Cost of living squeeze in 2022, 23 & 24 (Vol. 2)
Discussion
The company I work for have a ballot out at the moment (due to conclude next week) of a 5.75% increase with some other top ups. We seem to hoping to increase our change out rates by ~6%. It's normally around that increase in terms of our charge out rate but we've not had anywhere near a 6% pay rise for many years.
Elsewhere anecdotally I have friends who are going to feel some imminent pain with remortgaging and interest rates. One set stretched themselves ~5 years ago and got a 30 year mortgage and were hoping to reduce the term when it came to re-mortgage. To keep it affordable they're having to take another 30 year mortgage despite being in their early 40's.
Another is extending the term slightly on his but swallowing a pretty heft increase. Don't like the idea of 30 year mortgages never mid 40 year mortgages which feels like it will just be a way to prop up the house values if interest rates remain around what they are now-lets face it they're not high!
I've no skin in the game really but wonder what the state of play when in 10-15 years my kids are young adults.
Elsewhere anecdotally I have friends who are going to feel some imminent pain with remortgaging and interest rates. One set stretched themselves ~5 years ago and got a 30 year mortgage and were hoping to reduce the term when it came to re-mortgage. To keep it affordable they're having to take another 30 year mortgage despite being in their early 40's.
Another is extending the term slightly on his but swallowing a pretty heft increase. Don't like the idea of 30 year mortgages never mid 40 year mortgages which feels like it will just be a way to prop up the house values if interest rates remain around what they are now-lets face it they're not high!
I've no skin in the game really but wonder what the state of play when in 10-15 years my kids are young adults.
Rufus Stone said:
HMRC must be raking it in. All the extra VAT, income tax and NI.
I'm at the point where my overtime puts me close to the higher tax bracket so I'm sacrificing a big chunk of what I earn into my pension to not only lower the amount of tax & NI I pay but also reduce my employers liabilities too.I'd sacrifice a lot more but I want some cash savings in ISAs too.
Rufus Stone said:
HMRC must be raking it in. All the extra VAT, income tax and NI.
Doesn't really matter if everything they wish to supply costs the same amount more.I guess fiscal drag since Covid has really accelerated given the inflation. Must be loads more people in each higher rate band, which might make a difference.
ant1973 said:
Yup. Just put my fees up as well. And I will be increasing staff salaries by another 10% this year. When the BoE can exercise control over inflation, I will stop increasing what I charge. Until then, they can FO with their pleas for restraint.
The pleas not to raise wages is ridiculous in the current economic environment. We faced the same dilemma and made the same set of decisions, I'm glad we did as well because operating at full capacity has proved very important and we are actually having a great year so far.One thing we found helpful to retaining staff was moving to quarterly partial pay reviews because we are getting more than a years worth of inflation in a quarter. We where caught napping on that initially unfortunately but we have few managers who have operated in a high inflation environment.
speedy_thrills said:
ant1973 said:
Yup. Just put my fees up as well. And I will be increasing staff salaries by another 10% this year. When the BoE can exercise control over inflation, I will stop increasing what I charge. Until then, they can FO with their pleas for restraint.
The pleas not to raise wages is ridiculous in the current economic environment. We faced the same dilemma and made the same set of decisions, I'm glad we did as well because operating at full capacity has proved very important and we are actually having a great year so far.One thing we found helpful to retaining staff was moving to quarterly partial pay reviews because we are getting more than a years worth of inflation in a quarter. We where caught napping on that initially unfortunately but we have few managers who have operated in a high inflation environment.
He told me all about the 70s and doing similar for his staff back then; crazy times and worth seeking out anyone who ran a business through those years as they might remember how they kept things going.
turbobloke said:
Rufus Stone said:
HMRC must be raking it in. All the extra VAT, income tax and NI.
I suspect they are, mention was made recently of increased self-employed receipts as well.Saweep said:
speedy_thrills said:
ant1973 said:
Yup. Just put my fees up as well. And I will be increasing staff salaries by another 10% this year. When the BoE can exercise control over inflation, I will stop increasing what I charge. Until then, they can FO with their pleas for restraint.
The pleas not to raise wages is ridiculous in the current economic environment. We faced the same dilemma and made the same set of decisions, I'm glad we did as well because operating at full capacity has proved very important and we are actually having a great year so far.One thing we found helpful to retaining staff was moving to quarterly partial pay reviews because we are getting more than a years worth of inflation in a quarter. We where caught napping on that initially unfortunately but we have few managers who have operated in a high inflation environment.
