Kwazi DOOM

[AtW]

“Inside Kwasi Kwarteng's battle to find £60bn of cuts

IFS claims the Chancellor will need to make severe cuts to stabilise Britain's debt

Slashing benefits, a multi-billion pound blow to public services or abandoning tax cuts: it is a grim menu of options being put on the Chancellor’s desk ahead of his Halloween fiscal plan. Rather than merely trimming the fat off the state, Kwasi Kwarteng will need to take an axe to budgets to make his sums add up after outlining £43bn of tax cuts, according to the Institute for Fiscal Studies (IFS).

The think tank believes the Chancellor will need to find £62bn to stabilise Britain’s debt pile – a hole bigger than the current military budget and more than a third of health and social care spending.

Paul Johnson, director of the IFS, says: “Spending cuts of this scale would be extraordinarily hard to achieve. Partly hard because clearly we have had 12 years of very tight spending control, so there is not a lot of fat to cut.

“It seems entirely implausible we can cut spending on the NHS, given the state that is in. That is the biggest spending area.”

https://www.telegraph.co.uk/business...ind-60bn-cuts/

Yeah, that will be politically easy to do

So much for rolling over 45% - should have held the line

[DealorNoDeal]

I can't remember now, can someone remind me, how was Truss originally intending to pay for tax cuts?

Was it: borrow the money, and only start paying it back when the economy takes off?

[ladymuck]

I can't remember now, can someone remind me, how was Truss originally intending to pay for tax cuts?

Was it: borrow the money, and only start paying it back when the economy takes off?

Pretty much.

[WTFH]

I can't remember now, can someone remind me, how was Truss originally intending to pay for tax cuts?

Was it: borrow the money, and only start paying it back when the economy takes off?

I think you've added the second part. From memory it was more like "borrow the money or else the economy will suffer", no plans to pay it back as prime ministers come and go, they can kick the problem down the road until they can find a way to blame another government from the past.

[mogga71]

I think you've added the second part. From memory it was more like "borrow the money or else the economy will suffer", no plans to pay it back as prime ministers come and go, they can kick the problem down the road until they can find a way to blame another government from the past.

LOL ... There is no serious intention by any country to pay back their debt. Its impossible to pay it back without QE .... the numbers are absolutely insane. Every country will be back on the money printers within a year.

Todays news about giving the Pension Managers just 3 days to sort out matters is massive news ... for the entire world. This could cause the entire house of cards to fall. The BOE will back down ... they will go way beyond 3 days. QE or major crisis ... they will choose QE again and kick the can down the road.

[DealorNoDeal]

I think you've added the second part. From memory it was more like "borrow the money or else the economy will suffer", no plans to pay it back as prime ministers come and go, they can kick the problem down the road until they can find a way to blame another government from the past.

Which is always possible but at a price. If you are perceived as feckless then expect sub-prime interest rates.

[SueEllen]

OBR has reported.


https://twitter.com/roastbeefjohnny/...7Ctwgr%5Etweet

[SueEllen]

Apparently we are having no spending cuts. Truss has just said in PMQs.

https://twitter.com/tnewtondunn/stat...7Ctwgr%5Etweet


There'll be no spending cuts, Liz Truss declares to #PMQs. That's it then - she's going to abandon her mini-budget tax cuts. That, or the markets crash spectacularly on Friday.

[DoctorStrangelove]

Buddy, can you spare a dime?

Doomed etc.

Never mind. Putin's Global Thermonuclear War will take our minds off it all.

[_V_]

I think the Tories are going for the scorched earth approach now, completely asset strip all public money into private hands (friends and family), crash the economy, hand over to the IMF bailout and declare a GE ready for Labour to sweep into a completely hollowed out and dead economic prospect.