Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

What Rachel Reeves does next? Surprised no thread on this yet. It's all over Twitter

552 replies

Sharingsomewisdom · 21/08/2024 13:50

https://www.dailymail.co.uk/news/article-13764547/Rachel-Reeves-mulls-tax-hikes-spending-squeeze-raising-rents-social-housing-Chancellor-sees-Government-borrow-3bn-forecast-month.html

Or am I the only one interested what she is eying next? Any comment on the reasonableness or otherwise of Rachel's next focus?

Chancellor sees Government borrow £3bn more than forecast last month

According to the Office for National Statistics ( ONS ), public sector net borrowing stood at £3.1billion in July.

https://www.dailymail.co.uk/news/article-13764547/Rachel-Reeves-mulls-tax-hikes-spending-squeeze-raising-rents-social-housing-Chancellor-sees-Government-borrow-3bn-forecast-month.html

OP posts:
Thread gallery
17
EasternStandard · 21/08/2024 17:27

MushMonster · 21/08/2024 17:24

There is no money left in the pot, we have a massive debt, over-spent the budget as per article, wasted some £££s in the Rwanda scheme and other tory "brilliant" ideas, so the new government and all of us will have to make up the difference, somehow.
I am ok with a raise in taxes.
No with a reduction on essential services.
We are crippled with poor GP service, long NHS lists ( bear in mind, that may have something to do with people having time off work, on the sick, low productivity... Just a thought. The tories did not seem to get that there is a link between those. Apparently it is our fault, for being sick...)
The medicine prices and availability issues is another thing to add.
The country needs to offer the basic services we pay for, so we can work, be more productive and even creative. They had no time to re-structure and re-train/ recruit/ train more people or departments where needed. So a bit more tax makes sense to me.
For now. Once we are on our feet, then we can start walking and address failures in the tax system, education, transport and the lot.
But right now, we are on the floor.

The amount being spent on trafficking and processing must be high though, Even if it's being sidestepped atm all the 'Elite border force' or taking down gangs or whatever - plus numbers going up

billysboy · 21/08/2024 17:29

I think the eligibility criteria for social housing needs to be discussed to make it accessible for those genuinely in need
It gives great security once a tenancy is secured
Right to buy should also have its criteria reassessed and council housing should be replaced on a 1-1 basis to do otherwise is madness
No easy answers to any of it

MushMonster · 21/08/2024 17:31

Do you mean that we spending money in border control?
The Rwanda thing is not going to be used, therefore all the money put into that is gone, from our pockets.
Same as the PPE scandal, the money Truss lost to the country and so on.
Gone!

EasternStandard · 21/08/2024 17:33

MushMonster · 21/08/2024 17:31

Do you mean that we spending money in border control?
The Rwanda thing is not going to be used, therefore all the money put into that is gone, from our pockets.
Same as the PPE scandal, the money Truss lost to the country and so on.
Gone!

Depends on what you mean by border control?

Spending money trying to take out trafficking networks from the UK, paid by taxpayers here, sounds unrealistic. How do you get rid of everyone who does this in every country?

blackcherryconserve · 21/08/2024 17:34

BitOutOfPractice · 21/08/2024 17:23

That's exactly my point @blackcherryconserve DM and its Readers were Brexit and that's what they said to remainers: you lost, get over it. Now they’ve lost, they seem unable to swallow the sane medicine.

Sorry! I totally misunderstood you.

Greybobblyowl · 21/08/2024 17:38

So she wants to raise social housing rents (which are often paid in full by UC housing element) rather than regulate and/or lower private rents ? 🤷‍♀️

SummerSplashing · 21/08/2024 17:41

Bushmillsbabe · 21/08/2024 14:45

I thought she said pre election that she wouldn't raise taxes and she wouldn't increase borrowing?

@Bushmillsbabe

PRE ELECTION is the key here.

Now she's just blaming the Tories when the fact was they'd never be able to not raise taxes/increase borrowing if they were going to do what they said they were.

shes as full of BS as every other politician of any party.

RhaenysRocks · 21/08/2024 17:44

Bollihobs · 21/08/2024 14:31

Who was it in Labour left that infamous note for the then incoming Tories in 2010 saying "Dear New Chancellor, sorry but there's no money left!" Same old same old.

