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U.K. Politics: government announce mini-budget with huge tax cuts

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  • Originally posted by RayRay View Post
    My husband is watching the debate and says both are crap...
    Your husband is right!

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    • Originally posted by Artoo View Post

      The way the Tories are going whoever wins will be replaced in twelve months anyway


      Hahaha actually I think Sunak has bigger chances of a stable government and higher chances to do well in general elections, unlike Truss. In general, I think GE will take place sooner than planned.

      I just read that BoJo might serve in Truss's cabinet if she becomes a PM - WTF WTF WTF!

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      • https://www.instagram.com/p/CgfBvQSI7rX/
        OMG
        at her reaction

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        • Liz Truss accused of attempting to erode workers’ rights with plans to raise ballot thresholds for strikes


          Liz Truss has been accused of inflaming divisions and attempting to erode workers’ rights with proposals to raise ballot threshold for industrial action and minimum service levels during strikes.

          The Tory leadership contender said she will introduce legislation targeting “militant action” from trade unions in the first 30 days of taking office if she wins the race to succeed Boris Johnson in No 10.

          The committment comes as members of the Rail, Maritime and Transport union (RMT) at Network Rail and 14 train operators prepare to walk out on Wednesday in an ongoing dispute over jobs, pay and working conditions.

          The Trade Union Congress (TUC) has urged the government and transport secretary, Grant Shapps, to “stop blocking an agreement that will end the dispute” and get around the negotiating table.


          WTF!! we need a general election now..

          https://www.independent.co.uk/news/u...-b2130804.html

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          • Originally posted by greek_boy View Post
            WTF!! we need a general election now..
            T R U S T T R U S S ?
            what's going on?

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            • Trade unions are in for the biggest battering since Mrs Thatcher - it’s really interesting to watch all of this play out, the government are wilfully allowing all of these strikes to happen so that enough public support is stirred up to drive union reform (it’s already started with reform on the Employment Agencies Conduct Regulations and Truss, clearly playing to her base, wants to test the waters by reforming the law on ballot thresholds).

              I think even Labour are being measured in how publicly they support the unions at the moment, as was evidenced with their sacking of a shadow minister yesterday who participated in a strike - Starmer knows to win an election, he needs to appeal to some cross sections of the Conservative party.

              The unions are in for a big shakeup.

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              • British Gas resumes shareholder payout as bills rise

                British Gas owner Centrica has resumed payouts to shareholders as UK households come under pressure from rising energy bills.

                The company said it was paying an interim dividend of 1p per share, after having suspended it for three years.

                It comes as gas prices soar, fuelled by Russia's war in Ukraine.

                UK energy bills are expected to rise again in the coming months, with one consultancy warning they could hit 3,850 a year by January.

                The announcement of a resumption in dividends came as Centrica reported soaring profits for the first half of the year.

                Adjusted operating profit for the six months ending in June rose to 1.34bn from 262m a year earlier.

                Boss Chris O'Shea said that the results came against the backdrop of "the most challenging energy crisis in living memory".

                He added: "We are very aware of the difficult environment many customers are facing and we will continue supporting them."

                https://www.bbc.co.uk/news/business-62330190.amp
                Just look at that, against the backdrop of the worst energy crisis in the history of the U.K. you have one energy supplier that has increased its profits by 411% - increased to such a level that they can return to shareholder dividends for the first time in 3 years.

                Based on the most recent estimates, average U.K. household energy bills are likely to increase by 78% to c3,500 per year - delighted for these energy companies that will be able to benefit from that.

                I really feel genuine sadness for low earners or pensioners - I read on Twitter that one pensioner had said that energy bills are currently over 70% of his pension and by October, this will increase to 100%. That is unsustainable, shocking and an appalling reflection of just how broken we are as a country at the moment.

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                • Originally posted by Wayne View Post

                  Just look at that, against the backdrop of the worst energy crisis in the history of the U.K. you have one energy supplier that has increased its profits by 411% - increased to such a level that they can return to shareholder dividends for the first time in 3 years.

                  Based on the most recent estimates, average U.K. household energy bills are likely to increase by 78% to c3,500 per year - delighted for these energy companies that will be able to benefit from that.

