Rachel from accounts has crashed the economy

[Almn0etd]

So borrowing costs are now even higher than when Liz Truss was around.

The economy is well and truly cooked and in a far worse shape now that Rachel accounts is in charge.

Why isn’t this dominating the news cycle? Because it’s Labour.

The Tories were atrocious. Labour are an indescribable disaster for this country, surpassing the lowest of the low bars. Cue Labour apologists who don’t mind being made poorer and having the country destroyed, as long it’s Labour doing it to them.

I didn't expect growth so quickly - I'm asking where the 1.1% of gdp growth that Reeves forecasted is or for any sector that hasn't seen a decline?

The black hole was known and detailed in the Autumn budget. The same budget in which Reeves forecasted growth in our economy. Do you think we'll see the 2% growth in 2025 that was forecasted in that same statement?

The issue as talked about this morning is increasing prices and decreasing growth. Ie stagflation

This is difficult to address as you can’t use interest rates as a lever

Reeves will be choosing between higher taxes, breaking fiscal rules or lower public spending

Analysts said last one politically most likely

NI hike for employers is going to finish off the high street, New look for one are closing stores, the company I work for which is a massive employer in the uk is said to be paying +£50 million in NI and are making an announcement at the end of this month, I think there will be store closures, a lot

I didn't hear that interview. Will try and find it on catch up.

Did the analyst suggest that we can expect spending cuts, aka austerity, in March?

There were two interviews which were clear and well stated one covering dire situation and lack of correction making it worse than Truss which did correct politically

The second covered Reeves options - breaking fiscal rules, higher taxes or lower spending

Politically they thought the last one would be more likely

A bit on Reeves might ‘hope things change’ but if not that was their most likely outcome

I hope your job is safe, good luck 💐

Thank you

That’s just convenient to ignore the argument. It’s like ignoring what Nigel Farage says because he speaks for Reform and you don’t like Reform.

Well it is the difference between reporting a bit of snow on the roads and a 50 car pile-up.

As the famous MN saying goes, ‘you don’t need to announce your departure’, it’s not an airport.

It’s not. Listen to the analysts, it’s worse as there’s no way to politically remove the problem

What do you want to say that can't be said now or you think may not be able to be said in the future?

Article 19 of the Universal Declaration of Human Rights.

Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.

The UK was one of the states that drafted it and was one of the first to ratify it in 1951.

But it wasn’t, was it? Nor did those men hold the MSc in Economics from one of the most difficult and elite programmes in the world. It is misogynistic as hell.

And by 'analysts' you mean partisan commentators.

https://www.cityam.com/how-will-the-uk-economy-perform-in-2025/

Did you listen this morning?

I suppose that attempted defence will last for a while. Although higher borrowing costs already show what the markets think, which impacts us.

Yes. The options are pretty stark.

I think most politicians have been petrified of the markets ever since they handed down a brutal lesson to Truss. When you go global, and the UK has in every sense, you no longer really have control of your budget to do what you want unless you want to risk trashing the currency and all that follows from that in a world where we important a significant proportion of our manufactured goods. The books have to some degree balance. The US is the exception to this as it is the reserve currency. But maybe even they will not be able to run large deficits for ever.

With stark options, it becomes more about political spin, so it's going to be interesting to see how the spin doctors handle Labour pushing policy that you would expect more from the Tories.

Tory austerity bad, Labour austerity good isn't quite going to cut it but the apologists will try.

Tax rises they have already tried to play the get out of jail free card by attempting to claim the Tories left them a big black hole. But now it is looking more and more like Sunak was correct and Labour were lying about the tax situation. Whether they can implement more stealth taxing to try and balance the books will be interesting. The NI rises in the budget were a tax on people, but because they were implemented on employers they will be felt indirectly.by the voters. I'm expecting more stealth taxing of this type. Workers are already squeezed so it will be more boiling frog type stealth taxation delivered with a large dollop of spin rather than direct taxation.

For spending they have already splurged on significant public sector pay deals, partly funded by cutting expenditure in other areas such as winter fuel allowance. I expect pensioners to be hit again to enable Labour to shovel money towards their preferred demographic. The middle classes will be another target.

The latest speculation is that they are going to gerrymander the voting system in order to shore up support for the next election. There is also quite a bit of speculation that Starmer will be out by the end of the year - my guess is he might well be driven out by calls from the left for more public spending. If a spendthrift then gets in it's going to be hold onto your hats time.

As I type this I note the 10 year gilt yield has just gone over 4.75%.

And not just the high street. To take this one example:

NI hike is set to cost adult social care £900million next year.

In conjunction with the MW increase, on study by the Nuffield Trust finds that 18,000 independent adult social care organisations face an increase in costs of around £2.8billion next year. So many will risk going bust and ending vital care services.

The combined costs not only cancel out the extra funds for adult social care (and children’s) announced in the budget; but also eat up the extra spending power local councils should have from Budget increase for services.

Nice to see other women dismissing the first female Chsncellor with the lazy Rachel from Accounts crap. Fine to criticise policies if you don’t like them but a bit of respect to a decent, intelligent woman wouldn’t go amiss.

Actually it was customer relations……

Don't use long words if you don’t understand them.

A lying, plagiariser you mean?

Highest rate for 27 years.

They didn’t though. I’m a WASPI woman who’s lost her WFA. I’m not in poverty or freezing nor are any of the numerous others I know. There’s no basis in reality for these claims and it’s pretty rich to see my generation used to weaponise criticism of a new government when there’s been nothing but outrage about “rich boomers” for years. You can’t have it both ways.

I appreciate that your personal experience is important to you, however, many don’t have the luxury of being insulated from such government decision making.

Still doesn’t make her an economist. She lied. Just admit it.