Reeves needs to scrap ‘arbitrary’ and ‘peculiar’ self-imposed UK borrowing targets | Howard Davies

“Those targets are arbitrary. I mean, they’re self-imposed and they don’t make a lot of economic sense, frankly.”
Chancellor Rachel Reeves should “articulate a case” for flexibility on government borrowing, says former NatWest Group chairman Sir Howard Davies.
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[@HXT_916]

Can anyone find Dido Harding and the stolen £29Bn?

[@grantbeerling4396]

That'll be Serco.

[@mattbooth307]

The Tories spending loads of money on "consultancy" isn't unusual, is it? How many of these consultancies were mates of mates or owned by spouses?

[@shanjanusman9974]

Cronyism and I despise them

[@zzhughesd]

Chroni capitalism happened since start time. Awful.

[@marumaru6084]

Right and the OBR or the many NGOs are not the same! Will Labour stop funding NGOS?

[@shanjanusman9974]

@@marumaru6084 I would shut down SAGE and DCMS

[@dazzwsmith]

Dont you mean inherited economic woes from the disaster of the last 14 years of tory mismanagement?

[@cbusheden]

I think you’ll find they have inherited the best economy since 1950

[@danielwebb8402]

They've inherited a lower deficit, lower inflation, lower unemployment than 14 years ago

[@theolddog5129]

@@cbusheden As delivered by Ms Truss! 🤣🤣🤣

[@dazzwsmith]

@danielwebb8402 what evidence do you have to support those statements?

[@dazzwsmith]

@@cbusheden on what basis are you making that claim?

[@inbb510]

1) Stop blocking infrastructure projects and cut red tape so that thinga actually get built. 2) Don't let public pressure groups block projects half way. 3) step 1 and 2

[@pip1723]

All inherited from the tories ... What a mess they've left.

[@davidfoster2006]

No money left was a note left by the Labour Party’s Liam Byrne.

[@chollis380]

No £9 b is from their pay increases to public sector yesterday, whilst robbing pensioners of WFA

[@stevedavidson666]

@@davidfoster2006 That was a joke, but I wouldn't expect a Tory to understand that.

[@californiadreamin8423]

When a recording came to light of Sunak telling a group of conservatives that he had changed the rules to direct funds to them, away from the needy, then Tory “creative accounting in a limited and specific way” I’m sure is widespread.

[@lockymonster]

They could save billions just be stopping giving money to organizations and people who just talk and produce or provide anything worthwhile.

[@aintree0000]

Thats why we are in a mess....he advised the tory government.

[@stephenphilbin3919]

Yes. Quite right. The nations finances are a big problem, which is precisely why the government should do literally everything it can to maintain the unjustifiable spending of billions of pounds on housing foreign criminals, rather than simply deporting them.

[@chollis380]

They can not deport them they want their votes in years to come

[@simonallchin7436]

Welcome to simple economic reality . You can make all the political promises you want , but if there is no money you can’t go very far !!! And economic growth is something we don’t control as it depends on so many unknown future events which none of us can foresee 😊

[@jaisriram295]

Economic growth also depends on past governments policies...if you allow millions of unskilled, uneducated tribals into your country for decades who costs the taxpayer billions every year rather than being net contributors then you can't now moan about the current economic situation

[@SlowhandGreg]

There's plenty of money if your prepared to look HMRC failed to collect 42 billion owed to it in 2023 and The Tories waste untold billions on trickle down cr*p If you run small state then there is nothing you can do to growth if you run a centre-left agenda with a managed economic plan there are hundreds of things you can do to promote growth such as Pay public sector workers a fair wage so your not having to import 3rd world workers on the cheap then subsidising their housing because they don't earn enough and also it reduces the need for agency staff As I said 1 example in hundreds

[@catherinemartin6258]

Never trust a banker

[@vicentvanmole]

how can they said $ spent ,but nothing is done.Is that call corruption from within?

