| Can anyone explain how a £20 Billion Black hole 07:40 - Dec 1 with 3166 views | onceablue |
Equates to a surplus of £4.2 billion
Poor old Rachel can’t
Surely she won’t survive this? |  | | |  |
| Can anyone explain how a £20 Billion Black hole on 15:05 - Dec 2 with 165 views | DJR |
| Can anyone explain how a £20 Billion Black hole on 13:21 - Dec 1 by DJR |
It isn't a current surplus, it's a projected surplus, taking into account billions in debt interest payments.
And given OBR forecasts are rarely, if ever, right, trying to sell to the bond markets a £4 billion surplus wouldn't have gone down well.
Indeed, the relatively positive reaction to the Budget by the bond markets is something that the Government is getting no credit for, given gloomy articles in the the right wing media about high bond yields.
Indeed, when it comes to a black hole the right wing media have themselves been projecting £30 billion or more these last few months, and are presumably disappointed things haven't turned out worse.
Of course, the Tories might well have accepted the £4 billion figure had they been in power and on the back of that gone for tax cuts and savage spending cuts to build up a greater surplus but I don't think that would have been the best way forward. [Post edited 1 Dec 13:23]
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Interesting to read the following from today's Parliamentary hearing which appears to absolve Reeves, and also appears to confirm the points I were trying to make on this thread.
The OBR declined to criticise Rachel Reeves over the speech she gave at the start of November implying that she would need to raise income tax. The Tories have claimed that she lied when she gave the breakfast-time speech in Downing Street on 4 November because she had been told by the OBR that she was likely to meet her fiscal targets, but the speech implied she had a big black hole to fill. Asked about this, Miles told the committee:
"My interpretation was, and others might interpret differently, that the chancellor was saying that this was a very difficult budget and very difficult choices needed to be made.
And I don’t think that that was in itself inconsistent with the final pre-measures assessment we’d be made which, although it showed a very small positive amount of so-called headroom, it was wafer thin." [Post edited 2 Dec 15:45]
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| Can anyone explain how a £20 Billion Black hole on 15:14 - Dec 2 with 126 views | The_Flashing_Smile |
| Can anyone explain how a £20 Billion Black hole on 15:05 - Dec 2 by DJR |
Interesting to read the following from today's Parliamentary hearing which appears to absolve Reeves, and also appears to confirm the points I were trying to make on this thread.
The OBR declined to criticise Rachel Reeves over the speech she gave at the start of November implying that she would need to raise income tax. The Tories have claimed that she lied when she gave the breakfast-time speech in Downing Street on 4 November because she had been told by the OBR that she was likely to meet her fiscal targets, but the speech implied she had a big black hole to fill. Asked about this, Miles told the committee:
"My interpretation was, and others might interpret differently, that the chancellor was saying that this was a very difficult budget and very difficult choices needed to be made.
And I don’t think that that was in itself inconsistent with the final pre-measures assessment we’d be made which, although it showed a very small positive amount of so-called headroom, it was wafer thin." [Post edited 2 Dec 15:45]
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Not a surprise the Tories were lying about the lying, they're the experts after all. |  |
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| Can anyone explain how a £20 Billion Black hole on 15:25 - Dec 2 with 98 views | bartyg |
| Can anyone explain how a £20 Billion Black hole on 01:18 - Dec 2 by mellowblue |
enables them to reduce the national debt, though it hasn't happened since the 80's. |
Just a very simplistic answer isn't it. Why do you want to reduce the national debt? What does that personally mean to you, how does that benefit the average citizen?
I'm not saying it's not beneficial to be doing so, but it's barely a priority right now considering the stagnant growth and decline in living standards across the country. |  | | |
| Can anyone explain how a £20 Billion Black hole on 15:39 - Dec 2 with 70 views | mellowblue |
| Can anyone explain how a £20 Billion Black hole on 15:25 - Dec 2 by bartyg |
Just a very simplistic answer isn't it. Why do you want to reduce the national debt? What does that personally mean to you, how does that benefit the average citizen?
I'm not saying it's not beneficial to be doing so, but it's barely a priority right now considering the stagnant growth and decline in living standards across the country. |
because it is a simple mental deduction I made. Any surplus not spent automatically reduces the National Debt. Just the same as if you don't spend all your wages, your overdraft will go down. Where did I say it was an appropriate idea to do it now. When debt is nearly 3 trillion, repayments of the odd billion does not impact it and the monthly repayment is barely changed. You need to read posts better if you think that I have said that debt reductions are either likely, possible, or required in the current economic climate. | | | |
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