In recent years a lot of economic advice and analysis has got too complex and out of touch . As a result the Bank of England misread inflation and presided over a major surge in prices that set in before an unexpected and unwanted European war made it worse. The Office of Budget responsibility in the last two years was way out in its underestimates of tax revenue and far too pessimistic in claiming a need for tax rises to cut the deficit. Its models did not realise revenue can be strong when there is more growth. Throughout the West the authorities decided fast money growth did not matter, and Central Banks could keep interest rates at zero whilst buying up state debt in large quantities so governments could borrow plenty on the cheap.
Central Banks are now wanting to correct their past inflationary mistakes, and are turning instead to tough money policies, pushing up interest rates, reducing their holdings of state debt and taking cash out of markets that might otherwise drive up prices. The danger is they now overshoot too far the other way, leading some countries into longer and deeper slowdowns than are needed to curb price rises. The new PM does not want the Bank to go easy on inflation, though it would also be bad news if they grew too tough. It would help them get it right if they took the growth in money and credit seriously, and watched those figures alongside evidence of any change in behaviour about how quickly the money circulated. They have tightened money substantially as they needed to do and should now wait for the impact on inflation to come through.
The new government team should want the Bank in its required reports on why inflation is running above target to provide its latest analysis of why inflation is five times target and to report on what actions it is taking to amend its models to help it forecast inflation more accurately. It would be good to hear from them about what role they now recognise the large programmes of buying bonds played in the inflation. More importantly they need to consider carefully how much impact rolling back all those bonds will have, as it will cut liquidity and slow the economy. It will make borrowing more money by the government more difficult and more expensive. Some of that is necessary. Too much of that brings on recession and paradoxically increases the debt and deficit as a result.
The OBR forecast of ÂŁ99bn as I have argued before for this year’s deficit looks too low and needs to be adjusted. Without policy stimulus the economy will slow too much which will cut revenues and raise spending. With a policy stimulus which now seems likely some of the slowdown will be offset but there will be greater borrowing to cover the stimulus costs of helping people with their energy bills.
If the government decides on a large increase in state borrowing it will need the goodwill of the Bank and the markets to finance its needs. Raising the money from the long bond market is not inflationary. If rates go too high in the process that will impede growth. If Sterling falls too far that will import more inflation. There need to be sensible limits on public spending and borrowing.
September 7, 2022
High levels of Government borrowing irrespective of bond maturity length is evidence of either political failure, political cowardice or political evil. The more the Socialist State consumes the more powerful and destructive it becomes. Central banks are complicit in the construction of political structures that are now beyond reform and pose considerable dangers for the real economy and our freedoms
We need statutory and indeed cultural limitations on State spending and State borrowing. If this isn’t forthcoming then I am certain that at some point the State when in it finally centralises our financial life will simply take what it wants when it wants from our personal assets
September 7, 2022
They already do the combines UK taxation rates can easily take 90% of your assets off you over about 20 years. Without tax ÂŁ1m might perhaps grow to ÂŁ4 million in 20 years in real terms with the same return + taxation more likely to roughly stay the same in real terms (at best). They take 40% over just ÂŁ325K directly off you on death.
The appalling Sturgeon (in stopping rent increases and evictions is clearly directly thieving off off Scottish landlords. This damages tenants too and restricts/kills most new rental property supply. A pathetic attempt to buy votes with other people’s money the appalling Ed Miliband tried this too but was rejected by sensible UK voters.
September 7, 2022
If someone breaks into your property and starts to steal things then you can legally retaliate with force – but if the elected Nikola Sturgeon or Ed Miliband/Starmer does exactly the same think using legal chances what is the right response? Should it perhaps be legal to defend you property using similar force then?
September 7, 2022
‘If someone breaks into your property and starts to steal things’ – don’t waste your time calling the Police.
And if you should use violence you are likely to be locked up.
September 7, 2022
LL. I was about to mention Sturgeon and rent capping. She’s already punching above her weight. She’s taking control of personal assets. Just the start of the rot. I’m sure the 350000 private owners will be a tad peed off with her meddling.
September 7, 2022
âmeddlingâ it is surely just asset theft pure and simple in my view. Steal of property owners and then used as a bribe by her to try to buy herself votes. What a repulsive women she is. Does not even help tenants in the end as kills the supply of homes to rent.
September 7, 2022
Then using the ill-gotten loot to attempt “buy” the votes of tenants – totally immoral & should be just as illegal as other forms of theft and bribery are.
September 7, 2022
“Sensible UK voters” ? interesting that you can’t seem to say English.
September 7, 2022
Well not all were English and not all English voters are sensible.
September 7, 2022
I agree we need to restrict and legislate against government borrowing âŠ. government should only be allowed to spend against what they collect in revenue
September 7, 2022
And should only collect in revenue about 25% maximum of peoples incomes. Any more than about this decreases tax take, damages the economy and shrinks the tax base. The government should however only do the rather few things they can do better than people, businesses and charities can.
September 7, 2022
except maybe for large longterm capital projects?
September 8, 2022
but not Soviet/Nazi style Grands Projets!
September 8, 2022
Are you including or excluding HS2
September 7, 2022
Good Morning,
First the good news, Ms Truss has mostly Brexiteers in her cabinet, lets hope she does, Finally, Get Brexit Done.
The not so good news, we have an intellectual historian running the government’s cheque-book, and, guess what, an intellectual historian running the BoE. Now what could possibly go wrong? (Hint, did the former secretary of the BEIS ever DO anything constructive?)
Wish Ms Truss every success, I hope she’s at least half as dynamic, and lucky, as her heroine.
P.S. Sir J, was there really nothing offered to you?
reply The Cabinet has been appointed and I was not offered a role
September 7, 2022
Kwasi is at least reasonably bright and fairly sensible on economics – though clearly he understands nothing about climate or energy as he regularly demonstrates while wittering drivel about the Saudi Arabia of wind, green hydrogen, heat pumps, electric cars, energy storage, walking, cycling…
The head of the BoE still seems to think that one size for all personal overdrafts at 40% or so is sensible this insanity is still in place. So clearly the man is unfit to run a piggy bank. The BoE under him also has an insane green crap pushing agenda – this totally deluded and proven incompetent historian should go and go now. Ls Truss as should the deluded dope Sharma.
To grow the economy we need cheap reliable on demand energy, a bonfire of red tape, no more green crap, far less government and far lower taxes. No more rigged markets in healthcare, energy, transport, housing, non green crap banking…we need to be free to choose.