[@leet3207]

Never trust what a bankster advises

[@grantbeerling4396]

For once, I agree (ref; New Deal and post 1945-51 Attlee government at 250% of GDP). You always have to spend first; Tax pays for nothing. It just cancels a negative accounting figure.

[@cooldad7297]

So we have a £20 Billion hole, yet we have just pledged to give Ukraine £3 Billion a year forever……

[@guydreamr]

The trouble is not with accepting new ideas but with escaping old ones. - John Maynard Keynes

[@maxthemagition]

Over the last 14 years, we witnessed governments via the BOE, printing money and IOUs like there was no tomorrow. (the USA was doing the same). Money dished out to the banks for FREE, (at near zero % int. rates), for them to spend as they so wished......Gambling on the stock markets which inflated the markets and lending it out at low interest rates which increased DEBT. It was almost like the 1920's with debt driving up the Markets.....After all, the Markets coud not fail and borrowed chips on the casino tables always paid out. Then along came covid and a war in Ukraine. Now our World is awash with DEBT....There is more debt on the planet than the value of all stocks and shares.... Property and rent prices were also inflated which benefitted the "buy to lets" and crucified those starting out with nothing. (the younger generations). Here in the UK, in the last financial year, to March 2024, the government borrowed £122.1bn. The most recent monthly figures show that borrowing was £14.5bn in June , £3.2bn less than in the same month last year. The total amount the government owes is called the national debt. It is currently about £2.7 trillion.19 Jul 2024. Tne USA is in a similar position with a national debt of about $33 trillion. If Russia defeats the Ukrainians, then look out, as bond interest rates will double to about 10% then we will really be in trouble! Even though, the DEBT need servicing and repaying and we are in a situation almost akin to post WW! and WW2 in a totally different world where the rest of the world is advancing at a terrific rate especially China and India. We can no longer rely on cheap goods along with food and energy imported to support businesses like retail and production. Getting back to "normal" (i.e. pre 2008 financial crash) may prove impossible because the culprits that caused the crash are still alive and kicking..... The Market is King and everything will be done to protect it.

[@davidfoster2006]

Don’t believe the Labour Party supporter lies, Gordon Brown sold 401 tonnes of gold for 3.5 billion pounds, now worth over 21 billion pounds, that would certainly cover the 20 billion pound blackhole.

[@Truthinshredding1]

Quick, let's build a time machine!

[@cbusheden]

They have had full access to the books because we have the OBR. They knew exactly what they were inheriting.

[@JaneSoole]

ummmh...OBR? I thought their last figures weren't reliable (some months ago)???

[@SlowhandGreg]

since when did anyone know they were spending 10 billion on Rwanda with thousands recruited?

[@alana8863]

How many civil serants were being paid by us for the Rwanda craziness? Yes, we know now, but did you know a month ago? I didn't - I can't find any reference to it. Sticking with Rwanda for a moment, the funding was being made through reserve funds - something you would only do if there was an emergency, unless, of course, you wanted to cover up the financial situation you had created with fourteen years of mess. So no, they didn't have 'full access'.

[@seamuspadraigsanders431]

​@@alana8863What on earth are you talking about. In 3 weeks they have planned to destroy the green belt, destroyed the rental sector, employment and reintroduced austerity.

[@vicentvanmole]

selling asset is that called bankruptcy?

[@cunawarit]

There's an easy solution. UK shale gas could generate annual revenues of £3.7 billion, based on a scenario where 4.4 trillion cubic feet (tcf) of gas were extracted over 30 years. That's 74 billion pounds in total. We just need to frack.

[@_Stroda]

'We just need to frack'. No, we don't. We need to do many things. It's weird, though I guess some of it is simply lobbying/propaganda, that some people are so tied to the idea that fracking will save the UK. It won't. For it to make any real impact, it would have to be extensive. And there's no guarantee that it really would have the impact claimed. But, that aside, it's a little odd, isn't it, that it's so often promoted by people who have opposed on-shore wind developments. It's impossible for me to say whether you're a shill or some deluded, overly tribal type parroting garbage but, regardless, give it a rest.

