Autumn Budget 2022

dave1983 said:
it's not just middle class it's also lower paid earners, we're paying more fuel particularly diesel to get to work. Food prices have risen massively therefore people people who are on a lower living wage will find it hard to cope to eat (middle class now see the pinch). Energy prices that affect families and no matter what you do for example turning off all the lights ect.. you see the standing charge shaft us.

But yet people who don't work get luxury hand outs, i'm not talking people who CANT work this is aimed at people who cannot be bothered to work because the system is so rubbish. I believe people who cannot be bothered to work should prove they are actually applying for jobs or have their UC cut as this money should be given to people who really need it. I feel for so many on a lower living wage who work 60 hours and have a family but have to sacrifice to feed their kids. It's times like this i appreciate what we have and how we all sometimes take life for granted.
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They pretty much do. You're meant to fill in a journal online saying which jobs you've applied to. You're asked to upload multiple CVs online. Then you get quized every 2 weeks about what you've been upto. Asking for more evidence than this would be difficult. You also have to bare in mind the ability of some of the applicants. You'll have illiterate applicants from deprived backrounds, disorganised applicants, applicants who aren't that capable, hence they can't get a job. So asking them to provide more evidence may simply be beyond them even if they are applying for jobs. And obviously some of those will struggle with the current evidences they asked to do.

Also mate £300 a month living expenses and your rent paid in a 1 bed bedsit in the worst part of town isn't very luxurious
 
Surveyor said:
I didn't lose any sleep but it does seem like a hole in your plan. Say a £270,000 mortgage on a £300,000 property, how much profit does a lender make compared to your 1-2% tax which would cost them £2,700-£5,400?
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They're charging 6% interest. So that much.
 
Given the cost of debt for banks is 3% it would cost the bank 4-5% of their equity to provide the capital. In other words a complete non starter.
 
SpeedFreak said:
Given the cost of debt for banks is 3% it would cost the bank 4-5% of their equity to provide the capital. In other words a complete non starter.
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When base rates was 0.1% banks were offering 0.79-0.99% mortgages with cashback offers, even that was profitable for them. But apparently now they're charging 6% but still can't make a profit if they had an extra 1% in their costs. Yeah, poor banks.
 
That's all well and good, but you're asking them to take on a risk of ownership without upside. If they were to do as you propose they would expect a share of gains when owners come to sell.
 
SpeedFreak said:
That's all well and good, but you're asking them to take on a risk of ownership without upside. If they were to do as you propose they would expect a share of gains when owners come to sell.
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Yes exactly. And it wouldn't be merely asking them, it would be forcing them via regulation. They would expect no such thing, they can only expect to get what we allow them to get.
 
SpeedFreak said:
I feel you're living in cloud cuckoo land, if you give them virtually no margin there will be virtually no lending.
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There's more than enough margin to cover this (and then some), as explained earlier. Keeping profit margins of the banks at super high levels may be your concern, it's not mine.
 
Bank margins are not high, they are at a level that ensures wide financial shocks can be managed. The industry seems to be averaging about 14% which is good, not high.

Take Nationwide, £0.8bn of profit with residential mortgages of £191bn which is indicative of their equity. Your proposed levy at even 1% gives them an operating loss of £1.1bn, so no, not affordable, you'd force them into an unsustainable operating model.
 
HACO said:
When base rates was 0.1% banks were offering 0.79-0.99% mortgages with cashback offers, even that was profitable for them. But apparently now they're charging 6% but still can't make a profit if they had an extra 1% in their costs. Yeah, poor banks.
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You should spend more time reading about this sort of thing as your assumptions are wrong.

SpeedFreak said:
Take Nationwide, £0.8bn of profit with residential mortgages of £191bn which is indicative of their equity. Your proposed levy at even 1% gives them an operating loss of £1.1bn, so no, not affordable, you'd force them into an unsustainable operating model.
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+
 
SpeedFreak said:
Bank margins are not high, they are at a level that ensures wide financial shocks can be managed. The industry seems to be averaging about 14% which is good, not high.

Take Nationwide, £0.8bn of profit with residential mortgages of £191bn which is indicative of their equity. Your proposed levy at even 1% gives them an operating loss of £1.1bn, so no, not affordable, you'd force them into an unsustainable operating model.
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Sounds like 2021 numbers, their numbers look very different this year (as is the case for all their competitors). They can absorb that ~1% charge, they'll just make less profit, that's all. And that's Nationwide, not a bank. Natwest are expecting to make £12bn in profits this year, they can have a £10bn profit :)
 
HACO said:
Sounds like 2021 numbers, their numbers look very different this year (as is the case for all their competitors). They can absorb that ~1% charge, they'll just make less profit, that's all. And that's Nationwide, not a bank. Natwest are expecting to make £12bn in profits this year, they can have a £10bn profit :)
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You're not inspiring confidence when you don't know the difference between income and profit.
 
SpeedFreak said:
Right, so only a £0.8bn loss on FY22 figures. Nationwide are relevant as they are proportionally a huge lender in residential property.
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When other lenders are hugely profitable and can absorb the proposed cost, but just one isn't (according to you), the fault lies there.

Surveyor said:
You're not inspiring confidence when you don't know the difference between income and profit.
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Or perhaps you don't know...

NatWest Group Gross Profit 2010-2024 | NWG

NatWest Group annual/quarterly gross profit history and growth rate from 2010 to 2024. Gross profit can be defined as the profit a company makes after deducting the variable costs directly associated with making and selling its products or providing its services. <ul...
www.macrotrends.net www.macrotrends.net
 
HACO said:
Or perhaps you don't know...

NatWest Group Gross Profit 2010-2024 | NWG

NatWest Group annual/quarterly gross profit history and growth rate from 2010 to 2024. Gross profit can be defined as the profit a company makes after deducting the variable costs directly associated with making and selling its products or providing its services. <ul...
www.macrotrends.net www.macrotrends.net
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NatWest bank 9 months to 30 September 2022; total income £9.448bn, operating profit before tax £3.706bn

You seem to be including the whole NatWest group which includes Royal Bank of Scotland amongst others. On that basis I think your going to have to recalculate the cost of that 1-2%.
 
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