National News Cost of Living Crisis

[RyanioBirdio]

My concern is that the problem is being viewed in reverse; the bottom up rather than the top down (or even the middle up and down).

In some ways it is right that business owners have an obligation to help alleviate some of the troubles that staff bear. You spend much of your adult life in work so they do (whether they like it or not) carry a lot of responsibility to assist in their duty to improve working conditions and lifestyles through the balance of work against time off.

I would agree with this. I respect your decision to protect your staff and take some hits but I’m not somebody who thinks you have an absolute obligation to, if that makes sense. At least not as a permanent and ongoing solution. I don’t think the answer should exclusively be that people such as you should just carry the can and take chunks out of your own leg in lieu of any sort of plan from the people paid to run the country, and I think you’re right that not many people are looking top down.

The governments role to not impose *something* on the cost of energy is destructive and dare I say, calculated. My sense is that this is a bit kamikaze and could spike tax receivables in the shorter-term but in the medium-term kill any future monies.

I have been of the opinion for some time that we are essentially being stealth taxed by high energy prices, particularly at the petrol pumps. I think the economy is so utterly screwed that without the enormous price rises, coupled with the huge percentage of each penny at the pump that goes to the government in tax and duties, that the economic picture would look far worse than it already does. I think we’re being squeezed at least in part to cover up Project Here (formerly Project Fear) and to make a badly broken leg look more like a twisted ankle, because if people start cottoning on that at least part (not all, but absolutely some) of the extent of our problems are self-inflicted and have come from grave mismanagement at best, and downright lies and borderline treasonous sabotage at worst, that the regime is in massive danger of getting found out. I think we’re coming towards the inevitable endgame. It has to come crashing down eventually because it was never built to last. Robberies are only designed to provide windows of opportunity.

That’s purely my opinion - I’m sure plenty of people will think otherwise. But I’m firmly of the belief that if you look at something carefully enough with earplugs in, so that you can’t hear what anybody is trying to tell you that thing is, that you tend to merely see what’s in front of you at face value. The government is doing absolutely nothing and at this stage it’s obviously intentional rather than incompetent. Whatever the precise reason for that is.

 

[Carpy]

At a simplistic macro economic level any given economy at any given time will generate a fixed cumulative profit shared across those businesses. If, all of a sudden, a small cabal of businesses are able to grab a disproportionately large share of that profit it means many other businesses will become loss making, which is exactly where we are heading. Only government intervention to rebalanced the share out of profit (ie windfall tax used to keep all entities energy prices at a reasonable level) can resolve the issue.

I think one thing this situation has shown that, albeit based on your previous disclosures on this forum, politically, we're not aligned, when it comes to the current situation, I couldn't agree more, inflation is out of control mostly because of two very specific resources, and those in control of those resources are making obscene amounts, and not because they have a fantastic business model, but they're benefitting from events outside of their control. The government are sleeping on the job.

 

[MarkG]

I think as someone else has said. We can’t windfall tax Saudi Aramco. They are reaping the benefits as an oil producer and international wholesale seller rather than uk retail seller.

 

[QR]

I think as someone else has said. We can’t windfall tax Saudi Aramco. They are reaping the benefits as an oil producer and international wholesale seller rather than uk retail seller.

I don't think anyone has claimed there are easy answers out there but there are certainly some crap ones and not apply a windfall tax to those companies we can is one of them.

 

[MarkG]

I don't think anyone has claimed there are easy answers out there but there are certainly some crap ones and not apply a windfall tax to those companies we can is one of them.

And how do you propose taxing a Saudi company ?

 

[QR]

And how do you propose taxing a Saudi company ?

I'm not. You're not going to put right decades of selling off oil rights and utilities etc in one move. This country is being sliced up for the rich and powerful ('Freeports' (sic) will be the next thing) and it's sad so many people can't see it or simply don't care.

I don't think anyone has claimed there are easy answers out there but there are certainly some crap ones and not apply a windfall tax to those companies we can is one of them.

 

[Marked Ox]

And how do you propose taxing a Saudi company ?

Are you talking about their fields in the North Sea assuming they have any? If so we already have the mechanisms in place to tax production of gas and oil.