He told me all about the 70s and doing similar for his staff back then; crazy times and worth seeking out anyone who ran a business through those years as they might remember how they kept things going.
johnboy1975 said:
Can't remember the thread, it was o/t, (possibly the Starmer thread, but can't find the post there, so maybe not)...someone said the tax take had gone up from 250b to 750b (approx) over the last 20 years, whereas inflation adjusted it should be somewhere in the region of 450b.
Well isn't that supposed to be a good thing? Tax revenue as a % of gdp has more or less been at the same level and hasn't increased in 20 years (pretty much if anything slightly lower till this year). That means gdp has increased more than merely from inflation. Hard to fault higher tax take due to economic growth I'd have thought...isaldiri said:
johnboy1975 said:
Can't remember the thread, it was o/t, (possibly the Starmer thread, but can't find the post there, so maybe not)...someone said the tax take had gone up from 250b to 750b (approx) over the last 20 years, whereas inflation adjusted it should be somewhere in the region of 450b.
Well isn't that supposed to be a good thing? Tax revenue as a % of gdp has more or less been at the same level and hasn't increased in 20 years (pretty much if anything slightly lower till this year). That means gdp has increased more than merely from inflation. Hard to fault higher tax take due to economic growth I'd have thought...JagLover said:
Tax take is at highest level since 1980s as percentage of gdp I thought?
Today it might be yes but it isn't a much higher number than previously either but more quibbling over decimal places.This was my reference as i did have a quick check before posting the above...
https://www.oecd.org/tax/revenue-statistics-united...
skwdenyer said:
Anyhow, the idiots at the BoE have just increased interest rates again, under the guise of trying to control inflation.
So, err, real-world costs for a lot of people will go up again....
The irony is it might put someone off buying a brand new car if the interest rate is a little bit higher again but it won't put off those thst have no financial sense buying sSo, err, real-world costs for a lot of people will go up again....
t of credit and store cards at 18% plusvulture1 said:
The irony is it might put someone off buying a brand new car if the interest rate is a little bit higher again but it won't put off those thst have no financial sense buying st of credit and store cards at 18% plus
Are they not two sides of the same coin?t of credit and store cards at 18% plusThe rate increase is supposed to suppress buying, take heat out of the economy and depress prices. Not saying it will happen, just that it is the objective
skwdenyer said:
Anyhow, the idiots at the BoE have just increased interest rates again, under the guise of trying to control inflation.
So, err, real-world costs for a lot of people will go up again....
They are part of the inflation problem and are just making things worse for everyone.So, err, real-world costs for a lot of people will go up again....
And? It’s the only tool they have and it’s very very blunt.
I must admit to being a little surprised by this as I thought given the Fed behavior and worries that the BOE would follow suit. Not so it would seem!
Anyway, unfortunately we are edging closer to the pessimistic 5% I estimated we could hit. Unfortunately the high inflation figure is baked in for many months - at least the next 6. If the BOE insist on this game then don’t be shocked by another rise in that time.
I must admit to being a little surprised by this as I thought given the Fed behavior and worries that the BOE would follow suit. Not so it would seem!
Anyway, unfortunately we are edging closer to the pessimistic 5% I estimated we could hit. Unfortunately the high inflation figure is baked in for many months - at least the next 6. If the BOE insist on this game then don’t be shocked by another rise in that time.
We have been conned in the UK the major supermarkets have way too much power. At one time they would have cheap fuel but not anymore. Same with food they make out they have loads of offers and they are undercutting their rivals but it’s a cartel in all but name? You go abroad and shelves are fully stocked with fruit and veg at reasonable prices. In the U.K. supermarkets seem to pick and choose what they stock Makes you wonder if shortages are created just as an excuse to raise prices
If needs investigating
If needs investigating
86 said:
We have been conned in the UK the major supermarkets have way too much power. At one time they would have cheap fuel but not anymore. Same with food they make out they have loads of offers and they are undercutting their rivals but it’s a cartel in all but name? You go abroad and shelves are fully stocked with fruit and veg at reasonable prices. In the U.K. supermarkets seem to pick and choose what they stock Makes you wonder if shortages are created just as an excuse to raise prices
If needs investigating
Fruit and veg prices in the UK are far lower than almost all other countries, even now having had an 18% increase since last year.If needs investigating
You're making stuff up.
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