How are we going to pay for it all?

Drago

Flouncing Nobber
Location
Poshshire
Its ok. The local council have built a defensive wall closely modelled upon the Maginot line. What could possibly go wrong?

As for spending, the money spent so far by the government on the various aspects of the covid reaponse is less than half of that which was spent on the bank bailouts. Labour were happy to spend loads of cash bailing out their wealthy chums (and in many cases, future employers) while doing nothing to ensure that those who had caused the problem paid for the mess they had left. Indon't suppose the current government will want to make big business or the hyper-wealthy pay for this either:laugh:, so the working and middle classes will get squeezed instead.
 
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rogerzilla

Legendary Member
This debt could get expensive to service if the UK's credit rating falls again. Love this quote from Moody's when they downrated us last month: “While still high, the quality of the UKʼs legislative and executive institutions has diminished in recent years."
 

byegad

Legendary Member
Location
NE England
That'll be us. We were revered with claps on Thursdays the other month and calls for decent money but that seems to be forgotten now.
Not in our house. Paying the NHS staff only comes second, in my opinion, to ensuring it continues to exist, free at point of use.
 

Eziemnaik

Über Member
Government spending for Covid has been via bonds.

Normally, bonds are bought by investors and corporates, but due to the extreme circumstances this time, the bonds have been bought by the Bank of England. This is called money printing, and whilst no money has been printed, it's been created out of nothing. Bit like adding a nought to one's savings balance.

This works fine as a solution of the last resort if a) you've a strong economy and b) you don't do it often.

This is because money printing dilutes the money already in the economy - bit like diluting your orange squash. Over dilution leads to higher inflation and hyperinflation - think Germany 1930s.

But, if you've an economy of 3 trillion dollars like the UK does, then pouring another £400bn isn't going to overdilute it.

So, don't fret. None of us are suddenly going to pay double the tax.
Indeed
BoE is silently monetising UK's debt
https://www.google.com/amp/s/www.th...ney-Bank-England-150bn-UK-debt-disappear.html
Nevertheless, with UK population penchant for self-flaggeling, there will be voices calling for return of austerity
 
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Countries do run with massive debts - it was only in the mid 90s we cleared the WW2 debt. The last furlough scheme cost 1/2 of the 2008 bank bailout for example.


Personally I would raise corporation tax - and it wouldnt bother me to pay more tax (and I'm not a big earner) - we need to shift from the idea that paying tax is a very, very bad thing.

Won't happen of course. A lot of the elective stuff on the NHS won't come back - the world's best pensions and benefits will hammered so the migrants don't get at them.
 

vickster

Legendary Member
How about the people who have had to work through Covid and not be 'furloughed' do they have to 'stump up' too.
Those furloughed have still been paying tax
Your employees will still pay the taxes they normally pay out of their wages.
You must deduct and pay to HMRC income tax and employee National Insurance contributions on the full amount that you pay the employee, including any scheme grant.
You must also pay to HMRC the employer National Insurance contributions on the full amount that you pay the employee, including any scheme grant.


https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

Increasing Capital Gains is one avenue being explored
https://www.bbc.co.uk/news/business-54908037
 
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Prince William is organising an international athletic games tournament. One of the events will be

The long (covid) Jump
 
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