No Budget purdah these days. This government does not believe in a parliamentary democracy, it seems.

Kali2

People tend to forget that High Wage economies,

also have High Costs for everything!

What’s the alternative to paying people a living wage continuing with handing out universal credit, keeping the low paid down and in their place?

I do not know- it is VERY complex indeed.

But it is a fact that high wages do not necessarily mean better off- due to inflation partly. If wages in agriculture are high, excpect higher prices to be passed on to customer. Same for all labour in industrial processes, shops, restaurants, services- whatever. When high wages get eaten by higher costs for everything- who wins?

Kali2 I still think it’s better to have the money in your pocket, a decent living wage which you choose how to spend rather than keeping wages low and families relying on benefits, food banks etc.

Inflation is most likely to occur via the private sector if higher wages aren't linked to higher productivity.

I would point out that when the Minimum Wage was introduced there were great murmurings about inflation but it really didn't happen.

And, if there are substantial wage increases in the public sector this isn't going to affect the price of anything because the public sector doesn't produce anything to be sold to the public and make a profit. The benefit of these higher wages is, however, felt by the private sector, which supplies just about everything that people buy, because people have more money available for making purchases.

Mind you, the last only applies if the wage increases aren't wiped out by the promised increases in taxation.

Also only applies if the suspected cuts to, or underfunding of, public sector budgets don't lead to public sector employees losing their jobs.

GrannyGravy13

Kali2 I still think it’s better to have the money in your pocket, a decent living wage which you choose how to spend rather than keeping wages low and families relying on benefits, food banks etc.

I absolutely agree with you, GG13.

MaizieD

GrannyGravy13

Kali2 I still think it’s better to have the money in your pocket, a decent living wage which you choose how to spend rather than keeping wages low and families relying on benefits, food banks etc.

I absolutely agree with you, GG13.

And me

PMQs Johnson has just denied that he has cut the aid budget????

Inflation is most likely to occur via the private sector if higher wages aren't linked to higher productivity.

So true Maizie. It's one reason why I think the reversal to companies claiming would work.

They would have to show why they can't pay wages their workers can live on. Companies would have to reach criteria and show how they will improve their productivity and come off the benefit. Proving eligibility would include showing all the salaries in the company. It may be that simply rebalancing those would mean they could pay the workforce a proper amount instead of poverty wages.

Whitewavemark2

PMQs Johnson has just denied that he has cut the aid budget????

Keir Starmer has tested positive for Covid. I wondered why Ed Miliband was doing PMQs

Yes hope he is OK.

I see that Dido Harding and Test and Trace called NHS Test and trace that cost us £37000000000 has been severely criticised as utterly useless.

Just think of the good that money could have done.

This crossed my mind as well

Joan Bakewell
@JDBakewell
·
6m
Having for years run down every arena of civic life the Tory chancellor is now claiming credit for restoring what they cut. We’re not stupid!

I have also never seen a budget start with any chancellor being given a dressing down by the speaker for poor behaviour.

I think that Sunak has totally misunderstood the mood in the country

“Law unto themselves”. Springs to mind

Next week Cop 26

This week cut the cost of carbon producing air travel.

Dear oh dear.

End of triple lock. Just how mean can one chancellor be. So many pensioners below the poverty line and facing a winter of increasing costs in all areas.

I must say listening to Reeves and the Tory’s response, they seem terribly rattled.

Starve the pensioners to feed the younger generation. Still will be well received in certain quarters, although obviously it is not understood.
www.theguardian.com/commentisfree/2021/sep/07/suspending-pensions-triple-lock-will-hit-young-hard

Kali as I said Germany has a high wage economy but not all prices are high, child care for instance is €40 a month

Yes all that money wasted on track and trace and then they take from the pensioners by taking away the triple lock and from those on UC by removing the 320 increase. But hey ho that’s ok as long as their friends and mates can make some money. Incompetent, self seeking bxxxxxxs.

GrannyGravy13

Kali2 I still think it’s better to have the money in your pocket, a decent living wage which you choose how to spend rather than keeping wages low and families relying on benefits, food banks etc.

Actually, I agree too, But it is important to be aware of the other side. People don't 'choose how to spend' money on heating, decent food, basic stuff. Most people who live on the poverty line do NOT have much choice, actually. So putting wages up that will immediately be swallowed up by inflation on essentials, is not necessarily helpful.

Kali2 so what would you suggest other than putting up peoples wages?

I have already replied that I don't know, and that it is very complex. I am not an economist- all I am saying is that raising wages, and everything rising with them, including essential utilities and food (not choice items) - may not achieve any higher standards.

One of the most important things this and every Government should do, and every party to address- is borrowing. Huge numbers of the poorest families are in serious trouble because of debts to abusive and disgusting lendors, with massive interests charged, and it is a vicious circle.

It could be of some help by taking vat off gas and electricity, also by putting back utilities into state ownership, which could be achieved instead of spending money on wasted projects.. for us as a country to have people relying on food banks is an absolute disgrace.

Barmeyoldbat

It could be of some help by taking vat off gas and electricity, also by putting back utilities into state ownership, which could be achieved instead of spending money on wasted projects.. for us as a country to have people relying on food banks is an absolute disgrace.

I remember that some years ago when fuel prices went up people asked for VAT to be taken off gas and electricity and it might have been reduced to 5% but it was said that it could not be taken down to zero because when we joined the EEC in 1973 and the treaty from then meant that it could not be reduced below 5%.

So now we are not in the EU.

And in around 2008 a petition to The Prime Minister as the system then was to zero rate VAT on veterinary treatment and veterinary medicine for pets then got lots of signatures but the reply was on no because in 1973 etc

So now we are not in the EU.

Yet the VAT remains on both.

And it was also a lie that VAT could not be taken down to zero because of EU rules.

The U.K. had previously won an ECJ ruling that zero was a rate, and therefore was quite within the rules to zero-rate some supplies.

It was never true that the EU prevented a VAT reduction to the supply of energy.

I have never ever known a government lie like this one, and it has gotten so bad that it is impossible to keep up with it all.