Financial matters

[SteveH]

Leaders of two of the biggest unions have added further pressure on the government over its plan to cut winter fuel payments for millions of pensioners in England and Wales.

Unite general secretary Sharon Graham told the BBC the government should "do a U-turn", while head of the PCS union Fran Heathcote said it was a "misstep" which needed to be "put right".

Paul Nowak, head of the Trades Union Congress which brings unions together, has also said the government should "rethink" and consider other lines of support for pensioners.

cont https://www.bbc.co.uk/news/articles/cvg5rl612n5o

[Hugo]

Octopus, British Gas, OVO, EDF and EON customers could get payments worth £475
Support is being offered to households facing higher energy bills as the winter approache




https://www.dailypost.co.uk/news/north-wales-news/octopus-british-gas-ovo-edf-29896016

[SteveH]

Pay rises confirmed for teachers, doctors and civil servants in Wales
Hundreds of thousands of people will be impacted by the increase across the country

The Welsh Government has stated that this will result in the following above-inflation pay rises:

Teachers will receive 5.5%

NHS staff on Agenda for Change terms and conditions will receive 5.5%

Doctors and dentists, including GPs and salaried GPs, will receive a 6% pay award, with an additional £1,000 for junior doctors

Civil servants and staff at a number of other public bodies, including Natural Resources Wales and the Development Bank of Wales will get an average 5%

cont https://www.dailypost.co.uk/news/north-wales-news/pay-rises-confirmed-teachers-doctors-29905358

[SteveH]

UK national debt is on course to treble over the next half a century due to several pressures, according to the government’s official forecaster.

Those pressures include an ageing population, climate change, and rising geopolitical tensions, the Office for Budget Responsibility (OBR) said in a report.

The OBR said without extra tax revenues or a return to post-war productivity levels, the public finances were not sustainable over the long term, and "something has got to give".

Chief Secretary to the Treasury Darren Jones said: “The OBR has laid bare the shocking state that our public finances were left in by the previous government."

Jones added that the UK was facing the "highest debt since the 1960s, highest taxes since the 1940s, and debt on track to be almost three times our GDP".

cont https://www.bbc.co.uk/news/articles/cewlwkg82ggo

[DaveR]

Productivity or, more accurately, the lack of it, has been the bane of Britain's economy since the 1960s. There was an interesting interview in The Times with Tony Blair today where he pointed out there just aren't enough people working enough in Britain today.

A lot of people are working less than would traditionally have been the case, whilst at the same time demanding better public services. Where will the tax revenues to pay for these services will come from? The old cry of 'tax the rich' sounds attractive, until you bear in mind that the top 1% of taxpayers already pay 29% of ALL Income Tax raised. The richest also have the option to move overseas, thus depriving the country of any tax revenues from them.

The other point to mention is the lack of efficiency and accountability in the public sector. Money, in the form of our taxes, gets wasted left, right and centre in vast quantities, without anyone batting an eyelid.

I've always believed that a country, just like a household, should spend what it earns and not borrow more. Some people believe that it's fine for the UK to borrow more and more money every year to fund public services. However, with the cost of just servicing that debt via interest payments now at £89bn in the 24/25 financial year, that seems crazy to me.

[Ian]

There was an interesting interview in The Times with Tony Blair today where he pointed out there just aren't enough people working enough in Britain today.

The other point to mention is the lack of efficiency and accountability in the public sector.

We're far from being the worst.  Yet it seems that borrowing is not only accepted by all financial institutions, but that the world would probably grind to a halt if it all stopped. Funny old world.

[DaveR]

We're far from being the worst.  Yet it seems that borrowing is not only accepted by all financial institutions, but that the world would probably grind to a halt if it all stopped. Funny old world.

Well, 64 out of 229 countries in the world actually manage a Budget Surplus every year (spend less than they raise in taxes). That includes plenty of European countries like Netherlands, Denmark, Switzerland, Austria, Sweden, Ireland, Greece. How can they do it and we can't?

[SteveH]

What explains the UK’s productivity problem?
The UK has experienced significantly slower productivity growth than comparable countries over the decade and a half since the global financial crisis. Three fundamental challenges need to be tackled urgently: underinvestment, inadequate diffusion and an absence of joined-up policy-making. This blog was written by Professor Bart van Ark, Managing Director of The Productivity Institute, and Professor Mary O’Mahony, Research Director of The Productivity Institute, based on insights from their work in The Productivity Agenda report.

The UK faces a tough productivity challenge. Slow productivity growth threatens the much-needed revival of economic growth and improvements in living standards and wellbeing. Slower growth of the population and the workforce make the challenge of improving productivity over the next decade a daunting one. If the current trend in productivity growth continues for the next two decades, it will not be possible to maintain current living standards, let alone deliver sustainability and improved wellbeing.

UK growth
The UK has performed particularly badly relative to comparable economies in terms of productivity growth. It is in the bottom half of the rankings in the OECD, well below France, Germany and the United States; just below the average for the euro area; and slightly ahead of Italy and Spain. From 2010 to 2022, the annual average growth in UK GDP per hour worked was just 0.5%, with little sign of improvement in recent years.

