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.

Why if you wanted growth would you try hard to flatline it to zero?

And now talk of public sector cuts due to high borrowing costs plus falling pound

Do you think that’s the outcome Starmer and Reeves wanted?

‘Little retard’?

What an horrendous thing to say. Utterly shameful.

Absolutely.

My point stands however. Reeves has thrown money at the unions. She has chased away capital. She has stymied growth, killed hiring. And next, she will come for the social welfare bill.

This is reality. Nobody is immune.

I was shocked to read that shameful sentence.

That's disgusting honestly.

I don't think Reeves is going to be sacked and I think some of you engaging in fantasy politics. No party would call an early election or quit with the majority Labour has. They will serve their full term.

The reason Reeves won't be sacked is that any Chancellor is going to face the same trap she does. Labour have put on a fiscal straitjacket in an attempt to show they are not going to try to borrow and spend their way out. Any chancellor is going to face the same problem as Reeves: the budget is already cut to the bone, but there's no more money to spend. Meanwhile, many centre to centre-left economists would recommend spending more to invest in the economy, but there's no money to spend and no way to raise it.

All Sunak would do is the same old austerity shite, and he'd have no way of plugging the hole. The Tories helped create this crisis and have no desire or plan to fix it. I am sure Sunak is happy to be out of the hot seat.

I've asked at least twice in this thread how people would fix this and there's been nothing but "grow the economy" with no explanation of how.

As for PIP cuts? You think the Tories would be any different after how they handled benefits?

Probably not, but the crowing about taxpayers being hammered, is not to the exclusion of other groups i.e. those who receive state support.

That was my point.

As a previous poster said RR's biggest error besides NI employers increase is inaction and as another PP said- agreeing with you btw, the previous Gov handed out vast amounts of money during Covid - this ended up in the hands of the super rich and is causing us problems now, Labour could have used a wealth tax on the super rich but choose not to and will probably now announce austerity style cuts in public spending in the next few weeks.

Also the R word is incredibly offensive.

No one serious is suggesting that Rishi Sunak is the answer to this. Consocialists got us into this mess, the real socialists have just made it worse in the last six months.

How was raising taxes to hike public sector spending ever going to help. The public sector has never had more money or been less productive. How did Labour think that putting more money into a bottomless pit which burns money by taxing jobs would help grow the economy.

It shows a total lack of competence. She is a total disaster and Starmer has baked in stagflation into UK economy’s future. He will live to regret the day when he placed more emphasis on her being ‘the female chancellor’ than appointing someone who actually knows what they are doing.

‘Grow the economy’ is all Labour have said

Which is why the markets reacting to their policies as well as flatlining growth is bad news for them

It might take a bit of time for the general public to react to spending cuts rather than high borrowing costs and pound falling but it’ll come through at some point

Their policies have done this, how long it lasts is down to them but given how clueless they sound about impact they may not change course

Thank you for this welcome dose of reality.

What you mean like what Labour have said.

‘Dose of reality’ is a good way to describe markets view of Labour policies

@ShinyShona clearly the language used in your now deleted post says more about your intelligence than 'Mr and Mrs Rich'n'Thick', because the discontent with this Government extends way beyond the small % of people who send their kids to private school 😂

Most of us understood our current problems, and the terrible legacy of Brexit and Covid. One third of the population voted Labour becuase they believed that they had a clear plan to improve things (and maybe becuase they believed the mantra that they'd be different. Having the minister with responsbility for anti-corruption herself being investigated by another Government for corruption hardly helps...) What is not clear, as there as been no credible explanation from the Government, is how what they have done will improve things.

In simple terms, everyone recogises that the Government's actions have directly impacted consumer confidence, business confidence, inflation and growth prospects negatively. As a result, the BofE is less likely to reduce interest rates, further increasing the pressure on businesses and households. The BofE's mandates are only to maintain price stability (inflation) and, subject to that, support the Governments economic policy. It can do nothing else. Perhaps you could let us know what else you think it should do - given the clear mandate it has.

Now, you might think that the public, business and markets response is not all the Government's fault. But that's a minority view unsupported by any economic analysis other than the 'black hole'. Perhaps they hope that making the economy worse in the short term will make it better in the long term - but there is no analysis to support that either. There is however plenty of analysis to explain why the budget has been so destructive to confidence and trust (which is playing out now in market reaction and business decision making) and to inflation, employment and growth prospects. What more analysis do you expect to see?

The eccomony was starting to grow.

Did she have to do anything??

This is politics, and Labour clearly have the ability to be as internecine as the Tories (remember Sue Gray?). The markets will dictate events and they have lost confidence in her. In addition, she is, on the face of it, losing internal support (note Starmer earlier today).

She is running out of fiscal headroom as you say, and the moment she is compelled to implement some form of austerity, the die will be cast.

Talk of early elections etc is nonsense, but I can foresee an emergency budget.

I maintain she will gone (sooner than most of us think).

Even dear old Kwasi said at the weekend that he saw similarities with his predicament…

Updated.

“Rachel Reeves is doing a fantastic job — she has my full confidence,”
Starmer.

Usually ominous.

Bear in mind that he also professed full confidence in Tulip Siddiq…

Today I heard about a school renovation/replacement project that has halted because Rachel won't release the money. The project has a plan to work around the problems, a contractor and a start date of soon. Nobody is able to sign it off, No £££. That is happening all over the country. That is the reality of just how the economy is.
They found the money for the rail 'workers'. They took the Winter Fuel Allowance.
They said they wanted growth and then decided to hobble employers with extra regulations and NI increases. How will those changes help growth?
My suggestions are recruit new workforce for railways and the Underground at a lower rate. Abolish the restrictive practices with an Act of Parliament. If they strike use new workers.
Re open oil and gas fields and reopen gas fired power stations. Refurbish some because they are near worn out, to give a 5 year life.
Forget Net Zero for 10 years.

Stop Overseas Aid entirely for say 5 years.
Reduce all benefits by 10% for 5 years.
YES those are hard choices but do we want to remain poor and cold or not?

There's a lot of people in deep denial about just how badly things are going for Labour currently.

Don't forget the eye watering sum for Ed miliband

She borrowed and taxed billions to hike public sector pay for organizations which are so bloated, they make a beached whale look healthy.

She also borrowed and taxed billions to waste on Ed Miliband’s vanity net zero projects. They will turn out be hugely wasteful with lots of lobbyists making a pretty dime at the public’s expense. Basically corruption.

While inflation is on it’s way back, we are a looker certainly in a recession, gilt yields have gone haywire, interest rates will have to rise (forget your mortgage being cheaper), the pound has plummeted, interest in govt borrowing is through the roof.

It is beyond belief that people are trying justify this. What kind of hostage mentality is this.

I have not had above inflation pay rise since 2012. The economy has been on life support since the 2008 collapse of the banks. Growth has been puny since. I suspect there will be more tax rises coming, dressed up as “to fund the NHS”.

Number 10 just announced they have ‘full confidence’ in Rachel Reeves. We know what that means. She’s finished.

The BBC site updated 20 minutes ago say's 'Chancellor Rachel Reeves will remain in her role "for the whole of this Parliament", Downing Street has said, as she faces criticism over the falling pound and rising government borrowing costs.'

Right, but since when has any minister been given such an undertaking? It doesn’t happen.

Read into that what you will.