Are we headed for a recession?

[Whathastheworldbecome]

Boris has pledged another 5 billion to put into infrastructure/ building projects so that we don’t end up like the 1930s Great Depression.

I don’t understand how borrowing more money doesn’t undermine the economy further?

There seems to be little talk of any recession at the minute and the housing market seems to be holding up

Justanother
I know. But for the benefit of other readers its worth debunking its posts.

Yep, and we're also heading for a no deal Brexit.
If you're not afraid, you need to start paying attention.

Have you been under a rock?

JustAnotherPoster00 Why would you say Tory bot? I don’t think many low paid workers would want or expect to pay more income tax

sirius
That poster has form
and unless you are a Tory bot too
you will know that with a personal allowance of £12500 pa
the low paid do not pay tax at any rate

but they still get services like the NHS and schools and bin emptying

ListeningQuietly And I’m pretty sure they wouldn’t want to, I would imagine the rich don’t want to pay anymore tax and will have good accounts to make sure they don’t, so it will be down to the middle/ working class to pay more

I would imagine the rich don’t want to pay anymore tax and will have good accounts to make sure they don’t, so it will be down to the middle/ working class to pay more
Because the government are too cowardly to close the loopholes and drag the money onshore.

John Whiting showed how it could be done
but Tory donors would be hit first

They need to make companies like Amazon who have a huge market here, pay proper tax

It's not a drop in the ocean

They need to make companies like Amazon who have a huge market here, pay proper tax
Indeed, but that involves dealing with ALL their offshore chums
so it won't happen

They need to make companies like Amazon who have a huge market here, pay proper tax

A huge amount of what is sold on Amazon is from small UK businesses using it as a platform/marketplace like ebay, so those should be paying full UK VAT and taxes on profits etc. It's EU rules that allow Amazon to divert some of their commissions etc to low tax countries such as Luxembourg, in the same way that Google's European head office is in Ireland (due to Irelands low corporation tax). It's a Europe wide issue, not just the UK.

Raising tax on higher earners tends to have unforeseen consequences such as we see today with GPs reducing their hours to avoid a 62% marginal tax rate and a tax penalty on high lifetime pension pots, both of which hit GPs hard.

Because the government are too cowardly to close the loopholes and drag the money onshore.

Lots of work has been done to close offshore loopholes over the last 10 years - shame that Brown/Blair let it get out of control in the 13 years before that.

We've new taxes on expensive properties in the UK owned by foreign entities, closed various VAT loopholes on imports (i.e. stopped cheap CDs etc from channel islands), forced internet sellers to be properly VAT registered in the UK, working on global initiatives to reduce offshoring, beefed up money laundering rules involving non compliant tax havens, etc. Compare that to the period when Brown/Blair were having cosy meals with international firms like Vodafone and doing "sweatheart deals".

Badbadbunny, This is the problem for every action has a consequence and a reaction, unless there is a global effort on larger companies will just shift to cheaper places, people with skills and wealth, can move elsewhere etc etc,
I’m not really sure how we are going to grow and get out of this recession, perhaps no or low growth will be the new norm from now on.

Are we headed for a recession?

What about this new virus they identified in Wuhan last year? Has anyone heard any more about that?

Already in it and we have only just paid back WW2

There seems to be little talk of any recession at the minute and the housing market seems to be holding up

Surely you are joking, Sky News has been saying nothing but the country heading for a massive recession, along with the BoE.

You don't need anyone to tell you the state the country is in and will be. It's screwed in a big way.

This is the problem for every action has a consequence and a reaction, unless there is a global effort on larger companies will just shift to cheaper places, people with skills and wealth, can move elsewhere etc etc,

There IS a global effort on tax evasion and money laundering, but it's painfully slow as the countries that benefit (tax havens etc) are obviously reluctant to kill the goose that lays the golden eggs.

We also have the huge EU problem - a company can base itself in any EU country (they usually choose low tax countries) and pay tax there at the lower rate than the country(ies) in which they make the sales/profits.

Re cheap labour etc., yes, globalisation is a race to the bottom when it comes to low value/high labour commodities - i.e. Chinese factories turning out tonnes of cheap tax. That's why we, as a country has been concentrating on higher quality/higher value products & services, why education is concentrating on science and tech. Cheap mass produced tat isn't the way, and now as we've seen with Covid, a "service based economy" is looking a poor choice too!

Yes my dh work in Bankruptcy and IVA and they are gearing up for a wave of people in the new year. People were already struggling with debt before this and the effects of COVID is going to financially catastrophic

We're already in it.
Expect much worse in the months and years to come.

The richest 1% will be fine though and all their Tory cronies.

@ListeningQuietly erm, do you seriously not know what’s going on in Japan? The U.K. isn’t particularly low tax rate anyway. It has a fairly low CT bit IT is pretty high. VAT is also high in comparison to similar taxes in other countries.

Muh2020 I am always amazed that people seem to think that everyone that is rich must be a Tory, there are plenty of very rich MPs and people that support over parties

Coronavirus: UK economy hit by worst contraction in 41 years www.bbc.co.uk/news/business-53231851

We're protected from feeling the huge effects yet though

But in 6 months:

You will know 6 people who has lost their job

One person who is losing their home

3 people who have lost a business

Etc etc

I already know 3 who have lost their business and one declaring bankruptcy. I think, though, that Edinburgh will be hit in incredibly hard as it is such a tourist city.

We are already in one. We are heading for the worst depression though. Worse than the one in the 30s.
Me and dp have been ok so far but i am very very worried about the prospect of another lockdown which i keep hearing people talking about due to a second wave. I was planning to enroll on an access course to get onto a degree next year which i wont get student finance for so i will need to go back to work to cover fees. Dont know what to do now.