[@pwimbledon]

A solution to what? And revenue for whom? International companies, selling at international prices, on the international market? The Torys were borrowing 10-15 billion a month. What do you think fracking is a solution to?

[@SlowhandGreg]

And what price would the shale gas be sold at? Currently given the cheapness of renewable energy it's not cost effective and the government are already giving around 10 billion this year in fossil subsidies (which Reeve will stop) + the environmental damage is off the scale each well last 3 years and needs over 100 million gallons of water once used becomes a toxic goop just waiting to fracture into the water table

[@nighttrain1236]

And approving new oil & gas licenses.

[@jimboslice4468]

£20bn deficit plugged by £3.7bn. It's Jesus feeding the 5000 with 5 small loaves of bread and 2 fish.

[@nighttrain1236]

I'll never vote Labour again if they take away any pension tax relief. Tax on the way in and then tax on the way out is insane.

[@cupguin]

So if Labour addresses the economic pit left by the Tories you'll blame Labour? I'm not entirely sure you understand how the economy or politics works...

[@nighttrain1236]

@@cupguin I think when you're in an economic hole you don't give bumper pay rises to the public sector.

[@cupguin]

@@nighttrain1236 You mean living and competitive wages so there's enough staff to run the country effectively? Yes that sounds like a terrible idea. More austerity and "finding savings" will definitely fund everything. Quick hint. How do you think the government should solve the millions being spent everyday housing the massive backlog of asylum seekers? Spend even more money on more costly accommodations that make great sounding headlines like barges but doesn't address the underlying issue? Or hire more staff, at a fraction of the cost of housing asylum seekers for months longer than necessary, so cases can be resolved more quickly?

[@nighttrain1236]

@@cupguin You won't grow the economy by taking from the private sector and giving to the public sector. As for asylum seekers, they should withdraw from the refugee convention and make it much harder to get asylum here.

[@ArnoldSwarez]

The Conservatives did not stick it to the pensioners. Whatever you think of them.

[@ArnoldSwarez]

We did it Kier we really did it. We lied lied and lied and we are still lying. Who are these Labour stooge. reporters.

[@user-kf4qd4zv8f]

Labour are regarded as spend thrifts, but the Tories are skin flints. Putting money into the economy stimulates growth, cutting public services is another pledge broken.

[@alanmcrae3679]

g broon was always borrowing to "invest". we ended up broke.

[@alana8863]

@@alanmcrae3679 You don't still believe that lie, do you? Check the facts. There was very little borrowing by Labour until the Global Banking Crash. What you got in return was uni fees at less than a third what they are now. The NHS with the highest public rating ever. Waiting lists very low. Falling crime with more police, good provision of public libraries, reasonable road maintenance, falling relative poverty, clean rivers and seas, considerable public wealth in the form of government ownership (buildings, etc), growing wages, the longest period of economic growth ever recorded, and a decent society. But you may prefer having every aspect of our lives worse and a massive national debt?

[@specialistcarmarketing]

I heard the OBR had these figures??

[@alana8863]

No, not all of them.

[@smiggo1481]

what all that Starmer fully costed fully funded nonsense about?

[@cybergornstartrooper2157]

It was as fully funded and fully costed as the Tory program. The problem is they based their number on the fairytale number the Tories were telling everyone.

[@smiggo1481]

The real numbers were available if they looked deeply enough IMO

[@alana8863]

@@smiggo1481 Thanks for your opinion, but some financing was covered up and the IFS clearly didn't know about it, so there was no chance Labour would know about it either.

[@smiggo1481]

@@alana8863 I guess its a bit like a devoice there is her story then his story often completely different accounts then in the middle somewhere is the truth? kzbin.info/www/bejne/pHK7mHWfitqCosk