UK Politics Thread part II

[Jimbuna]

Everyone will have to pay more tax under plans due to be announced on Thursday, Chancellor Jeremy Hunt says.

Offering a message few ministers would risk saying out loud, Mr Hunt told the BBC: "I've been explicit that taxes are going to go up."

He confirmed he would be giving details about further help for those struggling with energy bills, but warned there had to be constraints on help.

Labour accused the Conservatives of making a "total mess" of the economy.

Shadow chancellor Rachel Reeves said Mr Hunt was choosing to tax working people, while doing "little to close tax loopholes which mean some of the wealthiest don't pay their fair share".
https://www.bbc.co.uk/news/uk-politics-63614124

[Jimbuna]

[Jimbuna]

London loses position as most valuable European stock market

Britain's stock market has lost its position as Europe's most-valued, as the economic downturn weighs on UK companies, data shows.

France has taken the top spot as the combined value of its companies' shares have been boosted by currency movements and demand for French luxury goods.

It is the first time Paris has overtaken London since records began in 2003, according to data from Bloomberg.

The UK is expected to fall into recession this year as inflation rises.

The combined value of British shares is now around $2.821 trillion (£2.3 trillion), while France's are worth around $2.823 trillion, Bloomberg calculates.

Shares in the UK's medium sized companies have been doing particularly badly, as consumers rein in their spending and businesses struggle with higher costs.

London's FTSE 250 share index - which is made up of medium sized companies - has slumped by almost 17% in the last 12 months.

One of the biggest fallers has been pub chain Mitchells and Butlers, which lost over 37% of its share value in the past year. Meanwhile, gambling company 888 has fallen 70% and retailer Marks & Spencer is down 40%.

UK firms have also been hit by a slump in the pound since Liz Truss's mini-budget, which has made it more expensive to import goods and raw materials.

By contrast, currency movements have worked in favour of French companies, Bloomberg said. France's stock market has also been boosted by its luxury goods makers, which have seen a bounce-back in demand from China.

Shares in LVMH, which owns fashion brand Louis Vuitton, have surged 22% in the last six months, while Hermes is up 37%.

Chinese shoppers accounted for around 35% of global demand for luxury goods before the pandemic, according to Bloomberg data.

As in other countries, energy and food prices have soared in the UK this year in part due to the war in Ukraine.

Many British homeowners have also seen a sharp rise in mortgage costs after the mini-Budget drove up UK borrowing costs.

It has added to existing problems in the economy, including a persistently weak pound and weaker trade since Brexit. The UK is the only G7 nation whose economy is still smaller than it was before the pandemic.

Between July and September, the UK economy shrunk by 0.2% and the Bank of England has warned the country faces its longest recession since records began.

Last year Amsterdam ousted London as the largest financial trading centre in Europe, although this was based on the total value of traded shares rather than companies.
https://www.bbc.co.uk/news/business-63623502

[Catfish]

Originally Posted by Jimbuna

Everyone will have to pay more tax under plans due to be announced on Thursday, Chancellor Jeremy Hunt says.
[...]

Not only connected to England: so why higher taxes?
The energy costs are usually passed on to the consumer. Goods prices of any kind rising since a lot of owners ride the wave, ok. All passed on from producers and sellers.
(All products and stuff seem to be related to Ukraine and China. Really?
So why higher taxes?
I know a reason or two, but what is your opinion?

[Skybird]

Originally Posted by Catfish

So why higher taxes?

The politicians have already sunk all the squeaky toys in the bathtub, and the little kids don't have any lollipops left for the politicians to steal from them either, so...

[Catfish]

"John Oliver Roasts the U.K.'s "Very Weird" 10 Days of Mourning for Queen Elizabeth"
And i bet she would have liked it

He even got a call to accept the O.B.E. (Oder of the british Empire)
– "I don't think i want this"
– "Don't answer now. Please say you will not talk to anyone about this"
– "I did. I am telling everyone!"

[Jimbuna]

UK's reputation has taken a knock, admits Rishi Sunak

The UK's reputation has taken "a bit of a knock" this year, Rishi Sunak has admitted, as he vowed to restore economic stability.

The prime minister said tax rises and spending cuts in Thursday's Autumn Statement were needed to reduce rising inflation and UK public debt.

Critics of his approach fear it could worsen a predicted two-year recession.

But Mr Sunak said decisions would be taken in a "fair" way, and everyone would benefit from reduced debt levels.

Speaking to the BBC's political editor Chris Mason at the G20 summit in Indonesia, he added reducing inflation was his "number one challenge".

He added it was important to "limit" mortgage repayments for homeowners, which have risen in the wake of September's mini-budget.

"The best way to do that is to get a grip of our borrowing levels, and have our debt on a sustainable basis falling," he added.

Chancellor Jeremy Hunt, who will unveil the Autumn Statement on Thursday, has warned that everyone will pay more tax under his plans to repair the public finances.

The budget, the government's second financial package in under two months, comes after mostly now-abandoned tax cuts in the mini-budget, outlined by Liz Truss's chancellor Kwasi Kwarteng, sparked financial turmoil.

The Treasury has not confirmed details, but the BBC has been told Mr Hunt is set to announce spending cuts of about £35bn and plans to raise £20bn in tax.

