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’d suggest you listen to the interviews on R4 this morning

There wasn’t ignorance but clear reasoning

It’s not looking good for Reeves or Labour

Have you noticed that we always call it the Truss mini budget? I never hear anyone call it the Kwarteng budget even though he was the Chancellor at the time.
Yet when we reference the recent labour budget, we stick it all on Reeves, rarely Starmer gets a mention.
Is it misogyny (always blame the woman), or has Keir Starmer deliberately distanced himself from a budget that he must have signed off, just to keep his hands clean if it goes wrong?

Pity it doesn't carry any weight with common sense for her and her team.
D for dunce.
The foundation of the macroeconomy is confidence. UK plc has faced Brexit, COVID, and a change in government (labour) challenges. Both Brexit and COVID led businesses to incur additional debt and adopt a more cautious approach.
Labour announced, "Hey everyone, we know you know things are bad, but guess what? It's worse than that." They then introduced a policy to compel businesses to implement further negative changes. Imagine a group of people charged with making policies to manage the conditions within which businesses operate then all agreeing thinking this is a great strategy. Oops...
She couldn't run a cafe.

Construction has been in a recession all year across all sectors, and it serves as a key indicator of an overall economic downturn. The rest is already following after Nincompoop and co took control.

Like DP says the Milk round is always full of naive berks.

I did listen to R4 this morning.

Plus Sky's economic correspondent who put the increases in context of what is happening internationally.

Yields were around 4.3% in the 3 years previous to the budget, is it good? of course not but you are deliberately ignoring the inflationary pressures internationally and BoE selling off Bonds right now.

Unlike during Truss, the £ is holding up well too.

Why the concern over gilts now and not 12, 24 or 48 months ago?

No I don't think Rachel has crashed the economy in the way that the Lettuce did. Unfortunately she had not worked out how things were. She should have worked out about the £22bn 'black hole'. She had full access to the figures prior to the election. Think of the fuss there would have been had the Treasury obstructed her.
She and 2Tier are not good enough. The PM is so risk averse he freezes-up. We need vision to get growth. He knows that but he retreats back to Labour Party pre 1960s. He believes the Unions have the answers.

The OBR disagrees with you.

https://www.theguardian.com/business/2024/oct/27/obr-to-publish-breakdown-of-claimed-22bn-black-hole-on-budget-day

Experience.

Thank you @Blossomtoes I had missed that. I do remember that Paul Johnson of Institute of Fiscal Studies gave some serious warnings about the lack of choice for an incoming Chancellor.

You’re welcome ☺️

Good post. I don't know any pro Labour news outlets. The guardian arent even that keen on them that much. They get criticism there too.

I bet this person thinks the BBC is extremely left wing because there was a drag queen in the strictly christmas special.

We really do have no hope if people divide everything into left wing and right wing just by looking at things on the surface. Apparently there is no middle ground anymore.

I think the rot started to set in way before Labour took over. It is happening everywhere else too, so even if it was in only a few months, it wouldn't be specific to the UK anyway.

If you listened to the interviews they gave the reasoning in response to your question

You also will have heard about the correction after Truss which won’t happen now

And the three options Reeves has

What correction? which just about stabilised the £ more than anything else.

Yields stayed over 4% for almost all of the 2.5 years since Truss's budget.

We are not seeing the collapse of sterling or of DC pension schemes either or the collapse in annuities or the infamous BoE setting aside 65 billion in QA to prevent disaster.

Its great pity you and others weren't quite so critical of the Tories, they caused much of the increases in gilt Yields, which for much of the last decade were similar to that of our major EU competitors but now, in some cases are now twice as high, despite these "corrections"

All passed by Tory voters, much like CSA, only a concern now Labour are in power.

Did you think up "Rachel from accounts" all by yourself or are you just copying what other boys and girls call her in the hope it might make them friends with you?

Echoing this thanks. Well reasoned concerns from PJ, who is a learned, equal opportunity critic.

All a marked contrast to the shallow criticisms dominating the thread.

What kind?

The current issues were clearly laid out. I know Labour voters will prefer to ignore any criticism of their party

The responses make me think Reeves might do the same and they won’t do much to change course

We’ll see if it ends up with stagflation as suggested this morning

Hunt has caused much of the issues the Govt faces, with his NI cuts and not putting aside funds for pay rises, PO & Blood compensation

Reeves has to find the money now or should the NI cuts and pay rises be reversed?
How would that go down with the economy?

Once again, the issues on yields to a large extent are global and to the UK specifically, caused by your party, not that a dyed in the wool Tory would admit that.

https://www.ft.com/content/2a53391c-2db3-413f-a5ee-2add76fd0966

Behind a paywall but I'm sure many posters know how to find their way around it.

The doom and gloom in here and the right wing press does not seem to be shared by economists, even those that are critical of certain of Reeve's policies (and it's fair to say that the NI contributions increase is not popular among them).

The UK economy is universally (so far as I could tell) expected to outperform all other major European economies. Economists are split as to whether it will outperform Japan. It will lag behind the US.

The low end forecasts for growth are in the low 1%s, and the higher ones in the high 1%s.

Several flag that, while the negative effects of Reeve's budgets would manifest immediately, it would take 2+ years for the positive impacts to materialize (although it is not a given that the will materialize).

It's certainly fair to criticize aspects of Labour's budget but very unfair to suggest they've crashed the economy or anything like that.

We can expect modest growth next year, and to outperform most major economies. How much credit for that would be due to Labour is open for debate, but if you think they take the lion's share of the blame for the current state then I hope and expect you'll be willing to give them huge credit in the very likely event of growth in 2025.

I'm sorry but what do yields have to do with the micro economy re the 5.6 million SMEs that make up 99% of the UK's business population?
Find the money?😂
The government owns the Bank of England which issues all notes in circulation.
Clueless.

Does this also apply to other political parties? Hunt the c&nt by example?

Gladly you have no idea how I’ve voted in past elections, so that last part is irrelevant

What was said this morning wasn’t complicated. Easily accessible and well stated. I can see Labour will try many arguments to not change course, as on here, we’ll see where it goes.

If you have an issue with their views take it up with them.

The markets aren’t ‘doom and gloom rw press’ they just react with higher borrowing costs

I can see why Labour will plough on regardless given these lines about partisan analysis and blaming the press etc but I’m not sure it will help them

Responding to your inability to see that much of the problems facing Labour are international and the specifics to the UK, heavily weighted due to super high borrowing that the previous Govt racked up.

As an economist on R4 tonight said "these bond market moves are international but have hit the UK particularly hard due to our high GDP to Debt and specifically in regard to Reeves, her adding to this borrowing"

But we all want a better NHS don't we?

Anyone would think that you believe Truss never happened and that Trump isn't going to be the next POTUS, he is planning tax cuts and additional borrowing, plus his views foreign affairs is making all government borrowing costly.

How people can be so partisan to the Tory party & so anti Labour is a mystery but i guess it takes all types.

@Madamegreen Yes Clueless is a word i would use to describe someone who doesn't know what gilt yields are or how they effect the economy at all levels.

@Madamegreen She couldn't run a cafe.

Happy to be corrected, but I don’t think anyone in the cabinet has experience of running a business.