Page 10 | Is the Chancellor about to crash the economy?

wonderstuff · 10/01/2025 18:08

It’s genuinely a very difficult position, I’m not worried about Reeves, but UK more generally is at risk of decline relative to others globally I think. I think the best thing she can do is improve trade with the EU, the cost of that will be freedom of movement for young people and that seems like a good trade to be honest. Not sure how they sell this, but I do think Labour and Reeves are the least worst people to have in power at the moment.

MichaelandKirk · 10/01/2025 18:06

Growing the public sector and giving them pay rises and pandering to the unions won’t end well.

Labour need to replace her with someone with some experience - wait- they haven’t got anyone…..

twistyizzy · 10/01/2025 18:05

MichaelandKirk · 10/01/2025 18:04

Changes the IRT rules for farms is a massive own goal. Does she want farms to be under Chinese/Russian control?

More like it can be sold off to developers for new houses or solar farms

MichaelandKirk · 10/01/2025 18:04

Changes the IRT rules for farms is a massive own goal. Does she want farms to be under Chinese/Russian control?

MichaelandKirk · 10/01/2025 18:02

Reeves is out of her depth. Can we get someone with some experience??

JRSKSSBH · 10/01/2025 18:01

FOJN · 10/01/2025 17:54

That is the conclusion I reached too.

I knew the civil service was out of control but I didn't realise that there were 400 different organisations, staffed by unelected bureaucrats, who were responsible but unaccountable for so much if the work of government and even the government in power can't get rid of them.

It makes you wonder exactly who is running the country.

I'm surprised that Starmer hosting Bill Gates and Larry Fink at Downing Street, in late October, didn't raise more questions after the budget. Both like to invest in agricultural land!

Show quote history

The IHT measures against farms are clearly designed to force the sell off of farm land - it will be hoovered up by foreign corporations and investors.

The blob is running the country. It is terrifying.

HellsBalls · 10/01/2025 17:59

I don’t think a penny on income tax would be a disaster for the government (14 years, Lettuce, black hole etc), would be the end of our Rachel though.
Should be matched by a penny off benefits, and get rid of the triple lock.
And fucking Motobility needs a massive review.

FOJN · 10/01/2025 17:54

JRSKSSBH · 10/01/2025 16:53

Just listened to it. She comes across so well. There are too many bureaucrats able to block change. I fear the only route is slash and burn.

Show quote history

That is the conclusion I reached too.

I knew the civil service was out of control but I didn't realise that there were 400 different organisations, staffed by unelected bureaucrats, who were responsible but unaccountable for so much if the work of government and even the government in power can't get rid of them.

It makes you wonder exactly who is running the country.

I'm surprised that Starmer hosting Bill Gates and Larry Fink at Downing Street, in late October, didn't raise more questions after the budget. Both like to invest in agricultural land!

WellsAndThistles · 10/01/2025 17:29

Hopefully that would push interest rates back up, couple of percent would be great just before new ISA season.

BooberFraggle · 10/01/2025 17:29

JRSKSSBH · 10/01/2025 16:53

Just listened to it. She comes across so well. There are too many bureaucrats able to block change. I fear the only route is slash and burn.

Show quote history

Maybe Cummings was the man after all!!!!!!

Tlaloc999 · 10/01/2025 17:27

LlynTegid · 10/01/2025 17:18

Or reduce a lot of tax exemptions to start with.

Show quote history

Honestly that will not even touch the sides and if done quickly tends to have a disproportionate impact on small groups of people.
Eg VAT on private schools, IHT on farmers
(I do not want to debate the rights and wrongs of the above here - but the impact is disproportionate on individuals at the margins)

A penny on income tax will give her the wriggle room she needs.

And she may have to resign.

I have alot of sympathy for both Starmer and Reeves who have inherited a terrible situation. I want them to succeed as I do not want them replaced by Reform. But both are technocrats and lack any kind of political nouse.

twistyizzy · 10/01/2025 17:21

Tlaloc999 · 10/01/2025 17:08

She needs to raise income tax and VAT.

Government departments are already cut to the bone.

She has dug herself into a hole of her own making by her election campaign promises.

Show quote history

She can't raise tax and still remain Chancellor. Remember she 'promised'

LlynTegid · 10/01/2025 17:18

Tlaloc999 · 10/01/2025 17:08

She needs to raise income tax and VAT.

