To be completely confused by the mini budget?

[towelhammer]

Just baffled really, how is it going to boost the economy & improve public services?

I think the chancellor was saying that if you reduce taxes on businesses, it means they can pay their staff more and encourages investment.
Presumably if people are paid more they spend more, which is taxed anyway.
Whether he’s right or not we shall see.

It's totally mad! I really don't understand why poor people vote Tory. The mini budget only benefits the super rich. How did they think this would be a good idea? I really hope the press trashes them

It is for us, because we're already nearly at exchange

@Dave20

Yeahcause businesses are well known for paying staff more rather than keeping the increase in profit

🙄

On its own this budget would be insane, but doing it all without a voter mandate is lunacy. I guess no-one can say they weren't warned Truss was an idelaogue.

*idealogue!

They never did care. It's all about the wealthy or the big businesses.

It's promoting us as a tax haven. I worry about the workers without the protection of the EU. Big business does not stay in the UK to be decent to their workforce or for our benefit.

It is also an easy thing to do unlike child, fuel, food, housing poverty.

It is absolutely a vote strategy.

ideologue! 😲

Let’s hope your vendor doesn’t decide it would be a good idea to remarket it at a higher price.

@Topgub you’re right, they exist to make profit, what is their incentive to pay their employees more!

Also I think the idea is that many of these big companies invest in our pension funds. So if you have a work place pension , the money is invested. Hence why pensions can go up aswell as down. Many people pay into a pension but don’t know how it’s invested. The pension companies are merely the administrators.
I guess the government believes that if you reduce taxes on the investors, it will stop pension values going down.
Thats how I understand it, I may be wrong.

We've still got austerity, though, just with extra tax breaks for the rich?

This is shit.

Just used the tax calculator and my husband and I will be £1500 per annum better off with reduced PAYE and NI, we're not super rich.

The thing is, a lot of people will feel that it benefits them, because on paper, it will - they will pay less tax and NI, and therefore get to keep more of the money that they earn. What they may not fully appreciate is that there will be much less funding for public services, and the massive impact that that will have on our society as a whole.

I think the Tories bank on people not seeing those connections in order to keep the middle classes sweet while they're busy making their super rich friends and relations even richer. They don't bother too much about keeping the poor happy, because they are less likely to vote Tory anyway.

Absolutely agree. Big businesses mainly look after their bosses. I’m just saying what the government have said.

It’s a Rich Man’s World playing outside Parliament now. Spot bloody on.

Classic Conservative Policy. The rich get richer and the poor continue suffering.

The thing is, a lot of people will feel that it benefits them, because on paper, it will - they will pay less tax and NI, and therefore get to keep more of the money that they earn. What they may not fully appreciate is that there will be much less funding for public services, and the massive impact that that will have on our society as a whole.

For most people, the amount they save in tax will be less than the amount they lose as a result of increased mortgage interest rates (either their own or their landlords'). Not to mention the increases in food and petrol prices that will result from the falling value of the pound.

Biggest cut since 1972. Anyone else remember how well that went?

Well the FTSE and the pound have reacted the same way I feel about this budget so. . ..well done Liz <slow clap>

Markets seem horrified. Pound dropping to lowest level in 37 years.

National borrowing doesn't work like that. It's not a credit card or a payday loan. I am not a Tory, but getting tired of people regurgitating that over simplistic crap Thatcher started about the nation's economy being like your household budget - it isn't.

YABU to be confused. It's quite clear. Fleece the poor to give more money to the rich. Simple.

In 1972 Barber delivered a budget which was designed to return the Conservative Party to power in an election expected in 1974 or 1975. This budget led to a period known as "The Barber Boom". The measures in the budget led to high inflation and wage demands from Public Sector workers. He was forced to introduce anti-inflation measures in September 1972, along with a Price Commission and a Pay Board. The inflation of capital asset values was also followed by the 1973 oil crisis which followed the Yom Kippur War, adding to inflationary pressures in the economy and feeding industrial militancy (already at a high as a result of the struggle over the Industrial Relations Act 1971).

In 1972, having said a week earlier in the House of Commons that he had "no reason to believe that the pound was overvalued", he floated it (most of the world currencies were floated at that time) "as a temporary measure". The pound immediately plunged on the markets, and it was impossible during his time as Chancellor to impose a new parity. It has remained floating ever since.

It seems the lessons of history haven’t been learnt.

The point I was really confused by was lifting bankers bonuses. What we need I a cost of living crisis is to give millionaires more money? 🙄looking forward to the next round of public service cuts when the Government bleat they cannot afford to keep staffing levels/pay staff but its OK because bankers get their nice Xmas bonus and the social care is paid for from taxes which have just been slashed. Was Diane Abbot in charge of the calculator again?