More blows from the cost of living

The government says it cares about the cost of living, yet it specialises in putting it up.

It has Ā put through two further hikes in energy prices, now Ā controlled by the state, despite oil and gas prices coming down from past peaks.

It will put up rail fares by more than inflation to cover some part of its large wage awards to train drivers.

With the Regulator it is allowing very large rises in water company bills.

It has helped put up mortgage rates by borrowing too much and forcing up longer term interest rates.

Now it is allowing 5% increases in Council Tax, with 6 Councils allowed up to 10%. Its new grant formula pushes up Council spending and the tax in Councils that have done a better job in keeping Council tax down.

Why does it allow Councils to buy properties and utilities with taxpayer money. These so called investments often go wrong leaving Council fax payers to pay for big losses. Why are Councils given money for schemes like the Ā£5.5 m road painting Ā and roundabout worsening scheme Lib Dem Wokingham forced on us?

 

61 Comments

  1. agricola
    February 4, 2025

    Simples, this is what socialists do, increase the cost of everything and then go bust. They have stolen the word investment and redefined it as spending other peoples money for no financial return. On the positive side they are well on the way to self destruction.

    Reply
    1. Lifelogic
      February 4, 2025

      Indeed. It is not their money nor they who benefit so they care not how much they spend nor what value they get often it is negative value.

      The good think about water bills, if you are poor and want to you can save it very easily by not flushing loos too often, not watering the garden, perhaps using grey water and not washing so often or so long.

      What pushed up inflation? High taxes, far too much government, net zero, OTT red tape, net zero & rigged markets in energy, education, housing, transport, cars, heat pumps, banking (Bailey gave us 39.9% personal OD interest rates for all … The vastly high crime rates in shop lifting, cars, phone thefts (100,000 PA just in London) do so too. Pushing up insurance costs and then with 12% or even 20% IPT tax on top.

      Insurance in general is a waste of money (a bad bet) even without the IPT on top. Nearly always bad especially if you are honest with your claims as other are not and insurance also pushed up repair costs. Most of your premium goes in admin, tax, others fraudulent claims, insurance company profits…

      Bloated and generally useless government are as usual the main problem.

      Reply
      1. Lifelogic
        February 4, 2025

        Very often government spending in “encouraged” or worse by the people who benefit (Big Pharma who appalingly funded the Covid vaccine regulators for example doing vast harm) but also traffic light and roundabout consultants and suppliers and many other suppliers of often pointless or damaging things. No one cares it is not their money.

        We also have private largely parasitic industries either generated by government red tape or which try to make many people neurotic about their appearance etc, and then push plastic surgery, cosmetics etc. to “cure” this. Or make people feel they have to show off by having the latest posh phone, watch or brand of trainers… especially a bad idea now crime is out of control especially in London and other cities.

        Reply
      2. Narrow Shoulders
        February 4, 2025

        Unflushed toilets smell. It is no solution to anything except getting rid of unwanted guests.

        Reply
        1. Lifelogic
          February 4, 2025

          Indeed you have to get a meter. Then you can easily get by on very little indeed.

          Reply
        2. Lifelogic
          February 4, 2025

          Not unflushed but only flushed when actually needed!

          Reply
      3. Wanderer
        February 4, 2025

        LL, “The good think about water bills, if you are poor and want to you can save it very easily by not flushing loos too often…”.

        Not if you aren’t on a meter! I don’t know exactly how the bills are rising, but pushing us towards accepting meters may be part of the aim.

        Reply
    2. Ian Wraggg
      February 4, 2025

      Everything is ideologically driven. State control over our lives as they know best. All these rises do is remove discretionary spending from the individual and create recession. 2TK wants EU levels of public spending so he can seamlessly slip back into their orbit.
      Watch for free movement under a different guise, watch him roll over on fishing in exchange for electricity. The man’s a shyster and can’t be trusted
      When we have a full blown recession Watch Rachel from accounts blame the last government.
      Next big blow is more tax rises in March.

