Rishi Sunak priorities

[Furby]

Inflation is down to 8% so not yet half but is down. Can't say I noticed except the bus fare only being 2 pound single.

Rishi priority list
1 halve inflation - from 10%
2 grow economy
3 reduce debt
4 cut hospital waiting lists
5 stop migrant boats
6 Ukraine

[Furby]

One of the ideas to help number 4 cut waiting lists is to use the NHS app designed for covid tests and if its dangeous to be near infected peoples etc for a new purpose. People will have to use the app to choose their preferred choice of waiting list instead of being put on the one in their own area. I can't see it helps the overall lists because in very worst areas might drop as people choose just plain bad areas but those lists in just plain areas will increase. So I suppose it depends on how the counting is done.

[Furby]

Jeremy hunt who is the current chancellor of exchequer in uk is now saying that halving inflation by the end of the year will be more challenging than previously thought (by them). So preparing the people for that target being missed. Once the QE money tree business stopped was always going to return economy to previous inflation and interest rate wars that few people left working in banks remember. Governements are built on being stupidly optimistic so less of a surprise they are surprised but it is a surprise that banks seem surprised. Maybe they stopped teaching interest rates in economics class.

I am not sure why Jeremy hunt is chancellor. Liz truss had got herself in a pretty pickle and after getting rid of kwasi had to choose someone else but Jeremy hunt didn't seem very high up on any bodies guess list. Maybe he was the only one to agree to take on the job. Then rishi kept him to not bother changing again.

[eccles]

Jeremy Hunt is in the news again, telling retailers to cut prices now inflation has gone down to 7.9%. While the reduction is welcome it is still well into positive territory and prices are therefore still rising, just a bit more slowly. You can't cut prices when your costs are still rising; all you can do is not raise your prices as often. One would think that was obvious to someone who is in charge of the country's finances.

He is also telling supermarkets that their labeling should be clearer so that people can work out the best prices. I'm sure all the supermarkets will do their utmost to show how bad the prices are on their most profitable lines.

[Furby]

The supermarket bad labeling is actual marketing policy isnt it? People have been paid large sums to think up these wheezes that confuse people into buying and spending more so are unlikely to stop just because Jeremy says so.

[eccles]

Exactly. Promoting cheap loss-leaders with clear labeling might please Mr Hunt but the shareholders might have a different opinion when their investments go bust.

[OurCreature]

Dishy Rishi might have another priority this morning - put the best gloss he can on the by election results. Labour won in Selby and Ainsty, the Liberal Democrats won in Somerton and Frome, while the Conservatives held Uxbridge and South Ruislip.

Rumour has it that the proposed expansion of ULEZ swayed many voters in Uxbridge and South Ruislip, so I should think Sir Keir Starmer isn't too pleased with Sadiq Khan right now. It might demonstrate, however, that as soon as money and possible additional taxation rear their heads a lot of taxpayers start thinking that perhaps the Conservatives aren't so bad after all.

The other point is that turnout was less than 50% of the electorate in each by election. That suggests to me that many Conservative voters stayed at home. In Selby the Labour vote increased by 2,600 on the reduced turnout there, while in Somerton and Frome the Liberal Democrat vote increased by 4,170 on their reduced turnout; however, the winners' actual vote in both constituencies was way short of the winning Conservative vote in the last general election. I think that in 2 constituencies the electorate gave the Conservatives a boot up the backside to show them they need to pull their socks up; while in Uxbridge the locals decided that money, or the potential loss of it, talks.

I am not sure I would take much comfort from these results if I were sitting on the Labour front bench though they will trumpet otherwise.

[Furby]

How does it help outer London having a conservative mp anyway they had one already and he was the prime minister and still the climate change car tax zone wasn't stopped. MPs aren't actually in power and those who are (whoever this is its not at all clear who really is) all share the same views on issues so what is the point voting.

Clean air in cities is a genuine problem but if vehicles can't move the people will die of starvation before they die of pollution so its a tricky problem. Many issues are in conflict with other issues. Manchester's clean air zone is paused at great expense but councils are cracking on with 20mph and bits of cycle lanes and campaigns for people to walk or cycle meanwhile everywhere people need to go gets further away banks post offices shops closing etc. More than a mile or two at a push and transport is needed to get there. People travel more because they have to and driving 20 miles pollutes more air than 2 miles.

[Furby]

Interest rates are up to 5.25 in the quest to bring down inflation. The previous 13 rate rises haven't helped inflation so fingers crossed for this 14th try.

[OurCreature]

Am I too old to be so cynical?

[Furby]

To help with inflation they are thinking of messing with the triple lock on pensions. I knew this would happen as I approach pension age.

I can't see it's a good plan though because poorest pensioners if they get less pension will just get more pension credit and housing benefits as 10k isn't enough to live on. Better off pensioners will just be paying more tax anyway if private pension is more than 2k and tipping people just above thresholds to claim everything going and also need to pay tax on savings will help government finance. Just in different pots.

