1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

UK Government Performance 2019-2024

Discussion in 'Speaker's Corner' started by Dirk Diggler, 13 Dec 2019.

  1. chrcoluk

    Sgarrista

    Joined: 27 Feb 2015

    Posts: 8,400

    The question is, is it spending on luxury goods fuelling inflation, or on essentials?

    Inflation is on food, energy, rent (as always) and fuel. Bumping interest rates would seem to just impose extra misery with little results.

    We have the government proposing higher wages which contributes to inflation, no solution offered to those who cant work, and the only thing staving off complete chaos albeit temporarily a energy price cap.

    This seems to be the end game of corporate greed kicking in, the supply issues are down to lack of investment in capacity and supply chains, its more profitable to run a tight ship in the sense you want your business running as close to 100% capacity as possible.
    Energy crisis due to acting too late to our reliance on imports.
    Also inflation due to Brexit.

    If suppliers have rising costs, not sure how a interest rate hike solves that problem.

    I think short term government has to subsidise energy, whether thats a flat out bailout or taking a stake in energy companies I dont know, I would prefer the latter, as the former is gifting to private shareholders. Its worth noting the wholesale price is currently dropping rapidly.
    I think green levies need to be suspended, people been able to afford their monthly bills and eat proper meals at the same time is 24/7/365 more important than green initiatives. Especially when consumers have no direct control, even when using an ernegy supplier who claims to only use green energy, the levies are paid. Dont know how people can sleep at night thinking otherwise.
    I think either the winter fuel allowance needs a big buff, or VAT on energy needs to be excluded for anyone on a means tested benefit. Cover the gap either with a higher rate income tax buff, or a inheritance tax buff.
    Government should buy back power stations companies dont want to turn back on because they deem it unprofitable, and then turn them on.
    Universal credit needs the £20 reinstated and made permanent. Even some tory MPs support this.
    Consider a social tariff for energy, subsidised either by taxation or those not on social tariff, I prefer the former.
    HS2 suspended due to reason of national crisis, reviewed at later date. Saved costs can contribute to above.
     
  2. chrcoluk

    Sgarrista

    Joined: 27 Feb 2015

    Posts: 8,400

    What more can you take away from people who have nothing? Your other options as you stated are more preferable, unless we have a capped social tariff, and then let normal tariffs run rampant like you want.
     
  3. 413x

    Capodecina

    Joined: 13 Jan 2010

    Posts: 23,482

    Location: Llaneirwg

    I agree with you. It isn't fair to lump this on the poor.
    But I don't see a way out either.There's only so much you can tax rich people before there's nothing left to claw back.
    We aren't at that point yet but it's heading that way.

    I still think we are heading for a sharp implosion at some point where we just continue as we are until we basically run out of finance by kicking the can down the road. Which is by far the optimal strategy for politicians who are mostly older appealing to the same demographic.

    We keep being told..this is temporary, things will get better to everything. We will pay this back when the good times roll. Still waiting for these good times.

    Or we do it gradually and just degrade slowly over time. It's hard to avoid more people suffering on either of these tracks. This isn't a vote winner.


    Is there even a way out? Because so far we are just going down the "as you were, this will blow over soon"
     
  4. Murphy

    Sgarrista

    Joined: 16 Sep 2018

    Posts: 7,636

    For the UK yes, while there's currently a large upswing in global demand that's not being matched by supply due to economies returning to full productivity that's caused increased prices the UK is compounding that with the increased costs of erecting barriers to trade with its largest trading partner.

    Much like NI has seen energy prices rise by roughly 20% but the GB has seen them rise by more than 50%.
    Not little result, just not obviously noticeable. Increasing interest rates temporarily removes money from the economy and increases the value of a currency, it makes the pound in your pocket more valuable because there's less of it to go around whereas inflation makes it less valuable because you need more for it to worth the same amount as it was yesterday, effectively interest rates slow the devaluation caused by inflation.
     
    Last edited: 11 Oct 2021
  5. chrcoluk

    Sgarrista

    Joined: 27 Feb 2015

    Posts: 8,400

    For energy the current momentum is sharp downwards in cost, and thats with the English channel link not yet repaired. Its unlikely to get back to where it was in spring/summer, but I think will at least be at a tolerable price point.

    All the other issues I think there isnt quick fixes, they the result of long term social/economic problems.

    Sometimes decisions have to be made without thinking about what wins votes, its that line of thinking that has contributed to this mess.

    Voters always want tax cuts on themselves, tax rises on everyone else, cheaper cost of living for themselves, paid for by others, ultimately it leads to decisions that are short termist and with long term pain.

    I had my sister moaning not long ago about her NI increasing to pay for social care.
     
  6. PlacidCasual

    Soldato

    Joined: 13 May 2003

    Posts: 7,467

    I don't believe this is correct unless you are looking at a narrow window. The artificial low created by the pandemic has ended in spectacular fashion and international and national trends are almost certainly pointing to long term increases in costs. The volatility in renewable availability alone is going to introduce some increased cost because of the increased breakdown rate of back up generation and the ever dwindling pool of reliable generation. Those spare megawatts and therms are going to get fewer and more expensive and whilst we can look to offshore some of that risk through pipelines and interconnectors the trends driving it are being repeated across all of Europe.
     
