Rising cost of living

[Jaymoss]

Originally Posted by richard-john56

Who ever the new PM will be it could be very short lived for them... will the common person accept what is going to happen to their energy bills and living standards or could there be protests just like that lovely Thatcher Pole Tax disaster.

I do not think the public has the stomach for it. There will no doubt be protests but nothing like the Poll Tax riots imo. Remember we have a whole generation of snowflakes now whose idea of protest is posting on tiktok about how they had to go lie in a dark room

Wow!

Any other denigrating stereotypes you’d like to share?

[Jaymoss]

Originally Posted by Hugh

Wow!

Any other denigrating stereotypes you’d like to share?

Not that I can think of off the top of my head but if I do I will let you know

[GrimUpNorth]

Originally Posted by Jaymoss

I do not think the public has the stomach for it. There will no doubt be protests but nothing like the Poll Tax riots imo. Remember we have a whole generation of snowflakes now whose idea of protest is posting on tiktok about how they had to go lie in a dark room

One thing is certain, we've got potentially interesting times ahead. We've just been offered a flat rate pay rise of £1925, which is 10.5% for the lowest paid but I've been in meetings where even those who will be getting the largest percentage have accepted any extra money they'd get being more than swallowed by increasing prices early next year, so already don't think of it as a pay rise.

Add to this how insulted NHS staff will feel with the offer of a £1400 pay rise and who knows what could happen. If the nurses are considering industrial action what does that say?

[nomadking]

Constantly puzzled by what people think that Labour would've done differently. They would give in to their Union paymasters, and as a result increase inflation even more.

[daveeb]

Originally Posted by nomadking

Constantly puzzled by what people think that Labour would've done differently. They would give in to their Union paymasters, and as a result increase inflation even more.

Perhaps they would take a leaf from Spain or Frances books and curb excess corporate profits. This is the real cause of inflation not the average working person looking for enough money to break even as the government and tabloids would have us believe.

[GrimUpNorth]

Originally Posted by nomadking

Constantly puzzled by what people think that Labour would've done differently. They would give in to their Union paymasters, and as a result increase inflation even more.

Not making a profit from a profit from a public service?

[1andrew1]

Originally Posted by nomadking

Constantly puzzled by what people think that Labour would've done differently. They would give in to their Union paymasters, and as a result increase inflation even more.

A more competent government would have:
1) Got our generating capacity sorted so we were not at the whim so much of global energy markets.
2) Implemented a windfall tax to reduce bills.
3) Not been so nimbyish of onshore wind power, cheaper than having wind turbines in the sea.
4) Regulated energy distribution more strongly so the companies have to charge less.

[nomadking]

Originally Posted by daveeb

Perhaps they would take a leaf from Spain or Frances books and curb excess corporate profits. This is the real cause of inflation not the average working person looking for enough money to break even as the government and tabloids would have us believe.

Spain has inflation of 10%, so that didn't work. High inflation is a WIDESPREAD problem at the moment, eg EU average of 9.6%, so are all businesses in all those countries making massive profits?

---------- Post added at 22:09 ---------- Previous post was at 21:57 ----------

Originally Posted by 1andrew1

A more competent government would have:
1) Got our generating capacity sorted so we were not at the whim so much of global energy markets.
2) Implemented a windfall tax to reduce bills.
3) Not been so nimbyish of onshore wind power, cheaper than having wind turbines in the sea.
4) Regulated energy distribution more strongly so the companies have to charge less.

And where would the energy magically come from instead? How did relying on wind power work out for Germany? Instead they had to rely on Russian gas, creating a shortage and increases in prices. The energy distribution companies are not making massive profits, but the regulations say they should be sustainable as they cannot fail.
How much of any inflation is down to energy costs?
How many other countries have somehow managed to avoid high inflation? Malta is lucky at the moment, as they have a long term fixed price agreement for their gas. When that agreement ends, inflation will shoot up, just as in the UK when fixed price deals come to an end, they complain about the larger increases that follow.

Originally Posted by richard-john56

could there be protests just like that lovely Thatcher Pole Tax disaster.

That was an unpopular government policy, I dont think inflation is actually a policy.

[Mr K]

Originally Posted by Paul

That was an unpopular government policy, I dont think inflation is actually a policy.

The tax cuts the 2 potential PMs are trying to bribe their electorate will fuel inflation.

Grab No 10 first, worry about inflation later. Can always blame something/anything else.

As a last resort say the other side would be worse. I can see a lot of posters/politicians have already used the last resort! It isn't the most positive statement and voters may be wondering how it could be worse.

[nomadking]

The problem is you really need to limit inflation before it occurs. Otherwise inflationary wage rises follow.
Tax cuts to individuals may make them feel better, but they will still see the inflation rate when it comes to wage demands.
Tax cuts to businesses may have some effect, but not much. Non-UK businesses that supply to the UK, wouldn't be affected at all. Any tax is based upon profits, not on the costs they incur, which is what fuels inflation.
Whatever tax cuts are introduced, will need to be reversed at some point to fund the increased spending and borrowing.

It may not be popular, but the only solution might be limiting wage demands, until the current price increases work their way out of the inflation figures(after a year). Hopefully no new increases occur in that time.
The Unions were initially ok with that in the late 1970s, with a voluntary incomes policy. It worked until, the Unions insisted on playing "catch up". Eg Engineering Unions insisting on restoring the "differential", ie the wage difference between them and lower grades.

[OLD BOY]

Originally Posted by 1andrew1

A more competent government would have:
1) Got our generating capacity sorted so we were not at the whim so much of global energy markets.
2) Implemented a windfall tax to reduce bills.
3) Not been so nimbyish of onshore wind power, cheaper than having wind turbines in the sea.
4) Regulated energy distribution more strongly so the companies have to charge less.

So says the forum’s very own Mr Hindsight, who of course would now say that he forecast the Russian invasion of Ukraine at least a decade ago.

---------- Post added at 19:30 ---------- Previous post was at 19:28 ----------

Originally Posted by Mr K

The tax cuts the 2 potential PMs are trying to bribe their electorate will fuel inflation.

Grab No 10 first, worry about inflation later. Can always blame something/anything else.

As a last resort say the other side would be worse. I can see a lot of posters/politicians have already used the last resort! It isn't the most positive statement and voters may be wondering how it could be worse.

So government handouts wouldn’t?

[1andrew1]

Originally Posted by OLD BOY

So says the forum’s very own Mr Hindsight, who of course would now say that he forecast the Russian invasion of Ukraine at least a decade ago.

All the points I raised have been flagged by commentators in the last few years.

Geopolitical issues are not a new thing so not being beholden to global energy prices is prudent risk management. Perhaps working in the public sector shielded you from this approach?

[nomadking]

Originally Posted by 1andrew1

All the points I raised have been flagged by commentators in the last few years.

Geopolitical issues are not a new thing so not being beholden to global energy prices is prudent risk management. Perhaps working in the public sector shielded you from this approach?

So which other countries did any of that?
1) Where would the energy come from? Fracking?
2) What has any windfall tax got to do with energy generation or supply?
3) Germany looked to rely on wind power, and look how that turned out. Still need gas for heating.
4) The distribution companies aren't making much, if anything, in the way of profits, so how could they reduce their prices? The standing charge also funds when other energy supply companies fail, because they aren't making profits.