Labour's economic agenda

[formoverfunction]

UK growth outlook slashed amid tax and trade ‘double whammy

https://www.cityam.com/uk-growth-outloo ... le-whammy/


The Chancellor’s growth agenda was dealt a fresh blow on Thursday after the British Chambers of Commerce slashed its forecast for the UK economy due to the tax and trade “double whammy” afflicting UK businesses.

The business group now expects the UK economy to grow by just 0.9 per cent in 2025, a hefty downgrade on the 1.3 per cent growth it envisaged for the economy at the turn of the year.

[1nvest]

UK growth outlook slashed amid tax and trade ‘double whammy

https://www.cityam.com/uk-growth-outloo ... le-whammy/


The Chancellor’s growth agenda was dealt a fresh blow on Thursday after the British Chambers of Commerce slashed its forecast for the UK economy due to the tax and trade “double whammy” afflicting UK businesses.

The business group now expects the UK economy to grow by just 0.9 per cent in 2025, a hefty downgrade on the 1.3 per cent growth it envisaged for the economy at the turn of the year.

Well when this authoritarian regime executive opts to throw billions of taxpayers money down the drain and support policies that have Brits paying the highest rates for energy !!! But democracy in name - seat covers (Labour MP's who vote as directed) were democratically elected - by less than 15% of the population having voted for them.

[formoverfunction]

It blows out the water any suggestion that Labour's economic policy is going to work any time soon.

At least for the moment they are talking about sort out the benefits gravy train.

At best, at this stage, a one term Government. But there's a good chance they won't last that long.

[TheMotorcycleBoy]

From the WSJ

Europe Awakens From Its Defense Slumbers
Lost in the chaos of recent weeks is a tantalizing prospect: Europe may finally be in earnest about rearmament. The evidence isn’t the grandiose promises politicians are making about defense spending, which are old hat. Rather, we now see signs of credible cogitation on the question of how, in practice, to pay for it all.

It started in the U.K. on Feb. 25, with Prime Minister Keir Starmer’s promise to increase defense spending to 2.5% of gross domestic product by 2027, from around 2.3% today. Unusually, the promise was accompanied by funding sources. In the near term, the extra military spending will come from the foreign-aid budget, and Chancellor of the Exchequer Rachel Reeves says the government will raid a subsidized lending fund originally earmarked for climate-related boondoggles to support a defense build-up.

But wait, there’s more. Mr. Starmer’s administration also is floating the prospect of social-welfare reforms. First in its sights is the program that pays benefits to working-age people who say they’re too ill to work. Labour Party leaders believe an overhaul of eligibility for these benefits and related programs could save several billion pounds a year while pushing hundreds of thousands of Britons back into the labor force in a boost for economic growth.

The backdrop is Britain’s general fiscal crisis, as Labour discovers it’ll be impossible to increase taxes sufficiently to fund current spending plans on defense, social welfare or anything else. A paradoxical side effect of this mess is to make Mr. Starmer’s defense-spending pledges more credible. Since no one could believe vague promises to do something in the future, he must identify funding sources today, no matter how politically painful.

https://www.wsj.com/opinion/europe-begi ... 2#cxrecs_s

It was an opinion piece, but if it's true, then about time.

[formoverfunction]

I am sure this isn't going to be a shock for anyone:

FT UK Treasury eyes spending cuts at GB Energy in blow to Ed Miliband

https://archive.ph/HKemz

"The uncertainty over funding comes as many in industry remain unclear about exactly what role GB Energy will play in the rollout of low-carbon electricity schemes in the UK. Offshore wind, for example, already attracts significant private sector investment. "

[Gerry557]

I am sure this isn't going to be a shock for anyone:

FT UK Treasury eyes spending cuts at GB Energy in blow to Ed Miliband

https://archive.ph/HKemz

"The uncertainty over funding comes as many in industry remain unclear about exactly what role GB Energy will play in the rollout of low-carbon electricity schemes in the UK. Offshore wind, for example, already attracts significant private sector investment. "

But wot about my £300 bill reduction.

What's that saying about running out of others people's money.

It was a daft idea to begin with was it thought up by Wolf Ollins Just rename it .... gb nrgy.

[Nimrod103]

I am sure this isn't going to be a shock for anyone:

FT UK Treasury eyes spending cuts at GB Energy in blow to Ed Miliband

https://archive.ph/HKemz

"The uncertainty over funding comes as many in industry remain unclear about exactly what role GB Energy will play in the rollout of low-carbon electricity schemes in the UK. Offshore wind, for example, already attracts significant private sector investment. "

But wot about my £300 bill reduction.

What's that saying about running out of others people's money.

It was a daft idea to begin with was it thought up by Wolf Ollins Just rename it .... gb nrgy.

We do not have a £300 bill reduction to look forward to, only possible/probable blackouts:
https://www.telegraph.co.uk/news/2025/0 ... en-energy/

That being the case, anyone who has been thinking of investing in the so-called “energy transition” – whether wind and solar, batteries or transmission lines – may now be thinking again, as solid government support is vital for most such investments to make a return. Similarly anyone considering building a new gas-fired power station in the UK is probably also thinking a “wait and see” stance would be the best option. With many gas-fired power stations due to retire, the possibility of blackouts is looming.