 

[QR]

OK, we're there! Being hungry is being sold as a virtue.

https://twitter.com/x/status/1559583549522599939

 

[Marked Ox]

Jacob Rees-Mogg says government should no longer ‘deliver certain functions’ as Brexit prize

Not that this is a surprise but it is out in the open, and begs the question, why was BlunderTruss so keen to distance herself from parts of Britannia Unchained when her allies are putting this out (and obviously with her knowledge imo)? The Tory members may yet regret voting for Truss if the services they rely on disappear.

 

[Essexyellows]

OK, we're there! Bring hungry is being sold as a virtue.

https://twitter.com/x/status/1559583549522599939

Whilst it is far more complex, with an increasingly obese population it won`t go amiss.

Patterns and trends in excess weight among adults in England - UK Health Security Agency

The official blog of the UK Health Security Agency, providing expert insight on the organisation's work and all aspects of health security

ukhsa.blog.gov.uk

 

[QR]

Whilst it is far more complex, with an increasingly obese population it won`t go amiss.


View attachment 9887

Patterns and trends in excess weight among adults in England - UK Health Security Agency

The official blog of the UK Health Security Agency, providing expert insight on the organisation's work and all aspects of health security

ukhsa.blog.gov.uk

How are you going to ensure only the obese starve then Dr Goerbbels?

 

[Essexyellows]

How are you going to ensure only the obese starve then Dr Goerbbels?

Across the broad spectrum of society, it will flatten out that rapidly growing line.
And it's not "starvation" to the point of death it's missing a meal or feeling hungry, something a lot of people will not have experienced in recent times as we rely on "everything" being on the shelf all the time.

That is both dangerous, damages the planet, and creates food waste which really boils my urine.

I`m more concerned, on a societal level, about the flagrant disregard shown by governments ( not just ours) and supply chains about food security.

Although if looters come for my courgettes they can have them.

 

[Peterdev]

Suggestions that interest rates may rise to 7% or more with inflation at 18%.
Getting fed up with these daily changing forecasts.
Everyone knows that rising fuel costs will hurt.
Hospitality will suffer big time if we get a cold winter with many closures.
Lets hope for a warmish winter to get through difficult times ahead.

 

[MC Yellow]

Suggestions that interest rates may rise to 7% or more with inflation at 18%.
Getting fed up with these daily changing forecasts.
Everyone knows that rising fuel costs will hurt.
Hospitality will suffer big time if we get a cold winter with many closures.
Lets hope for a warmish winter to get through difficult times ahead.

Difficult trying to read through the probable outcomes and the hysteria.

But yes, the constant changing of daily forecasts pretty much shows that no one really knows where it is heading other than we know it will hurt many people to some degree.

Someone (an economist on here maybe?) needs to explain to me why putting interest rates up as high as 7% is going to resolve the issue of fuel costs?, which are driving inflation.

If they are worried that people are spending too much money on just “stuff” (which I very much doubt) then fuel costs hitting £6k p/a will see to it that people have less to spend without hammering them on mortgage interest payments too.

 

[Peterdev]

Difficult trying to read through the probable outcomes and the hysteria.

But yes, the constant changing of daily forecasts pretty much shows that no one really knows where it is heading other than we know it will hurt many people to some degree.

Someone (an economist on here maybe?) needs to explain to me why putting interest rates up as high as 7% is going to resolve the issue of fuel costs?, which are driving inflation.

If they are worried that people are spending too much money on just “stuff” (which I very much doubt) then fuel costs hitting £6k p/a will see to it that people have less to spend without hammering them on mortgage interest payments too.

Increasing interest rates is seen as a monetary tool to reduce demand in the economy. Thatcher was an advocate for it with her advisers like Milton Friedman claiming some success for its use. The disadvantages are that it will cause unemployment almost certainly as it creates a disincentive for business to invest.
In the current environment with the USA increasing interest rates to maintain parity of currencies we have to increase ours simultaneously too. We also have to protect sterling from depreciation according to many experts.
The problem with rising interest rates is also seen to be increasing government debt which incurs rising rates.
There is a tendency for rates to rise across the world, and unfortunately that will result in a recession….the alternative seems to be merely to delay the inevitability of recession or depression

 

[Essexyellows]

Still struggling with this "£5k + energy bill news" so read a bit of ML website.

The energy price cap is misnamed – there's no cap on how much you pay.
If you use more energy, you'll pay more. (think we all know that - so use less or the same and you won`t hit the summit)
The cap is on the standing charges and the unit rates for gas and electricity. (units and SC have gone up since they were invented)
Yet the cap is usually quoted as an annual figure, based on a typical amount of energy use. (To make it scary)

Just wait till Christmas when all your plastic shite from China is still stuck in a box in Felixstowe............... happy days.

