How did we get to this?

[AtW]

Well, there will either have to be severe spending cuts or new tax increases (or both) to plug the huge budget black hole.

The fact that Hunt was even hinting at scrapping the triple lock on pensions suggests how dire things are.

Things are actually great - for Hunt.

[_V_]

Scrap all benefits, scrap all pensions, give the money to bankers. The new Tory pledge.

[Snooky]

In simple terms it's like owning a sweet shop, you put half a dozen five year old kids in charge and when you come back the following week, they have eaten the sweets and given away the remainder of sweets to their friends. They emptied the till, and the shop is full of empty sweet wrappers and the loo is filthy. In order to solve the problem, you put another five year old in charge.

Given that the main hits to our economy have been COVID and the energy crisis which affected the whole world, a more appropriate analogy might be that you locked the kids in the sweetshop for a week with no food or drink, and you shouldn't be too surprised to find they've eaten all the sweets when you come back. Of course a different set of kids might have done it slightly differently, perhaps managed to get by just on Curly Wurlys, Monster Munch and Coke, but this has happened in sweetshops all over the world, with all kinds of different kids in charge, and most of those shops are in a pretty crap state at the moment.

[d000hg]

Well, there will either have to be severe spending cuts or new tax increases (or both) to plug the huge budget black hole.

The fact that Hunt was even hinting at scrapping the triple lock on pensions suggests how dire things are.

They've been hinting at that since inflation began to rocket.
THere is talk of spending cuts but I haven't seen talk of further tax increases (so far)? When the government is bailing us out for our energy costs, taxing us more to pay for it isn't really going to raise more income. Is there scope to increase CT further?

[d000hg]

Given that the main hits to our economy have been COVID and the energy crisis which affected the whole world, a more appropriate analogy might be that you locked the kids in the sweetshop for a week with no food or drink, and you shouldn't be too surprised to find they've eaten all the sweets when you come back. Of course a different set of kids might have done it slightly differently, perhaps managed to get by just on Curly Wurlys, Monster Munch and Coke, but this has happened in sweetshops all over the world, with all kinds of different kids in charge, and most of those shops are in a pretty crap state at the moment.

If you'd posted this a month ago you'd be right.

[SueEllen]

In PMQs the PM just said to the leader of the SNP that the triple lock will stay in place.

So expect a U-turn shortly.

She also refused to indicate if she will increase carer's allowance.

[DealorNoDeal]

They've been hinting at that since inflation began to rocket.
THere is talk of spending cuts but I haven't seen talk of further tax increases (so far)? When the government is bailing us out for our energy costs, taxing us more to pay for it isn't really going to raise more income. Is there scope to increase CT further?

Re. scrapping the triple lock. Huge backlash in all the papers this morning, and from many Tory MPs.

Listening to various talking heads on C4 News last night, it's hard to see how Hunt could plug the £30bn (£50bn) hole with spending cuts alone. I've no idea what new tax increases could be on the cards but there's probably going to have to be something.

I guess public sector workers can forget about big pay rises. Many months of strike action to come?

Grim.

[Paddy]

Given that the main hits to our economy have been COVID and the energy crisis which affected the whole world, a more appropriate analogy might be that you locked the kids in the sweetshop for a week with no food or drink, and you shouldn't be too surprised to find they've eaten all the sweets when you come back. Of course a different set of kids might have done it slightly differently, perhaps managed to get by just on Curly Wurlys, Monster Munch and Coke, but this has happened in sweetshops all over the world, with all kinds of different kids in charge, and most of those shops are in a pretty crap state at the moment.

The same has affected all other countries in the EU and the rest of the world. While the other European Countries have recovered from the covid factor, the UK has not. The difference is the UK chose Brexit and not only that a hard Brexit without a deal and a numpty Tory government. You can't find one Tory MP who now admits they supported Brexit. Even Farage has shut-up.

[SueEllen]

I guess public sector workers can forget about big pay rises. Many months of strike action to come?
.

For some like head teachers and nurses.

Others particularly in healthcare and teaching will continue quitting to change job e.g. go and work in Aldi, or to emigrate.

[d000hg]

Re. scrapping the triple lock. Huge backlash in all the papers this morning, and from many Tory MPs.

Listening to various talking heads on C4 News last night, it's hard to see how Hunt could plug the £30bn (£50bn) hole with spending cuts alone. I've no idea what new tax increases could be on the cards but there's probably going to have to be something.

I guess public sector workers can forget about big pay rises. Many months of strike action to come?

Grim.

Liz just confirmed the triple-lock on PMQs as I understand it.
Sometimes there IS no way to plug the gap and the only solution is to borrow, I guess. When there is a genuine extraordinary circumstance (war, pandemic) the markets accept that as essential. The energy price support would be such an example - huge government borrowing that was generally seen as not just unavoidable but beneficial.

But ongoing long-term "we have to borrow as we can't raise enough tax" is likely to be problematic.