If you spend like a drunken sailor, the bills will come in. Reeves, and her boss not only welcomed the giant blowout of money on having people sit at home for a year, and on huge energy subsidies, they demanded more of it, and did so on record in the HOC . Spending has to be cut. It will happen sooner or later, as it did in the late seventies, which is the last time any government raised the rate of income tax. And once they start,they can't stop, which led to the ridiculous spectacle of. 90%+ tax levels. Spending has to be cut. God only knows Hunt, and Sunak before him, were hopeless, but they seem like bastions of rectitude compared to this individual. Her budget will have the same connection to truth and reality as did her C.V..
I watched her speech, hoping for something. But got nothing. She said nothing of substance and answered questions with nothing. I genuinely have no idea what she hoped to achieve. I turned the tv off feeling even more certain she and her boss do not understand what is needed. Just really depressing.
It definitely seemed like a softening up speech to me, Trouble was she contradicted herself so many times. We are also trillions in debt
There shouldn't have been a speech. It should have been the budget, which is already late. They might "understand", but they cannot act. Huge tax rises are inevitable. Money has been hosed around ,without condition, all over the place. You can only borrow so much and then the markets will start to look and say "no thanks". The point of the speech was to try and kid the market that we are a good credit risk, and it will have failed badly. Eventually, they decide that there is better debt to buy. That is the point we are now at and we have been here before, but this time there is nearly four years of a zombie government before anyone can even attempt to try and get some balance and incentive into the economy.
Good to hear common sense is prevailing. Economists have been saying for months that tax rises are needed.
They have been saying tax rises were inevitable, which is different . They have also been saying the spending must be cut. Urgently. They have been saying that a lot more. Raising taxes is the only way now, as they absolutely refuse to make even timid cuts to anything, even bloated QUANGOS performing no vital roles. The markets have been badly spooked by this last year. Most gild yeilds are higher now than when Truss was PM, and they were only that high then for a few weeks. Reeves has had well over a year, and every single indicator has reversed in that time. This is not common sense from Reeves I'm afraid, Common sense would be a reduction in spending, some at least. Income Tax rates have not risen since Labour had the UK bailed out by the IMF. It is a terrible thing for the economy, and they will raise them again. You can't tax your way to growth. No economy in the world has ever achieved that.
My take. People need services because they don't have money to pay for them. Efficiencies yes, austerity no. You can’t austerity your way to growth because people need to be safe, stable and well and it costs anyway if they aren’t. So they have to tax more and be bold about it, If they don’t tax wealth though they tax people who in turn spend less and do less, so tax wealth. If you don’t it’s simply playing politics and hoping for the support of donors and the printed media. If there isn’t significant change you’ve lost that anyway so raid the selfish greedy ****ers. It’s fair to say that they said they wouldn’t do this but in reality they need to do it. The electorate always elect liars though it seems and Reform are ahead in the polls which amplifies that. Maybe vote for the most honest instead who are probably the Greens and Lib Dems currently.