September 7, 2022
“Central Banks need to remember recessions bring more state borrowing as well as economic misery.” They sure do, the best way to avoid a recession is far less government, far less red tape, far lower taxes and cheap, reliable on demand energy, free markets. Make the UK actually attractive to overseas inward investment and indeed retain local investment for a change rather than endlessly deterring and pushing it away as now.
September 7, 2022
I’m astounded she re-appointed Sharma. When we’re ramping up the debt, shivering in the winter and possibly suffering blackouts, that film of him cheerfully blowing up a perfectly usable coal-fired power station will go viral.
September 7, 2022
I look forward to Lifelogicâs in depth analysis of the new cabinetâs educational achievements – particularly those of Mr. Cleverley. I suspect a new subject will now be added to PPE, classics etc in future Lifelogic posts.
The foreign secretary does have âcleverâ as part of his surname though.
September 7, 2022
Although Cleverley was, nominally, a Brexiteer, unlike Sir John of this parish he was one of the cowardly ones who did not want a WTO Brexit but only wanted to leave with a deal – ie. on the EU’s terms. And now he is in charge of our fight with the EU. Well, he’s really going to stand up for Britain and British interests, isn’t he? NO, he isn’t. He will betray us like all the other cowards and traitors who have governed us in the past few years. Another dismal appointment by Truss. She has started very, very badly – and I fear it will only go downhill!
September 7, 2022
Indeed and Sharma actually seems to believe the net zero B/S he and Cop26/27 have been pushing. Meanwhile two private jet and umpteen people fly up to Balmoral for something that could easily and more safely have been done on zoom. Quite clear than Truss and Boris do not realy believe the net zero B/S applies to them.
As I (and the sensible 1100+ scientists) keep saying “there is no climate emergency”, the solutions being pushed EVs, wind, solar, hydrogen, heat pumps, walking, public transport… do not really lower CO2 to any sig. degree anyway and finally world cooperation is not going to happen, All three need to be true for net zero to make any sense at all and none of the three are true.
Truss should get a sensible group of climate realist scientist to counter the lies and B/S pushed out by the BBC, Greta, Attenborough, Government climate “experts”, Sharma, Kwasi, the Committee for Climate Change, the Libdims, Greens, SNP, Plaid and the 90% of deluded Tory MPs
September 7, 2022
Truss said she would lead as a conservative. She failed at her first hurdle. Kwertang not fit to be chancellor based on performance at BIES. Health secretary pictured as a clinically obese cigar chomping whiskey drinker! Today we are read ads will be banned to stop excessive drinking! Previously we were told by your govt to have a sugar tax and stop junk food! Johnson, Coffey ? Is there any self awareness in your party/govt. or just hypocrisy to tell little people to do as you are told?Truss off to Ukraine to waste our taxes and Biden telling her to keep N.Ireland protocol! Truss is discredited in one day? Then borrowing a hundred billion! Truss failed already. Her cabinet selected by virtue signalling, it does not represent the make up of the country when white men are excluded and borrows like a drunk.
September 7, 2022
Agree LL. I feel the start of our economic problems began with the CC ACT whereby manufacturing became too expensive to be competetive with other countries using cheap energy. Net Zero is truly bonkers and suicidal.
September 7, 2022
Does not even save CO2 just export jobs, industry and the CO2 – not that this plant food is a serious problem anyway.
September 8, 2022
Kwasi is bright.
I’d like to see him as a future PM too (and deserving of it not a token black PM) as this would give a lot of black people confidence in the UK. There are a lot of smart black people in the UK who aren’t getting the opportunities they deserve and which the country needs.
A lot of great black potential is waiting to be released in this country like half Nigerian Steven Bartlett whose a brilliant entrepreneur.
September 7, 2022
Re PS – Very disappointed to see that the rumours of Chief Secretary to the Treasury proved false.
PR preferred over practicality – not a good first move and one assumes blocked by the new Chancellor.
September 7, 2022
It’s the usual payback for favours time over talent for the job as I predicted last week. It would have been the same had Rishi been elected PM. She only has two years to get things right and I think she has already shot herself in the foot by promoting a team of yes men and women, which is not the best way to get the best decisions. She has split the party which will become more apparent as things start to go wrong and the MP’s in dodgy seats start to get squeaky bums. Best friend in charge of the NHS – really? On what basis? On the other hand, glad to see the back of Shapps and Priti Useless among many others.
September 7, 2022
+1 so the appalling BBC will not need to dig out their Welsh National Anthem video tape.
September 7, 2022
I have a sneaky feeling much advice from John is not lost. He has been there a long time and knows the games.
September 7, 2022
Alas they so rarely act on it!
September 7, 2022
Sadly I have come to think that he is viewed as an older person who you pat on the shoulder or head, smile affectionately, walk away and erase the last conversation.
September 7, 2022
Not sure you are right there Mick. Some of what Liz Truss has been saying is pure Redwood e.g. you cannot tax your way out of a recession and windfall taxes discourage investment.
September 7, 2022
Aside from being hugely impressed at L. Truss’s courage in being willing to displease us Redwoodistas, I am thus far not much taken with her first speech nor her personnel picks.
We knew the Conservative Party was likely to be very naughty in choosing another woman to be prime minister before Labour was even off the blocks but what cheek to deny Britain’s Obama (as was, at least) the chance of being the first foreign secretary with an extra dose of melanin.
September 7, 2022
Peter
Other jobs being sorted out today I believe.
She has already been called an âimbecileâ on Twitter by a sacked person!
So we shall see.
A distancing from sanity and right wing views maybe?
At least there will be no disappointment this time.
We expect nothing âŠand generally get just that!
September 7, 2022
If thats true – then sacking was a good judgement.
September 7, 2022
Never judge a judgement!
September 8, 2022
I said if thats true…
September 8, 2022
It’s not, it was by the wife of someone sacked.
September 7, 2022
By whom?
September 7, 2022
By the MPs wife it seems.
September 7, 2022
Liz could scrap the office of ‘levelling-up’ (Boris only created the office to keep Gove quiet)
September 7, 2022
PW,
An alternative view is that it was a purge of Rishi supporters.
I think Coffey is sound insofar as âwhat you see is what you getâ. She seems a straightforward type with a good education and work background and old school values. Itâs just a question of how she copes in the spotlight.
We will judge the new government by its actions not words.
September 7, 2022
@ Peter “We will judge the new government by its actions not words” – I think the phrase du jour we should employ is “the jury is still out”.
September 7, 2022
Right to Reply
The country is a little bit worse off that you werenât given a cabinet role
September 7, 2022
Well, that didn’t take long: THREE BETRAYALS ALREADY!!
