Cost of living squeeze in 2022

[Abdul Abulbul Amir]

Welshbeef said:

This is true.

Lord Sugar and other OAP famous people don’t want state pension so return it to HMRC
And winter fuel allowance.



For those on this thread who don’t need the cash they are going to receive can I please encourage you to donate it to your local primary school. So many are under funded these donations would help significantly - be an investment in the future of your locality and not be inflationary at all.

Why wouldn't it be inflationary?

[Murph7355]

skwdenyer said:

Other countries have far more, far better, far bigger private enterprises than us *and* higher corporate taxes. There’s little evidence lower corporate taxes make for a more prosperous nation.

And, yes, I run businesses. My self interest says “lower taxes” but I want a better country: better education, better healthcare, more investment. Those have to be paid for from taxation.

I don't disagree with the objectives. But it would be easy to find examples that counter your own, too ("high corporate taxes don't promote prosperity").

The problem is, there are so many factors that drive prosperity, and different systems suit some better than others.

I have a feeling we are stuck in an awful middle ground at the moment, and the dimwits in charge ha e no clue how to instigate meaningful change. Copying Labour, who are a policy vacuum, is desperation indeed.

[Welshbeef]

Abdul Abulbul Amir said:

Welshbeef said:

This is true.

Lord Sugar and other OAP famous people don’t want state pension so return it to HMRC
And winter fuel allowance.



For those on this thread who don’t need the cash they are going to receive can I please encourage you to donate it to your local primary school. So many are under funded these donations would help significantly - be an investment in the future of your locality and not be inflationary at all.

Why wouldn't it be inflationary?

What if everyone who didn’t need their helicopter cash paid it directly to the local schools where they are under funded and building up debts.

Why would it be?

[Pablo16v]

Murph7355 said:

skwdenyer said:

Other countries have far more, far better, far bigger private enterprises than us *and* higher corporate taxes. There’s little evidence lower corporate taxes make for a more prosperous nation.

And, yes, I run businesses. My self interest says “lower taxes” but I want a better country: better education, better healthcare, more investment. Those have to be paid for from taxation.

I don't disagree with the objectives. But it would be easy to find examples that counter your own, too ("high corporate taxes don't promote prosperity").

The problem is, there are so many factors that drive prosperity, and different systems suit some better than others.

I have a feeling we are stuck in an awful middle ground at the moment, and the dimwits in charge ha e no clue how to instigate meaningful change. Copying Labour, who are a policy vacuum, is desperation indeed.

Dimwits indeed. O&G companies are already paying more than their fair share of tax at 40%, and as others have mentioned they have had a torrid time of it over the past few years starting with a price crash in 2015 which they just seemed to be recovering from in 2019 when the pandemic hit. Now they are making money again, and talking about investing heavily in the UK energy sector which is badly needed (taxes alone over the next 12 month are estimated to be over $7B at the current oil price, up from $3B in 2020/21 so the govt is already seeing a windfall), and what does the chancellor do? Oh yes, let’s tax them even more. Utter utter cretin who is just pandering to the hard of thinking in a bid to deflect from their other issues. The company I work for is heavily invested in O&G but we are also developing some fantastic new cleaner technologies which requires a sizeable financial investment to progress, much of which comes from the major O&G operators who buy our goods. The last few years have been tough but there is a buzz around the place again that I haven’t seen in a while, orders are up, we are employing more people and we are also looking at apprenticeships again. Money is starting to flow but the industry is still fragile and Sunak could easily wipe that all out if he’s not careful.

[Abdul Abulbul Amir]

Welshbeef said:

Abdul Abulbul Amir said:

Welshbeef said:

This is true.

Lord Sugar and other OAP famous people don’t want state pension so return it to HMRC
And winter fuel allowance.



For those on this thread who don’t need the cash they are going to receive can I please encourage you to donate it to your local primary school. So many are under funded these donations would help significantly - be an investment in the future of your locality and not be inflationary at all.

Why wouldn't it be inflationary?

What if everyone who didn’t need their helicopter cash paid it directly to the local schools where they are under funded and building up debts.

Why would it be?

Schools aren't building up debts, they are just spending less than they need to. By donating not needed cash to schools you're transferring from someone that has a higher propensity to save to a school that will spend the money...causing an inflationary impact. It's the opposite to what you have said.

[Blue62]

skwdenyer said:

Other countries have far more, far better, far bigger private enterprises than us *and* higher corporate taxes. There’s little evidence lower corporate taxes make for a more prosperous nation.

