Starmer admits he’s frustrated by his first year in power.

There has definitely been a wall of silence around Gilts rising…

Anyone would think that was very dodgy?

Because it isn’t the same thing. Reeves isn’t using debt to pay for tax cuts as Truss tried to do and Trump is doing. She is using it to pay for public spending. The alternative is tax rises or cuts to public spending. If you care to look you would see that stocks have fallen all across Europe not just the UK. France’s 30-year government bond yields hit their highest levels in more than 16 years on Tuesday.

Whatever the reason PaynesGrey if the IMF have to bail us out surely that’s bad?

Caleo

Allira

GrannyGravy13

I am a fan of educational trips, whether they are museums, galleries, concerts, shows or even one I took part in to the Thames Tidal Barrier.

Me too.

It's surprising what they remember even if they spend time chatting, giggling and nudging one another!

Yes, but compared with a hands-on experience sort of school trip , looking at embroidered pictures needs a particularly talented interpretation and delivery from the teacher before can mean anything about man's past.

It is not a cost effective way to deliver education.

A trip to Bayeux would almost inevitably include the D-Day landing beaches. Plenty to learn in the museums and cemeteries and most seem interested and respectful. They are frequently at William's birthplace and castle too.

FriedGreenTomatoes2

Whatever the reason PaynesGrey if the IMF have to bail us out surely that’s bad?

Will there be any money left after they help France. €3.3 billion and counting 😱
These facts fascinate me.
To demonstrate how big the French debt is:
1 billion seconds = 32 years
1 trillion seconds = 31,700. years.

Today the UK economy is struggling from lack of growth, over-taxation and apparently the increasing reluctance of the bond market to lend the government the large sums it wishes to borrow.

The Autumn Budget better be good.

Everyone is frustrated and probably angry as hell after the October budget.

Yes, definitely Mamie, and the Airborne Museum at Sainte-Mère-Église.
DGS, aged 9, was fascinated reading the diaries, and with dressing up in WW2 parachutist uniform.

A few days visiting Normandy is worth just as much, and more, than a week in the classroom. It's up to the teacher/grandparent to extract every last ounce of learning and make it fun. As someone said earlier, that's what the children will remember for life.

Sorry, FriedGreenTomatoes to derail your thread a bit, but you did put it in Chat this time!

I enjoy all contributions escaped. Hence CHAT.
Plus less “links please?” 😁

FriedGreenTomatoes2

Today the UK economy is struggling from lack of growth, over-taxation and apparently the increasing reluctance of the bond market to lend the government the large sums it wishes to borrow.

The Autumn Budget better be good.

We're having a bit of a spending spree before then.
All necessary updates and maintenance on the house, nothing frivolous although I might buy some new winter clothes and boots!

Of course, Ms Reeves might reduce VAT after we've done that

MaizieD

escaped

Give him a break folks, it's his birthday today. Though I doubt he feels much like celebrating!

I’m afraid that if someone sets out determined to be a PM and turns out to be so bloody bad at it, they don’t deserve any breaks.

Oh come on, all together now:

Happy birthday to you
Happy birthday to you
Happy birthday dear Keir
Happy birthday to you!

🎈🎁🥂🥧

Allira

FriedGreenTomatoes2

Today the UK economy is struggling from lack of growth, over-taxation and apparently the increasing reluctance of the bond market to lend the government the large sums it wishes to borrow.

The Autumn Budget better be good.

We're having a bit of a spending spree before then.
All necessary updates and maintenance on the house, nothing frivolous although I might buy some new winter clothes and boots!

Of course, Ms Reeves might reduce VAT after we've done that

Well, that will be good, Allira because your spending will contribute to increased GDP. You're fortunate to have the spare money to spend.

Sadly a great many people are only just managing or are living below the bread line and I don't think Reeves will do anything to help them.

MaizieD

Allira

FriedGreenTomatoes2

Today the UK economy is struggling from lack of growth, over-taxation and apparently the increasing reluctance of the bond market to lend the government the large sums it wishes to borrow.

The Autumn Budget better be good.

We're having a bit of a spending spree before then.
All necessary updates and maintenance on the house, nothing frivolous although I might buy some new winter clothes and boots!

Of course, Ms Reeves might reduce VAT after we've done that

Well, that will be good, Allira because your spending will contribute to increased GDP. You're fortunate to have the spare money to spend.

Sadly a great many people are only just managing or are living below the bread line and I don't think Reeves will do anything to help them.

You're fortunate to have the spare money to spend.
Yes, we fortunate after a lifetime of both working hard, even though I mhad to give up early due to ill health, to have a little bit put on one side but allowing the house to go to rack and ruin wouldn't be a good idea so the money should be well-spent. DH is keen on planned maintenance. Besides which, we have not been on a holiday, apart from one weekend away, since 2019.

FriedGreenTomatoes2

So are we.

I suppose many are. Frustrating innit?

GrannyGravy13

There has definitely been a wall of silence around Gilts rising…

Whose 'wall of silence?'. It's on the BBC news and in the FT.

It's not the interest on gilts that has gone up, it's the 'yield', which is different. The government won't have to pay any extra interest on bonds currently in existence, just the interest rate they sold them with. So its costs won't be any more than usual unless the Treasury issues more gilts at a higher interest rate. Which, frankly, it would be very stupid to do.

The 'yield' is calculated on the bond prices on the secondary market. A £100 bond sold for £100 with a 4% interest rate will have a yield of £4 in interest, i.e 4%. If the bond sells at a lower price on the secondary market, say for £90, then the £4 interest received will represent a (slightly) higher return on your £90 than it would have done had you bought the bond at full price, £100. This will be a higher percentage of £90 than it would have been of £100.

It's taken me a long time to get my head round this.

The alarmist stories are being told because it is assumed that the government must get revenue from bond sales or tax. The third and obvious option isn't considered.

If there is no option but to issue more bonds the theory is that they must offer a higher interest rate on them to make them attractive to investors. That's where an increase in the cost of 'borrowing' would come from.

If the government needs more money it can 'borrow' directly from its own bank, the Bank of England. It doesn't have to 'borrow' via bonds and gilts.

BTW one of the reasons that bond prices are low on the secondary market is that the Bank of England, for some completely unfathomable reason, has been selling off the bonds that it b'ought' for QE. They've been flooding the market a bit. It was that, incidentally, that did for Liz Truss. Not her budget plans.

Thanks for the explanation MaizieD my TV/Radio consumption has been rather child centric the last six weeks.

Attention on sterling has come quickly after the holiday Starmer has got to get control of the economy and his own MPs, or any hope of growth goes out of the window. The general opinion is that he needs to find £35 billion quickly, the real issue is do the finance markets believe he will stick to any plan after so many U turns.

I bet he is by what he inherited. It will take more than 12 months to repair the damage done by 14 years of government by the Tories.

Starmer stated he would do everything " at a pace".
He over promised and under delivered big time.

Correction: Sir Starmer became leader in 2020 - not 14 years ago.

FGT 100% I ME AGREE
People voted ( not me ) for this lot now reap what you sow

Elegran

I'm not surprised he is frustrated. He does a lot of research, consults a lot of people, works out what will give a long-term effect (and isnt a quick fix or unaffordable), then puts it up for discussion - and is blasted by people who see only their own corner of the problem and think that a different political party will improve their life with a magic wand.

Wow! He is crippling the country, treating us like the residents of North Korea, and that is your response. There is not one qualified person on the front bench, none of whom have a clue.

Starmer has caused more damage in 14 months than the Tories did in 14 years. OMG you must like living in a Gulag