Friday 23 September 2022

That Mini-budget: NOT in Full

 ... for which, we await CU who will hopefully be along later.

Being a total non-economist, all I can say is this: whether good, bad or empty, it's being done in the right way - crash bang wallop, within days of taking office.  Exactly the same as Kwarteng's dismissal of Tom Scholar - I've no idea whether it was a good or crazy thing to do: but I am sure it was right to do it on Day 1.

Oh: and I very much hope it's all, hmmm,  extremely well-considered and adroit policy-making.

So - while we wait ... have at it!

ND

11 comments:

Anonymous said...

Barber Mk II ?

This could be a first in that the left hate it, and the markets hate it.

Anonymous said...

It was the Kwarteng Nuclear Announcement!

Still, I'm looking forward to decent interest rate rises and mortgage rates at 7% plus. He can't do much more to stimulate house prices, short of printing money for first time buyers. Wouldn't put that past him, otherwise the toolbox is empty.

I suppose he could abolish all planning rules - I should be able to get 4 houses in the garden without spoiling the view too much.

andrew said...

I see a little bit of blue iceberg popping up.
"Light touch regulation... simplified planning ... in 12 special areas"

quietly saying goodbye to the green belt in some areas, building new industrial units creating jobs... fracking ...

Basically everyone will have something to really hate

Which is innovative and good luck to her and her neocon hedgie backers

Anonymous said...

Well, it's certainly gone down like a cup of cold sick. The trouble with Singapore On Thames is the UK's average IQ is not 105 (indeed its falling as the brightest women have the fewest babies), we are not Chinese (that has its good points but bad points too) and we're not used to a very conservative and authoritarian style of government.

Vandalism here gets you a social worker, not the cane.

I knew this would be bad, but even I didn't think this bad. Tory Prime Ministers are coming at us faster and faster, like the radiation emitted from a star circling a black hole. Are there odds on her surviving the year?

Don Cox said...

What do you think is bad about this mini-budget ? Not enough tax increases ?

I would have liked to see the green levy on fuel bills removed. But maybe the King would strongly advise against that.

Don Cox

DJK said...

As far as I can make out from what the Chief Secretary to the Treasury said on R4 just now, the plan for growth is to get rich people to move to the UK, attracted by the low rate of tax. So a boost for the wealthy, then rely on trickle-down. Hmmm.

He also said (and it wasn't picked up) "we've only been in office for two weeks". Try twelve years.

Anonymous said...

Ben Franklin said American prosperity and greatness was a product of cheap land and expensive labour.

Since 1979 expensive land and cheap labour has been the British way.

Makes me wonder how on earth Iceland can be so successful, with their high income tax rates.

Why does Kwarteng want to "encourage employers to come to the UK"? Doesn't he know we have a cheap labour shortage?

"Richard Fuller, a Treasury minister, raised eyebrows by arguing that
the chancellor’s tax cuts would encourage young people in their 20s
earning around £26,000 a year not to go down a “plodding path” in
their career but to go into business. He told LBC said it was about “risk and motivation” and those in their mid 20s should think about being more successful and keeping more of their money, as well as “taking that risk and not doing the plodding normal thing”. Asked what plodding looks like, he said it was about not “being idle with your cash” and looking for a good return. He said the growth plan was about helping people think about “doing something with your life”."



FFS! Most people in their mid-20s have huge student loans, high rents and not a lot of spare cash. As I keep trying to tell 'er indoors, it's not 1976 any more, or even 1986.

E-K said...

"I knew this would be bad, but even I didn't think this bad. Tory Prime Ministers are coming at us faster and faster, like the radiation emitted from a star circling a black hole. Are there odds on her surviving the year?"

LOL

Instinctively tax cuts are right. There is certainly scope to cut the taxes that have piggy-backed on inflation without harming the public sector but there are many sections of the public sector that NEED harming.

Let's see if Truss does so.

She has 20 months of boarded up, cold and bleak Britain (without her Queen) to convince us utterly that she is a Thatcher and that the boat is turning.

NEVER has there been an iconic Britain without chip shops, pubs or our Queen.

In fighting a man who wants to reinstate Communism in Europe (allegedly) there is every likelihood that we ourselves will turn to Communism. Especially if the Government is allowed to digitilise our money and our ID and form filling. 'Cancelling' and CCTV surveillance becomes the ultimate 1984 nightmare of state control.

formertory said...

Paraphrasing Senator Dirksen of many moons ago: "A hundred billion here, a hundred billion there, pretty soon you're talking real money".

I would love to hear a policy announcement cancelling HS2 which should find them one of those hundred billions PDQ. Then when it's cancelled, burn it, dig it with salt, and lose it in a deep hole.

Unfortunately, I suspect that the Civil Service's negotiation skills managed to deliver a contract with punitive conditions if Govt cancels. Can't have cronies taking business risk.

Nick Drew said...

Formertory - I suspect that the Civil Service's negotiation skills managed to deliver a contract with punitive conditions if Govt cancels. Can't have cronies taking business risk

Yup, I'll bet so, too. Pioneered by EDF with the Hinkley Point C contract, and enshrined by making the latest 'green' subsidies contracts (CfDs) rather than hand-outs. The lawyers have got this one off pat, now

formertory said...

It did cross my mind that a likely target for the value of punitive conditions might be a figure not unadjacent to £100 billion.... and no digging necessary to earn it!