Liz Truss backs down on 45p tax rate cut in humiliating U-turn

[ajohn]

Good point, maybe it should only

i feel a better distribution would be more useful at the hard up end who live all over the country. The nation's surfs.

The markets though will see it as £5b debt that shouldn't be happening. Tax cuts when borrowing aren't on. Much like the IMF who will put repayment and getting out of the situation a a priority - essentially gov spending cuts or increased taxation. One way of doing that more fairly might be an increase in VAT say to 25% That might keep the IMF happy.

UK Gov VAT income
In 2021-22 VAT is forecast to raise £131.9 billion (this measure of VAT excludes refunds of VAT made to certain public sector organisations). That represents 15.3 per cent of all receipts and was equivalent to around £4,700 per household and 5.7 per cent of national income.

The real rich - I feel more into hedge funds etc and tax havens - eg Mogg.

 

[motorbiking]

Increasing VAT hits the poorest hardest.
At 25% VAT Tax fraud will go through the roof.
A lot of British industry would die.

Plus there are so many things you can't avoid buying that have VAT on them.

 

[wellyfish]

That might keep the IMF happy.

The IMF have zero input to or impact upon the UK govt or the UK economy.

 

[ajohn]

And she's still banging on about monetary policy ...

And yet more union bashing to come. The maintain some level of service is ok if fair. All offers must be submitted to members is something else.

There is also the risk of a general strike. It would be up to the TUC.

I have been a member of a union for technical people. The company, a large one at the time Lucas had no interest in negotiating with individuals. End result was pay scales in various grades. Things get agreed for all in a particular sector. These days companies can state increases at any level they like and they still apply to all.

 

[ajohn]

The IMF have zero input to or impact upon the UK govt or the UK economy.

LOL I was just pointing out that they have a similar attitude to the market. Also the thought of the UK finding it needs an IMF bailout if things go wrong concerns me.

However I forgot that you don't read all so will repeat part of the post. Enlarged in case you need glasses.
Much like the IMF

 

[ajohn]

Increasing VAT hits the poorest hardest.
At 25% VAT Tax fraud will go through the roof.
A lot of British industry would die.

Plus there are so many things you can't avoid buying that have VAT on them.

so currently it can't be done hence

Largely because people couldn't afford it however the theory is say a poor person doesn't by a car, a really rich one might buy a Mclaren. Part of the theory - the prices of what people buy depends on income.

If I remember correctly it started at 8% and no change to general taxation.

 

[wellyfish]

Also the thought of the UK finding it needs an IMF bailout if things go wrong concerns me.

Lol, that's a good one

 

[ajohn]

Latest talk has included what Sunak would have raised and questioning if gov support such as pensions will increase by as much as they should.

In other words gov cuts expected, just wondering where they will be.

Forgot - reporters seem to have finally realised that power costs even subsidised are increased. Sunak's relief it seems goes ahead this year?

 

[Vinty]

Given the reputation of Scotsmen as being careful with their money we might look to Scotland for the origin of 'scot free'. Wrong again, but at least we are in the right part of the world now. 'Skat' is a Scandinavian word for tax or payment and the word migrated to Britain and mutated into 'scot

Could have originated in Scotland.
White slavery existed in Scotland from 1606 until 1799.

 

[Pat ex]

White slavery existed in Scotland from 1606 until 1799.

What's the difference between a white slave and a black (or green, yellow, purple, blue, etc) slave?
Apart from the obvious difference in the colour of their skin.

 

[ajohn]

Latest rumbles concern next years general gov support. Truss wont come clean where as Penny says all will be raised by inflation levels - seems to be 9.9% for September.
Arguments amongst back benchers - and isn't Penny a cabinet member.

Truss - she just wants to talk about power subsidies what ever she is asked.

Sunak's way. Would gov loan rates be higher. I suspect not. Base rate increases - I suspect that would still be a possibility. Power subsidy - well he said it would be.

 

[gant]

Mr Busby of birchington Kent. Asks

"Has anyone got a photo of Liz Truss at Boris's party? Doesn't matter if it's blurred."

 

[ajohn]

It's reckoned that cuts in the support area will save then ~£11b by using wage increases rather than inflation. Probably relates mostly to working tax credit area or what ever they call it now. Even Duncan Smith is unhappy. Not clear from his comments about which and when inflation figures are mentioned - maybe because pundits reckon it will be higher next Apr.

The same area has a history of sub inflation increase other than once - wiped out by the previous lack.

Truss didn't do very well in a C4 interview that wanted to concentrate on the problems caused rather than subsidies. Bound to get sold now.

 

[JohnD]

Place your bets.

Liz Truss Exit Date Odds: Tory leader backed from 25/1 to 4/1 to leave in 2022​

https://www.oddschecker.com/insight/politics/20220929-liz-truss-exit-date-odds-tory-leader-backed-from-25-1-to-4-1-to-leave-in-2022

"In a controversial week for the Conservative party featuring the release of the 'mini-budget', new Prime Minister Liz Truss has seen her exit date odds for 2022 slashed.

How likely is Truss to leave in 2022?​

Last Tuesday, the odds for Liz Truss to leave office in 2022 sat at 66/1; amazingly, those odds are now as short as 4/1 (7/1 available).
Truss’ exit date to be 2022 is the most backed politics market on oddschecker in the past seven days, accounting for 25% of total politics bets."

 

[Vinty]

It isn't just Truss who's job is in danger, what about her Chancer in the Exchequer.
It appears i am not alone in finding him a bit odd.