Trussonomics

[BeBMan]

Chancellor Kwasi Kwarteng has unveiled the biggest package of tax cuts in 50 years, as he hailed a "new era" for the UK economy.

Income tax and the stamp duty on home purchases will be cut and planned rises in business taxes have been scrapped.

Mr Kwarteng said a major change of direction was needed to kick start economic growth.

But Labour said it would not solve the cost-of-living crisis and was a "plan to reward the already wealthy".

It comes as the Bank of England warns the UK may already be in recession.

The pound sank to a fresh 37-year low against the dollar as the chancellor gave his statement.

In a departure from Boris Johnson's economic policies, Mr Kwarteng has scrapped plans to push up taxes to pay for public services, with the aim of boosting economic growth.

In a Commons statement, being dubbed a mini-budget, he said high tax rates "damage Britain's competitiveness", reducing the incentive to work and for businesses to invest.

He announced that the basic rate of income tax would be reduced by one percentage point to 19% in April - one year earlier than planned.

He also unveiled a cut to the top rate of income tax from 45% to 40%, meaning the UK will have a single higher rate from April.

Other measures include:

• The threshold people in England and Northern Ireland start paying stamp duty on home purchases will rise to £250,000
• For first-time buyers the threshold will rise to £425,000 and the value of the property they can claim relief will increase from £500,000 to £625,000
• Planned increases in the duty rates for beer, cider, wine and spirits will be axed
• The cap on bankers' bonuses will be lifted
• New investment zones, where business will benefit from tax cuts and planning rules will be relaxed to encourage house building, will be established

(...)

full: https://www.bbc.com/news/uk-politics-63005302

This seems to be like the 80ies Reagan/Thatcher approach...good idea? Any hard opinions on that?

[N35t0r]

The NHS is still waiting for the promised £350 million a week. Any day now.

[Dauphin]

It's one, other, or both: i) A brazen attempt to boost the economy before calling a hail Mary feel good election (after which the inevitable bust is of no consequenc for five years) or ii) a smash and grab for the wealthy donors and powers behind Truss because they know the next election is probably lost so take what they can now.

[Dauphin]

My dad now finally understands why I left the UK, and why I made that decision on June 24, 2016. Economic consequences and political inevitablility are coming home to roost. He always thought I was overreacting.

[Dauphin]

https://www.lemonde.fr/idees/article...0366_3232.html

Son discours libéral semble déconnecté du marasme économique et social dans lequel se débat le pays. Il est à espérer qu’elle sorte de ce « grand écart » entre idéologie libérale et réalités.

Translates to: The [neo?]liberal discussions appear disconnected from the country's economic and social slump. Hopefully this "great gap" between liberal ideology and reality will be closed.

[BeBMan]

I often find it cringeworthy when German politicians get on the intl stage and want to make big statements. Many of them are bad at communications, with some notable exceptions.

Otoh in Britain in recent years I see lots of people which are rhetorically fit, but often rely on buzzwords and slogans, and end up sounding like salesmen/-women. Boris was a prime example with his endless "fantastic", wether there was any substance behind stuff or not.

As for the economic approach - I thought conservatives in the UK would be more the small state/reduce debt folks (while conservatives on the continent are often rather etatist/statist), but this new drive to get rid of taxes looks like it would trigger an epic borrowing spree.

[Dauphin]

As for the economic approach - I thought conservatives in the UK would be more the small state/reduce debt folks (while conservatives on the continent are often rather etatist/statist), but this new drive to get rid of taxes looks like it would trigger an epic borrowing spree.

The current Conservative government is not Conservative. I don't know what to call them. Neo-Liberal doesn't quite fit. They want to peel back all regulations, all taxes, all social protections, remove limts on bonuses for the highest paid, privatise any remaining social programs etc all in self-interest. They don't care about the deficit or debt, because that's the next lots problem - and spending cuts will have to ensue hitting the poorest and most vulnerable who need it - while they make out like bandits hawking over things like a newly privatised NHS.

Truss was not the favoured choice of the MPs (which was Sunak, and he was tackle inflation - reduce debt Conservative). Sunak was not the favoured choice of the Tory grass roots membership because he wasn't white, and Truss was won by offering a narrow electorate of 80,000 (representing 0.2% of the full electorate) things that would enrich them to the detriment of the other 99.8%.

[PLATO]

Welcome to the Tea Party UK. Next step is a UK MAGA movement.....or would that be MUKGA movement?

Good Luck!

[ricketyclik]

I don't know what to call them.

Feudalists?

[Dauphin]

Plato - only luck I need is for my pension pot to retain some semblance of value. I've extracted all my other assets and gladly not living there anymore.

[BeBMan]

I like the name Sunak because it sounds like he's from Vulcan

[PLATO]

He just wants everyone to live long and prosper.

[Dauphin]

I like Rishi Sunak because is name is an anagram of "Hi Risk Anus" whereas Liz Truss is an angram of over-promoted.

[Egbert]

I get the very distinct idea that Truss and Kwarteng think borrowing to finance tax cuts for the rich is a really good idea.

This will not end well.

The United Kingdom needs Guy Fawkes, Wat Tyler and Simon de Montfort all at once now.

[pchang]

Maybe now, all those rich Englishman living in Monaco will come back.

[Dauphin]

Asian markets are telling Truss she's ****ed up. lol

[BeBMan]

At least natural gas is down too

Scholz even brought some back from Quatar (ok, planned for Dec).

Maybe he can find some time to support Ukraine better in between...

[pchang]

The SPD has long ties with Russia. Do the SPD really want to support Ukraine? Do the German people really want to support Ukraine?

[PLATO]

Germans have never really liked Russians. Their "friendship" with them was based on societal guilt imho. If there was a campaign to remind people how the Russians raped and murdered their way across Germany in WWII, I bet that guilt would vanish pretty quickly.

[BeBMan]

The SPD has long ties with Russia. Do the SPD really want to support Ukraine? Do the German people really want to support Ukraine?

The reluctance in the SPD is IMO more down to general pacifism, less because they like what Putin is doing. Sure, there's Schroeder, which is now basically a Gazprom lobbyist, but otherwise the reaction to the war is generally negative towards Putin. I read the SPD these days mostly as being concerned about that pacifist part of their party, their voters, and a similar part in the wider German public. Part of their reluctance it is also German Angst.

However, overall support for Ukraine in the public is still strong. Also, while I think they are way too reluctant, the Scholz led-gov *does* support Ukraine with heavy weapons. I mean short of the HIMARS system the PzH 2000 is probably the most effective arty system in Ukraine, esp. since they approved to send specific longer range ammo a while ago.

The numbers are overall rather low for a country of the size and economy of Germany IMO. There's more down the pipeline agreed already, like modern air defences which should be delivered before the end of the year.

The big question mark I do still have currently if the SPD has realized that this kind of support needs to be sustained, and probably increased for quite some time.

[PLATO]

PzH 2000 is probably best system, but the Excalibur round fired from the M777 is probably more accurate. Do you know if the Excalibur round is compatible with the PzH 2000? I bet it is...and if it is, then that is probably the closest thing Ukraine has to a Paladin...which is devastating when used properly.

[ricketyclik]

Excalibur? I'm no military expert, but even I know one should never bring a sword to a gunfight.