£18bn cuts to public services

I agree rosie1959 as much as I do not agree with this form of conservatism I do not want to see them making mistake after mistake as it will only cause harm to the U.K.

MaizieD

Oldbat1

HS2 is a total waste of money and should never have been started. The environmental damage is unforgivable for what realistic benefit? The nhs and education are far more important.

At least it's keeping some people in work, Oldbat1. This is not, IMO, a good time to be throwing them into the benefits system... Especially if the DWP is going to have an at least 10% real terms cut in funding....

I will declare an interest in this one. One of my family is working on HS2. It's not just in the planning stage.

It's keeping many highly skilled people in work.

Casdon

It certainly won’t benefit the Labour Party either rosie1959, it will make the task of rebuilding the services much harder than it’s already going to be when they get into power - every cut now makes the task ahead a higher mountain.

I was talking more in terms of Labour's popularity.
Surely it would be better for the country if the present government succeed in their aims to reboot the economy
Your post picks up my point of when Labour get into government it could well be quite a while yet

It certainly won’t benefit the Labour Party either rosie1959, it will make the task of rebuilding the services much harder than it’s already going to be when they get into power - every cut now makes the task ahead a higher mountain.

I really don't want them to keep making mistakes who will this benefit ?
It will benefit the Labour Party but they are not in government now and it is likely to be a while before the next election

According to the news, the back benchers and apparently Penny Mourdant are calling for a rise in benefits.

I do not think all is well and cosy in the Conservative ranks, Ms.Truss would never have been my choice.

And the reason governments use bonds for expenditure is because usually unlike revenue income,mit is controlled by the government. So they know what they need/want to spend and raise the appropriate amount, which may or may not be greater than the revenue take over a period of time.

Just in the middle of getting dressed and it occurs to me really government borrowing is just like anyone applying for a mortgage or for a project.

You have to be able to convince the bank that you are a long term safe bet and that they will get their money back.

You have to disclose details of income and how you are going to earn it.

The same for guilts.

PS they are called guilts because they are usually seen as a safe bet in which to invest.

Do you ever think we're living in a parallel universe? This government just goes from bad to worse. Three weeks in and they've done a Boris style U-turn already! Granted it's the right thing to do, but it doesn't look good for Truss and her merry band. Keep making mistakes Liz! That's fine by me

I think that this last week has been a good lesson in how government raises income for expenditure.

Most of government expenditure is raised through the issue of guilts - government bonds - which in turn becomes government debt.

So say a pension fund will buy a bond from the government, which the government promises to repay at a later date plus interest. So in effect the government has borrowed money from the pension fund.

So that is one of the reasons this past week for the huge kerfuffle because the interest that will be added to these bonds
has risen a lot, and Kwartang has not shown how he thinks the government will be able to repay this debt.

That is where normally the OBR steps in to reassure (or not) the markets that the bonds are secure and the government can repay.

Tax is another income stream and usually used to repay the debt.

But it isn’t necessary for government expenditure.

There is also QE.

But I’ll let maizie explain?. Just going out with the dog.

Truss has indicated that benefits will be cut.

There was a very interesting edition this morning of The Bottom Line with Evan Davis, well worth a listen. I wonder if the Chancellor of the Exchequer listened to it, he might learn something.

Our treasured NHS and vital public services must not be allowed to pay the price for Liz Truss and Kwasi Kwarteng's disastrous budget.

Conservative MPs must do their patriotic duty and vote down these unfunded tax cuts for big business and banks.

twitter.com/LibDems/status/1576887545488515072?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet

You're on!!

volver

So please, in words of one syllable for the economically illiterate like me...

*Why do we pay tax?*

I have to go out now. I'll tell you later.

Whitewavemark2

I honestly think that given the choice most people would prefer to pay more tax and get good public services, like NHS, social care, well funded education etc.

Yes I think a lot of people would see the sense in that.

So please, in words of one syllable for the economically illiterate like me...

Why do we pay tax?

MaizieD

Whitewavemark2

I honestly think that given the choice most people would prefer to pay more tax and get good public services, like NHS, social care, well funded education etc.

Taxation doesn't fund spending!!!

Government spending has to come first, and it is the only thing that's going to get us out of this mess.

How are people supposed to pay more tax if they don't have the money to pay it with?

Austerity is going to kill the country's economy.

I know!!!

But that is how it is sold and that is the choice in most people’s heads

At least it's keeping some people in work, Oldbat1. This is not, IMO, a good time to be throwing them into the benefits system...

Perhaps all those working on the construction of HS2 could build us a few hospitals instead. Win/win.

Whitewavemark2

I honestly think that given the choice most people would prefer to pay more tax and get good public services, like NHS, social care, well funded education etc.

Taxation doesn't fund spending!!!

Government spending has to come first, and it is the only thing that's going to get us out of this mess.

How are people supposed to pay more tax if they don't have the money to pay it with?

Austerity is going to kill the country's economy.

I honestly think that given the choice most people would prefer to pay more tax and get good public services, like NHS, social care, well funded education etc.

That is their intention though, they have never wanted the NHS , now they will find an excuse to sell it off to some of their dodgy pals.

WW2 so true! Personally I don’t want the 1p tax cut on basic rate. I think it will make little difference to most people’s incomes, and the money would be better used in funding the NHS. I think many people would willingly pay more tax in order to fund the NHS. Without it we would all have to buy private health insurance so would be far worse off.

This is what a small state looks like we are gradually working our way towards it.

The big thing will be the sell off of the NHS - there isn’t much else left.

Small state, low regulation, low tax, individual responsibility (so sort yourself out if you run into unlucky times) it isn’t the state responsibility to provide any form of safety net.

Tell your Tory MP he needs to tell Brady to change the rules to get rid of the Truss liability.