2022 mini-budget discussion

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Where previously the UK had one very big issue -- uncontrolled inflation -- we now have the fiscal measures announced today adding fuel to fire. So now we have gone from having a nation with an inflation problem to one where investors also face a crisis of confidence. Little wonder that five-year inflation breakevens have shot up almost 25 basis points on the day. That increase is underpinning the surge in nominal yields while putting the pound under pressure. Already, real yield differentials have moved in favor of the dollar in recent months, and this inflationary impulse will mean that sterling’s travails will worsen.

The Bank of England’s best hope will be that the markets digest and adjust to its upwardly revised gilts issuance plan for fiscal 2022-23 of £193.9 billion and move on. In other words, it will be hoping that the shift higher in yields is swift and short-lived. But if inflationary fears -- already running rife -- get out of hand, well, the UK will have a massive problem on its hands with both yields surging and the currency tumbling. None of this may end well for the UK.
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dowie said:
Well, to be fair it's a good job we don't have Corbyn, but that's another topic.
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I mean, our country is failing, and there’s sewage in our waters, Corbyn would have had us economically prosperous and prevented the poo being in our rivers, so I dont see how it’s a good job?

www.cnbc.com

British pound plunges, bonds sink after government announces tax cuts

The embattled British pound fell more than 2% against the dollar, after the new U.K. government announced a radical economic plan in a bid to boost growth.
www.cnbc.com www.cnbc.com
 
Freakbro said:
I know you have a tenuous grasp on reality at the best of times, but a little reminder that it was purely the Conservative party that hounded him out of office :D
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...to enable todays budget.. but don't forget they were facilitated by the lefty frothing over jugs of orange juice, which just seems so absurd now.. lol
 
Tom_ed1987 said:
On the one hand it's nice that a Conservative government is offering tax cuts.
On the other I think removing the top rate of tax is a mistake, and it would have made for more sense to use that budget to do something about the higher rate band - perhaps increasing the point from when it's paid, so more of the middle earners benefit (along with the big earners).
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This. There were rumours that they were going to increased where 40% started to £80k which would have made more sense than scrapping the 45% band.
 
Very Tory announcements but yet again they can't read a room can they :D

Just for comfort everyone, remember we knew it was going to be a show when Truss came in this is what it was always going to be. She even promised it in advance to get the top job.

However the transition from a bunch of incompetents lead by a lying other reality dweller to another bunch of incompetents lead by a "delivery focused" other reality dweller was never going to be pleasant.

These are the jokers that thought leaving the EU was worth a punt remember.
 
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Uther said:
It was the Cons who kicked him out. Or are you saying all those Con MP's are secret lefty infiltrators?
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Only because the left had no power to do so… if it wasn’t for party gate Boris would still be in no 10 and you know it.

All those weeks when Starmer begged him to quit lol… be careful what you wish for..
 
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