mini budget

[Long slender neck]

Wish KK would wipe that bloody grin off his face.

[RedDwarf 1881]

The French wouldn’t put up with this shi t! It’s amazing how compliant us Brits are.

They 100% don't put up with this shi-t. Electricity is almost half the price per unit there compared with the UK.

Also I believe it’s because they are state owned . The folly of privatisation.

[E10EU]

Read an interesting comment elsewhere about the possible Truss & Kwarteng plan. It referenced Grover Norquist and his strategy of 'instead of unpopular spending cuts, slash taxes with deliberate intention of worsening the government's fiscal position. Spending cuts can then be presented as a necessity".

This has a ring of relevance to the current Truss/ Kwarteng plan as there has already been mention of them possibly having to reduce disability benefits and force pt workers to work more hours or else be penalised.

[Orient Punxx]

Totally transparent and will be revealed in their plan to calm the markets.

[Max B Gold]

Totally transparent and will be revealed in their plan to calm the markets.

Correct.

[Dunners]

Slightly off topic, but one or two major international investment banks are looking very unstable right now. If they go belly up the contagion could also hit us and add to our woes. And given how the 2020s are going so far, I'm not feeling optimistic.

[Story of O]

Tory mp’s have been told they will lose the whip if they vote against mini budget, so much for democracy

[E10EU]

Tory mp’s have been told they will lose the whip if they vote against mini budget, so much for democracy

Given that the Tories are possibly facing a wipeout at the next GE anyway, any Tory MP who loses the whip in showing their disapproval of Truss and her lunatic following could actually be earning themselves Brownie points with the electorate.

[Orient Punxx]

Would be good to see 100 odd Tories band together as a collective and join Labour in some form of Government of National unity. Where it would go from there no idea but someone has got to stop this demonic woman and her cabal.

[The Mindsweep]

S***show

Klusterfuk

[The Mindsweep]

[Adz]

Slightly off topic, but one or two major international investment banks are looking very unstable right now. If they go belly up the contagion could also hit us and add to our woes. And given how the 2020s are going so far, I'm not feeling optimistic.

Which ones? I haven't heard anything on the grapevine at my place

[Dunners]

Slightly off topic, but one or two major international investment banks are looking very unstable right now. If they go belly up the contagion could also hit us and add to our woes. And given how the 2020s are going so far, I'm not feeling optimistic.

Which ones? I haven't heard anything on the grapevine at my place

Not sure how credible, but Credit Suisse.

[Long slender neck]

How much money will the uturn save?

[RedDwarf 1881]

I thought I just heard the government is putting the higher rate of income tax back to 45 %

[Max Fowler]

How much money will the uturn save?

A couple of jobs.

[Story of O]

How much money will the uturn save?

Hopefully interest rates won’t go up so much now, so quite a bit for some people

[The Mindsweep]

How much money will the uturn save?

Hopefully interest rates won’t go up so much now, so quite a bit for some people

Only about 0.25% less, so around 5.50 to 5.75, the damage has been done. Markets like certainly and having a government making fundamental policy announcements and then changing its mind, creates theopposite. What the BOE does after its 2 week buying of Gilts will test it again. All of us, including now the top earners, are big losers and the fault is totally the government's one.

[Long slender neck]

Yes but how many billions of debt does it save the country?

[Max Fowler]

Do you mean how much income tax would have been lost by cutting tax from 45% to 40%?

[Long slender neck]

Yes

[Max Fowler]

Ok. I don't know.

They always say not very much, just like it doesn't cost very much to keep the Royals, but don't give any definitive figures. Then they say if you increase it, it actually costs us money because all the rich people go abroad and take their money with them and don't pay any tax here at all. Just like the Royals bring money in through tourism.

I think they might be lying.

[Dunners]

I think I heard something like £2billion which, while a lot of money, in the grand scheme of this "mini" budget isn't very much. However, the reduced cost of government borrowing also needs to be factored in.

But, as Mindsweep has pointed out, it no longer matters as the damage to UK reputation is done. This u-turn is a political decision as Tory MPs consider their futures.

[Long slender neck]

Found the answer

The IFS explains:

The government says that cutting the top rate from 45% to 40% will cost about £2 billion per year. If no-one increased their declared taxable income in response to the change, we estimate that it would cost about £6 billion per year: hence, the government is assuming that roughly two-thirds of the mechanical reduction in revenue is recouped due to behavioural responses. That looks like a plausible estimate, but the main thing to emphasise is the large uncertainty around it: it is not implausible that it will cost significantly more than £2 billion. It might plausibly cost nothing at all.

[Friend or fart]

Politics Today featured Greg Hands MP, whose role was to justify Ms Truss over the last 4 weeks. He attempted to do this; but with even a Daily Telegraph man giving him a mauling, by the end of the programme his body language looked like a naughty schoolboy who had been summoned to the Headmaster's office, for punishment. Almost felt sorry for him, but his constituents are the 2nd highest earners in the Country.