      Reply
  2. formula57
    February 4, 2025

    This is not a government on the side of the people, is it? Just like the last one, alas.

    Reply
    1. Lifelogic
      February 4, 2025

      Just like the Con- Socialists but even worse.

      Mathew Lynn is usually reasonably sensible but when interviewed he suggested are business making profits were broadly equal for the economy. Nothing could be further from the truth. So many industries especially ones created by OTT red tape & net zero, or done by the state sector and/or market rigging are often largely or totally parasitic. So very many parasitic jobs in Law, HR. Health and Safely, tax planning (or due to over complex tax, employments laws, mortgage lending rules, property letting rules, building regulations…

      Reply
      1. Lifelogic
        February 4, 2025

        Also often unfair competition that due to market rigging or unfare state competition can put other more competetive businesses out of business and kill innovation. As in healthcare, housing, building control, transport, energy, banking, heating…

        Reply
    2. Bryan Harris
      February 4, 2025

      This is government, but not as we know it Jim…..

      Reply
      1. Mickey Taking
        February 4, 2025

        Those of us with decent memories of much more then 15 years ago are reminded of what this colour of government was like back then.

        Reply
  3. Mark B
    February 4, 2025

    Good morning.

    More money does not equal better outcomes, as we here all know. But this is Socialism. Real Socialism not that Blue variety we have had over the last 14.

    So less money in our pockets equals less money to spend in the wider economy. Less money in the wider economy means less investment and less growth.

    No wonder none of these people are in business.

    Reply
    1. Lifelogic
      February 4, 2025

      The 14 years of Tory socialism was real enough. Government got larger and larger, net zero, endless market rigging, net harm lock-downs, net harm vaccines, ever more red tape, licencing, socialist monopoly medicine…

      Reply
      1. James1
        February 5, 2025

        It has been reported that we now have 130,000 more people in the public sector than we had in 2016. Why? What on earth are they doing, and how did we manage previously without them? There should be an immediate halt to further recruitment. A massive cull is needed, especially in the DEI brigades, virtually all of whom should be made redundant. The people who appointed them should also be made redundant, and massive numbers freed up to do something productive in the private sector.

        Reply
  4. Cliff.. Wokingham.
    February 4, 2025

    Sir John,
    At least living in Wokingham, we know how much council rip off tax will increase… It always goes up by the maximum allowed. I tend to be more worried about which services they will introduce charges for, which were always included in the tax.

    Reply
    1. Cheshire Girl
      February 4, 2025

      Same here. I live in St, Albans, and the Lib Dems always put it up the maximum allowed. They would put it up more if they could, but we never see any improvement in services,

      Reply
    2. Lifelogic
      February 4, 2025

      The Gov message to councils today is if you go bust you will be allowed to grab even more in council tax 10% or even more. So yet more rewards for failure!

      Reply
    3. Wanderer
      February 4, 2025

      @Cliff. It’s not all “Council” tax, of course. The Police precept goes up every year, bloating the Council Tax bill. Not the there are any more bobbies on the beat. “More new bill for less old bill”.

      Reply
      1. Lifelogic
        February 4, 2025

        Perhaps we should pay the police when they actually solve a crime or two for you, deter some or recover something for you. Over 40 years reporting about 30 crimes against me and my businesses I would have paid zero! In London this week and I have not even seen any shoplifting, phone muggings or similar as yet – unlike the last three times visits! And I was not specifically looking for these extra excitements! Reporting all of the. was a waste of time and depressing to see how little they gave a damn.

        Reply
      2. Mickey Taking
        February 4, 2025

        ‘bobbies on the beat’ what a quaint idea. Did that ever happen before? I do seem to remember that police could be seen walking around the neighbourhoods.