Firstly, we have the failure to appoint our own Sir john to the cabinet, secondly we have the decision to appoint Graham Stuart as ‘Minister for Climate’ (!) and also have him attend the cabinet – thereby showing that she is just as fanatical and lunatic in her climate change views as Boris was – and thirdly, we have the report that she will not, after all, trigger Article 16 of the NI Protocol, but will continue to betray the unity of the UK.
That’s it. I was willing to give her a chance but I’m afraid I now have NO confidence in her at all.
September 7, 2022
Kwasi is the hunch backed by NĂŽtre Dame. We will see how long it is before the alarm bells start ringing. He performance at BEIS does not inspire confidence.
September 8, 2022
Then that is our loss, and theirs. I hope they at least read your blog and ConHome articles.
You have been getting a lot of support in the Telegraph comments.
September 7, 2022
Good morning.
All that and then this :
Is that the best you can do ?
September 7, 2022
The sensible limits are way below where we are now. The government are spending/wasting nearly 50% of GDP currently while delivering generally appalling and declining “public services”. It should be more like 25% of GDP & this is more than sufficient for the “required” public service to actually work well. The state sector are living off the back of the private sector while delivering very little of any real value. Worse still through endless misguided red tape, the net zero expensive unreliable energy religion, the war on small businesses, the self employed/landlords and much other market rigging they are handicapping the productive sector even further and destroying/deterring investment and productivity.
September 7, 2022
LL. Talk about public services offering less. In our road there are two cars belonging to the same family. One has no tax and a bald tyre and the other has no tax or mot’s. Both cars are being driven. I have reported it both on line on the official government website twice and verbally to our local police and NOTHING has been done. It’s a disgrace. These people must be on UC as they live in a social housing home and neither work. They have 2 children. They must have had a benefit payment for cost of living crisis yet still can’t see their way to being legal on the road. In my day and indeed today if I can’t afford something I go without.
September 7, 2022
To be fair we all used to drive around in cars in which you could watch the road passing below through holes in the floor pan, many had white bald patches in the middle of the tread area that flashed like a rabbit’s bum being chased by a fox. We were taught to use a pair of stockings to substitute a broken windscreen wiper motor and they used to stay broken.
Standards now are much higher, which is why many people can’t keep them.
September 7, 2022
NLA. You might have done but I never have. I happen to think about the safety of others on the road as well as myself. I wouldn’t drive my children around in a car I knew had brake issues and faulty tyres.
September 8, 2022
and I thought driving at night with crap 6v headlamp lighting, and a seat spring sticking in my backside was dangerous.
September 7, 2022
Surely you realise the police have bigger crimes to deal with than someone driving around in a potentially dangerous vehicle.
Imagine someone uses a pronoun incorrectly or refuses to use someone’s preferred pronoun.
The police must prioritise you know.
September 7, 2022
Almost certainly no insurance either should a nasty accident happen.
September 7, 2022
Perhaps you should have reported that they had made a homophobic remark – 5 coppers would have turned up to ‘adjust their thinking’.
September 7, 2022
Exactly. As you say:- “There needs to be sensible limits on public spending and borrowing.” This especially when so much of the spending is very clearly wasted and much is actually spent doing positive harm.
Alok Sharma is retained? Why on earth would anyone sensible retain this deluded climate alarmist dope as COP 26 Chairman? His absurd beliefs and his type are the main cause of the current energy crisis? The man even has an applied physics and electronics degree albeit from Salford but even that should be enough to enable him to grasp some energy realities – alas he has not done so.
September 7, 2022
Why indeed do we have anything at all to do with COP26 religion?
September 7, 2022
Because this is going to be another Conservative government in name only. You canât have sustained growth and prosperity with net zero. Mr Redwood knows it but wonât say so.
September 7, 2022
Alas you are prob. right
September 7, 2022
+100
Well said!
September 7, 2022
Paris, conferences,M8âs rates, kompromat, shady deals,satanism who knows?
Letâs go full circle, back to initial reactionsâŠ
They are all totally bonkers.
They might as well have declared war against some nearish country and started digging trenches.
Blackouts, short supplies, deathâŠindustrial scale, no workers. Same thing.
Or a Revolution complete with guillotine mightâve done the trick?
September 7, 2022
I wouldn’t object if it was just keeping up appearances, but my God people believe that nonsense.
September 7, 2022
LL: It was the ‘tears at midnight’ after COP 26 that finished it for me. But it is because the UK has to be prominent in this global madness and must be seen to be taking the lead as it will look bad to other countries if we are seen not to be doing so. This is what I’ve heard uttered by a politician at least once ( on a GBN report ) in recent weeks. My understanding is that the new PM will continue but maybe not at full throttle. We may be lucky and witness some common sense. We shall see.
September 7, 2022
Why is Sharma retained, LL? To signal that this is a no-change-of-policy government, on things that matter to our global political masters. That is also why on her very busy first day in office Truss found time for a chat with Zelensky, reportedly reassuring him that our money will keep flowing in that direction.
September 7, 2022
So what was the point of getting rid of Boris….if nothing is changing
September 7, 2022
well the off licence along the road might have to close, so carrying in all the bottles will get harder.
September 7, 2022
Doris Johnson as some wag christened her earlier this week!
September 7, 2022
R Grange. What money? Oh you mean the money we have to borrow and then pay interest on.
September 7, 2022
FedupS: It stood at ÂŁ2.8bn a few weeks ago.
More to come? Yup, just put it on the tab.
September 7, 2022
According to a comment on another site, Ms Truss does not have the power to remove Mr Sharma from COP26, his term as ?Chairman?President not ending until November.
September 7, 2022
80 seat majority….this government can do anything they wish
September 7, 2022
And all they wish is Net Zero!!
What a waste.
September 7, 2022
I am more concerned by the appointment of a minister for Climate at BEIS. The only conceivably useful purpose for such a job would be to work out how to minimise our disastrous commitments as quickly as possible.
September 7, 2022
Spot On Lifelogic….it would send the right message if Liz cancelled the office and position altogether
September 7, 2022
Lifelogic : “Alok Sharma is retained?”
Could it be because no-one else wanted to be COP26 president?
Note that we are fortunate that the Drax power station managed to con the CCC/BEIS/Government into believing that burning wood pellets transported from North America was better for the environment than burning coal (possibly because it increased the renewables figure for electrical energy generation by 10 percentage points) because otherwise it would have been explosively demolished.
Official SSE video of Cop 26 President, Alok Sharma, triggering the explosive demolition of Ferrybridge coal-fired power station last year :
https://video.twimg.com/ext_tw_video/1429456184902393858/pu/vid/720×720/JwPnpycxEiyBmqVJ.mp4?tag=12
September 7, 2022
a useful idiot?