                  I really feel genuine sadness for low earners or pensioners - I read on Twitter that one pensioner had said that energy bills are currently over 70% of his pension and by October, this will increase to 100%. That is unsustainable, shocking and an appalling reflection of just how broken we are as a country at the moment.
                  On paper it’s madness but there’s actually little that could have been done to avoid making so much profit. I know that sounds silly, but most of this will come from their wholesale energy business - not from household bills.

                  Household bills are capped and based on market rates at key intervals during the year. During the fixed cap period, if the wholesale market increases above the cap your bills don’t - and a lot of suppliers have gone bust because they were forced to buy wholesale energy at prices significantly higher than they were allowed to sell it at.

                  Household bills will increase in October but only if you’re not on a fixed rate fixed term contract, and if you have one of those already in place, you might avoid the increase all together if it carries you through winter and beyond April 2023.

                  None of this makes the reported profit correct. I fully support a windfall tax on all energy companies. Green taxes need pausing and the 5% VAT removed, and same on businesses too (which have different and more expensive green taxes and a 20% VAT rate).

                  The UK system is flawed but works well when the wholesale market is stable. It’s the instability that’s killing it and we are far, far, far too reliant of purchasing energy from abroad. The UK has to become energy self sufficient - only then can we control the market rates when the market is crazy.
                  Exsqueeze me!

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                  • Originally posted by Artoo View Post
                    On paper it’s madness but there’s actually little that could have been done to avoid making so much profit. I know that sounds silly, but most of this will come from their wholesale energy business - not from household bills.

                    Household bills are capped and based on market rates at key intervals during the year. During the fixed cap period, if the wholesale market increases above the cap your bills don’t - and a lot of suppliers have gone bust because they were forced to buy wholesale energy at prices significantly higher than they were allowed to sell it at.

                    Household bills will increase in October but only if you’re not on a fixed rate fixed term contract, and if you have one of those already in place, you might avoid the increase all together if it carries you through winter and beyond April 2023.

                    None of this makes the reported profit correct. I fully support a windfall tax on all energy companies. Green taxes need pausing and the 5% VAT removed, and same on businesses too (which have different and more expensive green taxes and a 20% VAT rate).

                    The UK system is flawed but works well when the wholesale market is stable. It’s the instability that’s killing it and we are far, far, far too reliant of purchasing energy from abroad. The UK has to become energy self sufficient - only then can we control the market rates when the market is crazy.
                    I understand how it all works but I find the bolded statement to be curiously worded - are you suggesting that they haven't made the amount of money that the BBC are publicising? (as it is on the Company's financial reports). Or by "correct", do you mean it isn't ethically right? Can't work it out.

                    In any case, when the energy price cap was lower than the wholesale price of gas (and smaller companies went under), British Gas still managed to profit to the tune of 262m - and since the new cap has been in place and households in the UK are suffering beyond measure, that profit has increased exponentially. The fact that they've reinstated shareholder dividends just doesn't play well.

                    It's costing the UK government 9.1 billion to provide support to households via the Energy Bills Support Scheme - at its current rate, British Gas will make 1/3 of that in full year profits! They're delighted.

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                    • Originally posted by Wayne View Post

                      I understand how it all works but I find the bolded statement to be curiously worded - are you suggesting that they haven't made the amount of money that the BBC are publicising? (as it is on the Company's financial reports). Or by "correct", do you mean it isn't ethically right? Can't work it out.

                      In any case, when the energy price cap was lower than the wholesale price of gas (and smaller companies went under), British Gas still managed to profit to the tune of 262m - and since the new cap has been in place and households in the UK are suffering beyond measure, that profit has increased exponentially. The fact that they've reinstated shareholder dividends just doesn't play well.

                      It's costing the UK government 9.1 billion to provide support to households via the Energy Bills Support Scheme - at its current rate, British Gas will make 1/3 of that in full year profits! They're delighted.
                      Ethics - I trust the BBC sources

                      They need taxing and frankly, the new Tory Profit Levy rate of 25% on the industry is insulting. Windfall tax their asses and increase it to at least 50%.
                      Exsqueeze me!

