The Uk economy

The biggest economic disaster this country has ever witnessed and people are still in denial.

I suspect people are in denial because they haven’t had a small business built on trading within the EU which failed because of increased costs. Or noticed successful businesses which have moved their HQs to the EU, with resultant job losses, in order to carry on trading. Or the costs of sending presents to friends /relatives in the EU because of increased customs charges. Or the fact that the fishing industry is struggling. And farmers because of the loss of EU subsidies they depended on to make a living. That’s just a fraction of it…

Of course, there was the expense of building new facilities to deal with increased checks and paperwork requirements at our ports. The diversion of civil servants from their proper roles in order to prepare scenarios and strategies for various shades of Brexit which meant we were completely unprepared for the covid pandemic. Trade deals which give more advantage to the other country than to the UK..

It’s all drip, drip drip, adversely affecting our economy but the (erroneous, I must admit) boiled frog analogy comes to mind.

So Cambridge econometrics don’t know what they’re talking about? And what happened to all the amazing trade deals we were going to have straight away? The farmers have been shafted by trade deals we’ve done with NZ and Australia I believe (?).

I think you’re wrong keepingquiet on blaming our economic woes entirely on Brexit .
The Covid pandemic took its toll on the economy, as did the disastrous short reign of Liz Truss and now Reeves’ Budget is making it nose dive.

Whitewavemark2

A slow down in the housing market might mean a freeze on price rises or even a drop.

That would be good news for my grandson!

And my granddaughter!

Couldn’t we rejoin the customs union? It was mentioned on TRIP’s but I don’t understand economics at all. I’m sure that vote leave said we’d be staying in the customs union?

'Economists and analysts at Cambridge Econometrics found that, by 2035, the UK is anticipated to have three million fewer jobs, 32% lower investment, 5% lower exports and 16% lower imports, than it would have had been. The report states that the UK will be £311bn worse off by 2035 due to leaving EU.'

This is why we are up the economic creek without a paddle. We're all in for a bumpy ride folks!

MayBee70

keepingquiet

We have to face up to the disaster of brexit. Lots of brexiteers said they didn't mind the economy going downhill as long as we had sovereignty back. So, suck it up folks.

Still the elephant in the room

Yep, we're all ignoring it as if it never happened. What a complete shambles.

Oreo

keepingquiet

We have to face up to the disaster of brexit. Lots of brexiteers said they didn't mind the economy going downhill as long as we had sovereignty back. So, suck it up folks.

It’s nothing to do with Brexit ….are you on the wrong thread?

No, not the wrong thread. Of course this has something to do with brexit, what was the point of voting for it if it was to have zero impact?

We were told about the economic impact but everyone shu their eyes and hoped for the best.

The biggest economic disaster this country has ever witnessed and people are still in denial.

^ Increasing growth will produce extra revenue in the medium and long term but it must now be clear it’s going to be tough in the short term.^

Aah, a believer in the magic growth tree.

How is there going to be any chance of growth in the economy when there is less and less money available for people to spend?

You’re right in one respect, though. The Bank of England is doing even more to destroy our economy than is Reeves by keeping interest rates high.

Allira

keepingquiet

We have to face up to the disaster of brexit. Lots of brexiteers said they didn't mind the economy going downhill as long as we had sovereignty back. So, suck it up folks.

Are you saying this latest trend is as a result of Brexit which was 5 years ago?

So why haven't things got better as promised?

The vote was actually almost 7 years ago, but we didn't officially leave until almost five years ago that's correct.

Are you saying brexit had no impact, either positively or negatively?

In which case, we should have stayed in?

Probably the biggest disappointment is the interest rates not coming down, it looks that they will stay high at best, might even rise again. Increasing growth will produce extra revenue in the medium and long term but it must now be clear it’s going to be tough in the short term.

keepingquiet

We have to face up to the disaster of brexit. Lots of brexiteers said they didn't mind the economy going downhill as long as we had sovereignty back. So, suck it up folks.

