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.

Perhaps it’s not dominating news cycles because Musk is cosplaying an evil Bond villain and Trump is talking about invading Greenland.

They clearly aren’t growing the economy as growth has stalled, and the actions taken so far are anti growth. The reason they are being criticised for raising taxes is that (a) they said they wouldn’t raise NI, and then pretended they’d only ever meant for employees, (b) have pretended that doing so doesn’t impact the pay of individuals, despite it being apparent that it will lead to lower pay rises and job cuts (c) it reduces growth, not increases it.

Not only that, the pledge that we’d be the fastest growing economy in the G7 has already been dropped!

Taking notes. I do accounts.

Absolutely they have. Don’t fall into the tired old delusion that anyone who has the temerity to criticise Labour policy is a Tory.

Given the way the Tories have mishandled the economy and allowed Brexit, it’s even MORE crucial -not less - that Labour handle the economy competently and stimulate growth. This is why their actions are so worrying and disappointing.

Somebody upthread (@Mirabai ?) said the budget was a mix of ideology and inexperience. That was absolutely spot on. And it’s a fucking disaster given the mess they did inherit.

Oh, and no, I don’t expect the economy to magically be ok within a few months. It can take time. I do expect policies to be put in place that have a reasonable likelihood of improving things though. Not policies that will clearly do the opposite.

The lack of planning and inaccurate forecasting of the Labour government is at best disappointing. They had years to come up with a plan and now KS has written to regulators asking for ideas. The government is floundering. Rachel Reeves does not come across well, she appears to have little empathy and lacking in sincerity. The "Rachel in accounts" label is in my view not misogynistic it is referring to her experience - she is not an expert economist, this is no different to the way other politicians have been referred to regarding former jobs.

The media is somewhat distracted but I assume it will eventually filter through given the views this morning, they talk a dire situation

Given the general response is ‘give them time’ markets can’t see a political switch, which is priced in to higher borrowing costs

UK 10 year gilts were 1.8% pre Truss, 4.5% post Truss, i wouldn't be gloating they are similar now & mirroring the US, there is only the Tories to blame for our economic out look.

Adding 1.3% to employment costs does not cause these sorts of problems.

In any case, its driven by a higher inflation outlook, USA Bond rates and BOE not lowering interest rates.

What is funny though is when rates spiked on here under Truss and inflation went to 11%, it was all put down by Tory posters on here, to gas prices and the USA...

Odd that but when Reeves is insultingly called "Rachel From Accounts" you know very well the political motivation of the poster and its not genuine concern for the UK.

But lots of innovations that claim to be about efficiency ultimately derive that efficiency from intensifying work. I'm skeptical that iPads for train drivers would be used for anything other than micromanagement, and assume the drivers' union thought that too.

Private capital is fickle, and is overly focused on short term rewards. Pension funds invest in renewable infrastructure via asset managers' closed end funds, which have much shorter lives than the instructional investors' main liabilities. I can't recommend Our Lives in Their Portfolios by Brett Christophers enough on this topic.

I don't really understand why an SME would scale back investment in anticipation of IHT or CGT. Surely entrepreneurs still want to maximise the success of their business before they sell it or pass it on to the next generation? Is it just about acting out of spite?

The trouble with saying that more savings drives liquidity is that we have had plenty of extra liquidity for almost the past 15 years, in the form of QE, and it hasn't been channelled into productive business investments, it's just inflated asset prices. This suggests demand for investable funds has been low, something which is in part because of the very phenomena that this thread is about - consumers have been so squeezed by living costs that investing in providing them with goods and services in future is an unappealing prospect compared to share buybacks to prop up the value of equities.

Only time will tell how she compares to all of the previous chancellors, and she can be all of the things you say she is (or not), but that specific label - from Lee ‘The Somme’ Anderson, no less - remains misogynistic.

Which policies would you like to have seen Reeves put in place?

Came onto thread to say the same.

Now leaving the thread because anyone who uses such misogynistic phrases, is immediately noted as not worth having a conversation with.

Brexit fucked up the economy. Save your ire for Cameron, Boris and Farage.

Good point.

Labour was held to blame for the state of the economy for YEARS after the Tories got in.

Labour has been in power for seven months, but what Labour has inherited is apparantly nothing to do with the Tories. No siree.

I agree with your first sentence. Cons absolutely did blame labour for years.
I haven't noticed any pp's applauding the tories for their handling of the economy though?
Do you think the recent budget has had a positive impact on the economy? If so, why?

I'd say it is far too early to tell conclusively one way or the other.

The UK ezconomy will stay in the doldrums until someone in the UK does proper work and SELL products to other countries to get the cash in. BUT of coiurse the Tories salted the earth with bad policies and then Brexit so making it near impossible for SIGNIFICANT growth. Everything else is just stirring the few pennies the UK has around a bit.

Indeed, was there anything in the budget against these multinationals who use tricks in order to escape paying taxes on their UK revenues?
Answer: nothing, why?
They took the money retirees need to heat themselves, they disrupted the education of many young ppl, they condemned wasps women to poverty in old age, etc. but they left Bezos and Zuckerberg in peace to enjoy their billions, why?

Fairly certain the next 4 years are going to be really shit. Worried about freedom of speech too frankly.

If you asking regulators for growth idea you are really really bad at your job. You also don’t get growth by making it more expensive to employ people. It’s so wilfully stupid. i was one that thought the tories should go. I actually really regret that now.

Of course it has but what was Reeves choice here?

Reverse Hunts unfunded NI cuts, not pay the teachers nurses the recommended pay rises - what would that have done to the economy?

Hunt knew he would lose the election, regardless of tax cuts, so went ahead anyway, knowing it would leave Reeves with a huge headache, well, actually not Reeves, but the general population of the UK - disgraceful but no surprise no one criticises him for this.

@User37482 How should Reeves have paid for the NI cuts & pay rises? or should she have taken the money from peoples pay packets.... that would have gone down like a lead balloon.

So if it was inevitable that growth was stymied by Brexit and the Tories, why did Labour build a manifesto and build an autumn budget around growth? If borrowing was necessary to build growth why have we only seen decline in all our sectors since? If decline was the inevitable precedent to growth then why did Reeves forecast 1.1% increase in gdp in the Autumn budget that wasn't materialised - and in fact failed to do anything but fall in the fourth quarter? How long do you think people should hang on for any signs of growth before becoming jaded and cynical about the policy choices?

🙄

How on earth can you expect to have growth so quickly?

We have had 14 years of a very stagnated economy and not just in the UK either.

Labour did say things would get worse before they got better and were roundly criticised for this approach.

What exactly do people want? honesty or lies...

Damn it, and the economy was in SUCH a good state before hand. How dare she try and fill the black hole that was hidden from the new Government.