More than half of British businesses expect to put up prices and cut jobs to cope with the costs imposed by Rachel Reeves’s Budget and National Insurance raid, according to a Bank of England survey. The Telegraph has more.
A majority of companies also expect to take a hit on profit margins, according to a major Bank of England survey of thousands of bosses.
The latest survey from the Bank’s Decision Maker Panel shows 54% of businesses expect to raise prices in response to an increase in employer National Insurance contributions (NICs). An equal proportion of businesses will lower employment.
Michael Saunders, a former member of the Bank’s interest rate-setting Monetary Policy Committee (MPC), said the figures showed the National Insurance increase was depressing the economy.
He said: “However the NICs increase is spread, the effect of it is to reduce real activity – it is either that margins get squeezed or pay gets squeezed or prices go up, in which case real wages fall. All of them have the effect of reducing real activity.”
Andrew Bailey, the Bank’s Governor, this week said the impact of the NIC increase is critical for future decisions on interest rates.
“I think the biggest issue now in the immediate future is the response to the National Insurance change – how companies balance the mixture of prices, wages, the level of employment, what is taken on margin, is an important judgement for us,” he told a conference.
The Bank’s Decision Maker Panel survey showed the typical business expects to cut its workforce by 0.1% over the next 12 months, the first time employment expectations have fallen into negative territory since October 2020 during the pandemic.
Bosses expect to put up prices by 3.8% – the highest expected increase since May, reversing some of the recent drop in inflation.
It means the Chancellor risks leaving Britain with higher inflation and fewer jobs as a result of the £25 billion increase in the NICs paid by employers on their workers’ pay packets.
Worth reading in full.
Stop Press: Brian Monteith argues in the Telegraph that “Starmer must sack Reeves immediately – or face oblivion”. “Surely the Prime Minister is fed up with being held responsible for the Chancellor’s mistakes.”
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Off-T
A long an extremely detailed article around Bovaer in which by the way Billy owns 1,000,000 shares, purchased this Summer. As might be expected it is such a complicated chemical mixture that the only certainty is that it is definitely not safe for human consumption.
https://www.ukcolumn.org/article/is-bovaer-safe-and-effective
In conclusion
We may argue that some of the negative effects may not happen because they are dose dependent but we simply don’t know what that effect will be in the long term on humans.
Even at doses approaching normal usage of Bovaer, animal studies demonstrated risk, including a potential to cause cancer with tumour formation. And let’s not forget the FDA’s warning of harm to fertility.
And if serious harm is caused down the line from this product, how will we know without long term studies? How would someone know if the cancer they got came from some milk they drank?
I’ll end with a reply from one of the main UK food retailers:
M&S reply – this is embedded at the bottom of the article.
“And let’s not forget the FDA’s warning of harm to fertility.” Billy never misses a chance to harm fertility.
Absolutely.
Yep it’s Gates and Fink’s Blackrock. But we seemingly don’t have a shortage of these globalist, power-mad, megalomaniac men attempting to screw us over and cause us harm everywhere we turn, do we?
”So as we revealed King Charles pays for Arla Milk to go to Breakfast Clubs in England.
Yet the Royal Family and all their chidlren have always drank RAW MILK, not pasteurised or UHT garbage.
Yet they gladly have the plebs drinking Bovaer fed SLOP!”
https://x.com/UnityNewsNet/status/1864644775866929423
https://x.com/UnityNewsNet/status/1864677777988899231
What a firkin surprise
And on the topic of being off-topic, this seems quite a whopping sum of money;
”Following social media reports, I have had this astonishing figure confirmed to be true by the DWP.
In 2023 “the total amount of Universal Credit paid to households where one or both claimants were refugees was £726M.”
Speechless.
We are being taken for fools.”
Top comment. People should be beyond livid when they read info such as this. What a smack in the face this is;
”I’m a pensioner who’s had their winter fuel payments stopped. I worked full time for over 45 years. I get a small private pension and still pay tax.
I’m incandescent with rage my tax is going to ‘refugees’ instead of homeless British people.”
https://x.com/RupertLowe10/status/1864703363725549909
Avoid Bovaer, make sure your mp’s know what this gov’t is up to approving unsafe drugs in your food supply.
As an “economist” Rachel Thieves would have known prior to presenting this budget that the above out comes would be unavoidable and if she didn’t her advisers would have. It must take an awful lot of lucre to buy someone’s soul so comprehesively. Thick-skinned isn’t the half of it. This woman will be remembered as the most incompetent Chancellor in this nation’s history. Of course she is not being incompetent simply acting under orders but for whatever time she has left on this planet she has one hell of a cross to bear.
Some bravery!
Do you really think she has advisers who would know that. I am doubtful. The last lot didn’t have economists to advise them who knew anything other than Keynes.
Socialists don’t do economics.
I love how the photos of her become ever more horrific as if her essence is slowly being distilled. The one above is on the Myra Hindley spectrum. Malevolent imbeciles feeling all cushy and sushi and safe, there overwhelming victory based upon nothing but despair with ther ghoulish predessors.. In terms of money I would say now is a time to buy anything that you might need for at least a year. It becomes expensive if you think beyond that. I am not someone who is into prepping and stocking up on things but I have had a strong impulse to do so over the last few months because there are now so many potential causes of serious shortages. Any one of these is bad enough. And don’t think that there is any hope of replacing these chancers wih philosoper kings.
Off-t
Sadiq Khan to receive a knighthood in the new years honours list!
Talk about rubbing it in
A pox on all their houses.