And, yes, I run businesses. My self interest says “lower taxes” but I want a better country: better education, better healthcare, more investment. Those have to be paid for from taxation.

I agree with that and was in a similar position until I sold up, but I agree that this particular U turn will only increase inflationary pressure and the help is not targeted enough to make a difference, it’s populism yet again. Personally I would nationalise utilities, we have the worst of all outcomes now.

[Rufus Stone]

Blue62 said:

I agree with that and was in a similar position until I sold up, but I agree that this particular U turn will only increase inflationary pressure and the help is not targeted enough to make a difference, it’s populism yet again. Personally I would nationalise utilities, we have the worst of all outcomes now.

You mean more free money for people that already live off free money while hardworking people just have to suck it up and go without.

I applaud the fact that for once the government is treating everyone relatively fairly.

[Sway]

skwdenyer said:

Other countries have far more, far better, far bigger private enterprises than us *and* higher corporate taxes. There’s little evidence lower corporate taxes make for a more prosperous nation.

And, yes, I run businesses. My self interest says “lower taxes” but I want a better country: better education, better healthcare, more investment. Those have to be paid for from taxation.

Can you highlight some of these countries, and their rates?

[.:ian:.]

Pablo16v said:

Dimwits indeed. O&G companies are already paying more than their fair share of tax at 40%, and as others have mentioned they have had a torrid time of it over the past few years starting with a price crash in 2015 which they just seemed to be recovering from in 2019 when the pandemic hit. Now they are making money again, and talking about investing heavily in the UK energy sector which is badly needed (taxes alone over the next 12 month are estimated to be over $7B at the current oil price, up from $3B in 2020/21 so the govt is already seeing a windfall), and what does the chancellor do? Oh yes, let’s tax them even more. Utter utter cretin who is just pandering to the hard of thinking in a bid to deflect from their other issues. The company I work for is heavily invested in O&G but we are also developing some fantastic new cleaner technologies which requires a sizeable financial investment to progress, much of which comes from the major O&G operators who buy our goods. The last few years have been tough but there is a buzz around the place again that I haven’t seen in a while, orders are up, we are employing more people and we are also looking at apprenticeships again. Money is starting to flow but the industry is still fragile and Sunak could easily wipe that all out if he’s not careful.

The tax is only on profits right? So if they invest in things, like whatever you are selling, this reduces the energy company profits?

Right?

[bitchstewie]

By all means look at the long term vision and plan to change things tomorrow but that won't help people who are choosing between heating and eating today.

I'm sure there are plenty of holes to be picked in this scheme but you can't implement those long term changes in time for a bill landing on someone's doormat now.

[Shnozz]

bhstewie said:

By all means look at the long term vision and plan to change things tomorrow but that won't help people who are choosing between heating and eating today.

I'm sure there are plenty of holes to be picked in this scheme but you can't implement those long term changes in time for a bill landing on someone's doormat now.

That’s my view also. A plaster and not massively thought out but should achieve its aim by and large.

I can’t say I am a great fan of windfall taxes though to fund this. Trying to operate a business when you don’t know what levies will apply dependant on profits seems very third world country to me.

[Welshbeef]

Abdul Abulbul Amir said:

Welshbeef said:

Abdul Abulbul Amir said:

Welshbeef said:

This is true.

Lord Sugar and other OAP famous people don’t want state pension so return it to HMRC
And winter fuel allowance.



For those on this thread who don’t need the cash they are going to receive can I please encourage you to donate it to your local primary school. So many are under funded these donations would help significantly - be an investment in the future of your locality and not be inflationary at all.

Why wouldn't it be inflationary?

What if everyone who didn’t need their helicopter cash paid it directly to the local schools where they are under funded and building up debts.

Why would it be?

Schools aren't building up debts, they are just spending less than they need to. By donating not needed cash to schools you're transferring from someone that has a higher propensity to save to a school that will spend the money...causing an inflationary impact. It's the opposite to what you have said.

Sorry in our area we as parents are requested to make monthly Direct debits to the school due to its under funding - for example we are paying in £100pcm and stepping it up.

No one will be stopping their DD in fact I’d imagine some have stopped as they literally cannot afford it.

There is no way this would be inflationary.

[Biggy Stardust]

Rufus Stone said:

A lot of ungrateful moaning minnies on here. If you don't want it you can always give it back to the treasury.

We will- in taxation.

