| Budget outcome 19:07 - Jan 6 with 520 views | Boundy |
https://www.msn.com/en-gb/money/other/rachel-reeves-on-knife-edge-as-latest-blun
Comments by Harvey Jones
"She's only been in the job six months, and she's already wreaked havoc. Today brings yet another example of how she's throwing taxpayers' money away.
A cool £6.4billion of it.
That's on top of the billions she's already destroyed by bringing UK growth to a standstill by talking down the UK economy then unleashing the most brutal Budget in more than three decades.
Today has brought even worse news.
Her Budget is driving inflation back up, as companies pass the cost of her brutal £40billion of tax hikes onto consumers. Her £30billion extra spending splurge will throw further fuel onto the inflationary fire.
In the euro area it's 2.3%.
Before the Budget, the Bank of England was expected to cut interest rates four times this year. Now it will cut twice at most, as it battles to curb the inflation Reeves has whipped up.
That's driving up interest rates and crucially - the amount we have to pay to service the interest on our massive £3trillion national debt.
We fund our borrowing by issuing government bonds, known as gilts. To attract buyers, we pay them interest, known as the yield.
The higher the yield, the more gilts cost us.
Which is terrifying because this morning yields shot past 4.64%.
When they hit 4.22% after the Liz Truss mini-Budget fiasco, Truss collapsed like a wet lettuce. Yet Reeves clings on even though they're higher today.
Incredibly, Reeves plans to issue another £300billion of gilts this year to fund spending.
Rising yields mean we'll pay another £6.4billion in extra interest. That's on top of the £102billion a year we already blow.
This will cost taxpayers billions that could have been better spent elsewhere. And it leaves Rachel Reeves on a knife edge.
The UK is borrowing to the max. That didn't stop Reeves from rewriting the fiscal rules to borrow an extra £57billion to invest in infrastructure.
This leaves her with almost no margin for error. In November, I said she had just £10billion of fiscal headroom. If she gets her sums wrong, and she often does, we'll run out of money.
Andrew Goodwin of Oxford Economics now reckons her fiscal headroom has shrunk to just £3.5billion, according to The Daily Telegraph.
If gilt yields rise higher, that headroom could disappear altogether.
Of course the UK won't actually run out of money. Rachel Reeves can always tap into her personal magic money tree. It's called the taxpayer.
If growth continues to slide and bond yields rise, she'll hike taxes again in the autumn. And that black hole will be even deeper and harder to plug.
Plus we'll be paying even more to borrow money, as bond markets lose faith in the UK" |  |
| "In a free society, the State is the servant of the people—not the master." |
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| Budget outcome on 19:14 - Jan 6 with 506 views | union_jack |
If those interest rates don’t come down, inward investment is going to shrink as we are just not a country attractive enough to invest in financially.
This government are proving their incompetence on a daily basis. Tories were no better.
Where do we go from here? |  |
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| Budget outcome on 19:21 - Jan 6 with 490 views | builthjack |
Yet this Labour Govt are borrowing £3.4 billion less per month that their predecessors.
Should they try and balance the books, or spend at the same rate as the previous government?
Anybody in their right mind would borrow less.
Johnson and the others had a credit card which they never stopped using, forgetting to pay back what they needed to.
THAT IS WHY THE COUNTRY IS IN SUCH A MESS.
It will take a long time to put right. |  |
| Swansea Indepenent Poster Of The Year 2021. Dr P / Mart66 / Roathie / Parlay / E20/ Duffle was 2nd, but he is deluded and thinks in his little twisted brain that he won. Poor sod. We let him win this year, as he has cried for a whole year. His 14 usernames, bless his cotton socks.
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| Budget outcome on 20:24 - Jan 6 with 450 views | SullutaCreturned |
| Budget outcome on 19:21 - Jan 6 by builthjack |
Yet this Labour Govt are borrowing £3.4 billion less per month that their predecessors.
Should they try and balance the books, or spend at the same rate as the previous government?
Anybody in their right mind would borrow less.
Johnson and the others had a credit card which they never stopped using, forgetting to pay back what they needed to.