September 7, 2022
Lifelogic : âAlok Sharma is retained?â
More importantly, why are the current members of the CCC retained?
It is these people who are driving the unilateral economy destroying Net Zero.
Those who have studied climate should be ashamed to not be recognising that there is no catastrophic climate emergency as evidenced by the tiny increases in global temperature (0.15 degrees C per decade) and a complete lack of increasing extreme weather events.
Those who call themselves engineers should be ashamed to not be recognising that intermittent, low energy density, high entropy wind cannot provide the affordable and reliable energy a prosperous country needs and to continue down the renewables path without an economic solution to storage is a path to disaster with volatile pricing and rolling blackouts.
At least they should recognise that the local grid will not be able to cope with the electrification of transport and heating without âdemand managementâ, viz volatile pricing and ultimately rationing, as this only require simple mathematics.
September 7, 2022
Sharma will be gone in November when Egypt takes the presidency of COP27. I’m far, far more worried about the appointment of Jacob Rees-Mogg as business secretary. He would be fine for energy, which is too important to be subsumed in the BEIS department and should be hived off into a free-standing ministry. But JRM should NOT be responsible for business, as he doesn’t give a damn about helping British industry and adopts a laissez faire approach that allows our economic enemies – especially the EU – to steal all our jobs and manufacturing!
Here is the latest crunch issue: https://www.autocar.co.uk/car-news/business-tech%2C-development-and-manufacturing/taiwanese-battery-manufacturer-considers-uk . A Taiwanese company (ProLogium) is considering investing $8 BILLION to build one of the largest battery gigafactories in Europe. The UK is being considered as a possible site for this mega-project, together with France, Germany, Poland and the Netherlands. Here however is the key: “ProLogiumâs site selection will also be affected by the incentives available for its investment.” Given that “France, Portugal and Spain all have access to the EU funding for battery facilitiesâ it will be necessary for the UK to also offer some funding. You may not like this, but it is the reality of the modern world and is key to attracting inward investment. There is no reason why we should not outbid our EU enemies. The benefits of having this factory in the UK would be huge.
Thatcher went all-out to get Nissan to invest, and look how well that has turned out. We are told that the factory will be âtransformative for the chosen regionâ. So what is JRM going to do to make sure the UK wins this competition? Probably exactly what Kwarteng did when he turned that other battery manufacturer Eurocell away and forced them to build their factory in the Netherlands. As we are told: “British firm Eurocellâs decision to build a battery factory in the Netherlands was due to a lack of support from the UK government”. We now have both a business secretary and a Chancellor who will both do NOTHING to attract inward investment. This is a complete BETRAYAL of Britain, and certainly NOT the Brexit that I voted for. I, and Britain as a whole, have been stabbed in the back by this Tory government. I am furious. I will not forget this TREASON.
September 7, 2022
We’ve had 25 years of social democracy/socialism-green lunacy and now we’re effectively bankrupt. Who’d a thunk it?
Well certainly not the anti-British Establishment and the lefties who infest every corner of the public sector, including many lurking in the current manifestation of the Not-a-Conservative-Party.
What Sir John is effectively telling the BoE is to avoid boom and bust, which Gordon Brown told us he’d eliminated. Well we didn’t get much boom, and the bust is already here so he’s amended the message to tell them to try and avoid making the bust three times worse than it already is.
All the time the Civil Service, the BoE and the public sector in general is INFESTED with Socialists or NuLabour cheerleaders nothing will change. The new Prime Minister can give all the “conservative” speeches she likes to try and convince us she’s Mrs Thatcher’s secret child, the machine will stop her from delivering any conservative policies.
September 7, 2022
I assume the people making these decisions are highly paid individuals. Why are they still employed? In private business they would have been sacked or demoted but I guess they’ll end up getting the expected gong, a golden handshake and a lucrative place in the Lords as a reward for their incompetence.
The whole of politics is set up to reward the incompetents, supported and defended by the rest of the self interested incompetents. When will these highly paid people be held to account? Ever?
There are far too many dishonest people in Parliament that shouldn’t ever have positions of responsibility, in any walk of life. Is Parliament supposed to be a House of Reform? If so, it isn’t working very well and public trust is obviously of no interest.
September 7, 2022
Shirley M
What a very true to life post. Not a lot one can argue with. Truth always outs.
Already there are reports circulating of “close insiders” giving the new set up to Feb 23 before the big train smash.
What signals these people send out to the world at large? Who in their right mind would want to do business with this country with parliament behaving as it does?
September 7, 2022
Bravo and you beat me to it.
It is almost at the point now where we are literally mugged on a daily basis by the inept, the scheming and the downright criminal who can just shrug their shoulders and walk away from the immense damage they do with a swag bag full of loot.
At least Dick Turpin wore a mask!!
September 7, 2022
Do we have a choice about going into recession or not and therefore more borrowing ?
How can we ‘grow’ our way out of recession (as Ms Truss told the nation) if there is no affordable energy to do so ?
I dislike that “small businesses are the backbone of our economy” – they are not. They are the spin off of major industries that all developed nations should have. Otherwise we could simply hairdress our way to wealth again.
September 7, 2022
Re PS – Very disappointed to see that the rumours of Chief Secretary to the Treasury proved false.
PR preferred over practicality – not a good first move and one assumes blocked by the new Chancellor.
September 7, 2022
The increase in living costs must surely take money out of the housing market. Will this correction be fought by government or will they pump help into the system to prop up the prices? Free markets should allow a correction which in turn may open up the market to those who are frozen out by high prices.
The bank can not tighten money only for government to loosen it in the housing sector.
September 7, 2022
Indeed, the property bubble begat the credit bubble and a tolerance for public debt and waste. Which is why we now face Credit Crunch 2.
Covid/Greenism/Ukraine… all are being used to hide the cause of this dramatic and permanent fall in living standards whilst telling us it’s for our own good and not our governments’ fault. And if that fails then blame a quango… unfortunately (for them) they can’t blame the EU anymore.
September 7, 2022
I think new houses are about to get very expensive because of the energy implications on the costs of building materials. I read that the manufacturing cost of tiles has increased 1,047%. Bricks will not be far behind.
On the other hand rising interest rates will cap what buyers can pay on their mortgages. I expect house prices will fall sharply in real terms, even amidst a building slump. Other bills are more important. We may even see falling nominal house prices spreading away from the London market.
September 7, 2022
This is a leftover from yesterday – Sir John dodged the issue of the national security issue of fracking, and probably thinking of votes.
Took the soft option of saying it should be only where it can’t be seen and would likely upset the eco lobby, and thus would give it the ok only where people are less likely to be upset. Typical, daren’t be strong, must always be a get-out clause on anything really difficult.
