O/T. To misquote Henry II...

[ramAnag]

I think cancelling the increase in NI would be an error, but then again I don't pay NI, nor do you rA. It, like all the promises to reduce taxes is mere electioneering.

Hmmm...thanks for pointing that out, GP...like I didn’t know. I’m not impoverished or disabled either and I don’t have a mortgage or children of school age, but it doesn’t mean I shouldn’t consider those who are and do...does it?

Your second sentence hits the nail on the head though, imo. It is indeed, and increasingly obviously, ‘mere electioneering’, and what that means is this particular ‘electorate’, which I originally estimated at around 200k but now appears to be significantly smaller, seems to find tax cuts, and subsequent cuts in services a particularly desirable vote winner.
Speaks volumes and either Truss is lying or we’re heading back to the days of ‘no such thing as society’ and the riots and lawlessness of the 1980’s.

[Geoff Parkstone]

So do I read this to say that you favour cutting the planned hike in NI? Either that or you are rather elaborately agreeing with me to maintain the "care top up" rather than scrap it.

Either way funding care/NHS thru increasing NI is good as we don't pay it and are likely more immediate beneficiaries.

[ramAnag]

So do I read this to say that you favour cutting the planned hike in NI? Either that or you are rather elaborately agreeing with me to maintain the "care top up" rather than scrap it.

Either way funding care/NHS thru increasing NI is good as we don't pay it and are likely more immediate beneficiaries.

I’m saying two things...firstly that I find it very ‘puzzling’ that the leading candidate to replace the current PM should suddenly do a complete about turn over a policy which just weeks ago she declared herself wholly in favour of.

Secondly, I find it unacceptable that this contrived ‘electorate’, the make up of which is as described a while ago, are being appealed to via the blunt instrument of tax cuts at a time when the services that taxes (should) provide are needed more than ever.

[Geoff Parkstone]

One good thing about inflation is that if driven by wage inflation then the take goes in parallel with that the inflation.

Another good thing about inflation is that it gets rid of borrowing in real terms and so all the covid debt devalues or goes away.

Cut tax rates, encourage consumer spending, increase inflation.

So is this official government policy or an unintended consequence?

Isn't inflation wonderful, unless you're on a fixed income with no CPI escalation clauses. Oh bugger, as Unlucky Alf would say.

[swaledale]

One good thing about inflation is that if driven by wage inflation then the take goes in parallel with that the inflation.

Another good thing about inflation is that it gets rid of borrowing in real terms and so all the covid debt devalues or goes away.

Cut tax rates, encourage consumer spending, increase inflation.

So is this official government policy or an unintended consequence?

Isn't inflation wonderful, unless you're on a fixed income with no CPI escalation clauses. Oh bugger, as Unlucky Alf would say.

Indeed for some it is, though I'm a little puzzled as to why raising interest rates is in anyway going to combat inflation which has been created by the war in Ukraine and Brexit. (Brexit seems to ahve nearly doubled UK inflation compared to the EU.

I know its supposed to damp spending, but I think you will find the cost of energy and food may well do that over the winter. Oh well I've yet to see an economic forecast that actually proved to be correct.

[MadAmster]

One good thing about inflation is that if driven by wage inflation then the take goes in parallel with that the inflation.

But this bout of inflation isn't driven by wage rises, is it?

Brexit and Ukraine have had an effect, agreed. However, IMO the major cause is profits.

* British Gas made a profit of £1.3bn between January & June
* BP announced profits of £6.95 billion between April and June alone
* Shell has profited by £9.4bn in a year
The MEN at the top:
* John Pettigrew, boss of National Grid received £6.5m bonus on top of his salary
* Chris O’Shea, chief executive of British Gas owner Centrica was paid almost £2m last year in salary and benefits
* Centrica's non-executive directors were paid almost £1m
* Scottish Power's CEO Keith Anderson is on £1.15m.
* Eon boss Michael Lewis is on £1m
* EDF's Simone Rossi is also on £1m
* And their top execs enjoyed a share of £4.65m
* Peter Simpson of Anglian Water earned a £1.3m pay package
* Welsh Water bosses awarded themselves bonuses of over £930,000
* Severn Trent bosses awarded themselves bonuses of £5.56m
* Thames Water's Sarah Bentley, received a £727,000 bonus on top of her £2m annual salary

Those at the top are doing very well, thank you. The bottom, how many, 70% are struggling. Time for a 2nd windfall tax. I'd also advocate, should external forces lead to a huge decrease in profits or even to losses, then the reverse should happen. Fair's fair IMO.