Pensioners needing to pay tax on self-assessment due to savings and dividends is a brewing problem started by that not nice George Osborne and waiting for this day when interest rates rise. I still can't pass security to do it all myself or get on the phones so probably be getting a fine next year. There's a grey area in people earning between 1k and 10k. Over 10k is compulsory self assessment under 1k is tax free but between 1k and 10k only option seems to be phone call which they never answer. The website says don't need self assessment for under 10k but the tax won't take it irself will it.

Rishi isn't doing that well on priorities and inflation is his best hope really. Economy hasn't grown and with rates rising debt will rise and the boats and NHS seem a lost cause whatever is done. Still can't believe rishi agreed to those priorities maybe it's a bigger plan to make sure he isn't dealing with things post election who would want that job.

[Wildrover]

The state pension in the UK is as screwed up as the rest of its public institutions. The current generation's pension is paid for by the next generation's taxes which is insane especially with an aging population. In pretty much all of the rest of Europe pensions are funded by large mandatory contributions from employer and employee. In Germany for example both employer and employee contribute 9.3% of earnings into their pension and the resulting 18.6% total contribution funds decent pensions. It also means that those that contribute most get most back from the system which is a lot fairer than the UK flat rate where you can contribute hundreds of thousands and get the same pension as those that have contributed nothing. France is similar to Germany except the contributions are split 60/40 between employer and employee.

In the UK the mandatory employer contribution is a pitiful 3% in the private sector which is a joke compared with the 15-30% contribution the taxpayer is forced to shell out to pay for the pensions of NHS staff, teachers, police, civil servants, etc. The public sector pension liability is now larger than the UK's GDP which is frankly ridiculous. In my opinion the whole system needs binning and to be remodelled along the same lines as the European schemes - make employers and employees pay a reasonable amount and harmonise the public and private sector contributions and benefits.

[OurCreature]

I agree with your entire post WR. Right from the beginning of the proposals for the national pension scheme I knew it was all a sham because of the low total minimum contribution rate - 8% of salary/wages in total - designed not to provide a happy and comfortable retirement but to reduce the charge on the public exchequer through not paying as much to poor pensioners in benefits. IIRC one person trying to sell this as a national panacea, although it was outside her ministerial brief, was Ruth Kelly (Labour) and on account of what I thought was her sheer dishonesty I thought she deserved at least some of the eggs that were thrown at her, though this one had nothing to do with pensions.

My friend in Switzerland receives his state pension plus his pension from his former employer. I think his state pension has an increase every year, but his work pension doesn't. That is not so bad in Switzerland where they know how to run their country properly with low inflation and a relatively low public debt, but wouldn't be so good in the UK.

[Furby]

What to do to fix pensions now it's all started is a problem because other things allowing could work in 30 years time if people are forced to save up enough. The economy would tank though look how bad it is after lockdown forcing people to give up luxury leisure if people save large percentage of income that would be normality. But what to do with people retiring in next 30 years.

Housing is also a time bomb people currently retired have mostly got homes either as bought them or were able to get affordable council homes back when they were available to people without a very restrictive list of neediness needs. When the generation who rent retire they will need housing benefits and rents are more than entire state pension these days. Homes just for pensioners have long gone we had a nice estate and the council said have to put the most needy in any available homes even if a pensioners bungalow pensioners arent very needy and its now crime hotspot.

[Furby]

Inflation is down to 6.7% so rishi is on the way to halving it down to only 6 which is still three times the banks targets and twice what I get off on my pension until I really retire.

1. halve inflation
2. Grow economy
3. Reduce debt
4. Cut hospital waiting lists
5. Stop migrant boats

[Wildrover]

The 6.7% comment reminded me of this investment from NS&I that I transferred some of my savings into last week https://www.nsandi.com/products/guaranteed-growth-bonds . It's not quite 6.7% but for a guaranteed investment in a bank that can't go bust I think it is very attractive.

[Furby]

I saw them but it's all online and their security is too onerous to get access. Nsi is a good investment for anyone that can win the fight through security.

[Furby]

Rishi had also added
6. Ukraine
Now there is
7. Next zero lite and the commons speaker is cross again

[Furby]

Rishi has added 5 a levels including English and maths to age 18 to his wish list. Can't see that being popular and it's too old really if people haven't learnt english and maths by 15 are unlikely to learn by 18 either its at the early ages they need to teach them.

Also need to do more lessons on interest rates and gas bills and useful stuff rather than algebra and trigonometry. I like algebra but most children didn't and really you don't ever use in adult life unless were lucky to get into a career uskng it and the kids who haven't learn enough maths by 15 won't be doing those careers.

It was tough enough doing three a levels so I can't taking 5 is going to be helpful.

[Wildrover]

Also need to do more lessons on interest rates and gas bills and useful stuff rather than algebra and trigonometry.

Oh how I agree with this. And I'd add:
How to get a mortgage
What savings are, ISAs, why pensions are important, insurance
What to do if water starts leaking through your ceiling/electricity supply stops/central heating stops/etc.
How to bring up a child
What to do list for when you move to a new area - doctors, dentists, utilities, voting, etc.
Living on a budget

The list is potentially endless but I'm sure an hour a week on useful life skills would make a big difference to most kids.