An unsurprising but nonetheless shocking 98 per cent of British people believe that Rachel Reeves is performing badly as chancellor according to a Daily Express poll. We don’t know the sample size or the demographics and it is the Daily Express which consistently pushes agendas of their choosing but that said: she is doing an appalling bad job. It is blatantly obvious. She consistently blames the Tory inheritance but that does not wash anymore.
Her tax changes and agreed wage rises (including minimum wage) without productivity agreements have currently pushed up inflation to 3.8% when the target is 2%. This means savings diminishing in value and less disposable income for those on fixed incomes i.e. pensioners.
More: Why Keir Starmer Is Not the Prime Minister the UK Needs Right Now
She wants to ensure that people have more money in their pockets and live better but is achieving the exact opposite.
More taxes to come including a possible mansion tax which will be lead to protests in the street. The problem is that this government appears to develop and instigate policies and laws without full predicting the full consequences. Too often this hapless government introduces news laws which result in unforeseen negative consequences.
And there is a limit to tax rises as beyond a certain point they no longer become effective or they are much less effective than envisaged.
Her government was unable to achieve a successful vote to reduce spending on for instance the outrageous welfare bill which rises annually to astronomical heights. This is a reason why she must know increase taxes when dramatically cutting back on spending is the true solution to the gigantic fiscal problem the country faces.
The rise in inflation means that the interest on national debt goes up (even more).
Because of the linkage between inflation and interest payments, when inflation is high, the UK Treasury has to pay significantly more on its index-linked debt, which increases the overall cost of servicing the national debt. Around a quarter of the UK’s debt stock is in these inflation-linked gilts, which is unusually high compared to most advanced economies.
This form of expenditure is killing the UK. It really is. The interest paid is around £100 billion annually. Money that does nothing to assist British people now. It harms them because it is money that could have gone on well-managed and justifiable welfare or infrastructure investment.
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It feels like everything that Starmer and Reeves touch domestically turns to dust. Nothing seems to work. Worse: it makes things worse.
For many it is time to leave this benighted country. Non-doms come to mind and other wealthy individuals able to up sticks without much bother.
Things will deteriorate. I can almost guarantee it. Millions can sniff that British society is deteriorating quite rapidly as evidenced by the surge in Christianity from people seeking some sort of stability in a rocky world.
At the end of this Parliament the UK will be in a massive fiscal hole from which it will take years to extract itself.
I don’t envy today’s youngsters. They will have to wade through many financial problems throughout their lives. The baby boomers had it good (relatively).
The petition demanding an immediate general election has reached around 900,000 signatures. Of course, it won’t happen but it is significant as it reflects the mood of the nation, I believe.