* British Gas made a profit of £1.3bn between January & June
* BP announced profits of £6.95 billion between April and June alone
* Shell has profited by £9.4bn in a year
The MEN at the top:
* John Pettigrew, boss of National Grid received £6.5m bonus on top of his salary
* Chris O’Shea, chief executive of British Gas owner Centrica was paid almost £2m last year in salary and benefits
* Centrica's non-executive directors were paid almost £1m
* Scottish Power's CEO Keith Anderson is on £1.15m.
* Eon boss Michael Lewis is on £1m
* EDF's Simone Rossi is also on £1m
* And their top execs enjoyed a share of £4.65m
* Peter Simpson of Anglian Water earned a £1.3m pay package
* Welsh Water bosses awarded themselves bonuses of over £930,000
* Severn Trent bosses awarded themselves bonuses of £5.56m
* Thames Water's Sarah Bentley, received a £727,000 bonus on top of her £2m annual salary

[Geoff Parkstone]

It will be in 12 months time

[Geoff Parkstone]

And all those things you note SHOULD increase the taxx take as well

[ramAnag]

But this bout of inflation isn't driven by wage rises, is it?

Brexit and Ukraine have had an effect, agreed. However, IMO the major cause is profits.

* British Gas made a profit of £1.3bn between January & June
* BP announced profits of £6.95 billion between April and June alone
* Shell has profited by £9.4bn in a year
The MEN at the top:
* John Pettigrew, boss of National Grid received £6.5m bonus on top of his salary
* Chris O’Shea, chief executive of British Gas owner Centrica was paid almost £2m last year in salary and benefits
* Centrica's non-executive directors were paid almost £1m
* Scottish Power's CEO Keith Anderson is on £1.15m.
* Eon boss Michael Lewis is on £1m
* EDF's Simone Rossi is also on £1m
* And their top execs enjoyed a share of £4.65m
* Peter Simpson of Anglian Water earned a £1.3m pay package
* Welsh Water bosses awarded themselves bonuses of over £930,000
* Severn Trent bosses awarded themselves bonuses of £5.56m
* Thames Water's Sarah Bentley, received a £727,000 bonus on top of her £2m annual salary

Those at the top are doing very well, thank you. The bottom, how many, 70% are struggling. Time for a 2nd windfall tax. I'd also advocate, should external forces lead to a huge decrease in profits or even to losses, then the reverse should happen. Fair's fair IMO.

Great post, MA. So good you wrote it twice.
Far too objective for here though, and those water bosses you speak of do have to announce a hosepipe ban months after we were flooded so they’re worth every penny.

[Andy_Faber]

* British Gas made a profit of £1.3bn between January & June
* BP announced profits of £6.95 billion between April and June alone
* Shell has profited by £9.4bn in a year
The MEN at the top:
* John Pettigrew, boss of National Grid received £6.5m bonus on top of his salary
* Chris O’Shea, chief executive of British Gas owner Centrica was paid almost £2m last year in salary and benefits
* Centrica's non-executive directors were paid almost £1m
* Scottish Power's CEO Keith Anderson is on £1.15m.
* Eon boss Michael Lewis is on £1m
* EDF's Simone Rossi is also on £1m
* And their top execs enjoyed a share of £4.65m
* Peter Simpson of Anglian Water earned a £1.3m pay package
* Welsh Water bosses awarded themselves bonuses of over £930,000
* Severn Trent bosses awarded themselves bonuses of £5.56m
* Thames Water's Sarah Bentley, received a £727,000 bonus on top of her £2m annual salary

Not sure what the issue is with big companies with big infrastructures making big profits

However, the salaries and bonusses in the public/monopoly player arena are obscene and IMO many of the folk in those positions could be replaced at a fraction of the cost (I've seen evidence of that in the private sector), IMO UK public sector 'rewards' should be pegged at a multiple of the (sorry to swear) PM's salary. I'm not a raging solcialist so I accept there needs to be a premium for talent but its just got silly. As with other things I'm pleased to see UK taking some sort of stand on (Ukraine, emissions), I think UKPLC should take a stand on this