Reply I have always supported more onshore gas. Calling it fracking is a misdescription. Reservoir management techniques are evolving and needs for injection vary depending on reservoir conditions.
September 7, 2022
Reply to reply.
I know that it is no longer necessary for drills to go straight down. But the ability should not be used as an excuse for avoiding places where there is likely to be an awkward fuss from political and eco opponents and thus probably making it more difficult and thus uneconomic.
Drilling sites need not be enormous and even new roads are not always intrusive. Sacrifices must be made in the national interest but it seems the ‘greenery’ rot is everywhere.
September 7, 2022
Sir John has often expressed his support for fracking (or “onshore gas”, as I’m more than happy to rename it), even if always with the ridiculous caveat that this must receive local support, ignoring the more important NATIONAL INTEREST, but Liz Truss has NOT even gone this far. Indeed, today she signally FAILED to mention this at PMQs when the opportunity arose. I’m afraid she’s going to betray us on this as well.
September 8, 2022
Local communities in the US are offered a share of fracking profits as an incentive. Can’t have UK citizens benefiting from a natural resource though.
September 7, 2022
What is the inflation rate without the impact of the war in Ukraine (not just gas and electricity but wheat and cooking oils)? War costs should be stripped out of inflation that affects benefits increases pension increases, fare increases, subsidy increases and other pay rises. The lower figure should be used as the war costs are a one off which will eventually subside. It is feasible that we might experience deflation when the war ends and supply resumes and recipients of index linked increases will be much better off in the long term,
September 8, 2022
I guess by ‘war costs’ you mean the cost of anti-Russian sanctions. Well, it would be interesting to know that, if they can be calculated. How much are we paying to shoot ourselves in the foot?
September 7, 2022
An energy price freeze is a recipe for blackouts
Dulling the incentive for people to save energy this winter will only result in state-directed rationing
Juliet Samuel today in the Telegraph today.
Get the money to the people in tax cuts etc. & let them spend it as they wish some will choose to use the expensive energy others will make other choices life more jumpers, a hot water bottle, fixing the roof or a winter holiday so let them have the freedom to choose. Restore real market incentives and stop rigging the energy market with the bonkers net zero religion Liz.
September 7, 2022
Another deja vu article today.
How about sensible public spending? The only way you will get public sector organisations to stop profligate and wasteful spending (like the NHS spending ÂŁ750k on pamphlets for their STAFF telling them the correct PC position on BLM etc.) is to put a private sector volunteer in place with the power to challenge spending decisions and, if necessary, refer them to a Minister with responsibility for âSensible Public Spendingâ.
Incidentally, particularly after this dry summer, many roads are now in a shocking state. If only money was spent on them instead of the silly pamphlets.
September 7, 2022
Mike. Have you seen the number of translations needed now? When I lived in Spain there was nothing of the sort. If your Spanish wasn’t good enough then you brought your own interpreter along.
September 7, 2022
fuS – I wonder if France or Germany provides free translation services? Who is going to moan if this is cut?
September 7, 2022
@FUS
I know. It’s enough to drive you mad. Is there any other country that translates public sector publications into every language known to man?
September 7, 2022
We should consider ourselves lucky that the Prime Minister’s Cabinet is not a true reflection of current UK society. If it was then there would be several Albanians in ministerial positions!
September 7, 2022
Love it !!!
September 7, 2022
Only if they have been to a certain public school and studied PPE at certain universities. If not, they have to make their living dealing drugs.
September 7, 2022
“Throughout the West the authorities decided fast money growth did not matter…” – and all because Bernanke’s doctoral research taught him that replacing private demand was the way to avoid a repeat of the 1929 slump.
September 7, 2022
The big mistake when taking a highly responsible position is to encircle yourself with friends and good acquaintances as it very rarely works as you have moved on and they cannot or would rather not keep up with the speed, responsibility of the new position.
You surround yourself with the best tail gunners in the business all with proven track records, experience and qualified in the critical areas of what they will be reporting on. The past has come and gone, all that matters is the future.
September 7, 2022
A contributor yesterday mentioned that he didn’t like the complaints that “Nato/EU provoked the Russian invasion” even though they are true and then went on to say “We are at war with Russia. We are where we are and must get on with it.” or to that effect.
I believe that to be the unchallengeable and entrenched view throughout western governments – much like the pandemic response and much like Net Zero.
OK.
We’ve taken on Putin whilst highly vulnerable in energy deficit to him. We are where we are, as they say so why does the contributor not think our leaders should be held accountable ?
We now face bankruptcy, poverty and the destabilisation of our societies and the destruction of the ruling parties. Borrow all you like. You can’t “grow your way” out of this without affordable energy, Ms Truss.
September 8, 2022
It’s an Anglo-American position supported by their irrelevant Eastern vassals -the Baltics and Poland-I don’t think the core of Europe -France,Germany,Italy-enthusiastically supports that beyond lip service.
There has been a sustained effort from the start to get NATO more directly involved-NATO is desperate,absolutely desperate,to get it’s hands on Crimea and if not Crimea the Black Sea coast of Ukraine.As Ukraine runs out of willing fighters,we’ll see who’s up for it.
September 7, 2022
A pity sir John is not involved. Also Gove, Sunak, Hannan, Raab, Frost. Probably the most articulate advocates of free market Conservative ideas. Letâs see how the ones selected do, the criterion for appointment appears to have been to have supported Liz in the contest. They will be judged on results. There is very little time to turn round public perceptions.
September 7, 2022
@ Richard1 – Sunak might be articulate (pretending to be a Thatcherite) but he never did anything to back up the words and show that they might be true in his case.
A huge disappointment from the recent leadership campaign is someone (Sir John himself being the prime candidate) never did a Lloyd Bentsen on Sunak – “Ex Chancellor, I served with Margaret Thatcher, I knew Margaret Thatcher. Margaret Thatcher was a friend of mine. Ex-Chancellor, you are no Margaret Thatcher.”
I did say words to that effect
September 7, 2022
It is a shame because he is articulate – at least until he gets out of his depth. His Andrew Neil interview at the launch of GBNews revealed that when he was questioned more closely about Net Zero and profligate spending. He seems to have missed out on gaining some key insights. On some things he can be perfectly sound. If he were sounder on others he would make an excellent advocate of policy.
September 8, 2022
@ Reply – I recall now your analysis, persuasive and full. It was the punchy, memorable sound byte I was wishing for though.
