2022 mini-budget discussion

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kevman said:
But businesses will suffer under high interest rates also. Anything that increases cost of borrowing and investment will stifle business.

This is why QE was introduced
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This is why it’s critical we don’t accelerate interest rates. This is what will collapse the economy of it has to go too far.
 
CapitalOne said:
I'd be fascinated to hear which part of that announcement you think specifically helps businesses going.
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Reducing taxation on individuals, energy cost payments, holding corporation tax at 19%, rolling back IR35 legislation, rolling back recent NI changes. All these things help the individual to have less negative impact on their funds and thus more disposable income than they would if taxes were raised and assistance with energy costs not made. If you don't have radical tax cuts and energy cost assistance measures then the masses would cut out spending on huge parts of the economy, such as luxuries and entertainment. We would suffer a deep recession where particularly those sectors would see many businesses close, increasing unemployment.
 
delta0 said:
This is why it’s critical we don’t accelerate interest rates. This is what will collapse the economy of it has to go too far.
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Exactly - it is an extremely difficult situation.

I dont believe in trickle down economics but Truss's plan may actaully work and provide some benefit - but it is not the right time
 
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Murphy said:
Yea, and only 7 million German people died for the privilege.

Confirmation that you don't have the first clue what you're talking about.
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I didn't ask them to go to war and I don't see that our mini budget has anything to do with us proposing to do so either.
 
It's amazing to think thought we'd hit rock bottom with the lack of morality from Boris, only to find things just went lower with Truss.

I suspect Truss has the zeal of the convert i.e. someone who wants to prove themselves to the group they want to belong to.
 
thenewoc said:
Reducing taxation on individuals, energy cost payments, holding corporation tax at 19%, rolling back IR35 legislation, rolling back recent NI changes. All these things help the individual to have less negative impact on their funds and thus more disposable income than they would if taxes were raised and assistance with energy costs not made. If you don't have radical tax cuts and energy cost assistance measures then the masses would cut out spending on huge parts of the economy, such as luxuries and entertainment. We would suffer a deep recession where particularly those sectors would see many businesses close, increasing unemployment.
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Interest rates will errode already erroded personal budgets, so net negative on the personal tax part unless you are one of the lucky few - even then there is 0 compulsion to spend that back in the domestic economy.
IR35 has nothing to do with it, did you not see what was announced?
Did you know corporation tax is paid only on net profits (i.e. net of everything including investment)?

I think you'll find "the masses" have already cut out their spending you just haven't seen the impact yet (I would guess it's going to be a slow christmas).

Even if you forget the above an inflationary budget with very high inflation in existence isn't going to tackle inflation.
 
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What we need next is an energy intervention on petrol and diesel. The unwanted affect at present on the value of the pound will push up those fuel costs so a meaningful reduction in those fuel costs will help to counter inflation with any business moving goods around, thus helping not least with food costs.
 
CapitalOne said:
Interest rates will errode already erroded personal budgets, so net negative on the personal tax part unless you are one of the lucky few - even then there is 0 compulsion to spend that back in the domestic economy.
IR35 has nothing to do with it, did you not see what was announced?
Did you know corporation tax is paid only on net profits (i.e. net of everything including investment)?

I think you'll find "the masses" have already cut out their spending you just haven't seen the impact yet (I would guess it's going to be a slow christmas).

Even if you forget the above an inflationary budget with very high inflation in existence isn't going to tackle inflation.
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IR35 has everything to do with it if you get businesses sourcing skilled individuals domestically rather than trying to import them. Much more likely to be spending in the local economy then sending funds back to some other country.
 
I sometimes get the impression that the Europhiles and globalists have less of a fear of these steps not working, than of these steps actually proving efficacious.
 
What we need is an eradication of unions, particularly those representing unskilled workers. It's wage increases that are fuelling inflation, a vicious cycle. An unskilled worker should be paid an unskilled salary, regardless of what industry they work in. The country can't be held to ransom by the unions, or at least it must not be allowed to be so.
 
thenewoc said:
What we need is an eradication of unions, particularly those representing unskilled workers. It's wage increases that are fuelling inflation, a vicious cycle. An unskilled worker should be paid an unskilled salary, regardless of what industry they work in. The country can't be held to ransom by the unions, or at least it must not be allowed to be so.
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Absolute nonsense.
 
thenewoc said:
What we need is an eradication of unions, particularly those representing unskilled workers. It's wage increases that are fuelling inflation, a vicious cycle. An unskilled worker should be paid an unskilled salary, regardless of what industry they work in. The country can't be held to ransom by the unions, or at least it must not be allowed to be so.
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You will not enjoy such a unequal society, I guarantee it.
 
thenewoc said:
What we need is an eradication of unions, particularly those representing unskilled workers. It's wage increases that are fuelling inflation, a vicious cycle. An unskilled worker should be paid an unskilled salary, regardless of what industry they work in. The country can't be held to ransom by the unions, or at least it must not be allowed to be so.
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Indeed, one example is train drivers, it's NOT a highly skilled occupation, yet their wages, (and their union's time proven stroppiness), is beyond all reason. Postal workers too. Not to mention the civil servants who have been allowed far too much leeway to try and hold government policies they dislike to ransom.
 
There is some sense to it. It is like a paper boy sticking with the job till they are 65 and expecting it to pay them more as their costs increase.

Most non-differentiating service roles shouldn't be seen as long-term careers, IMHO. Automate, automate, automate - and put those brain powers to things that matter (or fund them for artistic endeavours aka UBI).
 
thenewoc said:
IR35 has everything to do with it if you get businesses sourcing skilled individuals domestically rather than trying to import them. Much more likely to be spending in the local economy then sending funds back to some other country.
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All they announced was moving the burden or within/without declaration from the employer to "the contractor". If you "do it wrong" you will still get the wrath of HMRC.

So to be fair the Indemnity Insurance business is going to boom, how is that going to increase cash for true non IR35 service companies? What's the population?

Finally I hate to break it to you but it's now government policy to "import them".

I know this sounds like I'm being argumentative but I'm not - I genuinely don't understand your position.
 
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