Kwarteng making a big thing about the energy package handouts.
Basically what cost Sunak, who was in favour of the handouts, the election vs Truss who was against them.
They are a very weird party.
I think the assumption was definitely that Truss would cap energy in some way, though she refused to be drawn on how.
And then she went for something far more extravagent and unaffordable than Sunak was proposing. But the utter incoherence of signing what amounts to a blank cheque (since we have no real idea what the energy policy is going to cost since we don't know what the market price will be) and combining that with a range of tax cuts is so economically illiterate that all credibility has gone. The fact that he sought to blame the turmoil in the markets that inevitably ensued on a strong dollar and a weak BoE is merely the icing on the cake.
For a really clever guy he can be incredibly stupid.
The price of energy is a constant. If Sunak's proposal was cheaper for the taxpayer, it would have been more expensive for the consumer, and vice versa. Truss and her team have been clear that recession is more dangerous than inflation, and they have acted accordingly.
Not sure that that is absolutely true, the subsidy of gas will probably mean that we will consume more of it than we would otherwise have done.
But the idea that rapid increases in interest rates (because of the increased borrowing) is compatible with more rapid economic growth is just a fantasy. The direct consequence of our increased borrowing is more likely to be an interest rate induced recession.
I doubt that. The BOE are forecasting 2% inflation next year; I don't really think that calls for radical interest rate hikes.
Prices have risen by 9.9% compared to a year ago. That is well above our 2% target. We expect the rate of inflation to peak at 11% in October and then remain above 10% for a few months before starting to come down.
You can’t shout “growth growth growth” when people look around their high streets, and households, and after 12 years of conservatives and conclude nothing has been done.
They have a narrow 2 year window to somehow get monumental growth and for people to feel that on the ground. Instead they’ve tarnished their perception for economic competence and have nothing left
There is a reason why Sunak was proposing an income tax cut in April 2024 it ensured people would feel better off as the election came round.
Liz and Co by bringing that base rate income tax cut to 19% forward to 6/4/2023 ensures that any feel good factor will be lost well before a late 2024 election is called....
What feel good factor? That 1% will be erased many times over by the cumulative effects of high inflation and crap wage settlements alone, never mind the utter ruination soon to be visited upon many households by unmanageable increases in mortgage repayments.
Especially since the benefit from the 1% cut is cancelled out (and more, for most folks) by the effect of freezing tax allowances for years. It’s simply recycling some of the saving taken from everyone to those who pay more tax, who would be those who earn more.
Honestly, the best thing they could do is level the entire thing and start again. And get King Charles to pick the architects
This may be one upside of the impending nuclear war. Radical improvements to British urbanism
I don't have a problem with anything in that picture other than the Selfridges carbunkle. Most German Cities successfully mix the old with the post war austere.
It does look like a bombed German toilet. Like Düsseldorf or Cologne (minus the cathedral)
The modern towers are so pathetically STUMPY
At least crap American and Asian cities have properly tall skyscrapers. British towers are so apologetic and weedy. Outside London
Comments
Any more errors like that one Lucky, and wether you like it or not you may find yourself Trussed up in government next week. 🙂
Apolz.
Wrong thread. Wrong consonant.