Is Anyone preparing/hunkering down for 'after the budget'

[IsUnemploymentRising]

The news is today seems to be full of headlines such as unemployment is going up, housing markets are softening, budget is make or break.

Lots of people such as Andrew Bailey quoting things like markets could crash due to debt and AI bubble etc

I just don't see how RR or anyone else for that matter can get us out of our current situation without considerable cutbacks and pain.

Raise Taxes - lots of people think this is maxed out now with rich leaving and businesses already hit (thus rising unemployment)

Cut Benefits - will they try this again. If so what will all the people on benefits actually do to live. Will they all get jobs. Is there jobs?

So are you hunkering down?

Me personally I wish they would just get on with it. I hope to move house in next few years and whilst I'm still committed to it I can see another frozen housing market coming where only forced sellers sell and everyone else sits tight.

I'm retired (although not getting any pensions yet as too young) and definately worried about pension values (ie stock markets, bonds etc). It's very difficult to plan when your pensions are dependant on things outwith your control. (not applicable to those with final salary/defined benefit schemes of course)

State pension is a good 14 years away for me (I'm fully paid up) but I worry it will be eroded when I have built it into my calculations for retirement not to mention the freezing of tax brackets which means we are all getting taxed more each year by stealth.

I'm probably in a better position that many to weather the storm as no mortgage or debts and holding cash etc but even then I worry about our currency being worth nothing soon if they go down the route of printing money again.

Am I being overly pesimestic. I mean how are they actually going to get us out of this. For those on benefits (apart from worrying, being scared etc) how will you actually cope if your benefits are cut.

Well I'd like them to bloody get on with it too and put up income tax, let everyone see where the tax is and fill the whole that they can't fill without income tax increases!

I'd rather have a very big obvious income tax increase, than 10 small and fiddly taxes messing around at the edges of my financial position (pension, stamp duty etc).

We also had to take the house off the market as RR froze any interest in movement in August so we can't try to sell again until spring.

It’s not the budget that’s the issue it’s the economic climate that makes the budgeting hard

War, climate change, Brexit, on top of decades of Tory austerity and decades of Tory bankrupting the country

I do find it hard to see a way forward but these cycles come and go so I am hopeful we will start to move upwards as a country sometime - it’s just a case of how low must we go before that happens. With a powerful right wing - that could be very low

but if the country and can brought low by bad choices it can be lifted again by better ones - if they are allowed by the rich to make those better choices

*fill the hole. Not the whole.

Well, seeing as there is a budget annually, that's a lifetime of hunkering down. I'd rather just live my life as I choose, ignoring the news cycle.

Sure, taxes will continue to rise. Sure, public services will continue to degrade, but me stressing won't change a single thing so 🤷‍♂️

Yes, I kind of feel a bit nostalgic for the days when the only thing I worried about with the budget was the tax on petrol going up.

Haven’t even thought about it.

Yes a good point. Just make your moves obvious and big so we can see them clearly. Rather than doing it by stealth and bits here and there which makes it harder to see how it impacts you.

So the housing market is already grinding to a halt then by sounds of it.

Rejoining the EU is the obvious solution and would add billions to our economy but apparently we’re not even allowed to think about that. So as a country we’ve just got to carry on poking ourselves in the eyes.

As far as hunkering down, we will be ok, we’re just about to retire have no debt etc, plenty of cash in the bank to see us through a big stock market fall.
I worry about younger people, the country is fucked until we face reality.

TBH I'm considerably less worried this winter than in 2022 when energy prices were through the roof.

Happy to pay a bit more tax so there is more money available for the govt to try and turn things around.

I came on to say the logical thing to do would be to.Rejoin the EU but obviously that isn't going to happen.So our economy is just going to shrink and shrink.

So, unless your rich, you re just going to keep getting poorer. If you are rich, don't worry, Reform eventually might get some power. And make sure you are even richer.

I'm stocking up on non-perishables, mainly catfood and logs.

So at least the cat will be warm and won't go hungry !

The last downturn the goverments relied on austerity and printing money.
I just feel like these have been done now and there is no room to do them again (nor do i want them to).