Liam Fox I think? I've been wondering why more hasn't been made of that. Immediately Labour took over their catchphrase was "we've been left a terrible mess" but that is literally the exact same thing they were accused of by the Tories when they left office last time. Either they're both as bad each other or they both use the same excuse as to why they can't solve issues. OR it's actually true that there IS no way to actually run this country in an economically viable way when the NHS and Welfare system is now unrecognisable in size and scope from when it was devised.

SummerSplashing · 21/08/2024 17:45

This reply has been deleted

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

@GoldenLegend

what an unnecessary & bitchy comment.

id rather someone posted with imperfect Spag (personal or phone issues) that has something decent to say, that someone with perfect Spag but nothing worth saying!!

LlynTegid · 21/08/2024 17:46

Ironic if the Daily Mail (I usually call it by another name) complaining about social housing rents being perhaps 60-65% of market ones in ten years time, when many of the occupants are demonised by them.

Personally, it would not be my first increase to fund public services, as argued before, £1000 a year more for every large or high performance car as a minimum would be first on my list.

SummerSplashing · 21/08/2024 17:48

TooBigForMyBoots · 21/08/2024 14:56

The last Tory government certainly was.😬 Our children will be paying that for years.

@TooBigForMyBoots

cant people stop banging on about the tries & simply focus on what's happening now.

sorry to single you out, you're FAR from the only one. However it's making any discussion impossible when from the beginning of a thread it gets derailed by Tory bitching.

MushMonster · 21/08/2024 17:50

Not my priority.
My priority is healthcare.
Followed by rent/ mortgage security.
Taking a grasp on bills, both energy and food/ clothing.
Education, because schools are in a mess.
It does not affect me personally, but childcare costs need to be in the list somewhere as it takes a huge amount of people's wages.
The pronlem we face is that quite a bit of our money is no longer in our pockets, is it? It has been spent on nothing productive or just lost to idiocy.

Regarding border control, I cannot see how we are spending more money now that we did a month ago?
But I fully agree with dismantling human trafficking gangs, for good. That will sort a problem, instead of just patching up things.

Again, personally I was expecting tax raises, not a surprise there if it happens. I am ok to pay more taxes, on the condition I get the services I pay for.

GasPanic · 21/08/2024 17:50

SummerSplashing · 21/08/2024 17:41

@Bushmillsbabe

PRE ELECTION is the key here.

Now she's just blaming the Tories when the fact was they'd never be able to not raise taxes/increase borrowing if they were going to do what they said they were.

shes as full of BS as every other politician of any party.

Same old shit. Different sandwich.

The world is a bit different this time round. Borrowing money just isn't an option any more. So anything extra is going to be paid for out of taxes.

I don't think the squealing has even started yet.

Labour have started splashing the cash ... sooner or later the piper is going to have to be paid.

ilovesooty · 21/08/2024 17:52

Bollihobs · 21/08/2024 14:31

Who was it in Labour left that infamous note for the then incoming Tories in 2010 saying "Dear New Chancellor, sorry but there's no money left!" Same old same old.

🙄

EasternStandard · 21/08/2024 17:59

MushMonster · 21/08/2024 17:50

Not my priority.
My priority is healthcare.
Followed by rent/ mortgage security.
Taking a grasp on bills, both energy and food/ clothing.
Education, because schools are in a mess.
It does not affect me personally, but childcare costs need to be in the list somewhere as it takes a huge amount of people's wages.
The pronlem we face is that quite a bit of our money is no longer in our pockets, is it? It has been spent on nothing productive or just lost to idiocy.

Regarding border control, I cannot see how we are spending more money now that we did a month ago?
But I fully agree with dismantling human trafficking gangs, for good. That will sort a problem, instead of just patching up things.

Again, personally I was expecting tax raises, not a surprise there if it happens. I am ok to pay more taxes, on the condition I get the services I pay for.

But I fully agree with dismantling human trafficking gangs, for good. That will sort a problem, instead of just patching up things.

If you can incarcerate some people, as hard as that is, how do you stop more people taking their place and trafficking?