 

[CCYellow]

Still struggling with this "£5k + energy bill news" so read a bit of ML website.

The energy price cap is misnamed – there's no cap on how much you pay.
If you use more energy, you'll pay more. (think we all know that - so use less or the same and you won`t hit the summit)
The cap is on the standing charges and the unit rates for gas and electricity. (units and SC have gone up since they were invented)
Yet the cap is usually quoted as an annual figure, based on a typical amount of energy use. (To make it scary)

Just wait till Christmas when all your plastic shite from China is still stuck in a box in Felixstowe............... happy days.

You really are struggling to understand it.

The rest of us will struggle paying 20% of our salary on the electric.

If the cap goes to 5k, companies will then set their standing charge to be worth 4k, and the unit price set to work out at 1k for most households.
Weird that, I thought energy prices went up, but the companies are shafting us on the standing charge, not the actual electric.

Definitely no profiteering here.

 

[tonyw]

Someone (an economist on here maybe?) needs to explain to me why putting interest rates up as high as 7% is going to resolve the issue of fuel costs?, which are driving inflation.

If they are worried that people are spending too much money on just “stuff” (which I very much doubt) then fuel costs hitting £6k p/a will see to it that people have less to spend without hammering them on mortgage interest payments too.

Certainly not an economist, although I have studied a bit of economics.....

....enough to know that putting up interest rates on its own won't solve the inflation problem.

Rising prices can come from a reduction in supply or increase in demand. Interest rates are a tool to suppress the latter - because it makes it harder for individuals to borrow and/or individuals who have previously borrowed are going to be spending a greater proportion of their disposable income servicing their debt.

But the problem is that the current crisis is mostly caused by supply-side problems - and not just the Ukraine war, but also the knock-on effects of the Covid shutdown, particularly in China. And actually if you go overboard on raising interest rates, you risk tanking the economy and exacerbating that supply shock.

Plenty of economists would argue that rather than viewing interest rates as a catch-all solution for inflation, we'd be better off accepting that prices are going to be high until the supply side issues are resolved one way or another, and in the meantime spend more resources on social programs to help individual citizens get through it and redistribute more wealth away from big corporations to the less well off in society (e.g. improved child care, increased minimum wage, windfall taxes etc. etc.)

 

[Essexyellows]

You really are struggling to understand it.

The rest of us will struggle paying 20% of our salary on the electric.

If the cap goes to 5k, companies will then set their standing charge to be worth 4k, and the unit price set to work out at 1k for most households.
Weird that, I thought energy prices went up, but the companies are shafting us on the standing charge, not the actual electric.

Definitely no profiteering here.

If we consume 100 units at £1 a unit the bill is £100.
If we consume 100 units at £2 a unit the bill is £200.
Similar to the standing charge there are still only 365 days in the year.

How is anyone going to hit £4-5,000 in energy consumption/charges? That's the thick part of £100 a week!

According to this https://www.smartenergygb.org/smart...rice-cap-and-will-it-affect-your-energy-bills

It only applies to a "default tariff" (from above) "For example, if your tariff runs out and you don’t select a new one or switch supplier, you’ll be put on a default tariff."

Maybe we have been to proactive by committing to a new 2 year tariff deal starting 1st September?

 

[Osei Yaw]

If we consume 100 units at £1 a unit the bill is £100.
If we consume 100 units at £2 a unit the bill is £200.
Similar to the standing charge there are still only 365 days in the year.

How is anyone going to hit £4-5,000 in energy consumption/charges? That's the thick part of £100 a week!

According to this https://www.smartenergygb.org/smart...rice-cap-and-will-it-affect-your-energy-bills

It only applies to a "default tariff" (from above) "For example, if your tariff runs out and you don’t select a new one or switch supplier, you’ll be put on a default tariff."

Maybe we have been to proactive by committing to a new 2 year tariff deal starting 1st September?

Is your new 2 year tariff with your existing supplier, by chance?

I have always switched supplier at the end of fixed deals to ensure we're always paying the lowest rate possible. When our current one came up for renewal last year there was nothing that could beat the default tariff we had moved onto with our current supplier. Now, my current supplier isn't offering any fixed tariffs for existing customers, nor can I save money by switching to any other supplier.

So no, being proactive won't help everyone, unfortunately.