THAT IS WHY THE COUNTRY IS IN SUCH A MESS.
It will take a long time to put right. |
Well you're right, mostly. It will take a long time to put right. The big question is, can this Labour government do it, are they up to it?
Reeves may be borrowing less but with the interest on the debt going up, are we actually paying more and is that the direct result of her budget?
People rightly slated Truss but isn't Reeves costing the country just as much money over the long term, possibly even more.
I'm coming to think we should just do an Iceland, say to hell with it and default. I'm fed up of rising taxes for no gain, fed up of the rich getting richer of our backs. | | | |
| Budget outcome on 20:51 - Jan 6 with 437 views | builthjack |
| Budget outcome on 20:24 - Jan 6 by SullutaCreturned |
Well you're right, mostly. It will take a long time to put right. The big question is, can this Labour government do it, are they up to it?
Reeves may be borrowing less but with the interest on the debt going up, are we actually paying more and is that the direct result of her budget?
People rightly slated Truss but isn't Reeves costing the country just as much money over the long term, possibly even more.
I'm coming to think we should just do an Iceland, say to hell with it and default. I'm fed up of rising taxes for no gain, fed up of the rich getting richer of our backs. |
As I said during the election campaign, it will take 2 terms to get anywhere near right.
We are 6 months in and every Tory media (most of the media), every tory newspaper(most of them), instead of looking at the absolute mess made over the last 14 years, want to blame people who have been in for just 6 months.
That tory media get into people’s heads. People are stupid. | |
| Swansea Indepenent Poster Of The Year 2021. Dr P / Mart66 / Roathie / Parlay / E20/ Duffle was 2nd, but he is deluded and thinks in his little twisted brain that he won. Poor sod. We let him win this year, as he has cried for a whole year. His 14 usernames, bless his cotton socks.
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| Budget outcome on 22:27 - Jan 6 with 386 views | majorraglan |
I’m not saying everything is rosy in the garden, because it clearly isn’t, but the original article is from a Daily Express journalist, so it’s hardly likely to be a glowing endorsement.
I’m happy to give Labour some time to try and improve from where we were, if they don't Starmer will be gone and they’ll be out. | | | |
| Budget outcome on 22:58 - Jan 6 with 344 views | Boundy |
| Budget outcome on 22:27 - Jan 6 by majorraglan |
I’m not saying everything is rosy in the garden, because it clearly isn’t, but the original article is from a Daily Express journalist, so it’s hardly likely to be a glowing endorsement.
I’m happy to give Labour some time to try and improve from where we were, if they don't Starmer will be gone and they’ll be out. |
Here we ago again m be concerned about the content not the author ,if the figures and information provided are incorrect then I'd understand, would you have a different pov if it had been published by the Mirror or Guardian I wonder .The author is Sir Harvey Jones a successful business man in his own right and possibly has a better understanding of how Government budgets works as opposed to the Chancellor who's claim to fame is that she worked in the retail banking arm of HBOS. | |
| "In a free society, the State is the servant of the people—not the master." |
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| Budget outcome on 23:45 - Jan 6 with 313 views | JACKMANANDBOY |
As I outlined in my pre- Budget thread, the basis of the budget was quite high risk. There is potentially more bad news to come on the economy as the full effects of the budget become clear.
If gilt rates go up much more, the tax raised in the budget will get used to repay debt as borrowing costs escalate, we are already seeing gilt rates higher than the Liz Truss era! |  |
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| Budget outcome on 23:48 - Jan 6 with 312 views | majorraglan |
| Budget outcome on 22:58 - Jan 6 by Boundy |
Here we ago again m be concerned about the content not the author ,if the figures and information provided are incorrect then I'd understand, would you have a different pov if it had been published by the Mirror or Guardian I wonder .The author is Sir Harvey Jones a successful business man in his own right and possibly has a better understanding of how Government budgets works as opposed to the Chancellor who's claim to fame is that she worked in the retail banking arm of HBOS. |
The content is a bit of a concern, but the author is a journalist for the Daily Express which is probably the most biased of UK’s mainstream newspapers and will be soaked in doom and gloom. I generally read 2/3 newspapers a day, The Telegraph, The Independent are 2 and the third one will vary, they have different political biases but they provide some quality journalism albeit from different political perspectives.