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                      • Predictions that January alone could cost bill-payers 500…

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                        • This made me lol.

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                          • This basically is his nail in the coffin.

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                            • He’s a c**t. Completely out of touch with reality.

                              But on the flip side, will the real Liz Truss please stand up?

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                              • Originally posted by Wayne View Post


                                This basically is his nail in the coffin.
                                In a general election. But who even knows when it comes to Tory Party members.
                                Exsqueeze me!

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                                • I can’t keep up with Sunak and his policy changes - I have never seen a leadership candidate more obviously try to play to the base of their party, than he is trying to do at the moment…



                                  He promised his reforms would "take a tougher approach to university degrees that saddle students with debt, without improving their earning potential".

                                  Mr Sunak attended fee-paying private school Winchester College, before studying Philosophy, Politics and Economics (PPE) at Oxford University.
                                  I think this is a terrible Idea. How does this impact vocational degrees that are centred on culture, or the Arts, or sports - areas that don’t typically command the highest incomes but do typically attract a lot of interest? Or dare I say medicine, or care - we’d end up with no nurses or care workers!

                                  I think it is right to look at why people go to university and to make sure that everyone has the right tools and information to make the correct decision for themselves but coming at it with the lens of earning potential is just crap.

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                                  • does anyone want sunak? really bad if we just get truss by default because she's the lesser of two evils
                                    Last edited by Plym; Thu August 25, 2022, 17:26.
                                    what's going on?

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                                    • Comment


                                      • So, it’s the biggest story in the U.K. at the moment - energy prices are skyrocketing, it is thought that without government intervention, thousands will die this winter and millions will be forced into debt.

                                        Energy bills: Middle-earners will need help with rising prices too, says chancellor



                                        Middle-earners, as well as low earners, are likely to need government help to pay their energy bills this winter, Chancellor Nadhim Zahawi has warned.

                                        The energy regulator hiked the price cap on household bills by 80% on Friday, meaning the average bill will rise to 3,549 a year from October.

                                        Speaking to the Daily Telegraph, Mr Zahawi said even those earning 45,000 a year may need support.

                                        He said the Treasury was exploring "all the options" to help households.

                                        He added that the country was in a "national economic emergency [that] could go on for 18 months, two years".

                                        Both Liz Truss and Rishi Sunak, one of whom will be announced as the next prime minister on 5 September, have pledged further support, though neither has given details.

                                        Environment Secretary George Eustice defended the wait for policy announcements from either candidate, saying it was right that whoever got the top job would "want to look at all of the options, properly costed" when they take office.

                                        "Both candidates have said they will do more - you don't have long to wait," Mr Eustice told BBC Radio Four's Today programme.

                                        "They've both made clear that this will be absolutely at the top of their in tray," he added.

                                        The government has already said that all households will get a 400 rebate on energy bills, with low income and vulnerable households receiving an additional 650.

                                        The rise in the energy price cap - which is the maximum amount that suppliers can charge households per unit of energy - means millions of households will see their annual bills rise from about 1,971 currently.

                                        Typical prepayment meter customers will also see their bills rise to 3,608.

                                        Charities and experts have warned that the rise will have a devastating impact on households and that lives will be at risk without government intervention.

                                        In his interview with the Telegraph, Mr Zahawi said he was also concerned about those who were not on benefits.

                                        "If you are a senior nurse or a senior teacher on 45,000 a year, you're having your energy bills go up by 80% and will probably rise even higher in the new year - it's really hard.

                                        "If you're a pensioner, it's really hard. So Universal Credit is a really effective way of targeting, but I'm looking at what else we can do to make sure we help those who really need the help."

                                        https://www.bbc.co.uk/news/uk-politics-62695778

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                                        • ^Truss has alot on her hands after she takes over. I also read that High Speed 2 project is another touchy issue her govt will have to tackle

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                                          • Prime Minister Boris Johnson has written an article in that right wing tag The Mail about the challenges the next PM will face…

                                            Energy bills: Next PM will tackle eye-watering costs, says Johnson amid criticism

                                            The next prime minister will tackle "eye-watering" energy bills, Boris Johnson has said, amid criticism that he has failed to respond to the crisis.