The plans are likely to include freezes to income tax bands, and increases to taxes paid on profits made from selling shares and second homes.

Also under consideration is a plan to allow councils to raise council tax by more than 3% without holding a local vote - something they cannot do at the moment.

Mr Sunak has however hinted that pensions will rise to keep pace with inflation, telling reporters on the way to Bali that pensioners would be "at the forefront of my mind".

Asked whether he would heed calls from Tory MPs to protect school budgets, Mr Sunak said he couldn't comment on specifics ahead of the statement.

But he added: "Even though the situation is difficult [...] we will make those decisions balancing everything we have to.

"People can see that yes, the approach we've taken is fair, yes the approach we've taken is compassionate when considered in the round.

"Taking a step back, the number one challenge we face is inflation," Mr Sunak added.

"It's important that we get a grip of that. It's important we limit the increase in mortgage rates that people are experiencing."
https://www.bbc.co.uk/news/uk-politics-63633657

[Jimbuna]

The latest UK inflation figures show prices have risen 11.1% in the year to October, up from 10.1% the previous month.

Energy bills and the cost of food - especially basics like low-fat milk, pasta and butter - are the main things pushing up the cost of living.

The UK is seeing its highest inflation for 41 years, a figure not seen since October 1981

But prices are rising even faster for the poorest households - by more than 16% for the families who spend the least.

The rising cost of living has been driven partly by energy costs and the Ukraine war but also factors such as the cost of raw materials.

It all comes a day before Chancellor Jeremy Hunt announces tax changes and spending cuts in the Autumn statement, with warnings of a UK recession to come.

[Jimbuna]

The chancellor is announcing tens of billions in tax rises and spending cuts in the Autumn Statement - watch live at the top of the page.

Jeremy Hunt acknowledges the UK is in recession but says his plan will help rebuild the economy and reduce debt.

He announces a freeze in income tax thresholds which will mean millions of people pay more in tax as their wages rise.

Households will also pay more in energy bills from April, with typical bills rising from £2,500 to £3,000 as the government reduces the level of support.

But extra payments are also coming: £900 for those on means-tested benefits, £300 for pensioner households and £150 for those on disability benefits.

The state pension, benefits and tax credits will rise by 10.1%, in line with inflation.

The point at which the highest earners start paying the top rate of tax is being lowered from £150,000 to £125,140

Energy firms are meanwhile hit with an expanded windfall tax of 35%, up from the 25% already levied.

Electric vehicles will no longer be exempt from vehicle excise duty from April 2025

There will be an increase in the National Living Wage from the current level of £9.50 an hour for over-23s to £10.42 from April.

[Jimbuna]

The UK will not pursue any post-Brexit relationship with the EU "that relies on alignment with EU laws", Prime Minister Rishi Sunak has said.

It follows reports that some in government want to move towards a Swiss-style deal, with less trading friction and more migration.

Switzerland can trade easily with the bloc, but must follow some EU rules.

Mr Sunak told business leaders that control of migration was one of the immediate benefits of Brexit.

Speaking at the CBI conference in Birmingham he said: "I voted for Brexit, I believe in Brexit.

"I know that Brexit can deliver, and is already delivering, enormous benefits and opportunities for the country."

He argued that the UK was now able to "have proper control of our borders".

He also said the UK was free to pursue trade deals with "the world's fastest-growing economies".
https://www.bbc.co.uk/news/uk-politics-63700905

[Catfish]

FYI Switzerland has cancelled a european-wide treaty and trade has come virtually to a standstill since six months or so. Postal charges are like 60 Euros for some screws, or a package of tea.
But ... follow that way, why not.

[Jimbuna]

It would appear the BBC might not have researched the facts regarding the current position

[Jimbuna]

I had to read this twice before I believed it.

MPs reject Christmas parties on expenses

Parliament's expenses watchdog is facing a backlash from MPs after it told them they can claim for the cost of an office Christmas party.

The Independent Parliamentary Standards Authority (Ipsa) announced MPs can this year claim for food, decorations and non-alcoholic drinks.

But MPs on all sides have rejected the guidance, with one calling it "bonkers" amid a cost of living crisis.

Ipsa said holding a "modest gathering" for staff was "entirely appropriate".

But a spokesman for Prime Minister Rishi Sunak said he wouldn't be claiming for a party, and that MPs would have to "justify all spending to their constituents".

Labour MPs have been told it would "clearly be inappropriate" for them to claim for Christmas parties at a time of rising living costs.

John Cryer, chair of the parliamentary Labour Party, said he would be writing to Ipsa to ask them to reconsider their guidance.
https://www.bbc.co.uk/news/uk-politics-63714892

[Skybird]

https://www.bbc.com/news/uk-scotland...itics-63727562

Scottish government loses indyref2 court case
(...)
Recent opinion polls have suggested that Scotland is essentially split down the middle on the independence question, but with a very narrow majority in favour of staying in the UK.
(...)

At ease, Scotty! No need for tansporter beams today!

[Jimbuna]

Ms Sturgeon has said she will use the next general election as a "de facto referendum" if the court ruling goes against her, with the SNP fighting the election on the single issue of independence.

Not surprised in the slightest.