[Blue62]

Rufus Stone said:

You mean more free money for people that already live off free money while hardworking people just have to suck it up and go without.

I applaud the fact that for once the government is treating everyone relatively fairly.

Not sure I understand the reference to free money, if it’s an argument against nationalising energy and water companies then you’ll have to explain. I don’t applaud this move because it’s not doing, or going to do, what you think it is.

[Rufus Stone]

Blue62 said:

Not sure I understand the reference to free money, if it’s an argument against nationalising energy and water companies then you’ll have to explain. I don’t applaud this move because it’s not doing, or going to do, what you think it is.

What do you think I think it's going to do?

[Carl_Manchester]

I can't believe some of the posts here lol

You have a pie, the pie represents 100%, there are 100 people in the pie shop each day. They all have £1. There are a million other pie shops exactly in the country all with 100 customers and £1 each.

What happens to the price to a) produce the pie and b) sell each slice if there are now a million shops with 200 customers with £1.50 each given that you can only produce one pie, per shop, per per day?

Nobody needs to answer, it's just to illustrate that inflation for basic goods does not discriminate based on where you are from or your debts.

With this example, inflation in a services based market economy does not discriminate whether you are a teacher from a bankrupt Dundee school or, a millionaire from the Locksbottom estate.

Prices only go one way in these scenarios because supply is not infinite and growth is not infinite because inflation kills you in all possible scenarios.

Giving people £400 rather than addressing the root cause of inflation is like pouring petrol on a lit BBQ

[Al U]

It was quite amusing yesterday to get an email from my supplier yesterday saying I am using more energy than my current direct debit accounts for so they need to push it up by £15 a month. This just prior to the announcement that we would be getting a one off payment to help with higher bills...

[Abdul Abulbul Amir]

Welshbeef said:

Abdul Abulbul Amir said:

Welshbeef said:

Abdul Abulbul Amir said:

Welshbeef said:

This is true.

Lord Sugar and other OAP famous people don’t want state pension so return it to HMRC
And winter fuel allowance.



For those on this thread who don’t need the cash they are going to receive can I please encourage you to donate it to your local primary school. So many are under funded these donations would help significantly - be an investment in the future of your locality and not be inflationary at all.

Why wouldn't it be inflationary?

What if everyone who didn’t need their helicopter cash paid it directly to the local schools where they are under funded and building up debts.

Why would it be?

Schools aren't building up debts, they are just spending less than they need to. By donating not needed cash to schools you're transferring from someone that has a higher propensity to save to a school that will spend the money...causing an inflationary impact. It's the opposite to what you have said.

Sorry in our area we as parents are requested to make monthly Direct debits to the school due to its under funding - for example we are paying in 100pcm and stepping it up.

No one will be stopping their DD in fact I’d imagine some have stopped as they literally cannot afford it.

There is no way this would be inflationary.

Parental donations aren't the same as schools getting into debt.

You're talking about additional donations not maintaining existing ones.

Of course it would be inflationary...this is the whole premise of demand fueled inflation!

[Welshbeef]

Carl_Manchester said:

I can't believe some of the posts here lol

You have a pie, the pie represents 100%, there are 100 people in the pie shop each day. They all have 1. There are a million other pie shops exactly in the country all with 100 customers and 1 each.

What happens to the price to a) produce the pie and b) sell each slice if there are now a million shops with 200 customers with 1.50 each given that you can only produce one pie, per shop, per per day?

Nobody needs to answer, it's just to illustrate that inflation for basic goods does not discriminate based on where you are from or your debts.

With this example, inflation in a services based market economy does not discriminate whether you are a teacher from a bankrupt Dundee school or, a millionaire from the Locksbottom estate.

Prices only go one way in these scenarios because supply is not infinite and growth is not infinite because inflation kills you in all possible scenarios.

Giving people 400 rather than addressing the root cause of inflation is like pouring petrol on a lit BBQ

But so many of those pie buyers now or shortly won’t have the money to buy pie - the helicopter money for those will simply enable them to buy the pie they always had.

The rest as I’ve asked drop to charity or a HMRC payment or pay into the under funded local schools. Those will certainly be seeing less donations so this might true that up.

[Blue62]

Rufus Stone said:

What do you think I think it's going to do?

Increase inflationary pressure and debt. The significant structural problems in the U.K. energy market remain and this ‘help’ is not targeted in a way that will address the underlying issues we face, I actually think it will make things worse. I don’t need £400 and will donate it to local food bank before you ask.