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Post by Zany on Nov 2, 2024 14:04:36 GMT
If you look at the OBR report and charts the budget has decided to fund those public services as much by increased borrowing as increased tax. And we can't keep living on the never never. Especially as gilt yields went up as a result. By 2029 reeves wants to spend 1/6 more than she's getting in. Bonkers. And then she's decided to tax and burden into oblivion so many employers merely for daring to give people jobs, wages and a meaningful life. And on top of that she's decided to tax into oblivion so many GP surgeries and Hospices. www.bbc.co.uk/news/articles/cgl409gww1go Not sure I agree on Doctors surgeries. The average income of a Doctor is £105,000 a year, why should they be exempt when the average earnings of a self employed person last year was less than £25,000 Agreed on the rest. Tax should be progressive and fairly distributed on ability to pay. Why whenever we talk of taxing the rich we only ever touch capital gains. Give me a land tax any day if you want to tax the rich. |
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Steve
Hero Protagonist
Posts: 3,633
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Post by Steve on Nov 2, 2024 15:48:27 GMT
I'll remind you what you actually posted Overall they haven't. When you posted most headlines said Mortgages may rise. Only GB News claimed they actually had. I'll leave it there. Well I won't as it's blatantly untrue for you to say that. Just one more example from the day BEFORE my post. www.forbes.com/uk/advisor/mortgages/2024/10/31/mortgage-updates/
'Virgin Money has increased the cost of selected residential and buy-to-let fixed rates by up to 0.15 percentage points.
The move comes before next week’s Bank of England decision on interest rates (due 7 November), and follows a number of other lenders who have pushed rates up in recent days, including Halifax and TSB (see stories below).
Virgin has increased selected two and five-year fixed rates for home purchase, including deals under the Own New scheme, for the purchase of new build properties. It has also raised rates on selected two and five-year remortgage deals for borrowers with at least 25% equity in their property (75% LTV). |
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Post by brownlow on Nov 9, 2024 16:28:53 GMT
So to all those that told us that the government could borrow more and all would be fine please explain how following yesterday's 'borrow more' budget the £ has fallen, the stock markets have fallen, government bond yields (ie interest rates)have risen and so have mortgage rates.
If the govt increases net spending, expect upward fluctuations in bond yields and base rate (which are related but different things). Not hyperinflation and 'mortgage misery'. The additional spending will go into private pockets, provide overdue hip replacements, fix roads etc. Average fixed mortgages rates are up about 0.04% ..pfft. Marginal trade-offs, winners and losers as ever, after an arguably over-cautious budget. It's the long term rut of low growth, low wages and low interest rates that has made housing unaffordable, and needs rebalancing. That will not be painless and last week's budget barely scratches the surface. Bond yields will remain high while the BoE is doing a ton of QT. Yields were already rising here and elsewhere - particularly US treasuries (which others tend to follow) - mainly due to the prospect of a Trump presidency and huge trade tariffs.
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Contrary to the r/w press narrative, the bond market is not a vengeful god guiding profligate govts to the path of fiscal rectitude. Bond traders are just speculators trying to make money from bets on what central banks are likely to do. They don't really, and couldn't possibly, fund govt spending. Tying net govt spending to a market mechanism, and that one in particular, is a political choice. The central bank can always impose a price floor on bonds (as some MPC members have lately advocated, but were outvoted), and the govt could instruct it to do so. The govt doesn't really need to issue treasury bonds at all, and should, by now, have delegated issuance the central bank. |
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Steve
Hero Protagonist
Posts: 3,633
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Post by Steve on Nov 9, 2024 19:00:31 GMT
Actually the bond market players are institutions like pension funds looking for low risk investments to balance portfolios
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Post by vinny on Nov 26, 2024 6:45:00 GMT
If you look at the OBR report and charts the budget has decided to fund those public services as much by increased borrowing as increased tax. And we can't keep living on the never never. Especially as gilt yields went up as a result. By 2029 reeves wants to spend 1/6 more than she's getting in. Bonkers. And then she's decided to tax and burden into oblivion so many employers merely for daring to give people jobs, wages and a meaningful life. And on top of that she's decided to tax into oblivion so many GP surgeries and Hospices. www.bbc.co.uk/news/articles/cgl409gww1go Not sure I agree on Doctors surgeries. The average income of a Doctor is £105,000 a year, why should they be exempt when the average earnings of a self employed person last year was less than £25,000 Agreed on the rest. Tax should be progressive and fairly distributed on ability to pay. Why whenever we talk of taxing the rich we only ever touch capital gains. Give me a land tax any day if you want to tax the rich. If your wage comes from the taxpayer, you are not one yourself, no matter how much the government takes back from you. You are a tax repayer. Take public sector workers out of tax, pay them the same as they would have got after tax but without the extra paperwork of paying someone to process tax repayments. |
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