September 7, 2022
Lizzie will take a loan from the National Loans Fund (NLF), probably circa ÂŁ200 billion as much as Treasury spending requires to match her likely large deficit. It can be paid back over the next few decades, if at all; and, It wonât cost the Treasury a penny, as long as she stops the Debt Management Office issuing any more Gilts to match the spending of that loan, under the totally unnecessary âfull funding ruleâ.
Remember issuing Gilts as the supposed ânational debtâ, and paying interest on them, has nothing to do with funding government spending, Gilts are just tradeable savings accounts in the Casino Banking sector. Also, the natural rate of interest in a sovereign fiat currency economy is zero.
The government funded its deficit with a ÂŁ371.8 billion loan from the NLF in 2020/21 and you never felt a thing; it has no plans to pay it back. The 2021/22 report is due this month. There is no mention in the following of Gilts playing any part in financing government spending.
See the table in the âPerformance analysisâ section of https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1018479/CCS0921300720-001_HMT_Consolidated_Fund_CF_Web_Accessible.pdf
September 7, 2022
Why stop at just the triffling sum of ÂŁ200 billion acorn.
Let’s all get rich.
Why not put one or even two noughts on it.
Your theory seems to suggest it’s the way to solve our problems
September 8, 2022
1/ It is not acornâs theory, it is a âtoolâ which has been used over the years, most recently during Covid (see assets.publishing.service.gov.uk âNational Loan Fund Account 2020-21â, Sep.2021, 48pp).
2/ Once again you cannot prevent yourself from showing that your âdeep knowledgeâ of financial matters, specially when involving the state, is close to zero.
3/ But how could P2 resist doing his little pugâs âwoof woofâ after the name of a contributor he has decided in his immense wisdom to be a âSpawn Of The Leftâ.
September 9, 2022
No answer to my question from either of you.
1.Your first point hefner is completely irrelevant because I did not say that it didn’t exist as a tool or a theory.
2 Why put deep knowledge in quotation marks?
I never said those words
3 Why put spawn of the left in quotation marks?
I have never said those words.
But to continue:-
Is there any limit to your magic money tool/ theory creation?
At what level will it impact confidence in our currency and at what level does it create further inflation.
As you heffy and acorn are so financially clever perhaps you might reply but without your customary personal comments.
September 9, 2022
Your comment âwhy stop at just the trifling sum of ÂŁ200 m. Letâs all get rich. Why not put one or even two noughts on it. YOUR theory âŠâ was simply stupid.
You have now realised it, and pretend that it was not your usual trolling and try to introduce MMT and ask for financial/economic arguments to hide your âshoot from the hipâ reaction.
Thatâs what you do every time you are caught red-handed.
September 9, 2022
It isn’t “stupid” because acorn and you plainly believe in the magic money theory.
Yet he and you still refuse to say:-
Is there any limits to this policy and what limits are they?
Also what consequences are there for this policy?
Come on acorn and heffy I have asked this question numerous times.
Answer the question question acorn and heffy if you believe in this policy as an easy solution to our economic problems.
And cut the personal comments heffy which you always resort to when your trolling of me fails.
September 10, 2022
How do you KNOW I plainly believe in MMT? What proof do you have?
And apart from MMT (or magic money theory, as you call it), which other economic theories do you know about? And BTW which one do you believe in? Classical? Neoclassical? A game theory-based one? Behavioural economics? âŠ
Are you a disciple of Adam Smith? Ricardo? Schumpeter? Minford? ⊠please let us know which economic model and economist(s) are more likely to improve the present UK situation.
Thank you in advance for a structured and informative answer.
September 10, 2022
During her campaign Liz Truss told us âno handoutsâ. Now it is not clear, will it be ÂŁ110 bn, ÂŁ130 bn, ÂŁ150 bn to subsidise the energy bills? That looks like some kind of a handout to me. The magicianâs trick is that in practice that amount is to be added to the UK debt and will therefore be paid by future generations (so not much of a handout).
Then we learn that the ÂŁ170 bn profits of the energy companies essentially linked to the end of the Covid restrictions and the effects on the energy markets of the war in Ukraine will not be touched by the Government.
Do you believe the above is an easy solution to our economic problems?
September 10, 2022
I know because you are plainly involved after jumping in arguing on behalf of the thread started by acorn.
PS
Hilariously there is still no response to my questions, just more of your red herring nonsense.
September 10, 2022
So now yet another red herring post from you heffy.
This latest one effectively poses the same questions I originally asked of acorn and you, to which I have never had any reply
He wants never ending magic money creation.
Way beyond even what has been created so far via the 2008 crash, the Covid response and now with the policy to cap energy price rises.
Do you feel there are any limit to this ?
Do you think there are no consequences for this economic policy?
September 10, 2022
What was your question P2? Do you consider your âwhy stop at just the trifling sum of 200 bnâ a question? Or was it âwhy not put one or even two noughts on itâ?
If you think those are questions, I am so sorry, I am afraid I cannot answer these. I can just point out that the PM has recently been talking about a ÂŁ150 bn amount to help people cover their energy bills (express.co.uk, âLiz Truss set to unveil ÂŁ150 billion cost-of-living rescue packageâ, 08/09/2022).
You are far too fierce a debater for me. I surrender. Enjoy your wonderful success.
September 10, 2022
Read it back heffy
Use you self proclaimed huge IQ and get back to me.
Surely you can understand my simple English
September 10, 2022
Hilarious how silent(acorn) then angry, rude and defensive (heffy) gets when asked a straightforward economic question.
So let’s try to be focused.
Governments with their own currencies have the ability to create new money.
I realise this.
Still with me….?
acorn has posted repeatedly that there is no end to the possibilities of this policy.
I think he is wrong.
Do you heffy?
September 7, 2022
Liz is going to freeze energy prices? Not a good sign, it means we will also have rationing. What about the plans for having police chase Wolf-whistlers instead of murderers, is that to continue? Or the other one where the govt will decide who gets a university interview? We are a few bad, leftist gesture-policies away from electoral Armageddon. I hope there is someone round the cabinet table to point this out to Liz truss.
September 7, 2022
Nor does Truss seem to have a clue what to do about illegal immigrants – she has now decided to pull the Bill of Rights (which was, albeit in a very limited way, designed to reduce the appeals based on human rights) and has not come up with ANYTHING to put in its place. The illegal immigrant invasion continues!
Reply The Bill has been delayed in order to be strengthened!
September 7, 2022
âReply The Bill has been delayed in order to be strengthened!â
I have not heard that one before. Media reports use words like âshelvedâ. Either way, it means more delay – but Raab can be blamed.
September 8, 2022
Capping energy prices in line with the EU…
September 8, 2022
Wolf whistlers are more important than burglars…..I thought everybody knew that.
