[Politics] The Labour Government

[BLOCK F]

Quite a lot of comment in the media re , ‘where is the growth coming from. Concern about the increased levels of borrowing, leading to higher gilt yields, and increased borrowing costs, increased mortgage costs, interest rates not falling as far and as fast as previously expected.’etc.etc.
Not all sweetness and light as some would like us to believe.
Anyway, we have no option but to see how it all turns out!

 

[The Clamp]

It is clear now that this is an anti business government. Full employment rights given on day one, inflation busting increases in the minimum wage, increased emp NI, etc make great headlines and the negative impacts will take time to filter through.

However, many businesses will go out of business, whilst the remainder will either reduce wages, reduce numbers employed and/or increase investment in labour saving technology. Perhaps the most obvious sign of Starmer’s contempt is how people who work their balls off starting and running SMEs, often remortgaging their homes many times, are not working people.

To quote someone on here, I was happy (ecstatic in fact) with the election result. I am equally appalled by the direction of travel that we are now on.

Genuine question, not digging you out;

What would you have liked to have been done differently?

 

[lawros left foot]

This media, you mean?

 

[abc]

Genuine question, not digging you out;

What would you have liked to have been done differently?

I agree taxes have to rise and by a v significant amount. In broad terms I would have liked to have seen more people on the lowest incomes taken out of tax by increasing the initial tax threshold. This can have a similar impact on the working individual as a rise in the min wage (which I suppport in principal but the size of increase is too big for many small businesses). I would then increase corporation tax and the higher rate of tax. The key point being tax is paid after profit is made or income is earned.

 

[Herr Tubthumper]

I agree taxes have to rise and by a v significant amount. In broad terms I would have liked to have seen more people on the lowest incomes taken out of tax by increasing the initial tax threshold. This can have a similar impact on the working individual as a rise in the min wage (which I suppport in principal but the size of increase is too big for many small businesses). I would then increase corporation tax and the higher rate of tax. The key point being tax is paid after profit is made or income is earned.

Not picking on you But they’d have been cries of higher Corp tax will lead to companies going bust or leaving the UK. Same with higher personal tax rate. I think she’s done well and the budget was quite balanced given the circumstances.

My take: The markets havnt been spooked or shocked, the budget has broadly been accepted as good judging by the level of, and nature of, comment…and I include NSC in this last point. If growth doesn’t work out as hoped I’m sure RR can tweak things in future budgets….she’s a very well qualified chancellor. Let’s not forget that SKS will attempt to get a better trading deal with the EU, if he can pull this off expect growth.

 

[Is it PotG?]

Let’s not forget that SKS will attempt to get a better trading deal with the EU, if he can pull this off expect growth.

Were that the case, what do you believe they might ask for in return?
Nowt for nowt.

 

[Herr Tubthumper]

Were that the case, what do you believe they might ask for in return?
Nowt for nowt.

There’s quite a lot of things I feel the EU and UK could work on to make life easier for different economic sectors on both sides to access both markets.

 

[rippleman]

It appears that the Chancellor has had an epithany overnight and now accepts that her Budget may have an adverse impact on the pay of "the working person"

Budget 2024 live: Reeves accepts tax-raising Budget likely to hit pay for workers

The chancellor tells the BBC businesses will have to absorb the costs of paying more National Insurance or give out smaller pay rises.

www.bbc.co.uk

 

[abc]

Not picking on you But they’d have been cries of higher Corp tax will lead to companies going bust or leaving the UK. Same with higher personal tax rate. I think she’s done well and the budget was quite balanced given the circumstances.

My take: The markets havnt been spooked or shocked, the budget has broadly been accepted as good judging by the level of, and nature of, comment…and I include NSC in this last point. If growth doesn’t work out as hoped I’m sure RR can tweak things in future budgets….she’s a very well qualified chancellor. Let’s not forget that SKS will attempt to get a better trading deal with the EU, if he can pull this off expect growth.

Not feeling picked on, good to debate!

Companies don’t go bust by paying tax on profits but I recognise the issue of the level of corp tax being a competitive one globally. But I also think this is overdone by the media. Global corps will look at the overall cost of setting up and trading in a particular country, including the attitude of a gov to business.

But more importantly, 90% of SMEs don’t have the option to relocate and it’s these that make or break our economy. This budget and other gov policies will prevent many SMEs from making the contribution to the economy that we need them to. It’s a political move as most people will be happy that they are not impacted. But everyone will be in time.

 

[Bold Seagull]

Were that the case, what do you believe they might ask for in return?
Nowt for nowt.

You’re aware their trade with us is impacted as much as our trade to them?

Did your mate not chat general economics over dinner?

 

[Is it PotG?]

It appears that the Chancellor has had an epithany overnight and now accepts that her Budget may have an adverse impact on the pay of "the working person"

Budget 2024 live: Reeves accepts tax-raising Budget likely to hit pay for workers

The chancellor tells the BBC businesses will have to absorb the costs of paying more National Insurance or give out smaller pay rises.

www.bbc.co.uk

TBF they've don't little else since July aside from lies, backtracking and providing more definitions than Susie Dent.

 

[Is it PotG?]

You’re aware their trade with us is impacted as much as our trade to them?

Did your mate not chat general economics over dinner?

They need us more than we need them!

Nice.

 

[lawros left foot]

I for one, feel sorry for pensioners like these who are struggling.

Average rental cost in Colchester £1363 per month.
X 60.

I don’t wonder how they are missing their £300 WFA.

 

[PascalGroß Tips]

View attachment 191555




I for one, feel sorry for pensioners like these who are struggling.

Average rental cost in Cambridge £1363 per month.
X 60.

I don’t wonder how they are missing their £300 WFA.

I always despair at the examples media - written/TV etc - use in situations like this to try and make a point. This one - like many - just sounds ridiculous. Am I a bad person for having very little sympathy (OK, no sympathy) for people like this.

 

[RandyWanger]

Everything is fine, don't panic.

 

[Chicken Run]

Indeed, don’t panic!

Workers warned Budget tax rises will hit their wages​

https://www.bbc.co.uk/news/articles/cgj72wxw8jxo

 

[Bold Seagull]

View attachment 191560

Everything is fine, don't panic.

Why don’t you click the 6M or 1Y graph version, you know the one where it’s fallen back to its early Sept level and still above the rate it was from Spring 22 to Summer 24…

 

[pb21]

View attachment 191560

Everything is fine, don't panic.

That drop has likely come about as a result of financial data from the US today, suggesting less doveish rate cuts, than previously envisaged, from the Fed...

That said there was a spike in the cost of uk borrowing after the budget, but that is subsiding a bit.

 

[Bozza]

Why don’t you click the 6M or 1Y graph version, you know the one where it’s fallen back to its early Sept level and still above the rate it was from Spring 22 to Summer 24…

Presumably, if you wanted to illustrate something like "how did the markets react to the budget?" you'd want a tight timeframe that covered just before and just after the budget announcement.

Ot, I guess we could just link to an article to show the same thing...

https://www.reuters.com/markets/currencies/sterling-ticks-higher-investors-expect-fewer-boe-rate-cuts-2024-10-31/

"The pound fell on Thursday, set for its worst two-day loss against the euro in two years, a day after new British finance minister Rachel Reeves announced a tax-and-spend budget that investors worried would reignite inflation and weigh on growth.

Sterling was heading for a two-day loss of 0.7% against the euro , the largest since September 2022, when then-Prime Minister Liz Truss unleashed turmoil on UK financial markets with budget plans for billions of pounds in unfunded tax cuts."

 

[Chicken Run]