The author is a financial journalist from the Daily Express. As far as I can tell this particular Harvey Jones is not a Sir and he is not a businessman, I think you’re mixing the journalist Harvey Jones with Sir John Harvey-Jones the renowned Goliath of British business who was Chair of ICI in the 1980’s and who went on to front a TV programme on the BBC amongst many other things. Sir John Harvey-Jones died around 15 years ago. | | | |
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| Budget outcome on 19:46 - Jan 7 with 146 views | SullutaCreturned |
| Budget outcome on 20:51 - Jan 6 by builthjack |
As I said during the election campaign, it will take 2 terms to get anywhere near right.
We are 6 months in and every Tory media (most of the media), every tory newspaper(most of them), instead of looking at the absolute mess made over the last 14 years, want to blame people who have been in for just 6 months.
That tory media get into people’s heads. People are stupid. |
I think it'll tale longer than 2 terms, such is the mess the tories left us in.
We spend billions just on the interest on the debt. That's why not increasing the debt (or the interest ) is important now.
Personally, I can afford to pay a bit more in tax. Obviously I can't speak for others and none of us like paying tax. The rax system needs anoher overhaul, they need to do away with the loopholes the rich benefit from, they need to ensure corporation tax is paid in the UK on profits earned in this country. These tax havens, thenROI, Luxembourg, I've slated them in the past but then I saw this,
England is considered the epicenter of the world's tax haven systems. Foundations and trusts are typical tax haven vehicles foreigners use to offer a protective tax-free or tax-reduced wrapper around assets. The country is particularly popular with foreign billionaires who benefit from a lack of income or capital gains taxes on investments held outside of the country.
2
London is Europe's tax haven capital for non-British individuals. The city's well-established banking systems are trusted and used by foreigners from nearly every country in the world. Small and large companies benefited from a relatively low 19% corporate tax up to 2022. That rate increases to 25% in 2023.
3
British territories are also popular tax havens, including the British Virgin Islands and the Cayman Islands. Neither overseas territory charges corporate taxes or capital gains taxes. Individuals aren't taxed in the British Virgin Islands unless they are employed in the territory while the Cayman Islands don't charge any individual income taxes. Neither territory has a withholding tax.
So Westminster needs to do something about foundations and trusts that hides billions in assets away from the tax man. Or would that drive rich people away? | | | |
| Budget outcome on 19:48 - Jan 7 with 143 views | onehunglow |
| Budget outcome on 20:51 - Jan 6 by builthjack |
As I said during the election campaign, it will take 2 terms to get anywhere near right.
We are 6 months in and every Tory media (most of the media), every tory newspaper(most of them), instead of looking at the absolute mess made over the last 14 years, want to blame people who have been in for just 6 months.
That tory media get into people’s heads. People are stupid. |
Have Labour ever done anything wrong
If this lot don’t sort it on in the next five years ,then what .
Businesses are folding directly as a result of her budget HER budget | |
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| Budget outcome on 21:45 - Jan 7 with 92 views | Boundy |
| Budget outcome on 23:48 - Jan 6 by majorraglan |
The content is a bit of a concern, but the author is a journalist for the Daily Express which is probably the most biased of UK’s mainstream newspapers and will be soaked in doom and gloom. I generally read 2/3 newspapers a day, The Telegraph, The Independent are 2 and the third one will vary, they have different political biases but they provide some quality journalism albeit from different political perspectives.
The author is a financial journalist from the Daily Express. As far as I can tell this particular Harvey Jones is not a Sir and he is not a businessman, I think you’re mixing the journalist Harvey Jones with Sir John Harvey-Jones the renowned Goliath of British business who was Chair of ICI in the 1980’s and who went on to front a TV programme on the BBC amongst many other things. Sir John Harvey-Jones died around 15 years ago. |
I stand corrected thanks | |
| "In a free society, the State is the servant of the people—not the master." |
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