September 7, 2022
Liz could have used the opportunity today to reduce the size of her new cabinet and government
Less government should* mean less spend & borrowing
September 7, 2022
“The Office of Budget responsibility in the last two years was way out in its underestimates of tax revenue and far too pessimistic …. ”
Presumably for “Budget Responsibility” it is necessary to be pessimistic ?
Maybe, by way of balance, we need an Office of Budget Irresponsibility. The politicians can then then take an average of both sets of results.
September 7, 2022
Well, brexit has brought far more than just economic misery – you can add social, cultural and all the rest, and yet Sir John is 100% all for that.
So why all the great cry about its stemming from some other less significant cause?
September 7, 2022
So all was well prior to Brexit? You surprise me, I took you for being a dyed in the wool agitator for change!
I sometimes think we are not so different, and then you go and make me step back.
September 7, 2022
It is not Brexit itself, but the management of Brexit that has been highly questionable. Add to that the insane quest for nett zero and the shunning of our existing home grown fuel sources. It all adds up to where we are today, a self inflicted bullet through the foot. A nadir from which we can recover. For all the good decisions Boris made, he and his mate effectively dismasted the good ship UK.
September 7, 2022
The reason we are in this energy predicament is 15 years of green crap, with Putinâs war the proximate cause. We need the public to be able to see that so they support policies such as increasing domestic gas supply and nuclear. Otherwise the crisis will never end, net zero will remain a pipe dream, and the Country may be bankrupted in the meantime. A leftist price freeze (the fact the EU are doing it should be a pointer to it being a bad idea) means usage will continue as if we werenât in a crisis as there will be no price signal, and means it will be more difficult, perhaps impossible, to take the radical measures to increase supply which are needed. Iâm afraid I canât help feeling Sunak-Gove would have come up with a better idea than this, targeting the help where itâs needed. Dangerous times.
September 7, 2022
About 6 to 7 hundred billions should do it over the two and bit years.
September 7, 2022
Off topic, how could Boris Johnson – and Parliament – have ever agreed to this?
https://www.rte.ie/news/2022/0906/1320926-truss-protocol/
“… a commitment to constructing Border Control Posts (BCPs) and the provision of real-time data on goods entering the North.
On the latter, London says it has constructed a bespoke system for the EU which would provide data between 15 and 40 minutes of a ship leaving GB en route for Belfast.
Itâs understood the European Commission is largely satisfied with the system, although it has taken several drafts and plenty of testing. UK sources say a user agreement which both sides could adopt is almost ready to go, and laptops hardwired to receive the data, and to be used by EU officials, are fully prepared.”
I could accept the active involvement of EU/Irish officials within Northern Ireland if they were monitoring the correct flow of goods, namely the flow across the open land border into the Irish Republic and so the EU Single Market, and preferably as one side of a collaborative system of juxtaposed controls with UK officials working on the other side to help monitor goods coming the other way.
But that is not what Boris Johnson agreed, he agreed that the EU Commission could check and control flows of goods between two parts of our country, and that is so offensive it makes my blood boil. The only reason why he should not be put on trial for treason is that most parliamentarians would also have to be arraigned.
September 7, 2022
Interesting comment on Prof Tim Wilson site. “And plans to pause on legislation to overturn the Northern Ireland protocol – negotiation is in the pipeline and positive noises are being made on both sides of the Irish Sea. If this is the doing of Chris Heaton Harris, he has acted swiftly. But his reputation for positivity and openness goes before him.” […] “It is clearly not widely known in the UK that Truss and Michelle O’Neill (First Minister in waiting) are in fact long-time friends, ever since spending a summer as interns in Washington during their student days. Interestingly, I couldn’t help notice that O’Neill recently addressed some “unfriendly” tweets to Truss, which seemed to me to be quite strategic in the circumstances…. a sort of decoy “combative” relationship in the making. The choreography between them will be fascinating to watch. Interesting days ahead!”
September 7, 2022
Central Banks, together with retail banks and investment management companies, have caused the recession through their ESG policy to withhold the capital needed by fossil fuel companies to develop the supplies of affordable and reliable energy any nation needs to be prosperous.
September 7, 2022
Correct. We need to change the bankers to ones who will encourage financing of such projects. It is a great opportunity for the City to provide financial services in a good cause, and for the UK to invest in some assets abroad rather than selling everything off to pay our bills.
September 7, 2022
BoE, OBR etc. etc., all apparently useless. Is there anyone in this country capable of running the economy in a sensible way that does not continually trash the currency ? Apparently not, it seems.
England is well on the way to 3rd world status, which nothing seems able to stop, certainly not the electorate who keep on voting the same sorts of people into power whether Conservative or Labour.
September 7, 2022
I agree, MWB, we’re becoming a basket case. For that I would blame in particular the 160,000 people allowed to choose the last three prime ministers.
September 7, 2022
What choice does the electorate have? Party Central Offices approve or veto Proposed Parliamentary Candidates, it is this casting an eye, and reassurance that the candidate will not ruffle the adherence to policy by the front man or woman that damages the overall trust and progress in our governmental policies, and often inaction.
Democracy? hmmm.
September 7, 2022
We’re to blame for buying nothing but imports for the last 30 years or more. What’s left? Cut each other’s hair and grass and serve coffee.
September 7, 2022
The real economy isn’t Energy.
The real economy is creating new Services (financial and others) and creating high quality Tech brands (hardware, software and the services that support it) and exporting abroad. That’s where we should be focusing on growth. Not in the Energy sector which is a monopolised market from one degree to another and especially as we face the energy crisis we’re now in largely due to Russia.
Not sure that Liz Truss is falling into the right-wing trap of dogma as opposed to being right-wing in the correct way of being OBJECTIVE about what real growth in the economy means.
September 7, 2022
‘Dogma’ applicable to both those (politicians) on the left and right not just right. As opposed to being OBJECTIVE which is an essential part of successful, benign capitalism (strong and stable economy) and Conservatism.
September 7, 2022
Without energy the City shuts down. It also provides it with a very large slice of its business. Insurance, funding, hedging, legal (London is a preferred commercial jurisdiction), shipping, trading, forex, M&A. You evidently don’t understand what the City does. It’s not abstract – it supports the real economy.
September 8, 2022
You’re being black and white. Although perhaps I was being overly black-and-white myself to make a point! Yes, I agree with you to some degree. But not to over-focus relying on the energy market at the cost of relying on entrepreneurs who are going to create the financial-services companies of the future and the high tech brands (hardware, software and services) of the future as well – the Apples, the IBMs, the Audis and electric cars of the future. That’s all.
