General British politics discussion thread

When inflation gets to double figures, the economy is in real trouble.

With that rate of inflation, then prices start rising - 'because of inflation' - which is inflation chasing inflation. Now because the Gov collects taxes based on declared incomes where higher incomes get higher taxes, a 10% rise in take home pay requires a pay rise of 15% for those on high tax rates, which means further rises in prices, which feed on further inflation - well inflation going out of control. And of course, they need the pay rise now, and another one next month.

It will take a generation to bring inflation back under control. Raising interest rates by BoE will be inflationary in the short to mid term, raising mortgage rates, which should effect house prices negatively - another Tory no-no.

VAT is a consumption tax that increases as prices rise. Is a VAT reduction part of the pledge by the contestants for PM to cut taxes? I doubt it. I think tax cuts equals a cut in corporation tax and reduction in the highest income tax rates.

Well, inflation in Ireland has a few causes - energy prices, particularly gas, then there is Brexit which has caused imported stuff from the UK to rise in price due to extra paperwork, plus the imposition of VAT on UK cars. We need importers to begin to diversify to EU suppliers, but lazy ones will not bother - just pass on the extra charges, and some are just UK companies with Irish offices. M&S are 25% dearer* than the same goods on sale in the UK.

The inflation in the UK took off a lot earlier than the 1980s. It really began in the 1960s, and really took off in the oil crisis (which is an energy crisis) so it took until the 1990s before it was under control. That by my reckoning is a generation.

We handled Covid better and we will handle inflation better.

[Edit: *Just checked an M&S white shirt - £29.50 UK, and €44 in Ireland - which taking VAT and exchange into account is 22% dearer for the identical product.

You will find the same pattern with most UK supplied items by companies that have a presence in Ireland]

They are also striking over changes in work practices that amount to a reduction of manning on trains - which they say is a safety issue.

Look, the DLR has no-one running the train.

If the train requires a driver and a guard then removing the guard may well be an issue. Just having a driver might be an issue.

Reducing manpower is not necessarily a safety issue, nor is it necessarily safe to do so. Those who work the trains probably know which is which. I do not, but it is a pay issue - at least to the bean counters.