        Reply
  5. Michelle
    February 4, 2025

    I presume the Council property investment failures are down to experts and consultants being paid high fees to advise the highly paid Council bods on where and how to invest.
    As Councils hire more staff/experts and consultants on DEI basis I’m sure we’ll be seeing a lot more of our money burn.
    Tax Payers Alliance latest Town Hall Rich List is worth a read.

    Reply
  6. Narrow Shoulders
    February 4, 2025

    Government both national and local need to understand that their urge to do “something” needs to be curtailed.

    Inactivity is the strongest attribute left wing administration possess. Ignore the siren wails of the “something must be done” brigade. Leave us alone.

    Reply
  7. Donna
    February 4, 2025

    The Government says it cares about the cost of living – and the Government lies. Just like the last one did.

    Any Government which cared about the cost of living would not be implementing the Net Zero scam, which is guaranteed to cost the country Ā£hundred of billions in order to NOT change the climate and will destroy the finances of most households in the country.

    Reply
  8. Michael Staples
    February 4, 2025

    I read the other day that Labour are putting on another tax, this time on glass bottles, no doubt all in the cause of Net Zero, the most damaging policy ever invented by Labour and supported by Conservatives.

    Reply
  9. Dave Andrews
    February 4, 2025

    Councils buy property and utilities with council tax money because that’s what the councillors the electorate have voted in will do. Don’t blame the government. On the contrary, make the council more responsible to the electorate, so if people are more worried about paying their rent, they shouldn’t have to fork out for care home costs for people who spent all the money they ever had, and put nothing by for their old age.

    Reply
  10. Bloke
    February 4, 2025

    Keir Starmer was described on radio last night as being as useful as a chocolate fireguard. Heā€™s such a waste.

    Reply
  11. glen cullen
    February 4, 2025

    Of cause they’re putting up taxes, levies & costs ….someone has to pay for diversity & net-zero
    Tax Baby Tax

    Reply
  12. William Long
    February 4, 2025

    There is a common thread that runs through all these things: they increase control by the State.

    Reply
  13. Original Richard
    February 4, 2025

    ā€œIt [the government] has put through two further hikes in energy prices, now controlled by the state, despite oil and gas prices coming down from past peaks.ā€

    The energy consultant, Kathryn Porter, in her Watt-Logic blog post ā€œAddressing the high real cost of renewable generationā€ has two graphs which clearly show the reason why. One graph shows wholesale electricity and gas prices in step and, apart from a blip in 2008 because of the financial crisis, stable from 2004 to 2021 when the Ukraine war started. The second graph shows retail electricity prices falling to 2003 and then more than doubling between 2004 and 2021. The first green energy subsidies, the Renewables Obligation, was started in 2002 to incentivise large-scale renewable generation and it is these subsidies, added to the wholesale prices, which are causing our high retail electricity prices.

    If renewables are cheaper than gas (up to nine times we are told) then why is the government still planning to continue with giving subsidies? Secondly why is it necessary to put a carbon tax on hydrocarbon fuels in 2030 when these fuels will only be used to keep the lights on when the renewables fail?

    Reply
  14. Original Richard
    February 4, 2025

    The idea that green generated electricity is cheaper (up to nine times cheaper we are told) than hydrocarbon fuels is the second biggest lie after the one that says anthropogenic emissions of CO2 caused by burning hydrocarbon fuels will cause the extinction of the planet.

    Both lies are heavily promoted by the BBC who deny there was any climate changes before the Industrial Revolution and who amply demonstrate that if you tell a big enough lie often enough people will believe it.

    Reply
  15. Bryan Harris
    February 4, 2025

    Too true, and as costs rise so inflation will be severely impacted by bad economic policies – we lose all round.

    I’ve seen data that suggests most council are aiming for an increase approaching 10%, but it seems some councils are being allowed much more, for example, Windsor and Maidenhead, and North Somerset.

    It’s not just utilities of course that will raise their prices – Thanks to the growing inflation rate due to the politically increased cost of surviving, never mind living, we will see insurance costs go through the roof.

    To say this government is not playing fair with us is a vast understatement – they are deliberately pushing us past our financial limits.