[formoverfunction]

So they have failed at growth, dumped GB Energy, screwed pensioners and family farms. The small boats and gangs are thriving and now the benefits are being cut. And we are all know the housing target is as daft as GB Energy.

What's left?

Moving us to a warm economy...."eat the rich!" they cried, Starnmer & Co want to eat the poor, old and ill, and beat plowshares into swords.

"You shall forge your plowshares into swords and We shall take a pruninghook to your benefits and retirement!" Says Big Brother.

[flyer61]

Don't forget the state is looking to kill you off 6 months early to 'Save the NHS'.

[Gerry557]

So they have failed at growth, dumped GB Energy, screwed pensioners and family farms. The small boats and gangs are thriving and now the benefits are being cut. And we are all know the housing target is as daft as GB Energy.

What's left?

Moving us to a warm economy...."eat the rich!" they cried, Starnmer & Co want to eat the poor, old and ill, and beat plowshares into swords.

"You shall forge your plowshares into swords and We shall take a pruninghook to your benefits and retirement!" Says Big Brother.

Whats left ....... well there is this. "£1bn cuts to hospitals and schools to fund pay rises for doctors and teachers"

https://inews.co.uk/news/politics/1bn-c ... rs-3567839

[Lootman]

"£1bn cuts to hospitals and schools to fund pay rises for doctors and teachers"

https://inews.co.uk/news/politics/1bn-c ... rs-3567839

Seems fair. Tell those workers that the budget for pay rises is fixed.

So the bigger the raises, the bigger the layoffs. Let them decide which.

[formoverfunction]

https://www.cityam.com/more-than-300000 ... s-to-bite/

More than 300,000 businesses plan job cuts as Reeves’ Budget starts to bite


"According to research from the digital lender Iwoca, more than 300,000 small business owners are planning to cut staffing as a direct result of the national insurance hike."

We've spotted the "growth", it's growing the unempkoyed, all this as Starmer tells us the number of none-working people is a scandal.....

[Itsallaguess]

https://www.cityam.com/more-than-300000 ... s-to-bite/

More than 300,000 businesses plan job cuts as Reeves’ Budget starts to bite

"According to research from the digital lender Iwoca, more than 300,000 small business owners are planning to cut staffing as a direct result of the national insurance hike."

We've spotted the "growth", it's growing the unemployed, all this as Starmer tells us the number of non-working people is a scandal.....

On that later point, the BBC are covering the story this morning -

Starmer says benefit system unfair and indefensible -

Speaking at a meeting of Labour MPs on Monday night, Sir Keir said: "We've found ourselves in a worst of all worlds situation - with the wrong incentives - discouraging people from working, the taxpayer funding a spiralling bill.

"A wasted generation, one-in-eight young people not in education, employment or training, and the people who really need that safety net still not always getting the dignity they deserve.

"That's unsustainable, it's indefensible and it is unfair, people feel that in their bones."

"So, this needs to be our offer to people up and down the country: If you can work, we will make work pay - if you need help, that safety net will be there for you.

"But this is the Labour Party - we believe in the dignity of work and we believe in the dignity of every worker."

https://www.bbc.co.uk/news/articles/c0kgpyz3mmpo

Given Starmer's intent from the above, I must say that it does seem odd that Labour seem to have laid the ground for trying to get large numbers of people off benefits and back into work by severely hobbling businesses' ability to continue employing their current workforce, never mind then asking them to now pick up the additional employment of ex-benefits applicants.

Perhaps a more joined-up approach might have been to make it easier for businesses to employ people rather than much harder...

Cheers,

Itsallaguess

[88V8]

...More than 300,000 businesses plan job cuts as Reeves’ Budget starts to bite
....Given Starmer's intent from the above, I must say that it does seem odd that Labour seem to have laid the ground for trying to get large numbers of people off benefits and back into work by severely hobbling businesses' ability to continue employing their current workforce, never mind then asking them to now pick up the additional employment of ex-benefits applicants....

Just imagine the howls if this had been the Tories....

Perhaps Trump and Starmer are legs of the same Russo/Sino plot to hobble the West.

V8

[gryffron]

Perhaps a more joined-up approach might have been to make it easier for businesses to employ people rather than much harder...

And of course, to encourage more flexible working. Which is much more likely to suit the partially abled. Rather than bringing in laws to ban it.

Gryff

[TheMotorcycleBoy]

https://www.cityam.com/more-than-300000 ... s-to-bite/

More than 300,000 businesses plan job cuts as Reeves’ Budget starts to bite

"According to research from the digital lender Iwoca, more than 300,000 small business owners are planning to cut staffing as a direct result of the national insurance hike."

We've spotted the "growth", it's growing the unemployed, all this as Starmer tells us the number of non-working people is a scandal.....

On that later point, the BBC are covering the story this morning -

Starmer says benefit system unfair and indefensible -

Speaking at a meeting of Labour MPs on Monday night, Sir Keir said: "We've found ourselves in a worst of all worlds situation - with the wrong incentives - discouraging people from working, the taxpayer funding a spiralling bill.

