Britain’s economy is facing ‘very, very substantial challenges’, Bank of England governor warns Burnham amid spiralling UK debt

12 comments

1. Doesn’t this fall under the no shit Sherlock sort of headline, there is no plan to reign in spending, taxes cannot increase without killing the economy stone dead , debt is huge and borrowing costs are creeping up….and everyone blames everyone else

2. Why worry, there’s plenty of tax left in the tank yet……

3. Oh look, here we go again. Labour and the borrowing/tax gravy train. However this time there’s not a lot left to tax and the banks want to turn the tap off…. Hmmm

4. Unfortunately average wages of the workers are so low it will be hard to extract any more tax. We really need to.be looking at cutting spending. If we dont do something about particularly welfare and government spending on subsidising private rents then we are going to spiral.

   Not sure how he is going to be able to do it given the uproar over the winter cruise payments and after Starmer tried to slow the increase in the PIP bill which is going up vertically.

5. And? We all know that. It is inevitable. It’s what happens with fiat currencies every time, and this time will be no different.

   Now we just need to pick the way it collapses. Do we do tax rises and public revolt, or do we do hyperinflation and currency devaluation.

   Looking at other countries that are worse, the latter is more likely.

6. Remember all the morons clamouring for additional borrowing?

   If you don’t, google them. These people usually mever have to deal with the consequences of such asks.

   How’s being “in hock” to the bond markets going Andy?…sigh.

7. Andrew Bailey was saying that many western governments we facing challenges. The ‘quote’ by the Daily Mail seems a little out of context though – it wasn’t just Britain – other reporting –

   *LONDON, Sept 4 (Reuters) – Bank of England Governor Andrew Bailey said on Friday that weak productivity and shocks such as COVID-19 were behind a climb in public debt across advanced economies, which in turn was pushing up borrowing costs.*

   *”There are very, very substantial challenges at the moment, structural challenges,” Bailey said at a conference hosted by the London School of Economics’ Trium MBA programme.*

   *Ageing populations and a desire for higher defence spending were also important factors, he added.*

   *”That is, I think, relevant to thinking about the pressures on bond markets,” he added, in response to a question about why investors had recently wanted to receive a higher interest rate on French government debt than that of cosmetics company L’Oreal.*

8. but all the energy companies and banks are recording billions of profit . So all good

9. # STOP TALKING BRITAIN DOWN, DAILY MAIL!

   The Daily Mail is owned by a Frenchman whose grandpa was fascist sympathiser

10. We could always demand the likes of amazon pay tax here, not in ireland. They won’t go anywhere..

11. It’s called the Laffer curve. When you increase taxes beyond a point, you collect less money in total because everyone has their self-serving choices. (People leave the country, people use loopholes like salary sacrifice, people aren’t incentivised to work harder or spend their money etc)

12. I know Andy Burnham is still new, but I’m already getting visions of him standing outside No. 10 in the not-too-distant future, announcing his resignation while Larry, the 19-year-old cat who serves as Chief Mouser and has already seen off six prime ministers, watches from the background.

    This is the state of the UK now. The country changes prime ministers like football clubs change managers. At this rate, Larry the cat is the only one with any real job security. 😭