    I’ve already been told I will have to pay an extra Ā£200 on my water bill, for nothing extra, we will still have an inadequate supply due to a lack of reservoirs, while leaking pipes will contribute to more sink holes as times goes by.

    This government is not just pushing us to economic chaos, they are leading the charge.

    Reply
  16. Keith from Leeds
    February 4, 2025

    You are almost lost for words at the stupidity of this Labour Government.

    Reply
  17. Ian B
    February 4, 2025

    “so called investments” Are an oxymoron in their self when the originate from the politicos. In political speak it is squandering other peoples money to make ‘one’ look good. In the real world an investment is expected to create a reinvestable return that creates wealth, to create more wealth.
    In the real World you donā€™t spend the ‘principle’ you spend what it earns….

    Reply
  18. Ukret123
    February 4, 2025

    “The government says it cares about ………”
    ” We understand your concerns …… ”
    “I understand peoples concerns ……..”
    ” We take seriously … ”
    These are the bog standard robotic Teflon deflection
    defences I have heard just on one evening’s news.
    The saddest thing is its usually the complete opposite.
    It doesn’t sound like lying but that’s how folk perceive it.
    Sadly they don’t care about carpet laying solar panels as far as the horizon in countryside. “You can’t war solar panels” does the govt know that?
    Small Trades people were demonstrating in London yesterday fed up with thieves continually robbing their expensive tools of trade due to no deterrent from arrests. Etc etc.

    Reply
    1. Ukret123
      February 4, 2025

      Can’t Eat Solar panels!

      Reply
  19. agricola
    February 4, 2025

    An example of how to start correcting local government finances long term, a major expense to citizens. Socialism’s answer is to allow failing councils to predate further on those they represent to the sum of plus 10%.

    My answer is to make all civil servants and council employees fund their own pensions, just as the self employed are forced to, should they want pension provision beyond the state pension. My reasoning is that on average 23.5% of your council tax bill goes straight to employees pensions.

    It grew from the premis that local goverment workers were poorly paid in comparison with the private sector. They no longer are. The Chief Executive of Birmingham City Council earns Ā£250,000 for leading it into banckruptcy. What price a good one.

    My suggestion could lead to better social care provision and a progressive reduction of council bills. That is fair, common sense politics, as opposed to the Westminster version.

    Reply
    1. James1
      February 5, 2025

      +1

      Reply
  20. Alan Paul Joyce
    February 4, 2025

    Dear Mr. Redwood,

    Nobody likes to pay more for water, gas, electricity, rail travel, council tax services, etc. but if they were improving, it would at least be something. But the more money that is piled in, the worse they get. I don’t suppose allowing uncounted millions of people in to the country helps at all.

    There are no penalties for poor performance in any walk of life anymore. Quite the reverse. Failed politicians who make a mess of things reinvent themselves as eco-warriors or are elevated to become Knights and Lords. Utility bosses presiding over poor performance get huge bonuses while impotent regulators just look on. What about the hundreds or even thousands of officials including police, councillors, MP’s and others who knew about the Rape Gangs and looked the other way? We get the sop of a few local inquiries instead of the national one that this grotesque scandal deserves because our glorious leaders appear desperate to cover up systemic failure.

    Look around, it’s everywhere. If the country is not completely broken already, it will be inside another four and a half years. And that does not mean that the other lot, who failed so demonstrably for fourteen years, will be any different.

