Mini-Budget response | Institute for Fiscal Studies
The Chancellor announced the biggest package of tax cuts in 50 years without even a semblance of an effort to make the public finance numbers add up.
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2022 mini-budget discussion
- Thread starter Harlequin
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I'm no expert but i assume it's because the market think the money they've invested in stocks & shares will lose value over time, that the now higher inflationary pressure will mean each £ will be worth less tomorrow than today.
The reasons for inflation have been done to death in the COL thread in SC but essentially these tax cuts won't decrease the supply of money as quickly and the BoE is playing catchup, that like before we've got the government and BoE pulling in opposite directions only they've switched places now.
Soldato
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The sums don't add up, which is why they laughably refused to call it a budget as that would have required actual scrutiny.
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They must have expected this though they must consider that rates rising is a price that has to be paid and is all part of the plan.
All part of the plan
Is doubling the cost of borrowing in the space of a few weeks all part of the plan too?
the pound is going to get smashed on Monday. Kami Kasi will be on the phone to the IMF by Friday asking for a bailout.
All part of the plan
Is doubling the cost of borrowing in the space of a few weeks all part of the plan too?
it would be ok if they doubled the cost of borrowing to invest heavily in infrastructure programmes. But borrowing just so their toff mates and donors can get massive tax cuts is an act of luncay, and the markets response shows that.
Soldato
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Every self employed person I know has an accountant who helps them lower their tax liability. That is a far larger % of the workforce than you might imagine, not everyone is on PAYE.
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And the IR35 changes are being reversed....
Oh it's not just the fantastic amount they are borrowing that's the problem. It's the fact that investors now see UK government bonds as more risky due to this feckless PM, so the interest rates on the borrowing have doubled in the past few weeks, and continue to rise.
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Deleted User 298457
Tbf it was a poor bit of leg. The government didn't even understand it.
All part of the plan
Is doubling the cost of borrowing in the space of a few weeks all part of the plan too?
It is part of the plan if your hedge fund is profiting from sterling falling.
Soldato
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Which brings me joy!
Pretty much tells you everything, despite being second best the markets still got worried. Imagine how much worse it would've been if we didn't have a relatively good debt to GDP percentage.
Soldato
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Because it’s completely insane and will damage the country economically for years.
You absolutely do not need a degree in economics to understand how brain dead this is.
They’re actively working against the BoE right now, and I think that’s very deliberate.
It’s not some kind of political difference of opinion, they know exactly what they’re doing and it will hurt all of us in the long run.
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Indeed. This is pure insider trading, Tory insiders have shorted the pound. Naked corruption at the expense of the country, treason. Death penalty imo.
They will then sell off vital British infrastructure cheap to foreign powers, and the Tory MP’s that allowed it will flee after taking their bribes via the revolving door.
When a serious elect party eventually picks up the pieces, those that have done this will be hunted across the globe.
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