Read more, a lot more ...... https://www.productivity.ac.uk/news/what-explains-the-uks-productivity-problem/

[Ian]

We're far from being the worst.  Yet it seems that borrowing is not only accepted by all financial institutions, but that the world would probably grind to a halt if it all stopped. Funny old world.

Well, 64 out of 229 countries in the world actually manage a Budget Surplus every year (spend less than they raise in taxes). That includes plenty of European countries like Netherlands, Denmark, Switzerland, Austria, Sweden, Ireland, Greece. How can they do it and we can't?

Just a thought; how many of those countries have Nuclear arsenals? In the table I posted above, seven out of the top ten do have nuclear arsenals.  The cost of maintaining those is highly significant.  On the other side, of course, these are choices made by successive governments, and there are clearly other factors, such as the cultural imperatives that exist here, one of the most worrying being the reluctance of boys in particular to do well academically.  It's not a simple topic.

[Hugo]

Automatic £150 payment coming for households that qualify October
The Warm Home Discount scheme will be automatically applied to bills to help eligible low-income households with their energy costs

https://www.dailypost.co.uk/news/north-wales-news/automatic-150-payment-coming-households-29940617

[Hugo]

People aged over 70 could be eligible for less well-known benefit worth more than £700
It comes after many pensioners lost access to Winter Fuel Payments this year



https://www.dailypost.co.uk/news/north-wales-news/people-aged-over-70-could-29946501

[SteveH]

The parts of Wales where your energy bills could be cheaper this winter
Councils across Wales are offering residents financial aid or advice which could help ease financial pressure for some

Full article...https://www.walesonline.co.uk/news/cost-of-living/parts-wales-your-energy-bills-29961306?IYA-reg=49560bcd-5a9c-47f0-8fc5-ba2e71710589


Conwy council
The council offers a government grant programme that aims to help low-income and vulnerable people living in cold homes. Under the eco flex scheme those eligible can have certain home improvements which will help make their home more energy-efficient.
The council assesses a household's evidence and application to confirm whether they may qualify.

The council website states: "Applications should be submitted by your chosen installer on your behalf....We recommend you undertake your own due diligence (i.e. checking reviews, past works or the TrustMark website) as with any home improvement project." Click here for more information.... https://www.conwy.gov.uk/en/Resident/Housing/Housing-Improvements/Energy-Efficiency/ECO-Flex-Energy-Efficiency-Improvements.aspx

[SteveH]

The longest-running measure of consumer confidence fell sharply in September, raising concerns about whether government rhetoric about Budget "pain" has spooked people.

GfK's Consumer Confidence Index had been recovering after years of rolling crises, higher interest rates and inflation gradually creeping up.

But since the end of August, it fell by seven points to -20 overall, which GfK has said does not provide "encouraging news" for the UK's new government.

Some economists have linked the drop to officials' warnings of a "painful" Budget at the end of August.

There were "major corrections" - or double digit falls - for consumers' perception of the general economic situation, as well as how likely they were to make big purchases.

cont https://www.bbc.co.uk/news/articles/cje39kw1281o

[SteveH]

Money Saving Expert newsletter has urged households to buy Royal Mail first-class stamps before the 30p price increase on October 7
Stock up on stamps for this (and future) Christmas's cards NOW. First-class stamp prices are going UP AGAIN, this time by an inflation-busting 22% on 7 October - but buy them in advance, and as long as they say "1st", you'll still be able to use them after the hike."
cont https://www.dailypost.co.uk/news/uk-world-news/money-saving-expert-martin-lewis-29979146?int_source=nba


Some pensioners and DWP claimants will get 'automatic' £150 winter payment from October
Department for Work and Pensions ( DWP ) Warm Home Discount scheme is rolled out
cont https://www.dailypost.co.uk/news/uk-world-news/pensioners-dwp-claimants-automatic-150-29978854


Government borrowing in August rose to the highest level for the month since the Covid pandemic in 2021.
Official figures show that borrowing - the difference between spending and tax revenue - reached £13.7bn last month, £3.3bn more than in August last year.

The Office for National Statistics (ONS) said that tax income "grew strongly" but this was outweighed by some benefits being increased and higher spending on public services, including workers pay.
cont https://www.bbc.co.uk/news/articles/cje39jpk404o

The figures are released as the government prepares for the Budget at the end of October, which Prime Minister Sir Keir Starmer has warned will be "painful".

[SteveH]

The Treasury is reconsidering parts of Labour’s manifesto plan for non-domicile tax status over worries that the reforms will bring in less money than expected.

There is concern that planned changes, which aimed to raise extra money to spend on public services like the NHS, could prompt wealthy foreigners to simply leave the UK.

"Non-dom" describes a UK resident whose permanent home - or domicile - for tax purposes is outside the UK.

cont https://www.bbc.co.uk/news/articles/c04pe3653k7o