"A wasted generation, one-in-eight young people not in education, employment or training, and the people who really need that safety net still not always getting the dignity they deserve.

"That's unsustainable, it's indefensible and it is unfair, people feel that in their bones."

"So, this needs to be our offer to people up and down the country: If you can work, we will make work pay - if you need help, that safety net will be there for you.

"But this is the Labour Party - we believe in the dignity of work and we believe in the dignity of every worker."

https://www.bbc.co.uk/news/articles/c0kgpyz3mmpo

Given Starmer's intent from the above, I must say that it does seem odd that Labour seem to have laid the ground for trying to get large numbers of people off benefits and back into work by severely hobbling businesses' ability to continue employing their current workforce, never mind then asking them to now pick up the additional employment of ex-benefits applicants.

Perhaps a more joined-up approach might have been to make it easier for businesses to employ people rather than much harder...

Cheers,

Itsallaguess

It's certainly unfair on the tax payer. But that's probably not what he meant.

https://www.youtube.com/watch?v=hVQZdjBu20k

It's absolutely outrageous. Tories are presumably as much to blame as Labour for this. People are encouraging each other to claim LTSB.

I really really hate to say this, it goes against my principles, but up for voting Reform in the next GE. The others seem to lack the balls to do the right thing.

[formoverfunction]

https://www.theguardian.com/politics/20 ... form-state

Plan to cut thousands of civil service jobs in radical government shake-up

"Separately, No 10 and the Treasury are understood to be taking a close interest in proposals drawn up by Labour Together, a thinktank with close links to the government, to reshape the state under plans dubbed “project chainsaw”."

Previously:

"Cabinet minister Pat McFadden recently stated that the Labour government will not implement drastic cuts to the civil service, emphasizing a focus on performance rather than ideological reductions."

Javier Milei warns UK against spending & shares his love for British culture

https://www.youtube.com/watch?v=Y9CJblG2Lgg

Is that where the inspiration for calling it "“project chainsaw” came from...vote Labour get Javier! Make Britain Great Again.

[Harry23]

https://www.theguardian.com/politics/2025/mar/11/crackdown-on-quangos-part-of-radical-government-proposal-to-reform-state
Plan to cut thousands of civil service jobs in radical government shake-up
"Separately, No 10 and the Treasury are understood to be taking a close interest in proposals drawn up by Labour Together, a thinktank with close links to the government, to reshape the state under plans dubbed “project chainsaw”."
Previously:
"Cabinet minister Pat McFadden recently stated that the Labour government will not implement drastic cuts to the civil service, emphasizing a focus on performance rather than ideological reductions."
Javier Milei warns UK against spending & shares his love for British culture
https://www.youtube.com/watch?v=Y9CJblG2Lgg
Is that where the inspiration for calling it "“project chainsaw” came from...vote Labour get Javier! Make Britain Great Again.

Ok but this is hardly new, it happens in cycles. Boris Johnson and Jacob Rees-Mogg wanted to cut "up to" 91,000 jobs a few years ago:

https://www.bbc.co.uk/news/uk-politics-61432498

[formoverfunction]

https://www.cityam.com/starmer-wants-to ... ight-tool/

"Keir Starmer will today set out his plans to reform the state, with aides apparently referring to this agenda as “project chainsaw.” This is gratifying, but the question is whether the kit will be Black and Decker or Fisher Price."

[Itsallaguess]

Keir Starmer will today set out his plans to reform the state, with aides apparently referring to this agenda as “project chainsaw.”

https://www.cityam.com/starmer-wants-to ... ight-tool/

Perhaps they might direct their chainsaw to many of the 27 new quango's they've set up since entering office -

• Regulatory Innovation Office

• National Infrastructure and Service Transformation Authority

• Great British Energy

• Mission Control

• National Energy System Operator

• Solar Taskforce

• Border Security Command

• Jet Zero Taskforce

• British Infrastructure Taskforce

• Creative Industries Taskforce

• Circular Economy Taskforce

• Tree Planting Taskforce

• Child Poverty Taskforce

• Flooding Resilience Taskforce

• Motor Insurance Taskforce

• New Towns Taskforce

• Onshore Wind Industry Taskforce

• Skills England

• Industrial Strategy Council

• Passenger Standards Authority

• National Jobs and Careers

• Ethics and Integrity Commissioner

• House of Commons Modernisation Committee

• School Support Staff Negotiating Body

• Independent Football Regulator

• Fair Work Agency

• Defence Innovation Agency

https://www.theguardian.com/politics/li ... 44636d65ba


Ross Clark over at The Spectator has written an article related to the above, in which I think he sums up the thoughts of many -

Quangos are forever -

Sorry, but I don’t believe that Starmer’s own bonfire of the quangos will be any different. It is just a PR exercise, designed to cover up what the government is really doing, which is to create even more jobs funded from the public purse – and to evade accountability in the process.

https://archive.ph/QdBjY

Cheers,

Itsallaguess