We can no longer afford the Tories

Grantanow

Surely the point about interest on the reserves is that it is to ensure an accounting cost for money that might be used otherwise and thereby gain a return. It's the opportunity cost of stashing away reserves to meet contingencies (rather like maintaining military resources that might never be used but are needed in case they are put to use). If Kwarteng abolished the reserves interest he is effectively saying stashing cash carries no opportunity cost which is untrue. But it might on paper get Truss out of the hole she has dug for herself. The better answer of course is for the Tories to get rid of her and Kwarteng and appoint a grown up team.

I completely disagree with you. There is no earthly reason why the BoE should pay interest on the reserves which it creates note. They are nothing to do with money 'stashed away' by the commercial banks, they come directly from the BoE.

As I understand it they are technically deposit accounts with the BoE but the banks haven't deposited anything, the BoE did. Until they are called on to meet an emergency use they are just numbers on an account. I assume though, that the interest goes directly to the banks (have to check that) and are unearned and unjustified profit for them. If accounting demands that interest is paid on reserves then it could be paid at a nominal fixed rate to be unaffected by rises in the base rate. Say 0.01%....

That could reduce the apparent 'debt' by some £30 billion or more...

^ Until they are called on to meet an emergency use..^

I should have made it clearer, I meant emergency use beyond their normal 'clearing' function. Reserves were much smaller before the GFC.

Brownowl564

World wide crisis , higher than the UK fuel prices and inflation in various European countries, IMF admit U.K. will grow after mini budget, no one can ever afford Liebour, every time they ruin the country, bet it’ll be the Tories fault if it snows this winter

Sorry, but that is complete b*llocks.

More like their fault it doesn’t snow (long term failure to take climate change seriously)

MaizieD

Brownowl564

World wide crisis , higher than the UK fuel prices and inflation in various European countries, IMF admit U.K. will grow after mini budget, no one can ever afford Liebour, every time they ruin the country, bet it’ll be the Tories fault if it snows this winter

Sorry, but that is complete b*llocks.

Just to counter with some facts and a correct spelling of Labour, here are some things they have achieved for the country.

the minimum wage
Sure Start
smaller class sizes
huge investment in schools
the shortest hospital waiting lists for 40 years
11 years of uninterrupted economic growth

All achieved by sensible social democratic policies that focused on delivery, not rhetoric.

If it snows this winter it won't be the Tory's fault, but the fact that our heating will cost more certainly will be.

Never forgive Tories for the totally unnecessary Austerity put in by Cameron and Osborne - an excuse for cutting state supported schemes which have had a real detrimental effect on communities across the country.

I do bang on about this a lot but it still makes me angry having seen these dreadful cuts happening to people who relied on services.

NHS waiting list now up to 7 million.

It's no longer just anger that I feel towards these Tories. It's fear. Real fear as we face the bleakest of futures with financial chaos and threats to cut public services (already damaged by years of austerity). Cameron, May, Johnson and now Truss inflict damage on our public services and drive the NHS towards extinction. These Tories fail to recognise (or choose to ignore) the fact that the NHS, a sound education system, decent housing etc are key to a healthy nation - physically and mentally. The coming winter will see unnecessary deaths and will push many into extreme poverty and desperation, with consequences for us all. These are the direst of times and those of us who recognise this must make our voices heard.

Write to your MP and sign petitions. We cannot single handed change things but we can make a difference if many of us take small meaningful steps. MPs do take account of what thier constituents say and it can strengthen them in taking appropriate steps, even if those steps feel to be taken at a risk to themselves. We need MPs of all parties to oppose the current government and this includes Tories - so if you have a Conservative MP and are worried by the current regime - please consider emailing them.

who set up the nhs and welfare system? who has tried to destroy it ever since?

Politics Today

Suggesting Budget may be withdrawn.

Truss is finished.

