They don’t have the numbers to get it through parliament. They have no choice but to U-turn.
I wonder how many more we’re likely to get from this Dumb & Dumber PM/Chancellor combo?
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[Politics] Liz Truss **RESIGNS 20/10/2022**
- Thread starter Ethelwulf
- Start date
They don’t have the numbers to get it through parliament. They have no choice but to U-turn.
I wonder how many more we’re likely to get from this Dumb & Dumber PM/Chancellor combo?
- Jun 20, 2021
- 3,877
I wonder if the 45p tax cut will actually be "postponed" to a later date rather than abolished, in a feeble attempt to save face. Kwasi can then become like Major Major in catch 22 with his cancelled parade marches
beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 36,015
1bn of cuts gone, only 44bn more to go. 
Dick Swiveller
Well-known member
- Sep 9, 2011
- 9,529
#prayforstevefoster
She’s just trying to be like Boris Johnson.
U-turn after U-turn.
Why don’t they work out the consequences of what is really going to happen, not what they want to happen, before they act?
U-turn after U-turn.
Why don’t they work out the consequences of what is really going to happen, not what they want to happen, before they act?
Since1982
Well-known member
This U Turn demonstrates beyond all doubt that they have neither economic nor political credibility.
- Jul 10, 2003
- 27,772
They've only cancelled at as they knew it wouldn't get voted through. When a political party starts voting against itself, then you know it's in trouble.
When this cabal, who refused to vote against a PM with a conviction, lowering MPs standards, lying to the Queen, Owen Patterson facing the sleaze watchdog, Rwanda, getting rid of all legal routes for refugees, free school meals, the MP's fast track programme for Covid suppliers, etc etc (I could go on and on and ...........
It's a good indication of where we are, clusterf*** central. How the f*** did we get to here
When this cabal, who refused to vote against a PM with a conviction, lowering MPs standards, lying to the Queen, Owen Patterson facing the sleaze watchdog, Rwanda, getting rid of all legal routes for refugees, free school meals, the MP's fast track programme for Covid suppliers, etc etc (I could go on and on and ...........
It's a good indication of where we are, clusterf*** central. How the f*** did we get to here
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The problem with a U-turn like this one is how it plays with voters.
The working class, struggling with cost of living crisis, voters won't forget that truss and Kwarteng tried to kick them in the nether region. And now, they'll have pissed off a significant number of the higher income earners as well who'd been looking forward to paying less tax but now had that rug pulled.
It'll probably leave them in a better position than they would have been without the u-turn in net terms (by heading off embarrassing parliamentary defeats by their own MPs siding with Labour), but they'll still be worse off than if they'd not got themselves into the mess in the first place.
Edit:
Looks like the announcement has had a positive impact on the value of the pound. That's good, however the thing we need to keep an eye on now are those gilt yields. At the moment (it's very early) there's not much sign in them shifting significantly off their stabilised positions from the end of last week, though they are trending slightly in the right direction. Will need to keep an eye on them during the day.
The working class, struggling with cost of living crisis, voters won't forget that truss and Kwarteng tried to kick them in the nether region. And now, they'll have pissed off a significant number of the higher income earners as well who'd been looking forward to paying less tax but now had that rug pulled.
It'll probably leave them in a better position than they would have been without the u-turn in net terms (by heading off embarrassing parliamentary defeats by their own MPs siding with Labour), but they'll still be worse off than if they'd not got themselves into the mess in the first place.
Edit:
Looks like the announcement has had a positive impact on the value of the pound. That's good, however the thing we need to keep an eye on now are those gilt yields. At the moment (it's very early) there's not much sign in them shifting significantly off their stabilised positions from the end of last week, though they are trending slightly in the right direction. Will need to keep an eye on them during the day.
Thunder Bolt
Silly old bat
Constituents first? She’s panicking with her 2K majority.
What is it about female PM’s that make such cruel leaders? Always going after the most vulnerable.
Those earning £1m were going to receive around £53k extra. That’s a couple of their dozen annual holidays paid for. They’ll be gutted. I can’t see how the Government can now motivate them to save the economy? Why do we treat our best, brightest, richest and most capable people like this? Hopefully the abolition of the banker bonus tax will at least pacify some of them and they won’t be leaving this country in their hundreds to live in somewhere that taxes them a lot less.
Your sarcasm is most welcome here.
It's not about the £1 million + earners. it's about the more common £150k+ earners. Who, I will agree, most definitely do not need a tax cut. But we saw commentary last week from folks in that group who thought that 45p rate abolition was a good idea, and they will now be looking at the u-turn and thinking "why should I believe you in future if it's that easy to make a promise and then renege?"
Politically, the last week and a bit has been an absolute nightmare for Truss and Kwarteng. And rightly so - they made an absolute mess of it and deserve every negative they get out of it as a result. They're in a much weaker position today than they were a week and a half ago, and they won't be able to simply erase that with a 45p rate u-turn.
Now the job of blaming the person whose idea it was has begun. Truss has blamed Kwarteng in an interview this morning. Kwarteng said it was Truss' idea. When challenged he said it was a collective decision after a 'discussion'.
I trust that I have no need whatsoever to mansplain what all this means.
I trust that I have no need whatsoever to mansplain what all this means.
Your sarcasm is most welcome here.
It's not about the £1 million + earners. it's about the more common £150k+ earners. Who, I will agree, most definitely do not need a tax cut. But we saw commentary last week from folks in that group who thought that 45p rate abolition was a good idea, and they will now be looking at the u-turn and thinking "why should I believe you in future if it's that easy to make a promise and then renege?"
Politically, the last week and a bit has been an absolute nightmare for Truss and Kwarteng. And rightly so - they made an absolute mess of it and deserve every negative they get out of it as a result. They're in a much weaker position today than they were a week and a half ago, and they won't be able to simply erase that with a 45p rate u-turn.
This sums up the situation perfectly.
Slight improvement in the 10-yr gilt yields, but doesn't really look to me like a major reaction to the 45p reversal. It spent most of Friday trading around 4.05%, before peaking slightly at the end of the day to 4.15%. It's opened trading today at 4% and has so far hung around that level stubbornly. hard to say whether that's a reaction to 45p rate or simply continuing gradual improvement thanks to the BoE. The pattern this morning so far is a near exact match for the pattern Thursday night into Friday morning. Will need to wait and see if the yields drift lower through the day to see what the markets really think.
GBP appears to have stabilised around US$1.12 after initially peaking to $1.1270. That puts it back on the long-term trend line from before the fiscal event - so IMO I don't see it going much higher. If anything, expect it to either hang around $1.12 or drift lower through the week and month ahead and then look for a reaction when the BoE make their next interest rate decision.
rogersix
Well-known member
- Jan 18, 2014
- 8,202
why bother to do that, just involve the professionals, the OBR?
It means that it was all Corbyn's fault obviously.
I'd say there are 2 possible factors. Firstly, for a woman to rise to the top, they need to have hard edges.
Conversely, perhaps it's politically expedient for the money men in the background to have a woman at the front to "gender-wash" the ideology. Much like Meloni in Italy and Le Pen in France.