What’s one more globalist man rewarding yet another globalist man? It’s a big club, Dings, and we ain’t in it. Meanwhile, this here is the Met police apparently. I actually thought this might be parody, but then I remembered it’s a criminal offence to impersonate a police officer so it’s presumably legit. They just looked like they were going to do the whole ”You can leave your hat on”, Full Monty routine at some point;
https://x.com/TheNorfolkLion/status/1863823396267557259
Words fail.
There is a school of thought that says that you get the government you deserve and there is some truth to this but this is another level. It is marked out quite clearly by their complete lack of self-awareness. They get interviewed about dubious donors and they give the impression that they are affronted by any suggestion or notion that they are doing anything wrong. I suppose given our acquiescence up until the present they are simply assuming that it will always be thus.
Something in passing.
As the economy tanks I wonder when National Trust properties announce their fire
sales.
I expect the NT will soon be putting the illegals into their historic houses and letting them turn the land into the shitholes they have just left.
This isnt the only NI raid thats going to happen though is it.. More of the same next Autumn has been reported.
I speak to alot of small business owners, and its not good, im fortunate that my small business turns a net profit margin of 85% so i took it on the chin, but just how much more is going to be erroded by these Marxists before their term is up…
And more importantly where is the right of centre party in the UK… Having Farage is nothing to rely on… Where is the long term political future apposed to Starmer…. Im seriously concerned because i just dont see it…
Posted previously but worth re posting..
This is interesting, Dominic Cummings – “The UK is run by The Deep State”….”The cabinet is just staged theatre”….
The truth is slowing coming out, never be fully out as to who exactly The Deep State is however..
https://youtu.be/zEnLI0eD-9k?si=0UiGZhj6kVqN0JRs
Reform seem to be morphing into a centrist party at the moment.
No thought goes into it. The very discipline of economics, its etymology can be seen as the efficient running of a household. That means you think about everything and its consequences. The fact that they haven’t even been aksed to do this as if it doesn’t matter – my guess is that they know that the Bretton Woods deal is going to go up in smoke soon and so there is no point in their minds about thinking about intelligent economics because the whole shebang will be lucky to make it until the end of the year. And bear in mind that they, the cabal, live by a simple slogan – inflate or die. The next step involves bringing about inflationary pressures so dangerous that the Anglo-Americans simply wouldn’t survive it. Not all empires are like the slow lugubrious decline of the Ottomans. In our time they go down in seconds.
Drink the vinegar from my bitter dug because vinegar assuages thirst and you will need plenty of that. As a man you need to learn when titties mean vinegar, if you haven’t already done so.
Two weeks time it will be missiles against British interests. Two weeks after that it will be missiles on the British Isles albeit with a half an hour warning. They aren’t telling you anything about the ladder of escalation that they have planned and are anticipating. In some countries they have underground shelters and supplies for the whole population. That is not the case in England. Might be worth thinking about – how defence from a major attack exists only for government and council officials. Gives you a bit of perspective.
It is so stupid pretending that we aren’t in a world war as if pretending means that everything will be alright over here, What kind of attitude is that? You position yourself as an utterly useless and unintelligent person who lacks even the wherwithal to vouchsafe his own survival. Carry on in this Anglo-American delusional pleasure vane for as long as you want but it has already been defeated. The first sign will be rapid collapse of currency where if you were upper middle class before you won’t even be able to buy working class food. And no amount of patter will help you out. Maybe you have just given up on life.
Tell me why Liz Truss and Kwasi Kwarteng were forced out after 49 days, allegedly the worst Budget, worst PM & blinkered Chancellor ever…yet Starmer & Reeves are weathering the storm?
The current shower are sticking to the script they’ve been given – Truss and co didn’t
The 22 billion black hole—The 22 billion black hole—The 22 billion black hole—The 22 billion black hole
Caused by the 450 billion they threw around like confetti during the scandemic, ironically with the “opposition” being Labour wanting harder, longer lockdowns..
You couldn’t make it up..
It’s scary how much of the population don’t understand inflation, and how our system is based on it always being there. Saw an article earlier, average house prices at record high – makes many people think that’s a good thing, however the value of a piece of land and some bricks, windows and doors has not changed in value at all – your currency is worth less than it was instead… and it’s only going one way
Contrast the fallout from this budget with the fallout from the autumn mini-budget under Liz Truss. Could it be that the MSM like Labour and hate the Conservatives, perhaps?
And our Labour Government keeps saying they’re going to make the economy grow. Perhaps it’s time for them to look outside Westminster and see what’s going on in the real world.
Money has to come from somewhere.
Employers’ NI is incident on employees who pay it via lower gross pay. In effect there is no employers’ NI, there is only employees’ NI since the whole tax burden falls on employee.
The nominal employers’ NI is not capped, therefore this means the lower the gross pay, the lower the NI amount.
The increase will drive down gross pay, thereby reducing the cash amount to be paid at the new rate to pre-increase levels.
Wages are known as “sticky” in that it is difficult to get employees to accept lower pay, but if the option is lower pay or no job, some might accept that. Alternatively pay can be reduced by fewer hours overtime, reducing or eliminating commissions and bonuses, removal of other benefits in kind.
If something costs more, less of it is bought. If businesses increase prices to cover the raised NI expense, fewer goods will be bought, fewer goods will be produced, fewer workers will be required.
(The above is basic economics. Socialist don’t understand economics, if they did they wouldn’t be Socialists.)
This certainly looks like a great plan to boost economic growth.