Government departments are already cut to the bone.

She has dug herself into a hole of her own making by her election campaign promises.

Show quote history

Or reduce a lot of tax exemptions to start with.

Tlaloc999 · 10/01/2025 17:08

HellsBalls · 10/01/2025 17:05

Rachel is going to cut spending, she has no choice.

Show quote history

She needs to raise income tax and VAT.

Government departments are already cut to the bone.

She has dug herself into a hole of her own making by her election campaign promises.

HellsBalls · 10/01/2025 17:05

JRSKSSBH · 10/01/2025 16:53

Just listened to it. She comes across so well. There are too many bureaucrats able to block change. I fear the only route is slash and burn.

Show quote history

Rachel is going to cut spending, she has no choice.

JRSKSSBH · 10/01/2025 16:53

ThisOldThang · 10/01/2025 12:05

Somebody posted an interview with Truss yesterday.

It's an interesting watch and she argues that no government is currently capable of fixing the country because so much has been outsourced to unaccountable quangos and the civil service aren't accountable either.

That's why nothing changes when the government changes and she argues that we're a 'failed state' on that basis.

Show quote history

Just listened to it. She comes across so well. There are too many bureaucrats able to block change. I fear the only route is slash and burn.

Boomer55 · 10/01/2025 16:48

Startingagainandagain · 09/01/2025 18:02

I will start by saying I voted Labour, but I am increasingly concerned about what the government has done so far.

Today there are warning that food prices could shoot up, the pound is going down, there were big jitters on the bonds market and government borrowing is higher than planned.

More generally Reeves seems to have spooked businesses and they have no will to expand or employ more people.

I agreed that the Tories left a total mess.

But Labour seems to just go from bad to worse and I am really starting to wish she could be replaced by someone more competent to restore some confidence.

Looks like it. Labour aren’t proving to be much good. 🙄

MellersSmellers · 10/01/2025 16:43

@jasjas3008 Thank you for your insight and for helping us get some perspective

twistyizzy · 10/01/2025 16:36

Knock on effect of those gilts:

https://www.theguardian.com/money/2025/jan/10/uk-debt-market-sell-off-threatens-to-push-up-mortgage-costs

UK debt market sell-off threatens to push up mortgage costs

Almost 700,000 homeowners face increase when fixed-rate deals end this year

https://www.theguardian.com/money/2025/jan/10/uk-debt-market-sell-off-threatens-to-push-up-mortgage-costs

Podcastqueen · 10/01/2025 15:19

Didn’t take Labour long to trash the country, power cuts next and high energy bills! Yay!

I suspect these globalist wef puppets don’t gaf and that was their objective. We won’t have food security either.

They got in on lies and now they don’t care.

UpSkilling · 10/01/2025 14:12

Hmm interesting to agree with Liz Truss she does have a point, and it's true it's a wider global picture and at tge moment I guess uncertainty over Trump is exacerbating an already precarious situation.

DianaTavernerFirstDesk · 10/01/2025 13:07

trapforsanta · 10/01/2025 13:00

My understanding is, the gilt markets are jittery in the US as well, triggered by the changeover to the forthcoming Trump administration and uncertainties there. So it's not just us, and it's not because of Labour, but they have boxed themselves in in terms of solving this (fiscal rules / not raising taxes).

We are over half a percentage point up on them. Their’s is due mainly to market concerns about tariff imposition (which will likely also impact us if it happens). The treasury have had to intervene in our markets. In the US the market is reacting to what it thinks might happen - here it’s reacting to what is happening due to the budget.

trapforsanta · 10/01/2025 13:00

My understanding is, the gilt markets are jittery in the US as well, triggered by the changeover to the forthcoming Trump administration and uncertainties there. So it's not just us, and it's not because of Labour, but they have boxed themselves in in terms of solving this (fiscal rules / not raising taxes).

ChardonnaysBeastlyCat · 10/01/2025 12:52

marmaladeandpeanutbutter · 10/01/2025 12:48

I doubt most people criticising the civil service know much about it.

Do tell?

DianaTavernerFirstDesk · 10/01/2025 12:49

She’s crashed it - look at the 30 gilt rate. You as an individual can get a cheaper mortgage than the Govt can borrow at. That’s what the market thinks of the risk.