Truss was in power for weeks. Weeks. All the damage she did was short term, Gilt yields are far higher now, and They are the foremost problem. The LDI issues affecting pensions are a twenty year old problem, and in fact go back to Gordon Brown interfering with the private pension funding arrangements. It related to other issues on the bond market, term time and type, which are largely overcome, and were overcome very quickly actually. But they will come sgsin. The deficit was about halved between 2010 and 2015, but as I hope you know, the deficit is not the debt. Truly the Tories were useless, following tax and spend policies that passed the "BBC test". Yes, they had one of those! And even given the pandemic and Putin's war, the two biggest shocks to the economy in eighth years, still they trod the wrong path. They were useless, but even they had managed five months of growth, high employment and low inflation with more growth following until Reeves' budget. They were useless and I can see it. I don't wear a political shirt like a football shirt. Try taking the shirt off. You will see that this lot are even worse, which takes some doing.
There are some massive problems and we need a good government to start to fix them. I'd argue that the short term and adversarial nature of UK politics are hindering progress. Partly due to the poor quality of politicians we have, and they appear to be getting badly advised. Productivity is at the heart of some issues though I confess to not having deep knowledge of the factors and impacts. The work ethic is not there with a lot of people and I can understand why when the system is geared to squeeze the most out of workers for very little reward. Many are grafting hard just to survive rather than to make money. Does this lead to mindsets of why should I put 100% in, or even get a job in the first place, when I don't see any benefit from it?
It was discussed on last night's Newsnight, not looking good. Hopefully the "fairer" budget steadys the ship. Good points marra, but I'm happy to put my faith in Labour doing a better job than the tories managed in 14 years of destruction.
Argh that’s alright then - she knocked £400 billion off all our pensions in a coke filled splurge. The markets loved it. That’s why the Tories got rid of her. Take your shirt off cos the Tories caused this clusterfck you need to own it. They fckd the country and there is one hell if a mess to clear up.
I lived next door to a benefit cheat when I was younger, drove my dad bonkers, he believed nobody not working should get more than someone working for a living but these lads have benefit cheating off to a fine art.
I don't think you have understood what I've written at all, which is probably why you have felt the need to resort to foul language. so I'll leave it at that.
I'd try and look at the facts, rather than the rhetoric given out by Mandelson and his coterie, who still wield influence with Starmer. The decline of UK finances can be traced back to just after the turn of 2000. Brown unleashed an enormous bout of spending and state hiring. The Tories and Libs did nothing to stem this, then the Tories themselves failed to do it too. Only by reducing the size of the state can any stability be achieved . Labour want it to increase. The markets, upon which we are now utterly dependent, want the state reduced as it is the only way to stabilise the economy. Sooner or later, as in the seventies when it was the IMF, the markets will have their way. It is not political, it is economic.
Agree, but how long is "sooner or later"? I'd hope they would get two terms to sort out the tories mess... we shall see where we land after the "fairer" budget.
Never been a member of the Labour Party or a union and have voted Liberal and Geeen in the past so your stereotypical nonsense is par for the course. The Tory party whether through corruption or incompetence or both have broken this country then. This government has one heck of a mess to clear up. Il leave it at that. The alternatives are Badenoch who is the worst Tory leader since Sunak and racist Nigel whose backers want him to smash the nhs and slash public services which it appears you’re happy with. Sadly low income people backing reform are the ones that will suffer the most.
Absolutely no chance of two terms mate. Sooner or later is more or less now. That is the reason for the budget being long overdue and the flip flopping on tax positions. But Labour , and the Tories post 2010, are instinctively hostile to reducing the state, they always want to grow it. The cash has ran out and the lenders are becoming hostile .
But why now? Why would the markets give them 15 or 16 months to sort out the 14 years of tory destruction? I'll beg to differ and wait on this next fairer budget.
The " now" was coming. It's almost here, or near it. The markets are not political at all, and it is not just debt, or spending that worries them, but uncertainty and dithering. That is why the UK now pays the highest borrowing costs of any G7 nation, or most others. Higher even than Greece or Italy. This is very important. So high is the debt, that it is the most important single factor in the equation. As for the " destruction". Well the Tories certainly spent too much money, for too long. They continued to grow the state. The trouble for Starmer is that whenever spending decisions were made and published, including the gigantic COVID relief and energy support, ( all forgotten it seems!) , but also at at all other times, he and his party always demanded more. At every budget and every spending review, they wanted to spend more. All on record in the HOC. It's not political, it's economic. The state has to be reduced in size, it really is as simple as that.
The funds floating around the bond market dwarf any one countries GDP. Countries/governments need to borrow from the bond market to fund both their outgoing expenses and capital investments. If over a period of time, taxes in < govt spending ( as Mr Micawber might have it misery). If a government is perceived is, using a technical term, 'fcuking up the economy' the thousands of separate fund managers are not keen to 'buy' bonds unless the government interest rates become prohibitive. One measure often used as a yardstick is govt borrowing > GDP. Liz Truss wanted to cut taxes, good to help growth, but didn't cut spending. So it was hardly surprising, that is was, effectively the bond markets, that did for her. The phrase you 'cannot buck the markets' is usually a fact. The huts keep coming, the stupidly of 'austerity' when borrowing was cheap, the tories should have invested in infrastructure to promote growth, ie the opposite to what they did. Brexit is a growth hit, as with the pandemic ( huge borrowing) The Russian invasion of Ukraine, Liz Truss made investors nervous. Markets are also nervous about the AI bubble and Trumps idiotic tariffs. With this background and the resultant 'guard rails' labour are struggling, to get building houses, nuclear energy plants, new national grid etc, all growth stimulants. Whilst of course, seeming unable or unwilling to 'stop the boats', enabling ***ash and Deform to appear the winners of the next GE. Good job I am old...and this won't bother me.
It's not spending per se that spooks the markets, it's unfunded spending that does that. Let's see what's in the budget and how the markets react, and by that I mean see how the markets look after a few days not a few hours.
I think some would like to borrow to give the rich tax cuts. Never mind Truss was just in a few weeks so that’s acceptable to some,
Uncertainty is what spooks them most. You must give a clear message. That is why the period up to a budget is traditionally one of "purdah". The delay to the budget , then the unprecedented statement, then the apparent retraction have cost a lot of money. Markets are usually calm after a budget, even a bad one, as they have something to calculate with. It's later when the storms start, as we have seen this year There are a lot of different gilts to watch. But the medium and long term ( three to five year) are the best indicator of their sentiment. Most are at a record high right now, and this costs a fortune. Tax rises will stop some bleeding, but will have their own bad effect and always raise less money than expected. Only a reduction in spending will really make a difference in the end.
Of the 170,000 jobs lost in the UK since last June 46% are for young people under the age of 25. That is terrifying and incredibly sad. We are storing up huge problems for our kids and grandkids. If this is really to be a fairer budget as claimed then it has to put the younger generations at the heart of it.
Record borrowing under the Tories really helps our kids. They still gave us record child poverty, record nhs waiting lists and record foodbanks though. I’m sure my kids appreciate that.
I really at times struggle to believe the Laffer Curve works, but it seems to i regards to taxation diminishing the higher the rate. I reckon a similar curve ( as yet unnamed) probably exists.... for migration and what is the tipping point for locals to say they have had enough?
Yes the biggest growth in the last 15 years has been in food banks... despite an even bigger growth in benefits... something is seriously fcuked!
