A freeze actually impacts the lowest earners the most. The folk further up can afford accountants to reduce the tax liability through various loopholes and deductions that aren’t available to Kath who works down the big Tesco for 9€ an hr.

 

The absolute majority of people don’t pay the top Rate of tax. If you want to do a raid on income tax then a one off wealth tax or playing with the upper most bands and rates will do that. A billionaire pushing a stealth tax increase on minimum wages workers is class warfare and tory shithousery 101

 

Exactly this!

 

They should tax people who own more than one home/assett!

Exactly this!

 

They should tax people who own more than one home/assett!

 

They already do, to an extent. If you're buying a second+ house, then you begin to pay stamp duty at 3% on the entire amount of the house, rather than just on amounts above £125k (outside the current stamp duty holiday). I'm still surprised that it was George Osborne of all people that brought that in.

Actually he was arguing for 26% but 25% is a start.

 

Also:

 

@1367100976398819329

 

*.*

 

You love to see it !

 

@1367258065138036739

 

The mixed emotions watching this...

 

*.*

Edited March 4, 20214 yr by blacksquare

Ah, what I wouldn't give to have McDonnell back in the shadow cabinet, I expect he himself recognises he should take a break but this round of interviews around the budget is a great reminder that he's got more talent in arguing Labour's case than nearly any other Labour MP. He's right about setting out a vision, there's no vision in the current incarnation of Labour for their alternative to the Conservatives.

@595112367358406656

 

£ to $ rate when ^^that^^ tweet was sent (May 2015): $1.51

£ to $ rate at close tonight: $1.08 (down by over 3.7% in a day)

 

That's nearly a 30% devaluation. Or to put it another way, in 7 years it has become ~30% more expensive to import goods. It is also the second biggest daily fall on record (since 1971) only narrowly behind 16 September 1992 - BLACK WEDNESDAY - which saw the Conservatives lose their fiscal credibility (did they ever have any?)

 

It's not just that though, interest rates on the government borrowing spiked by .5% and it's very likely to see inflation (on imports) surge even further and interest rate rises follow, probably resulting in a housing crisis like the late 1980s and a protracted recession.

@1574329155138818051

 

This is horrific — a housing market crash seems inevitable at this point.

The US have weaponised the dollar- only way we can react is by upping interest rates which sucks. Affects me on multiple levels, but has to be done and the BOE probably have to go at the same rate as the US. The horrible thing about this is all those twats who have bet against the pound and caused this to happen.

It’s not just the fault of the US though as evidenced by the Pound even falling vs the f***ing rubble. The markets are thoroughly unconvinced by the economic credentials of the new gov and rightly so. It’s like handing over the reigns to toddlers. This new regime is incompetent and unfit for office

And the Bank of England are due to make a statement - persumably interest hikes. Black Wednesday part 2 anyone? The Tories don't care - the ultra rich will get richer and price rises will be for the rest of us galore (especially for overseas travel).

 

Still there 'GETTING ON WITH THE JOB', 'BUILD BACK BETTER' and 'GETTING THE BIG CALLS RIGHT' aren't they?

It’s not just the fault of the US though as evidenced by the Pound even falling vs the f***ing rubble. The markets are thoroughly unconvinced by the economic credentials of the new gov and rightly so. It’s like handing over the reigns to toddlers. This new regime is incompetent and unfit for office

 

No it’s not just the fault of the US, the markets have no faith in our economic policy (as nor do most people who don’t work in finance!). But with the US raising interest rates, both the U.K. and the EU have to go at the same level/ pace otherwise we fall behind even further. Compounded to like you say, a terrible economic policy that favours hedge funds and the 1%. I just don’t get the policy full stop, can’t be too long until some Sunak loyalists start turning on Truss.

I understand that the US is effectively sinking half the global economy to shore up their own but why pick now to start thinking of the collective over the short term gains for themselves. The ECB and BoE are absolutely f***ed. They both face a tough choice between rising rates to see off the flight of capital to the USD but balancing that with the fact that a sharp rate hike will absolutely rank the economy. It’ll be USA 2008 levels of mortgage defaults and foreclosures in the UK if the rates do hit 6%.

 

 

we’re staring down the barrel of recession but have full employment. Really weird time to be in economically right now. We have to cool off inflation but it would be super if the Americans could stop trying to f*** us all in the process.

I wouldn't put a huge amount of confidence in the market expectations of the Bank of England as they have been consistently below market expectations in their rate rises so far. But I can see rates going to 4-5% sometime next year with how everything is working out. Inflation is going to be higher for longer, in no part thanks to the recent government econonmic policies. What's worse is there may be further large tax cuts to come from Truss' government in the future.

 

It does look like the housing market is going to see price decreases - how far down they go I'm not too sure. ~2 million households will be remorgating next year and will be hit by much higher rates.