Lastly, your background appears to be City which I respect (your knowledge of). My background is High Tech and Advertising / Marketing – and being involved in hardware, software and services that get exported abroad at with vast amounts of money involved and high productivity.
September 7, 2022
Sir JR
Interesting article but rather out of date, because you wrote “there needs to be sensible government spending and borrowing”
With the latest government initiative, this has all gone out the window.
So the Conservative government will continue past years mistakes
September 7, 2022
We seem to be following similar policies to EU nations in trying to hold off energy price rises for people bill.
Are you also against any help for European people from EU member states governments?
September 8, 2022
I thought we had left the EU. Why do you seem more interested in what is happening in the EU countries than here in the UK? Do you think that what is done on the continent is so wonderful that we have to copy it here. You should be frank and tell us P2. Would you prefer some Macron- or Scholz-style actions to Trussâs?
September 9, 2022
Am I not allowed to reference or compare policies here with those in Europe any longer?
How very odd your views are heffy.
I will remind you of your policy next time you post something which is about the EU
Try answering the question I raised to your pal bill if you want to do something useful.
September 9, 2022
My views are âvery oddâ simply because every time you comment after one of your âbĂȘtes noiresâ I show how limited you are. You never write a direct contribution, only reaction, most of the times with no or very little content, to what some particular people on this blog write.
Some EU heads of states have taken decisions regarding the energy situation. According to the their media (franceinfo.fr âCrise de lâenergieâ various reports) it seems to have received rather mixed comments.
So tell us, do you want an energy policy here as proposed by those? Y/N?
September 9, 2022
I do love having you as my personal troll heffy.
You forget in your haste to respond with more personal attackscand rudeness, that I simply asked a straightforward question of your pal bill.
Go back to the start.
And see that I still have no proper reply from bill or from you.
September 7, 2022
I take it that people on this blog will be voting for con party at next election, well done keep the good work up boys and girls.
September 7, 2022
Paul. I won’t unless things change drastically for the better. Reform for me if possible.
September 7, 2022
GB News reports that 5000 Albanians are gathered on the French coast waiting for weather suitable for crossing. Our authorities say that we must pick them up as we are bound by international law to help those ‘at difficulties in the sea’. How is it that the French aren’t obliged to ‘rescue’ them under this international law? Are they only ‘in difficulties’ when they cross into our waters? Our leaders must think we are fools to not be able to see what they are doing at the bidding of the globalists.
September 8, 2022
well anybody setting off in such risky waters and conditions should not have the support of ‘international law to help those âat difficulties in the seaâ. Self imposed! ….even police don’t jump into lakes for possible drowning victims.
September 8, 2022
My understanding is that under current French law, their ‘authorities’ are not permitted to touch them once they have entered the water. Hence, once er, spotted, they are safely escorted to the mid point to join our vessels. What happens in terms of communications between the French & the UK ‘ferry’ services as the boats progress from one point to the other, no idea but there must be some kind of advance info relayed so that the correct number of hotel beds, other accomms and coach services are ready & waiting at our side particularly with the numbers we are seeing lately. 960 Sep 02. 1160 Sep 04. Where are they now. So much we do not know. We idiots should be told.
September 7, 2022
A good effort from Liz today at PMQs and she even mentioned increasing production of north sea oil & gas and nuclearâŠ.a big shame that she didnât have the bottle to mention shale gas and coal
September 7, 2022
This Labour line about windfall taxes on Truss not wanting to tax energy company ‘excess profits’.
Are the profits global profits not just the smaller attributable UK profits? Are the UK profits taxed at 65% for N Sea Oil and Gas producers as Julian Jessop tweeted or not?
September 7, 2022
Central banks and this government should have never have done QE this is why the world is in such a mess. It was right to support covid through the forlough program.
It’s right to support Ukraine, but wrong not to give them enough weapons to finish the job. Not having the right weapons will prolong the agony, countries need to apply more pressure to Russia.
September 7, 2022
“If the government decides on a large increase in state borrowing it will need the goodwill of the Bank and the markets to finance its needs.”
ÂŁ130Bn borrowed to fund energy bills will require a lot of goodwill, and while she may have the banks, she won’t have the voters. Are we to see any action on the systemic weakness of our energy generation and storage systems, which industry bodies state could be corrected for rather less than that?
September 7, 2022
Central banks, memory,money and misery. Tie pay to performance. With negative ratchets. The value of GBP and policy would be supportive of GBP, money. Misery may well be avoided.
WEF seems we are in final stages of engineering the collapse of our economies by the capture of key policy and leadership figures. This is not the fault of democracy or populism. This is global policies no one voted for.
Have we banned private jets yet? One for Boris and one for Liz to Scotland. Yep 1-1= net zero i suppose.
September 7, 2022
Does Boris pay for the flight back after he was no longer PM, or will it be declared on expenses? The aircraft appears to belong to a Serbian VIP air taxi service using San Marino as a flag of convenience, according to registration details taken from pictures of it.
September 8, 2022
I think it was rather more important to fly to suit the Queen’s situation, rather than risk our existing and future PM taking their chances on railways like millions of us do every day! Then would we want to risk them using cars, risking being unable to find and pay for petrol or stopping several times in an EV to charge it?
All in all I don’t have a problem with it.
September 8, 2022
The speculation is the government will set a limit for average fuel bills at around ÂŁ2,500 this winter with some relief for businesses. We know there will be no more windfall taxes and the money probably coming from more state debt.
That’s not even pragmatically sensible, let alone competitive with Labour’s alternative proposals.
For a start for most businesses (with limited exceptions) higher fuel bills will not be critical. I point out to my commercial tenants that rent is only a small expenditure compared to their wage bill and that is and will be even more applicable to fuel costs. Their problem will rather be that after customers pay for fuel they won’t be able to afford their business’ products! Loading more onto the national debt rather than using price subsidies as a reason to reduce some other governmental expenditure is also wrong, especially for a ‘smaller state’ Conservative as Liz Truss claims to be. Furthermore the proposed fuel prices will be too high to be affordable for the ‘job seeking’ unemployed.
Most important, voters will think paying ÂŁ2,500 compared to Labour’s proposed ÂŁ1,900 as terrible, especially as Labour will say and people will believe they are paying extra because the Conservatives are refusing to put an effective further windfall tax on profiteering businesses. I know many Conservative politicians are against more windfall taxes for rational reasons but can they persuade ordinary electors that it is proper for companies to avoid that hit while they will (instead) have to pay ÂŁ600 extra this year? I know I couldn’t persuade most people of that and I bet Conservative M.P.s couldn’t do so either!
However most people wouldn’t care about a windfall tax if they could pay less (however financed) under Conservative measures than with Labour’s proposals.