Services are already pretty wrecked so further cuts are surely going to be difficult unless they just start scrapping things (like NHS)

With such a high debt burden and interest burden something is going to have to change substantially.

What though? Yes I agree there are somethings the goverment probably didn't anticipate but surely a good start would be to stop charity/helping other countries till we fix ourselves.

They can't tax the rich if they are all leaving and that seems to leave a middle population already taxed heavily and a huge percentage of benefit claimants.

Kick starting growth is the obvious one to help us out the hole but how given unemployment is rising?

I've thought this before and I'm thinking it again - do we actually need something dramatic to happen. A reform govt? An IMF bailout?

Not helped by the fact I have no faith in RR at all to make good decisions.

I'm really interested in the budget. Although not hunkering down, I'm not committing to any big spend.

My worries are about the job market, messing around with pensions, and crashing the UK economy.

I don't have control over these, but I can limit how badly they impact my life through some choices now, such as:
paying off my mortgage earlier giving me security on housing,

Paying less into pension to pay off the mortgage. Also I was planning on taking the 25% lump sum in a few years. That may not be an option so I'm changing my plans to be more flexible.

Keeping savings instead of spending in case of redundancy.

Getting savings into tax free wrappers (ISA and premium bonds) whilst I can. Although I'm considering exiting stocks and shares ISA to clear the mortgage for security.

I’m not worried about it personally, but that’s because we are in the very fortunate position of being able to weather it. Not quite as fortunate as yourself though OP - same age but not retired, still have a mortgage etc.

I think there is a lot to be said for being grateful for what you have. You are retired at 53 and worried about the effects on your investments. But you have investments, and (unless backstory of severe disability) you could go back to work to counteract any impact.

Also worth remembering, when only in your 50s, that there is often financial instability. In the last 20 years financial crash, Brexit, Covid. There will certainly be more.

You're right. Stressing won't fix it and I'm trying not to do that. Rather I am trying to take steps to protect myself. However that is like the rock and a hard place scenario.

Do I put my savings into the stock market (or is that about to crash with the AI bubble they are talking about)

Do I keep them in cash (or is inflation just going to keep going up or worse the goverment starts printing money again)

No mortgage so I don't have to worry about which way the rates are going for this but surely those of you with mortages are thinking about this? And rates for savings does affect me anyway.

Last time they cut interest rates but I don't think they can do that this time round with inflation going up.

Unless they are suddenly going to put on their big girl pants and start making tough strong decisive decisions I don't know where we go from here. I don't actually think this govt is capable of making strong decisive decisions so I for one would just like someone else to be in charge. Of course then we have the problem of who to bring in.

Gosh yes the idea of people worrying about an extra 1p on their pint or an extra 1p at the pumps is just so quaint now and very 'comforting'

Is that because you are quite comfortable off and so don't think it will affect you or because you are too scared to think seriously about it.

I never used to think about these things when I was young so perhaps you are young? If you are on some good drugs, maybe I need to start taking them lol.

Would rejoining the EU help us though given the state of France? I don't know what the answer is re the EU but lots of them don't seem to be doing great either.

So sounds like you are holding cash like I am. Are you worried about the goverment printing money again and eroding it's value?

Have you put your cash into fixed interest rates or variable. I can't work out which way rates are going given we have no growth and increasing inflation.

I am definitely delaying unnecessary "nice to have" purchases, i.e. a new armchair, a new bed, recarpeting the 20 year old bedroom carpet in the hope it will give me a buffer.

But for the economy that approach is counter productive, they need us out spending for VAT, growth, etc.

Nice to hear your point of view. Thanks for posting. I'm assuming you're in safe jobs or comfortably retired then?

Nope. Not doing a thing. I have lived through too many and have too little in the way of assets to worry.

What I will be doing is casting my vote next time according to how well-off (or not) I am as a result.

You jest but I actually have stocked up on non perishables.

I want to pay more income tax! The world has changed even since labour was voted in. If we want to defend ourselves in wars AND educate our children we're going to have to chip in. I'm the stretched middle or whatever the Telegraph calls us and I can afford it if it means services improve!

However I am very glad to hear your cat will be comfortable! (another animal lover here)

Perhaps he could run for goverment? He might do a better job.

I agree so are you doing anything to try to 'protect yourself'