                                            Writing in the Mail on Sunday, Mr Johnson said his successor would deliver a "huge package" of support.

                                            Charities and experts have called on the government to announce more support as a matter of urgency.

                                            Conservative Party leadership candidate Liz Truss is reported to be considering a 5% cut to VAT.

                                            A report in the Sunday Telegraph suggests she is looking at the move as a "nuclear" option and says it could save the average household 1,300 a year. But a spokesperson for her campaign said it would not be right for her to announce any plans at this stage.

                                            Rishi Sunak's team has dismissed a cut to all VAT as "incredibly regressive", saying it would cost more than 30bn.

                                            Mr Sunak, who is vying with Ms Truss to become the next prime minister, has said he would cut VAT on energy bills and has promised targeted support for the most vulnerable.

                                            On Friday, the energy regulator hiked the price cap on household bills by 80%, meaning the typical household gas and electricity bill will rise to 3,549 a year from October.

                                            Save the Children warned the rise would put young people's health at risks with families unable to afford to heat their homes and money expert Martin Lewis predicted grave consequences without more state help.

                                            "I am begging and praying and pleading that there is more government help this winter so that people do not die," he said.

                                            Energy regulator Ofgem said the next prime minister needed to act urgently and decisively to address surging energy prices.

                                            Ms Truss and Mr Sunak, one of whom will be announced as Mr Johnson's replacement as Conservative party leader on 5 September, have faced repeated questions about what action they would take.

                                            Both have pledged further support but given only limited details so far.

                                            In his Mail on Sunday article, Mr Johnson said the months ahead were going to be "tough, perhaps very tough".

                                            "Our energy bills are going to be eye-watering. For many of us, the cost of heating our homes is already frightening," he wrote.

                                            "Colossal" amounts of taxpayers' money had already been committed to helping people, he added.

                                            All households will get a 400 rebate on energy bills, with low income and vulnerable households receiving an additional 650.

                                            Pensioners will also receive 300 along with their winter fuel payment in November, and people on an eligible disability benefit will receive an additional 150.

                                            "Next month - whoever takes over from me - the government will announce another huge package of financial support," said Mr Johnson.

                                            Pat McFadden, Labour's shadow chief secretary to the Treasury, told Sky News that Mr Johnson's article showed how little he understood the shockwaves sent through households by Ofgem's announcement on Friday.

                                            Labour has said its plan to freeze energy prices this winter - paid in part by a windfall tax on energy companies - would save someone on the minimum wage more than 40 a week.

                                            Lib Dem leader Ed Davey said the energy price cap rise was "nothing short of a catastrophe for millions" and SNP Westminster leader Ian Blackford warned businesses could "go to the wall" over winter.

                                            A Treasury spokesperson said the department was making "necessary preparations" to ensure the next government has options to deliver extra help "as quickly as possible".

                                            In his article, Mr Johnson blamed Russia's war in Ukraine for rising costs, but said with every month "Putin's position grows weaker".

                                            He said the invasion of Ukraine had "spooked" the energy markets, costing British consumers, but insisted Britain would not "buckle" and the West should not go "wobbly".

                                            He also said the government was working to end the UK's dependency on Russian hydrocarbons.

                                            "With every new wind farm we build offshore, with every new nuclear project we approve, we strengthen our strategic position," he said. "We become less vulnerable to the vagaries of the global gas price and less vulnerable to Putin's pressure."

                                            He said the decisions he had made would make for a "bounceback" and predicted a "golden" future for the UK

                                            Writing in the Sunday Express, Ms Truss has warned "the era of complacency is over" as she outlined her plans to bolster Britain's defences if she is made prime minister.

                                            She said she planned a "full renewal" of the UK's nuclear deterrent and repeated her pledge to increase defence spending to 3% of GDP by 2030.

                                            Her rival, Mr Sunak, has said he views the Nato defence spending target of 2% of GDP as a "floor and not a ceiling" and noted that spending is set to rise to 2.5% "over time", but has refused to set "arbitrary" goals.

