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.

AI is dreadful
machine learning is useful

it’s nothing to worry about

And so what are you going to do with the people who can't work or find work or can't buy food? What are you going to do with their children? Poor houses? Or just have them die in the streets? Will you pay to clean them up?

lol very good although not sure what party the joke is centred around.

Nope just a middle aged woman in her boring new build thinking about the state of the country.

I work in this area and I don’t think Joe Public has any real idea of quite how much money is spent on social care, it’s eye watering. We are paying £35k a week (!) for one person to live in supported accommodation and that’s just the tip of iceberg.

One of the reasons we left the EU was because it offered the best chance for the UK to regain control over immigration and its own borders. Another reason was economy

Good Call David, Good call 👏 because we definitely have no issues there anymore

excuse my ignorance but is that what they refer to as the wealth tax?

I agree lots of people have made a fortune on btl etc and you are also correct removing all the disincentives to work would hopefully increase growth although i am not convinced some people want to work regardless.

We’ve already done a few tweaks under Labour.

We moved DC from private school back to state, and that’s turned out really well as they’re very happy in the new school. This has saved us a lot of money.

I’ve increased my pension contributions to reduce my tax now, although will pay on it later.

I’m sick to the back teeth of working FT, paying shit loads in tax, as does DH, whilst others only take, take, take.

Not sure what RR’s is going to do but it’ll entail milking the cow dead no doubt.

DH and I have decided that we are just going to massively reduce our spending and Labour isn’t getting a penny out of us more than we have to pay.

Agreed. Though an increase in income tax for all - not just some. Everyone pays everyone helps.

And they need to get more intelligent with the benefits. Handing them out all over the place isn’t working.

And they need to start taxing the big corporations who are currently, not paying proportionate levels of tax. Starbucks, Google, Meta. Etc.

Yes I do agree that softly, softly isn't going to cut it and I think lots of what you say are good ideas.

You will be slated on here though for saying that.....and accused of wanting benefit claimants to die on the street etc.

I actually think slashing benefits would give lots of people incentive to sort themselves out but I could be wrong.

I’m glad you’ve got your priorities right. If the price of Dreamies shoots up my three cats will not be happy 😃

I’m spending a lot less on everything - all clothes (bar underwear) come off Vinted now and Aldi for tins and frozen goods and cleaning stuff. Meat from the farm shop (actually a farm with butchers, not a smart shop for weekenders to feel rural) and only twice a week now.

I have a small house I can stay in forever and no money to tax really so as long as I can manage to weather the cost of living round food and utilities not much will change except I won’t be stimulating the economy by spending. If you have no money, Labour can’t tax you on it.

that makes sense I just don't think we can keep funding these things.....

I understand about the ageing population but to be honest I have no idea why so many children have special needs now? Do you have an insight on why so many are impaired in some way?

Thanks for posting

For those who don't "want" to work, there needs to be change in benefits rules, i.e. those those deemed capable, a limit to the amount of time they have to find a job, like there is in some other European countries, rather than "benefits for life" that we have in the UK! I'd say a couple of years is ample to find a job, and then benefits are cut. We can't have people being better off on benefits than working!

Totally agree. Why stress over something you can't change? Asset comfortable cash poor, full time carer for my h, we get on with it because we have to and make the most of little wins in life. It's the proverbial haven't got a lot but we are happy.

I actually paid in my full amount to my SIPP over the weekend. Not allowed to put in much as not working but still it all helps. Like you I think they might tinker with it so........

I’m similar to you @IsUnemploymentRising retired early though we do both have DB pensions. We have a mix of fixed and variable investments. If we were younger we would take more risks like we used to but you need time to recoup, so best to asset spread.

There is actually a movement of millionaires who want to pay more tax. I received a lecture regarding them from someone at a social event recently who is firmly in the hair shirt category. He was self flagellating whilst virtue signalling and was tiresome beyond measure. He was I suppose a very comfortably off Marxist that could afford his principles.

I am all for a bit of social adjustment through a welfare state which is what happens in this country though to what extent people rarely agree on. There is a school of thought that views welfare not for altruistic reasons but to control the masses. I think at the sort of level where policy makers are making decisions it is far more about this.

@Heylittlesongbird You are right that they need people spending, even Mr Hairshirt had 2 nice holidays this year and bought in to capitalism.

That is actually what we could face though which is why I am asking if people are they taking steps to try to protect themselves?

It was only 80 years ago that there was no welfare state and yes people did die of hunger on the streets.

I mean if the UK purse is empty.............

I guess this is where the 'survival of the fittest' saying came from.

So out of interest where would a person like that have lived say 40 years ago or have we always funded this type of thing?

Just wondered if it has always been there or if it is new. Or is it that more people have special needs now and in which case why?

this is one of the most worrying things of all actually.

I try to make decisions based on all the info I can read/watch but are the politicians just big fat liars or are they completely clueless and don't know what they are doing.

Either way how do we know what to believe in and what action to take?

The country (people, company's investors) has very low confidence in the future so is holding back on spending. That drives less tax income and pushes us into recession.

The current government don't seem to understand this. A miracle may happen and the government may switch to a pro growth approach. But no-one believes they will right now.

No, he wouldn't want to outshine Larry,

https://radicalteatowel.co.uk/tea-towels/larry-the-cat-tea-towel

Yes and I think lots of people feel like that (ie they are just working and paying taxes to fund benefit claimants)

I don't disagree with you by the way. I paid huge amounts of tax when I was working and never seem to be on the claiming end.

It's partly why I retired as soon as I could. Which of course is not helping but like you I am determined not to pay any more taxes than I have to as I think they are just wasting the money on things I don't agree with.

I think the cow is already about to keel over which is why I wonder how they are going to get us out of this and fix it.

I know how you feel and to a degree I am doing this now which of course is part of the problem.

I feel like by 'wasting' the income they get they are forcing alot of people into this stance of trying not to pay tax anymore because they are sick of it.

That individual would have probably been locked up somewhere, either in prison or a MH unit, or left to do whatever. We spend a huge amount to prevent people taking their own lives - many people in MH facilities / supported living with 1:1, 2:1 care or more are there because they are a danger to themselves or others.

good point although is Larry not getting quite old now. Perhaps he could work under Larry and we could benefit from both of their wisdom and intelligence.