    Reply
  21. Ian B
    February 4, 2025

    UK Media Headline
    ‘World trade war explodes as China gets revenge on Donald Trump’

    ā€œWithin minutes China retaliated, imposing tariffs on an array of US goods.
    ā€œThe counter measures include a 15% tax on coal and liquefied natural gas imports from the US. Crude oil, agricultural machinery, pickup trucks and large-engine cars will face a 10% tariff.ā€
    ā€œGoogle to be Investigated. (Google has been restricted since 2010 all the do in China now is facilitate Chinese goods to be sold in the West)ā€

    Revenge? More like shooting oneā€™s self in the foot it wonā€™t affect the USA on iota

    As others have said ā€œLetā€™s not forget that Trumpā€™s tariffs are themselves retaliatory, so China, already hugely advantaged in trade, is actually retaliating against an attempt to level the playing field.ā€

    Reply
    1. Ian B
      February 4, 2025

      It is the wake-up call ever one needs, a level playing field may yet arrive. The EU is a past master at weaponizing World Trade, protecting home markets then using the same protection as an advantage to undermine the World.

      The WTO needs to look at itself. They say the Worlds 2nd largest economy should be treated as a developing nation

      Reply
  22. Lynn Atkinson
    February 4, 2025

    Just as you canā€™t have a free part of a fettered whole, you canā€™t have a decent part of a festering whole.

    Reply
  23. William Smith
    February 4, 2025

    It allows Councils to purchase properties Sir John because Councils then use them to house illegal immigrants, therefore reducing the need for hotel rooms. Plus of course it transfers the responsibility to someone else, just like the drive for more regional mayors which will also increase the Tax demand upon residents.

    Reply
  24. Original Richard
    February 4, 2025

    The antics of our PM over the Chagos Islands, as well his rush to give away our sovereignty to the EU and to save the planet with his economy and prosperity destroying Net Zero policies and the social destruction and stability of our culture through mass immigration of alien cultures makes me hope that one day an incoming administration will make it law that UK governments, the Civil Service and the judiciary must all have as their first duty the protection, well-being and prosperity of the UK and its citizens.

    Furthermore, our judiciary should not become politicised and corrupted by positions such as the Head of the DPP and/or the CPS being occupied by politicians or vice versa.

    Reply
    1. James1
      February 5, 2025

      The first duty of the government is to protect our freedoms, and theyare making a very bad job of it.

      Reply
  25. Lynn Atkinson
    February 4, 2025

    Can you believe that it is reported this morning that an unemployable ex-Tory MP has gone to Ukraine to fight? Rubio says Ukraine is defeated. Zelensky says they canā€™t account for USD 100 billion.
    And we wonder why the U.K. is in a mess? Perhaps because the most stupid people are in Westminster!

    Reply
    1. anon
      February 4, 2025

      According to Rubio, USAID has lost its focus and abandoned the “national interest” – telling Fox:

      How many institutions of the UK state meet that criteria?

      Hence parliament have and other institutions are rendering themselves illegimate. Now who would want that? I don’t think its stupidty.

      Reply
  26. John
    February 4, 2025

    Hello & off topic
    It was mentioned that the government is backing down on the very poor Chagos Islands deal
    Do you have any more information John ?

    Reply
  27. Mike Wilson
    February 4, 2025

    Council tax has been going up 5% every year for years under the Tories. It doubled under New Labour and doubled again 2010 to 2024. It is now a major tax.

    Reply
    1. glen cullen
      February 4, 2025

      If the tax hike is the highest its ever been …..what are they spending it on !!!

      Reply
      1. Mickey Taking
        February 4, 2025

        answer: more staff, more cycle lanes, more road signs, changing effective roundabouts into pretty painted lanes, crossings that nobody understands, Diversity managers, SEN staff and new buildings, even more CS pension contributions, and of course the cost one has to dare to speak – housing illegal immigrants.,

        Reply
        1. glen cullen
          February 5, 2025

          Ah, spend without benefit

          Reply
    2. Lifelogic
      February 4, 2025

      A shame living standards were going down by 5% PA for many at the same time. A major tax indeed on top of all the other massive tax rates.