  7. 413x

    Capodecina

    Joined: 13 Jan 2010

    Posts: 23,482

    Location: Llaneirwg

    I also don't think this is the case. At the moment things have settled just above 200p a therm. The very sharp spike is shaved off. But the doesn't appear to be any respite anytime in the next few months.
     
  8. StriderX

    Caporegime

    Joined: 18 Mar 2008

    Posts: 28,352

    I think we can also expect our Russian comrades to exploit the gas supply to maximise the damage either through risk of public agitation at the government or the government bending over backwards for the Kremlin on matters the public isn't privy to.
     
  9. Murphy

    Sgarrista

    Joined: 16 Sep 2018

    Posts: 7,636

    We get something like 1% of our gas from Russia so whatever actions they take wouldn't be directly targeted at us.

    They already did their thing to the UK back in 2016.
     
  10. NickK

    Capodecina

    Joined: 13 Jan 2003

    Posts: 19,467

    50%+ of the UK is owned by <1% of the population. https://www.theguardian.com/money/2019/apr/17/who-owns-england-thousand-secret-landowners-author

    It's interesting that the rich in Germany will make the point that none of the forced wealth styles of government have ever come to anything good for it's nations. You could also point out that having a rich dictatorship (pick russia, Iraq in the Saddam era etc) are precisely the same.

    In reality a fully capitalist country, the individual would be paying for their own security, legal, along with food importing etc. However as that's not viable - the rich have to rely on the country.. both in manpower and money as a tax. That manpower needs taxes paid to provide the framework of services they consume. Unfortunately having a successful business does not provide all the manpower required for those services. Thus the successful business owner needs to make money through their company manpower to pay for the services they require.
    This possibly the basis of the low tax on the rich - proportionately they have larger incomes, part of the salaries of the business workers then becomes the taxation for national services (military etc) but they (the rich) themselves don't consume much in the way of services thus proportionately the tax is lower.

    What is damaging is the over taxation of those attempting to build a business and build additional income into the country. Multiply that by the stupidity of the government putting barriers in the way of the UK business in terms of tax and Brexit.
     
  11. PlacidCasual

    Soldato

    Joined: 13 May 2003

    Posts: 7,467

    But we and they are connected to the European gas grid so their moduation of supply into the network has an impact on prices everywhere
     
  12. Murphy

    Sgarrista

    Joined: 16 Sep 2018

    Posts: 7,636

    So whatever actions they take wouldn't be directly targeted at us.
     
  13. do_ron_ron

    Capodecina

    Joined: 23 Oct 2002

    Posts: 10,825

  14. Alice In Wonderland

    Gangster

    Joined: 18 Nov 2019

    Posts: 403

    But for some reason people still seem to love him! :confused:

    Although maybe support is waning slightly
     
  15. doodah

    Capodecina

    Joined: 18 Oct 2002

    Posts: 24,723

    Location: London

    If the straw does brake the camel's back - you know it will be over something much less significant like no pigs in blankets for Christmas. 10s of thousands of preventable deaths - pass. And they're already wheeling out the 'we don't recognise' these findings excuse.
     
  16. do_ron_ron

    Capodecina

    Joined: 23 Oct 2002

    Posts: 10,825

    They have been groomed by the Tory tabloids for years. Writing fake news about any opposition and cheering their own party. This is the greatest threat to democracy in the UK.
     
  17. 413x

    Capodecina

    Joined: 13 Jan 2010

    Posts: 23,482

    Location: Llaneirwg

    If gas prices like this are here to stay how are the government going to deal with cutting the support for bailing out these industries?

    BBC News - PM expected to back loans for gas price-hit firms https://www.bbc.co.uk/news/business-58879101
     
  18. doodah

    Capodecina

    Joined: 18 Oct 2002

    Posts: 24,723

    Location: London

    Rishi going to be on board with this?

    Edit - latest racism row within the Tories, James Gray (MP) wrongly mixing up Javid and Zahawi when introducing one to the stage at an event. An eye witness says, after been told of the error, he said "they all look the same to me". He denies this, lets see if he's cornered himself and any more eye witnesses come forward.
     
    Last edited: 12 Oct 2021
  19. Ali195

    Wise Guy

    Joined: 30 Sep 2008

    Posts: 1,288

    Nothing will come of it. I always saw racism as being a problem for the Cons but nothing stuck, news papers, Joe Public don't appear to care. It comes across as a sort of causal racism from decades past that it now no longer acceptable in public let alone a national party.

    You compare that with Labour in the news you'd think they were actual Natzis, endless articles, day after after. I'm not trying to say there wasn't a problem but to this day it feels like this country is far less forgiving when it comes to antisemitism compared with racism directed to black, asian people.
     
  20. Buckster

    Sgarrista

    Joined: 20 Aug 2006

    Posts: 9,236

    Holiday and report release date convenient timing ?