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.

One of the reasons the markets hold a cosh over Labour on borrowing is due to the perception that they will borrow large amounts and funnel it to day to day spending, basically boosting things like public sector wages rather than investing in infrastructure to boost growth and productivity.

Not exactly. There is an understanding that Labour are gagging economy big time (both taxes and policies like employee rights, NMW etc), which leads to contraction of investments and in turn to reduced tax take as a result. Combined with public sector salaries increases from day zero there is a strong chance Labour will be in considerable deficit very soon again hence market nervousness. My view - it's only beginning, it's only going to get worse. Today's inflation number drop is an indicator of consumers refusing to spend rather than health of economy.

You can't - but you can buy from companies that pay their taxes in the UK and that employ people in the UK.

The UK is supposed to be one of the most valuable markets on the planet, so why not say to companies "If you want to trade here, you have to pay your dues"

Why is the government happy to pay a company billions a year for drugs for NHS patients and then allow the same company to avoid taxes by having their HQ in Switzerland?

Why is the government giving tax breaks to companies for R&D, only for these companies to move manufacturing jobs and HQ functions to another country?

Of course companies indulge in tax planning, but that doesn't mean that they should get to have everything their own way. Companies know this, which is why they spend millions on lobbying the political parties in an attempt to get their preferred conditions. Of course they are attacking Reeves - they've had the Conservatives in their pockets for the last 14 years, so they really don't want their cosy and profitable relationships to be tampered with.

Same happened under Labour with various "sweet heart" deals with the likes of Vodafone and also waiving tax liabilities to encourage olympic athletes to attend the London Olympics. Neither party is innocent for using tax to drive behaviour.

The UK is supposed to be one of the most valuable markets on the planet

What leads you to this belief???

I'll agree with you on that point - my criticism of politicians is not confined to the Conservatves. And for the avoidence of doubt, while I have little faith in the abilities of any of the traditional parties, in no way do I think that Reform are in any way qualified or suitable replacements for Labour or Conservative politicians.

What leads you to believe the U.K. won’t lose out when companies leave or reduce business / tax here?

Reform are gaining in popularity, a yougov poll this week put them 1 point behind Labour. I think a PP mentioned that other European countries are voting in further right parties and I can see that happening here. The way things stand things look bleak for the UK economy, for jobs with the result that the super-rich will get richer and the wealth gap will increase.

With respect, I think you see all 'business' as huge global behemoths who avoid tax. That's simply not the case. Thinking carefully about where you buy your white goods from will not change what is happening as a direct result of the budget.
Many businesses are British, only trade in Britain and pay they full UK taxes. These businesses cannot afford the changes introduced by the government. They are reducing headcount, cutting hours and putting up prices. The changes to NICs, NMW and the incoming workers rights with cause higher unemployment which disproportionately will hit the least well off. Prices will rise which again hits the least well off disproportionately.

Yes, and as oddly different as all the intended voting polls trend, the consistent outcome seems to be that Reform has made hay off the back of the incompetence of both the established parties, and have left the libdems for dust.

We've always relied to the fptp system to muscle out new, populist parties but I don't think that will fly if things continue like this.

Why is the government happy to pay a company billions a year for drugs for NHS patients and then allow the same company to avoid taxes by having their HQ in Switzerland?

Drugs (especially expensive ones) tend to be protected by patent, so you don’t get a choice of supplier. R&D is eye-wateringly expensive, more drugs fail than succeed, so pharma tends to go where R&D receives the most favourable tax treatment. Switzerland has a stable currency, a favourable tax regime and a highly-skilled workforce. Why would you expect a CEO to agree to remain in the UK, pay higher CT and hobble its own growth and profit?

My comment is not aimed at the drug companies that manufacture the drugs, but at the company that has thousands of pharmacies on the High Street supplying drugs on prescription to NHS patients, and that also acts as the wholesaler to the NHS itself (e.g. for drugs used in hospitals) but which has reduced the amount of tax paid in the UK by moving its group HQ to Switzerland, resulting in the UK losing about £100m a year in tax - or an estimated £1.6 billion since 2008.

That company also charges the NHS an extortionate amount for administering flu and covid jabs - more than three times more than Lloyds. Interestingly it doesn’t charge anywhere near the same amount for those injections when they’re self funded.

Isn’t Boots owned by Walgreen’s now?

lol! Bet you lot are absolutely DEVO that interest rates are down & interest rates are likely to be cut. But do carry on!

Down? 0.1%

DEVO ??

If you imply Boots then you really have no idea what you're talking about, go google their ownership structure

No stagflation. How very sad for you.

Are you seriously proposing reliance on one datapoint, and that it means ‘no stagflation’?

There are UK domestic issues (read Labour Govt tax/spend, and hostility towards growth, coupled with questionable competence), and there are significant global dynamics, including deglobalisation, protectionism, energy inflation, demographic-led inflation, and inflation resulting from a rapidly rearming world.

I fully expect gilt yields to continue their inexorable rise in the coming days/weeks.

Your ignorance must be bliss.
There are none so blind

This is getting embarrassing. Stop it.

It was hotel rooms and flights that magically provided the -0.1%.
Two staples on everyone’s weekly shopping list.
I think we are going to get worse than stagflation.

What has the ownership to do with where they pay tax - other than allowing them to move the corporate HQ out of the UK in order to avoid paying tax on profits generated from the UK? Profits made from the largest customer groups which are the NHS itself and the NHS patients who are prescribed drugs. When the government is paying through the nose to a dominant supplier, the least that they could insist on is that this supplier is domiciled in the UK and pays tax in the UK.

For those who don't know, it is many years since Boots was British owned, either by the original Boot family or through the limited company listed on the London Stock Exchange. Boots is currently owned by the American group Walgreens Boots Alliance, but is in the process of being sold to an American equity company Sycamore Partners.

The £100m a year loss to the UK of taxes is a quote from John Ralfe, Boots' former head of corporate finance who stated that "the UK has lost about £100m a year in tax as result" [of the move to Switzerland]. That was the estimate in 2010, so allowing for inflation, the figure is probably far higher today than it was 15 years ago.

It isn't Labour's fault but both Fed and BoE have said that they do not expect to cut interest rates as much as was hoped 12 months ago. Therefore I think that RR should have saved something to tide us over. She has carried on saying that growth will overcome these problems. Flat out wrong.
Norway one of the most Eco conscious countries in Europe today announced that they are releasing 50+ oil and gas licences in North Sea and Norwegian Sea. These are in low risk areas where the Geology is known and understood and pipeline infrastructure is nearby.
We should copy that.

@Havanananana

you're embarrassing yourself

Google Alliance Healthcare if you'd like to have some remote knowledge of what you're talking about. Walgreens sold Alliance Healthcare several years ago to AmerisourceBergen.

This is just another international business deal, yes UK lost a lot of tax on this, the same as it does with multiple businesses moving abroad and thousands high earners relocating due to unfavourable tax regime. The solution is obvious - make UK attractive for investments and your tax base will rise. But no, we better vote Labour