This

Nicholas Watt

@nicholaswatt
·
43m
A former cabinet minister tells me: “Brace for the mother of all U-Turns on the mini budget today. A friendly person in the know is advising us to steer clear of the media today to avoid the explosion. We wouldn’t want to look silly by tomorrow.”

Personally I can't understand why Brexiteers still defend the decision and Tories still think their party is the best.

Beats rational thinking!! Which (cloud cuckoo) land do these people inhabit?

varian

George Monbiot tells us who controls Truss and Kwarteng and how we got here.

www.youtube.com/watch?v=pofTr1QKiBk

NOT suitable for anyone with a nervous disposition!

George Monbiot is a voice of reason and has been for many years... I agree it's terrifying

RichmondPark1

MaizieD

Brownowl564

World wide crisis , higher than the UK fuel prices and inflation in various European countries, IMF admit U.K. will grow after mini budget, no one can ever afford Liebour, every time they ruin the country, bet it’ll be the Tories fault if it snows this winter

Sorry, but that is complete b*llocks.

Just to counter with some facts and a correct spelling of Labour, here are some things they have achieved for the country.

the minimum wage
Sure Start
smaller class sizes
huge investment in schools
the shortest hospital waiting lists for 40 years
11 years of uninterrupted economic growth

All achieved by sensible social democratic policies that focused on delivery, not rhetoric.

If it snows this winter it won't be the Tory's fault, but the fact that our heating will cost more certainly will be.

Quite right, and they didn't instigate Brexit

?

Wow. The 30 year bond yield - de facto interest rate on government debt - is down to 4.6%, having been over 5% yesterday. Investors are assuming there will be massive u-turn on mini budget tax cuts. Lots of rumours to that effect, but it’s not done.

Robert Peston

Truss is saying no more U turns, does this mean the mini budget is going to be abandoned completely.

That’s not actually a U turn is it

Article in the Conservative Home suggesting that Mordant and Sunak could somehow be appointed, save having to go through another election. Whichever way you look at it, this cannot be allowed to continue. Truss et al have driven the country off a cliff all we can hope for is to somehow cushion the landing.

Nicholas Watt
@nicholaswatt 55m

A former cabinet minister tells me: “Brace for the mother of all U-Turns on the mini budget today. A friendly person in the know is advising us to steer clear of the media today to avoid the explosion. We wouldn’t want to look silly by tomorrow.” #waitandsee

Every single day I hear of something or other, often several things closing down, being forced to close or being refused any small support to keep going.

Most of these thing enrich our lives but it seems we are marching very swiftly towards very basic living and some heating and lighting if we're lucky. Some of us are already there!!

Just visualise the whole swathe of people in this country currently lying or sitting in bed all day to keep warm, sitting covered in as many blankets as they can find, living in one room with a small heater on or wondering how they will find a hot meal to feed their kids.

And its not even winter yet!

If I was to say that I was describing life a third world country you would believe me.

People will complain whoever is in government....

Daisymae

Article in the Conservative Home suggesting that Mordant and Sunak could somehow be appointed, save having to go through another election. Whichever way you look at it, this cannot be allowed to continue. Truss et al have driven the country off a cliff all we can hope for is to somehow cushion the landing.

In theory the rules could be changed by the Tories and a replacement appointed immediately allowing party members to choose is only a courtesy.

If Sunak was to be offered chancellor, would he do it?.

No one has mentioned the £5 million + per day, that it's costing to accommodate asylum seekers in hotels.

We need to live within our means and this is much less since Brexit.

Truss & Kwarteng are not used to predicting and judging outcomes. Training in Historic events merely recognises the reasons given for particular decisions but not what other options could have led to.

No financoally literate people, at home or abroad, seem to back Truss which says a lot.

mayisay

No one has mentioned the £5 million + per day, that it's costing to accommodate asylum seekers in hotels.

Because it’s irrelevant.

?

Officials in Downing Street are working on a U-turn on Liz Truss's tax plans, but no decisions will be made before Chancellor Kwasi Kwarteng gets back from the IMF in Washington