America and the budget in early March may provide Rishi Sunak with the opportunity to introduce asset taxes in the UK.

A lead article in the Telegraph newspaper reported that the burden on the taxpayer has not been as great since the era of Clement Atlee as prime minister. Rishi Sunak will be preparing his budget for the coming year, with the aim of balancing the books. Spend borrow and tax, no matter the rationale never ends well.