                                            https://www.bbc.co.uk/news/uk-politics-62703858

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                                            • Interesting from the BBC - and possibly devastating news to millions of people who would most benefit from direct help…

                                              Energy bills: Liz Truss 'rules out' more direct help for all

                                              Liz Truss has "ruled out" further direct support for everyone to help cover the cost of surging energy bills, sources close to her have told the BBC.

                                              Rishi Sunak, who is vying with her to become the next prime minister, has said the government "must provide some direct support to everyone".

                                              But Ms Truss's team said she was not considering further universal support, like the 400 payment that all households will receive this winter.

                                              Reports suggest a VAT cut is an option.

                                              On Friday, energy regulator Ofgem hiked the price cap on household bills by 80%, meaning the typical household gas and electricity bill will rise to 3,549 a year from October.

                                              Save the Children warned the rise could put young people's health at risk, with families unable to afford to heat their homes, and money expert Martin Lewis predicted grave consequences without more state help.

                                              "I am begging and praying and pleading that there is more government help this winter so that people do not die," he said.

                                              Ofgem said the next prime minister would need to act urgently and decisively to address surging energy prices.

                                              Ms Truss and Mr Sunak, one of whom will be announced as Boris Johnson's replacement as Conservative party leader on 5 September, have faced repeated questions about what action they would take.

                                              Ms Truss has so far only confirmed she will cut National Insurance and green levies on bills.

                                              But her team have emphasised she is considering "all possible options" to help people - including further tax cuts and more targeted support for lower income households through the welfare system.

                                              Sources close to her say she would want to move as quickly as possible with an "emergency fiscal event" if she is elected.

                                              It comes as newspaper reports suggest she is "mulling" cuts to VAT and increasing the amount of money people have to earn before they start paying income tax.

                                              A report in the Sunday Telegraph suggests she is looking at a "nuclear" option to cut VAT by 5%, saying it could save the average household 1,300 a year.

                                              https://www.bbc.co.uk/news/uk-politics-62703858

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                                              • Blood on their hands. Shameful. What will take for actual meaningful intervention?!

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                                                • Originally posted by Thriller View Post
                                                  Blood on their hands. Shameful. What will take for actual meaningful intervention?!
                                                  I've had a quick look @ what Truss proposes to offer by way of support and I think this is it (not confirmed yet):

                                                  Support Effect
                                                  5% cut to VAT Will benefit everyone but ultimately those with more money as they inevitably spend more money. The average household saving is expected to be 1,300 per year - but it will cost the government over 30 billion to implement.
                                                  Reversal of the NI hike Will benefit people of working age who pay NI (meaning those who earn less than 12,570 per year won't get any benefit at all) but will benefit higher earners more in terms of money back:
                                                  • 10,000 salary - 5 better off each year.
                                                  • 20,000 salary- 130 better off each year.
                                                  • 30,000 salary - 255 better off each year.
                                                  • 40,000 salary- 380 better off each year.
                                                  • 50,000 salary- 505 better off each year.
                                                  Suspending green levy payments These are worth around 150 per year on the average energy bill meaning that the average person will likely be around 150 better off - this will impact everyone the same but clearly walks back climate change commitments.

                                                  She's big on tax cuts - meaning that low earners, pensioners and those in receipt of state support (such as carers, working parents or disabled people) will not benefit too much from what she's proposing. Rishi Sunak however has promised more direct and targeted support via the framework that has already been established, at a cost of 10 billion to the government. It's going to be such a difficult year for so many millions of people unless the Prime Minister (whoever that might be) gets this absolutely right.

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                                                  • So, after almost 2 months of voting (mostly by old, white men), we will find out today who our new PM is! We will find out at 12:30 and the hot favourite is Liz Truss.

                                                    The new PM will officially take office tomorrow, after the Queen deals with Boris Johnson and appoints the new PM at Balmoral, Then on Tuesday, the new PM will address the nation before attending their first PMQs in Parliament on Wednesday. We will then eventually find out who is in the new PMs cabinet.

                                                    It should be noted that Boris Johnson leaves office as the most disgraced and incompetent PM in the history of the U.K. - however, he could see some competition for that dubious title from the new PM.

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