VelvetSoftAndFair · 21/08/2024 18:03

BitOutOfPractice · 21/08/2024 14:24

And yes. The Tories - remember them? The party of prudent financial governance 🙄 - have left a massive hole in the finances.

And yet all the news pundits, say that the big hole has been caused by the recent massive overspend on public sector workers.

Greybobblyowl · 21/08/2024 18:03

I have 2 friends one is social housing one in private rent both in UC. The LHA allows the full rent to be paid on one of the homes which is just over double the SH rent - raising the SH rent will just be one government department paying the other ??!! Regulate private rents and that’s less money going to the landlords who are overcharging and that’s what will save money - reduce the LHA not increase social rents !

Sharingsomewisdom · 21/08/2024 18:04

FOJN · 21/08/2024 14:51

The budget black hole was known about and discussed by various political commentators well before the election. The question many asked was how did Labour intend to bridge the gap without tax increases or budget cuts.

There are 2 million housing benefit claimants living in social housing, (a further 580,000 in the private rental sector) are Labour going to increase housing benefit payments or will they expect claimants to just find the additional money for rent?
If they are going to increase housing benefit payments then why not just invest that money in building more social housing?

How will above inflation rent rises in 2.58 million homes affect inflation overall?

There are 2 million housing benefit claimants living in social housing, (a further 580,000 in the private rental sector) are Labour going to increase housing benefit payments or will they expect claimants to just find the additional money for rent?

--

I am also interested to see how this will be squared. I believe there are mentions that the benefit bill is also in her sight. i guess it is all a wait and see thing at the moment.

OP posts:
FormerlyPathologicallyHappy · 21/08/2024 18:05

Cameo appearance in Wallace and Grommet

Sharingsomewisdom · 21/08/2024 18:07

FOJN · 21/08/2024 15:02

Correction.

There are a total of 4.4 million social housing homes. 2 million are home to housing benefit claimants. The remaining 2.4 million will have to fund above inflation rent rises.

noted

OP posts:
NeverDropYourMooncup · 21/08/2024 18:09

YouveGotAFastCar · 21/08/2024 14:24

I mean, it has to be considered, like anything else. Social housing near me averages £400 a month, private rental averages £1,200.

If you’re on universal credit, you’re eligible for all social housing to be paid regardless of the amount, so she’d have to do the sums carefully - and it’d be a shock for people who pay their own rent, but live in social housing. But a tax increase will be a shock, too.

I’m not sure there’s a single way to raise money that won’t be unwelcome and feel unfair to a group of people.

No, you aren't. UC assessments give up to the eligible amount, which does not have to be 100% of the rent, even for social housing.

MushMonster · 21/08/2024 18:10

Why do you think that the changes will affect rent in the HA system?
That is not mentioned in the Guardian.
Is it suggested in other media?
Benefits, sick pay and carer allowance will most likely affect the more financially vulnerable, so I do not think she will go for those? At least big substantial changes.

Greybobblyowl · 21/08/2024 18:11

NeverDropYourMooncup · 21/08/2024 18:09

No, you aren't. UC assessments give up to the eligible amount, which does not have to be 100% of the rent, even for social housing.

Yes exactly - different areas have different allowances for what they’ll pay that may be what needs looking at even a very slight reduction in LHA would reduce slightly what each landlord gets but overall make a big saving. Raising the SH rents just means the government passing money back and forth to itself as they are much lower so often covered entirely by the housing element

Sharingsomewisdom · 21/08/2024 18:13

nearlylovemyusername · 21/08/2024 15:50

Yep. And inflation falling with interest rates cut releasing substantial amount for Treasury. But this is against narrative

Re SH rents - it's a joke really. A lot of people there are on benefits anyway so will be covered by taxpayer. It's just a "clever" scheme to make middle class taxpayers to pay for social housing they won't get access to whilst struggling with own rents/mortgages

good analysis. thanks. been wanting to see who exactly is expected to foot this bill.

OP posts:
Greybobblyowl · 21/08/2024 18:13

Personally I think she should go for the single person council tax allowance reduce that by 2%

Swipe left for the next trending thread