Re: Conservative Party Conf : Fri Oct 08, 2021 12:10 pm  

Scarlet Pimpernell wrote:

If based on the usual period we are actually 5th but Boris likes to twist a statistic.

Didn't the IMF also predict the same

Re: Conservative Party Conf : Fri Oct 08, 2021 12:13 pm  

If you read the fact checker of his speech you will see the above and all the other incorrect statements he likes to make. His current tactic is to produce a fact then you continue to talk so that the interviewer gets no chance to correct the falsehood before his minder steps in to shut it down.

Re: Conservative Party Conf : Fri Oct 08, 2021 1:52 pm  

JONNYGIANT wrote:

Why can't we have a high skilled high wage economy and who mentioned anything about no return, and what would be so bad about an inflation rise

You ask "what would be so bad about an inflation rise[".

First of all, there has already been a rise in inflation but, the BoE believes the inflationary factors to be "temporary".
Should inflation stay above the BoE target, they would increase interest rates, which would be a further "hit" to the vast majority of British tax payers, and especially to those who have bought new properties on the back of the recent stamp duty "holiday".

I dont know how old you are but, inflation in the mid 80's was somewhat higher than it is today and interest rates on mortgages touched 15% during the Thatcher era.
This is all well and good if you are a net saver but, crippling if you have loans/ mortgage/ credit cards or other finance to pay off.

Also if the interest on the record government borrowing increased, the fall out would be immense.

Re: Conservative Party Conf : Fri Oct 08, 2021 2:34 pm  

wrencat1873 wrote:

You ask "what would be so bad about an inflation rise[".

First of all, there has already been a rise in inflation but, the BoE believes the inflationary factors to be "temporary".
Should inflation stay above the BoE target, they would increase interest rates, which would be a further "hit" to the vast majority of British tax payers, and especially to those who have bought new properties on the back of the recent stamp duty "holiday".

I dont know how old you are but, inflation in the mid 80's was somewhat higher than it is today and interest rates on mortgages touched 15% during the Thatcher era.
This is all well and good if you are a net saver but, crippling if you have loans/ mortgage/ credit cards or other finance to pay off.

Also if the interest on the record government borrowing increased, the fall out would be immense.

But the interest rate is at a historic low ,so it will rise but we ain't going to see 80s rates, higher inflation means higher wages ,which in turn is more tax revenue and less in work benefits

Re: Conservative Party Conf : Fri Oct 08, 2021 2:35 pm  

wrencat1873 wrote:

You ask "what would be so bad about an inflation rise[".

First of all, there has already been a rise in inflation but, the BoE believes the inflationary factors to be "temporary".
Should inflation stay above the BoE target, they would increase interest rates, which would be a further "hit" to the vast majority of British tax payers, and especially to those who have bought new properties on the back of the recent stamp duty "holiday".

I dont know how old you are but, inflation in the mid 80's was somewhat higher than it is today and interest rates on mortgages touched 15% during the Thatcher era.
This is all well and good if you are a net saver but, crippling if you have loans/ mortgage/ credit cards or other finance to pay off.

Also if the interest on the record government borrowing increased, the fall out would be immense.

The Tories also scrapped MIRAS

Re: Conservative Party Conf : Fri Oct 08, 2021 2:42 pm  

Wages rise, cost of goods rise causing an increase in inflation. This means that to avoid wages falling behind inflation which would translate into an actual cut, they would need to increase further resulting in higher costs and increased inflation.
If he is so keen to see a high wage economy why have they pegged those of the public sector to a rate that actually means their salaries are buying less. He likes to blame business but maybe he should look to reward those in the public sector.

Re: Conservative Party Conf : Fri Oct 08, 2021 4:07 pm  

JONNYGIANT wrote:

But the interest rate is at a historic low ,so it will rise but we ain't going to see 80s rates, higher inflation means higher wages ,which in turn is more tax revenue and less in work benefits

If people need more income, due to higher prices, people will need higher wages to stand still and there would pressure on to increase benefits to at least keep pace with inflation or, should those with the least be squeezed disproportionately.

Can you not see the upward wage inflation spiral.

I do accept that interest rates can only possibly go one way (unless we have a period of deflation) and I accept that we aren't suddenly going to see a return to the rates from the 80's.
Try working out a 1-1.5% increase will be per month on the average UK mortgage of £137k

Re: Conservative Party Conf : Fri Oct 08, 2021 5:25 pm  

Scarlet Pimpernell wrote:

Wages rise, cost of goods rise causing an increase in inflation. This means that to avoid wages falling behind inflation which would translate into an actual cut, they would need to increase further resulting in higher costs and increased inflation.
If he is so keen to see a high wage economy why have they pegged those of the public sector to a rate that actually means their salaries are buying less. He likes to blame business but maybe he should look to reward those in the public sector.

The public sector have already overtaken wages in the private sector. And you want more?

Re: Conservative Party Conf : Fri Oct 08, 2021 5:35 pm  

wrencat1873 wrote:

If people need more income, due to higher prices, people will need higher wages to stand still and there would pressure on to increase benefits to at least keep pace with inflation or, should those with the least be squeezed disproportionately.

Can you not see the upward wage inflation spiral.

I do accept that interest rates can only possibly go one way (unless we have a period of deflation) and I accept that we aren't suddenly going to see a return to the rates from the 80's.
Try working out a 1-1.5% increase will be per month on the average UK mortgage of £137k

I'm sorry but anyone who has half a brain who has taken on a mortgage at the current rates and doesn't expect the rate to rise deserves all they get.

Re: Conservative Party Conf : Fri Oct 08, 2021 9:47 pm  

wotsupcas wrote:

I'm sorry but anyone who has half a brain who has taken on a mortgage at the current rates and doesn't expect the rate to rise deserves all they get.

Meanwhile, young (and some not so young) borrowers have taken out mortgages for 35 years or, maybe even "lifetime" mortgages and any significant increases will see them struggling to meet their payments.
We've had low rates for long enough now for them to be considered the norm.