Edited September 26, 20222 yr by Envoirment

I wouldn't put a huge amount of confidence in the market expectations of the Bank of England as they have been consistently below market expectations in their rate rises so far. But I can see rates going to 4-5% sometime next year with how everything is working out. Inflation is going to be higher for longer, in no part thanks to the recent government econonmic policies. What's worse is there may be further large tax cuts to come from Truss' government in the future.

 

It does look like the housing market is going to see price decreases - how far down they go I'm not too sure. ~2 million households will be remorgating next year and will be hit by much higher rates.

 

The housing market always go through peaks and troughs, but the problem is is interest rates get to 6%, not many people are going to be able to afford their current mortgage and nobody will be able to get a mortgage. Agree with Silas that the US have tanked up the dollar and we have to rise interest rates.. but it sucks as if interest rates do go to 6% my mortgage will double the monthly payments pretty much. It's in no-one's interest for the housing market to collapse -so I'm sure there will be some government intervention somewhere.

 

My biggest issue is we are in a recession and the Government feel afraid to say it.

@595112367358406656

 

£ to $ rate when ^^that^^ tweet was sent (May 2015): $1.51

£ to $ rate at close tonight: $1.08 (down by over 3.7% in a day)

 

That's nearly a 30% devaluation. Or to put it another way, in 7 years it has become ~30% more expensive to import goods. It is also the second biggest daily fall on record (since 1971) only narrowly behind 16 September 1992 - BLACK WEDNESDAY - which saw the Conservatives lose their fiscal credibility (did they ever have any?)

 

It's not just that though, interest rates on the government borrowing spiked by .5% and it's very likely to see inflation (on imports) surge even further and interest rate rises follow, probably resulting in a housing crisis like the late 1980s and a protracted recession.

 

Don’t blame me I voted for chaos with Ed Milliband!

Is it a good time to sell your house and get a fixed rate before next year then?

Is it a good time to sell your house and get a fixed rate before next year then?

 

Not a clue, all a bit of the unknown. I think interest rates will go higher still, but 6% ? Seems unlikely as the economy will completely tank and suspect the BoE recognises this. Would say if your mortgage product is coming up to ending, then it's a good time to get a 2-5 year fix. But it's all a bit of a guessing game. Think lenders are only offering products for a set amount of time and obviously the criteria for lending will be even stricter shortly. If you can fix now I'd take it!

Ours ends next October so a new fixed rate will be better now than next year and the prices are high now still so we are getting a 25k profit on our place compared to when we purchased it in 2016 which we can use for a new gaff which will be bigger and has a garage etc and nearer to family. So makes sense so far!

Ours ends next October so a new fixed rate will be better now than next year and the prices are high now still so we are getting a 25k profit on our place compared to when we purchased it in 2016 which we can use for a new gaff which will be bigger and has a garage etc and nearer to family. So makes sense so far!

 

Problem is if the market crashes then the equity could be wiped out for a few years. If you sell and move on then it’s ok, but if you were just going to get a new deal for the current properly it’s probably not worth it to lock in at 3.5-4% now if you’re on a good deal if you work out exit fees etc. My fix ends Dec 23, I am debating overpaying from the start of next year in anticipation of a nasty surprise :lol: what we really need is Putin to end his tyrade!

I’m in the process of applying for a mortgage. Fortunately, the bank have agreed to lock my rate in from July but the current situation is very worrying indeed. Interest rates are deffo going to increase much higher and inflation will remain high for several months. I have absolutely no confidence in the Tory government to manage this. They just haven’t a clue and will most likely make things worse if they continue with their current policies of tax cuts. Labour are 17 points ahead in a recent opinion poll. Bring on a general election is all I can say!

Lucky because some banks have started to withdraw their products for new customers over the market instability giving them zero clarity over what rate they can borrow at to then pass on. Halifax, Skipton and Virgin all pausing.

 

 

I have friends and family who are either renewing soon or first time buyers and this is just adding so much pressure. Friends who can’t afford an exit fee are now staring at massive rate rises that is gonna hurt them financially.

 

 

Sadly I think it’s going to be a rocky road to the next GE with Truss intent on absolutely destroying the economy and the Sterling. This was always going to be a f***ing stupid plan but to see this and to still go for *more* tax reductions is not just economic illiteracy, it’s wilful economic terrorism. Trickle down economics does not, Cannot, and will not work. Not now, not ever. Like all(almost) economic theories it relies far too heavily on a “perfect” world that simply just doesn’t exist in reality. Spend 45 seconds with a rich person and you can see how this theory just disintegrates before your eyes. It serves to make the rich richer and nothing else. If you want growth you need to trickle up but that involves funding the least wealthy which the Tories will never ever do because they are ideologically opposed to giving poor people a chance to have a good or even ok life. Their riches are built off the backs of the exploitation of the lessor off and so it will remain for as long as gullible morons continue to do as their told by the mail etc