The Conservative Party

one of the less publicised off cuts of Right To Buy was the successful transfer of responsibility for tenants from Local Authority on to them. In the good times they just saw money. Cheap money. Cheap money to borrow and the ability to stick someone who could not get a council house in their house to pay the mortgage plus a modest premium with the capital value of the property rising like a rocket.

Then things went tits up and now they moan - money is not cheap nor is borrowing and the housing market is falling in value. What I don't think they ever really grasped was that the "market" never set the rate - it was always the level of housing benefit. I have spoken to many Estate Agents over the years and they will tell you that the local housing benefit amount set the rent like the Minimum Wage set the bottom level of pay. Housing benefit in and area is say £300pm - look in Estate Agents windows and guess what 2 bed terrace's start at £300pm rent. Its only know with this lot in charge you have them capping HB but borrowing going up and for some landlords £300 pm doesn't cut it and thats where you get the squeeze where people themselves on benefits or low incomes and claiming in work benefits being asked to bridge the gap between HB and what the landlord needs to pay the mortgage on what is now an asset that may be losing value
Yep, it was the same with student loans. The SLC will give students up to 9 grand a year, and low-and-behold, guess how much it suddenly costs to provide pretty much every degree in Britain. And yet somehow the people who actually do the teaching are still being employed on crappy contracts and having their pensions and benefits cut.
 
working out so well for them


I like the simplistic notion that the emergence of this latest shower of lunatics will cost them the election, rather than the complete shambles they have all presided over for the last 13 years.
I suppose it’s refreshing that they are finally blaming factions of themselves rather than everyone and everything else.
 
Yep, it was the same with student loans. The SLC will give students up to 9 grand a year, and low-and-behold, guess how much it suddenly costs to provide pretty much every degree in Britain. And yet somehow the people who actually do the teaching are still being employed on crappy contracts and having their pensions and benefits cut.

All yet their colleagues who moved from teacher to administrator get rewarded handsomely.
 
And whose policies caused these rates?
Lots of things have contributed - some government policies, the war in Ukraine, Brexit and - importantly - the Bank of England’s own shortcomings. But the pandemic adding another £400bn of gilts into the APF has been a major factor in the current fiscal squeeze, and this problem isn’t going away anytime soon.

Labour might get lucky again with the economic cycle as they did in 1997, and rates may fall a bit over the next 18 months, but debt servicing costs are going to be a major constraint on what the next government can do with regard to spending. In fact I think it could cause a lot of internal strife for a Labour government and Starmer could have a very brief honeymoon period, as fiscal policy isn’t going to turn around anywhere near as much as some people may hope.
 
Lots of things have contributed - some government policies, the war in Ukraine, Brexit and - importantly - the Bank of England’s own shortcomings. But the pandemic adding another £400bn of gilts into the APF has been a major factor in the current fiscal squeeze, and this problem isn’t going away anytime soon.

Labour might get lucky again with the economic cycle as they did in 1997, and rates may fall a bit over the next 18 months, but debt servicing costs are going to be a major constraint on what the next government can do with regard to spending. In fact I think it could cause a lot of internal strife for a Labour government and Starmer could have a very brief honeymoon period, as fiscal policy isn’t going to turn around anywhere near as much as some people may hope.

Might have helped if the Tory Govt hadn't lied and shovelled our money to their mates shoving debt and borrowing up (also not helped by the Chancellor writing £billions of fraud off) - examples i will give you are they accepted unusable PPE off Baroness Mone who creamed £100m+ off the contracts and so far the serious farce office have been investigating for well over a year with no signs of progress or £37bn to Dido Hardon to run a trace track and test system that never worked - nobody can show worked or how it worked nor where the money actually went. (by comparison Irelands system cost 800m euro a year ) - we are in the shite thanks to govt mis-management of a crisis
 

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