How did we get to this?

[DealorNoDeal]

That's what my wife asked me last night, and I didn't have an answer.

Back in the summer, there was no talk of public spending cuts or tax increases.

Now, even after ditching Khazi's mini budget and massively scaling back the energy price freeze, we're looking at big spending cuts and/or tax hikes.

There's a £30bn hole in the budget, and commentators are saying the Chancellor may need come up with £50bn on Halloween to convince the markets that the Govt are taking it seriously.

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The next couple of years ain't looking good. Is it just me, or does it feel like it could be worse than post-2008?

[d000hg]

That's what my wife asked me last night, and I didn't have an answer.

Back in the summer, there was no talk of public spending cuts or tax increases.

Wasn't the NI increase planned ages ago, and the CT increase has been on the cards for a bit?

[tazdevil]

Bring back Boris and forget the last few months never happened I think there's a concerted effort by various factions to undermine the UK and they're succeeding

[DealorNoDeal]

Wasn't the NI increase planned ages ago, and the CT increase has been on the cards for a bit?

OK perhaps I should have said no further/new tax increases, and certainly there was no hint of swingeing spending cuts.

[jamesbrown]

How far back do you want to go?

[AtW]

Main income tax band needs to go up by 5% at least - should raise 70-80 bln, plus VAT to 25% - do it 1% per annum to make it easier, sorted.

[d000hg]

OK perhaps I should have said no further/new tax increases, and certainly there was no hint of swingeing spending cuts.

Have there been any further/new tax increases? So far the NI rise has been scrapped, SDLT has been cut and everything else is as it was?
Are you predicting there will be increases in tax? Labour would surely increase the highest tax rate to 50% but I'm not sure what else there is they can increase realistically.

Spending cuts I'll agree does seem to have popped out of nowhere. How much of that is due to the pounding the economy took in the last couple of weeks - all their planned borrowing just got a lot more expensive for instance - and how much was always lurking waiting to be discovered?

[DealorNoDeal]

How far back do you want to go?

Maybe I'm being unduly gloomy but I'm expecting some nasty surprises for Halloween. And certainly no treats.

[Paddy]

That's what my wife asked me last night, and I didn't have an answer.

Back in the summer, there was no talk of public spending cuts or tax increases.

Now, even after ditching Khazi's mini budget and massively scaling back the energy price freeze, we're looking at big spending cuts and/or tax hikes.

There's a £30bn hole in the budget, and commentators are saying the Chancellor may need come up with £50bn on Halloween to convince the markets that the Govt are taking it seriously.

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The next couple of years ain't looking good. Is it just me, or does it feel like it could be worse than post-2008?

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.

[DealorNoDeal]

Have there been any further/new tax increases? So far the NI rise has been scrapped, SDLT has been cut and everything else is as it was?
Are you predicting there will be increases in tax? Labour would surely increase the highest tax rate to 50% but I'm not sure what else there is they can increase realistically.

Spending cuts I'll agree does seem to have popped out of nowhere. How much of that is due to the pounding the economy took in the last couple of weeks - all their planned borrowing just got a lot more expensive for instance - and how much was always lurking waiting to be discovered?

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.