      NI up to circa 25% (both together), IPT insurance tax up to 20%, CGT up to 28% and no inflation allowances, Income tax up to 45%, petrol and alcohol over 60% tax, council tax typically Ā£3k out of taxes income, VAT 20% likewise, stamp duty 15% now and rising soonā€¦

      Reply
  28. Lynn Atkinson
    February 4, 2025

    Well Trump has shown us how to deal with France. Canada has caved after Trump lifted the import taxes to 50%. All import taxes from Canada are now delayed for 30 days because Trudeau has promised a CD1.3 Billion ā€˜border plan with 10,000 personnel to enforce it, to stop illegal migrant and fentanyl being channeled into the USA. That was what was required.

    Also Mexico has caved and acceded to requirements re the border, Panama has withdrawn from the Chinese Belt Road (as required – which would have controlled the Panama Canal) and settled the question of the canal.

    Putin and Trump have agreed that Zelensky must go so are both calling for elections in Ukraine. Trump says the USA has spent billions and wants rare earths from Ukraine in exchange – they are all (apparently Putin and Zelensky) agreeing to that.

    Trump says big progress has been made to end the Ukraine War. šŸ™šŸ»

    This man has 100% hit rate.

    I canā€™t wait for him to ā€˜dealā€™ with the EU šŸ˜‚šŸ¤£

    Reply
  29. glen cullen
    February 4, 2025

    199 criminals arrived in the UK during the past two days (govt late reporting); from the safe country of France ā€¦

    Reply
    1. Original Richard
      February 4, 2025

      They simply don’t care.

      Reply
  30. a-tracy
    February 4, 2025

    The target for this government is sitting ducks. Most of us outside London can avoid trains if they get too expensive. However, a bigger tax on your home, electricity and gas daily rates, price hikes you can’t avoid, and water bills that you can’t avoid. It’s no wonder Carol Vorderman sold one of her homes; she knew what was coming online for us.

    Changing pension rules that is too late to avoid.
    Changing inheritance taxes.
    Increasing taxes on jobs (people may be able to avoid somewhat with reduced work hours and layoffs).

    However, saying one job in a warehouse is the same pay as one indoors and backdating it! Where is that decision going? They are two entirely different functions, and one is easier to recruit than the other. So now, it appears unelected judges can set company pay and backdate it. I see new young entrepreneurs getting themselves up to their necks in debt to expand and honestly I just think don’t bother guys stick to a manageable size, don’t reinvest, don’t wait to take your gains by tying your money up in loans.

    Reply
  31. Denis Cooper
    February 4, 2025

    Off topic, this is interesting:

    https://commonslibrary.parliament.uk/assimilated-law-reform-moving-towards-alignment/

    “On 23 January 2025, the UK Government published its third report on assimilated law (PDF). The report sets out the progress made in revoking and reforming assimilated law between June and December 2024. It also describes the governmentā€™s plans for further reform up to 23 June 2026, the 10th anniversary of the Brexit referendum.”

    Reply
  32. Original Richard
    February 4, 2025

    When a party starts to consider introducing medieval blasphemy laws it is clear that they should no longer be anywhere near the levers of power and it is time to call a halt to the mass immigration of people with alien, medieval cultures who are unable to accept freedom of speech and thought. It should always be remembered that whilst, for instance, race is an immutable characteristic, cultures and practices are not but instead are lifestyle choices.

    Reply
  33. Derek
    February 4, 2025

    We should despair of what is happening to our country. There seems to be no end to the idiocy of those in government and in local councils, as it now appears. And all because they have “other people’s ” money to literally, play with. Given the ways they spend and waste our money with no care of the consequences, it is as though it is “Monopoly” money and they can pretend to be developers or investors in the stock market. No problem if it all turns banana-shaped and is lost. All they need to do is hike up the taxes for the dumb plebs to cover each and every time, for they are never ever liable for the damage they do.
    It is time to build in responsibility as does happen in the Private Sector. If a worker fails to do their job they are fired. Our problem is, that there is no penalty laid upon the profligacy and misappropriation of taxpayer funds.
    It’s time for all those in the Public Sector who fail to protect the interests of the people they are supposed to represent are held to account and suffer the consequences of their mismanagement.

    Reply

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