Still the elephant in the room

Rachel from Accounts is off to China, presumably to really avoid tricky questions about the declining state of the economy.
This is the same tactic that Boris used when he was faced with demands for an explanation, re awkward situations of his own making. Going junketing off to far away places, on the premise off drumming up business and hoping that the domestic problem will be gone (or forgotten) by the time they get back........

MaizieD

What does your son think is 'not good', Sago?

The confidence in the UK economy for business and consumer is low.

keepingquiet

We have to face up to the disaster of brexit. Lots of brexiteers said they didn't mind the economy going downhill as long as we had sovereignty back. So, suck it up folks.

It’s nothing to do with Brexit ….are you on the wrong thread?

keepingquiet

We have to face up to the disaster of brexit. Lots of brexiteers said they didn't mind the economy going downhill as long as we had sovereignty back. So, suck it up folks.

Are you saying this latest trend is as a result of Brexit which was 5 years ago?

We have to face up to the disaster of brexit. Lots of brexiteers said they didn't mind the economy going downhill as long as we had sovereignty back. So, suck it up folks.

David49

Much the same story with the Euro, after the Christmas/new year break, it’s the speculators testing the market, there doesn’t need to be any logic.
Their only aim is to make money short selling, we will see what happens Monday, Starmers feud with Musk does not help one bit.

It takes two to tango and so far I haven't noticed Starmer taking to the dance floor.

TerriBull

Reeves is off to China to presumably negotiate us taking even more of their rubbish goods in exchange for them taking a fraction of ours, which they can then copy before selling them back to us Meanwhile back here, its all going swimmingly, pounds falling in value against the dollar and the euro, businesses are cutting back on hiring and will have to hike their prices, once prices rise there will be demands for pay rises to keep pace, inflation will be up, there's still a dire shortage of housing, that most people can't afford, gas supplies are concerningly low. Other than that it's all good and we can sleep safely now the adults are in the room and determined to grow the economy.

😂Had to laugh tho your summary seems pretty bang on to me.
I cannot believe that things are so bad in just six months of a new Labour government.Gobsmacked doesn’t cover it.

What does your son think is 'not good', Sago?

Son works for a merchant bank in the City, it’s not good.

House prices are already falling and have been for the past year. There are a few areas bucking the trend, but overall prices are falling.

The reason houses are not selling is not affordability, it is economic uncertainity. The number of people who would like to move is as buoyant as ever, but most are just delaying it until thigs are more certain. We are downsizing and will not need a mortgage, but if we cannot find a buyer, we cannot become buyers, cash buyer or no cash buyer.

A slow down in the housing market might mean a freeze on price rises or even a drop.

That would be good news for my grandson!

Interest rates are a pain for those on modest wages, further up the price range it’s buying chains, you just don’t know if it will break. New build will often take your present house in part exchange, that’s a big plus, removing all the uncertainty of a chain.

With the economy in the balance very uncertain times, sensible buyers will be cautious, sellers sit tight. Cash buyers may find a bargain that has to be sold.

David49

Housing Associations will buy some, availability of mortgages will regulate prices and interest rates will regulate the price buyers can afford. If the new houses don’t sell builders stop work.

Wait until April before assessing the housing market.

Possibly, but the old house hunting patterns have changed. Rightmove normally has its busiest day on Boxing day, and one agent in the town we are looking at released 6 houses onto RightMove late on Christmas day, ready for all those dreamers and new year new house people Only 1 was new to the market, the other 6 were all price reductions. When I spoke to my estate agent she said, Boxing day this year was a damp squib with viewing numbers well down on average.

Certainly in that town developers have stopped building and are reducing prices. Rising interest rates and new rules saying rented houses have to be upgraded to reach minimum insulation standards, among other things, are putting pressure on Housing Associations and the extent that they can borrow for new building.

My DD is hoping to move house in early March, a sale made this time last year. She has been asking removal men for quotes for moving her to her new home and is amazed how low they are compared with the quotes she was getting this time last year, they are also trying to under cut each other, by asking her to contact them if any one quotes lwoer than them. Not a hopeful sign for the housing market.