I'm actually pleased with the mini-budget

[yubgummy]

(Cue hysterical shrieking ;) )

Macroeconomics is complex. It surprises me that within a week, there's such a strong consensus that everything about the mini-budget is literally the work of the devil. Echo chamber...

The UK basically has never recovered from the GFC and has just been stagnant and struggling for a decade. The clear theme in this budget is encouraging people to actually get out and DO something ("supply-side reform"). Tax incentives for businesses to invest in plant & machinery, reducing red tape for infrastructure investment (more North Sea licences, more onshore wind), tax cuts to base rate & NI to encourage people into work...

I would like to see more action on interest rates from the BoE, and I would like to see more detail on the Planning & Infrastructure Bill, but I want to give them a chance instead of calling for yet another change in government. Supply-side reform is a perfectly sane strategy and the UK economy does need to get moving, by which I mean, producing new and useful goods and services not just keeping the whole country on life support.

There is so much misinformation and self generated guff on this thread. I wish people would actually research what they nonsense they spout.

I just read: “New research by the Tony Blair Institute for Global Change suggested new Budget will make economy just 0.4 per cent larger by 2027 than without tax cuts.”

Is sacrifice to the lives of the general public worth it?

No.

As the OP says, the mini budget is designed to incentivise people to work and businesses to set up here. That can only be a good thing.

Only if there is, at the very least, a very high chance of achieving that. The government simply hasn't put in place the necessary spadework and preliminary measures to make that happen. Plus that fails to take into account the fact that we are in a cost of living crisis which simply cannot just be ignored in the hope of jam tomorrow.

When I worked in London, it was full of people who had been educated elsewhere and moved there - so the non-income producing earlier stages were funded by other parts of the country then drained away by London.

Interesting OP that you think you know better than the Head of the Bank of England or the International Monetary Fund who have both condemned the mini-budget.

I don't know anything about economics but only my own situation.

My husband is a postal worker. He was offered 2% as a pay rise from Royal Mail, more if he gives away lots of agreements that the workers have accrued over the decades.

Royal Mail made over £700m in the last tax year in profit. It gave £400m to shareholders, and the CEO, CFO got a few million in bonuses.

Now they get a cut in corporation tax. Okay.

If "trickle down economics" works why are Royal Mail investing virtually nothing in the maintenance of their premises? Why are toilets constantly broken or blocked, and why are the delivery offices filthy? Why are the workers being told, even if they agree to the changes, they will only be given a 5.5% raise. Inflation is running at 10% plus, so why are they not getting a better deal? They just want to go to the loo without risking flooding the bathroom! They aren't being treated with dignity. The CEO isn't interested is passing on any profit or tax bounce to help his workers. He wants further cuts to his workforce! It doesn't translate that more profit, lower taxation leads to more jobs! They will just take that money and KEEP IT FOR THEMSELVES.

I know OP wants to make her point but money is so tight for us now because inflation is rampant, our mortgage has gone up, our fuel bill has gone up, estate charges on our flat have gone up, food is more expensive and we've had to massively reduce our outgoings to cope. We don't have a car but we still just make it in the black each month. This mini-budget has, and continues to be a disaster for most working families. Oh, so my NI is reduced. Whoopee-do. I already pay more than that on the leaky bill.

Fatmog,
Good post. The one making millions do not give a jot :(

Truss and Karteng are meeting the fiscal watchdog today, which is precedented - usually they do this before a budget, not afterwards.

They want to "curb" all benefits to save £5 billion, by linking them to wages and not the CPI. The poorest, including those working, claiming top-up benefits, are expected to pay for the tax cuts to the wealthiest.🙄

www.thetimes.co.uk/article/yougov-poll-labour-lead-conservatives-tories-n90lqlgf7

Meanwhile, in 5 days, Labour have shot into a 33% lead over the Tories:

www.dailymail.co.uk/news/article-11264999/Liz-Truss-left-reeling-Labour-soaring-record-33-point-poll-lead.html

No but they will sell it as a ‘victory’ anyway.

Listen to them. They are saying out loud what they have always thought - they don’t care about people who lose everything because of their choices. They have a religious like belief in this ideology. People being left destitute doesn’t (in their minds) mean their approach has failed.

Once you realise that they don’t care what happens to the masses, that they see everyone as only being responsible to themselves (the ‘get on your bike’ ideology), they don’t care if people can’t feed their children then it all makes sense. What happens to individuals is irrelevant.

There's also bots. The point of challenging them is to stop other people blindly believing it. But I would put money on OP being a bot.

I agree, it’s disgusting.

So you’re right but the IMF and the Bank of England are wrong then?

Righto. Guess there’s got to always be one.

The very fact the markets reacted the way they did is enough to tell me it was a really stupid idea.

@yubgummy

cant believe you posted this thread.
how ethically and economically embarrassing

If we closed the financial borders so money earned in the UK stayed in the UK, and capped the amount of money and assets each person earned to a maximum then trickle down economics might have a chance as people would be forced to spend.

Instead this government has picked the worst possible time to gamble, not with their own security, but that of the majority of the country. I'd like to know where they plan to house all the people who lose their homes due to mortgage rises, or those whose landlords increase the rent to unaffordable levels to cover theirs? How do they plan to feed a population that are living on the streets?

In short, they don't have the answers and will run from the responsibility.

They can fuck off.

The Times this morning confirms the government is going to ‘curb’ benefits. In the wake of cutting high earner taxes, they may as well forfeit the next election now.

I think it's the mortgage interest rates that will kill them.they didn't care when the poor were starving and homeless but now when the chickens come to roost on their 800k mortgage on their 5 bed detached house or multiple buy to lets, they suddenly realize why you can't have an uncaring and incompetent government because the decisions they make can totally change your life.

I am a homeowner too (in London) but made preparations by overpaying because I have never trusted the Tories and thought they would crash the economy one day.

18% on a 800k mortgage isn't pretty. Any tax cuts they get would be dwarfed by this. Or even any bonuses

Sorry 8%!

There’s a National day of action on Sat if anyone is unhappy with this budget:

wesayenough.co.uk/oct1/

It's devastating. Many current fixed rates are less than 2.5%

They want to "curb" all benefits

Because British workers are all lazy. This is what the BS BU book says. Curb benefits to make people work harder is its own objective.

I presume the OBR forecast would be horrendous if made on basis of announced plans to date. Is Why Truss/KK rejected OBR offer to release an assessment by 23.9. We need to wait for the spending cuts & "efficiency savings" to get an OBR report that looks not like an insane prospect.

Do bookies take bets on what the "efficiency savings" will be? Presumably lots of preventive health programmes, crime prevention in deprived community, green subsidies, agriculture & fishing subsidies, all will go. Reap the benefits of Brexit.

Roundup of recent Labour leads for anyone keeping score:

YouGov - 33 pts
Survation - 21 pts
Techne - 20 pts
Deltapoll - 19pts
R&W - 17pts

This is exactly what I would have done and I say this an additional rate tax payer. Our household will have £60k additional income per annum as a result of the tax changes, which is nuts. It's not something we ever asked for or expected. I would far rather a lessening of tax at the bottom end of the scale where the people who benefit will really feel it and actually spend the money.