Inflation Increases By 35% - Minister...
News3 mins ago
The pound sank and traders dump UK bonds.
And this is the budget the economically illiterate on here were praising.
Yes, its the DM as its a free link. Information is in other sources too before the usual start.
No best answer has yet been selected by youngmafbog. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.Yup. The 10-year gilt yield is now touching 4.5% - higher than it was following the “catastrophic” Truss Budget announcement. The only difference between 2022 and now is that inflation was a lot higher then. The difference between the two budgets is that the Truss version was largely a “finger in the air” but with incentives which may have seen considerable growth in the wealth creating sector. This latest version is what is laughingly described as “fully funded”, but that funding comes from a huge hike in taxes on employment and an enormous sum in additional borrowing. The probable effects of that on the wealth creating sector are now being properly considered by the money markets. Unfortunately that consideration was not made before Ms Reeves got to her feet two days ago (or it was, nobody particularly cared).
Asked by Sky News if it would impact workers, Mr Jones [the Chief Secretary to the Treasury, who I glimpsed on “Question Time” last night, behaving like an eleven year old at a birthday party] said: “Yes, but the question in the manifesto, the promise in the manifesto, was not to increase the rate of tax that employees pay in their payslip.
It says that we make a promise to working people, that’s people who go to work and get a payslip, that we will not increase income tax or national insurance.
So that’s alright then. Rather like promising somebody that you won’t cave their skull in with a lump hammer, but go on to slash their throat with a carving knife. At least you kept your promise.
What a bunch of bloody charlatans.
I'm not sure what point you are trying to make, canary. People seem to forget the Truss budget proposals were never implemented, so any market reaction was only temporary and should have been reversed back to underlying levels prety quickly. This budget, unlike the Truss one, will be passed by the HOC and the financial markets have made their judgement. The only similarity is that both Truss and Reeves spooked the markets.
Sorry, we can't find any related questions. Try using the search bar at the top of the page to search for some keywords, or choose a topic and submit your own question.