What is Labour's economic strategy? | IFS Zooms In
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- Опубликовано: 7 сен 2024
- In the King's Speech last week, Labour announced 40 new bills covering areas from planning and green energy, to fiscal locks and a national wealth fund.
What can these bills tell us about Labour's economic strategy?
We speak with IFS economists, Christine Farquharson and Ben Zaranko.
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Christine is spot on...i wish we had native people with such good knowledge. Im sure they are out there. But this lady has said that we should be thinking. 😊😊
Can IFS please do a proper deep dive on pensions investment with an expert, like the Pensions Policy Institute?
Really interesting discussion. Had particular interest in the comments regarding the changes to non-fault tenants. We have a family property in London we use sporadically and were considering letting it to tenants. However we are now leaning towards just keeping it for family usage as we have no appetite for getting tied up in stressful legal processes just to make it available for family use again.
Labour needs to introduce tax incentives to encourage investors to invest into ftse 250 or ftse 350 index funds.
Give them maybe 35% tax relief when they invest, and if they wish to withdraw the money before 10 years penalise them with a tax penalty.
Why? How will that help? Many of these companies hardly invest in the UK and do lots of business abroad.
Yes i love the idea of a bigger Ponzi scheme
Landlords staying out of the market is a zero sum game.
If the landlords get out of the market, that creates supply on the sales market.
Some unhappy renters will be able to switch liberating supply on the lettings side.
Departing landlords aren't going to take their houses with them.
they might keep the property empty, not necessarily selling it
@@mariog1051 And pay double council tax indefinitely for nothing?
@@ajwright5512it's not that much, and it's discounted if the dwelling is empty
@@mariog1051 No, it's doubled if the dwelling is empty, except for one year for renovations.
@@ajwright5512 I might have remembered incorrectly from reading the exemptions a while ago. This is good!
I agree with the Nationalization of Rail. I would be interested to know how much land the railways and Railtrack Own. Ref. Infastructure Projects. I agree with more rights for renters and improved younger workers employment rights. Maybe younger people can have some more certainty. However I feel landlords and employers will need assistance and help towards expansion.
None of that will work it will make things worse!!
The only thing that isn't nationalised on railways currently is the management team running it. Everything else is state owned and run, hence the problems. Railtrack own the tracks and infrastructure is state owned, the rolling stock is brought or leased by government, who've got no money, the employees are unionised and subsidized by government hence the poor performance, even the pricing is set by the railways board that HMRC runs..... It's already state owned... Hence poor performance poor productivity and huge costs
Why would anyone be a landlord? Simply no logic for small land Lords the rules are stacked against making it work. 100k mortgages are 5k interest and 2k fees then 20% tax. rent is typically 6% return so 7200 so breaking even before tax and NOT paying down the house. One month the property is empty you are down 600. Agents fees at 10 to 15%. Boiler breaks down 3k.. you are paying to give a free home to someone basically. It is obvious to see why they are leaving the market, simply not financially viable unless you have hmo and providing low quality housing. Labour and Conservatives are screwing over the people who need temporary rentals and long term rentals. Contractors moving around.. oh yeah they introduced ir35 so destroyed contracting also.
More renters rights will reduce the amount of properties to rent as landlords selling, I predict at least another 50,000 properties, on top of the 300,000 sold already.....
Force up costs as debts aren't paid and a year is lost with any chance of eviction and no rent.....
Cause more damage to properties with pet's.... (@ £300 a carpet that's only 2 carpets with rent deposit.)
Increase homelessness with less properties to rent...
Add greater risk to landlords, so much choosier about the tenants making it harder to get accepted....
This is bad for tenants but it's sold by people who think they're helping yet they're making it far worse
Higher wages for younger people also bad.....
Younger people have less knowledge and experience. So if you're paying the same money to everyone, you'll always higher an older person with more experience and skills leaving like Spain huge young person unemployment, Spain is 12% youth unemployment.
These are all bad policies making things worse not better.
@@mikedudley4062 My thought is if you pay young people at a lower rate many firms such as take a ways or hotels keep employing young people to take the place of others when they reach a certain age. If an employment requires skills and experience built up over time you pay them according to a higher rank or skill band. That has always been the case. Higher wages should mean a more loyal workforce. In turn young people can buy more or afford more. This brings in more income to firms Some tax maybe accrued. VAT certainly will. More income, more contribution to the economy and society. More Growth.
Amazing
31:33 one assumes that if people stop buying property so they can make a return renting it out, then house prices will return to a more sustainable level and buying a property to live in will become easier.
Having been a landlord, it's a weird thing where one minute you are "above" your tenants and getting money from them. Then the next moment, you are a service provider busy hiring a plumber to fix something that's wrong with the flat or turning up and doing some handyman type work if it's simple to fix.
There will always be people that rent instead of buying (e.g. people working in the UK for a few years).
If property prices were lower, the balance would shift more to being a service provider and less Haha give me your money.
I am about to sell a fourth property to the tenant, all at a discount and a fifth is saving up. This will leave me with four. Not great though for anyone looking to rent. Would love to invest in something that does good and so over to you Labour.
I’ve just heard their talking about scraping state pension ❤
And I should be surprised it not all over the news
Where did you hear that? Facebook?
Labour have unfunded payrises already talking about pension raids. Shame on labour voters, shame shame shame.
No they aren't. "Raiding" pensions would be difficult, illegal and stupid.
They might fix some of the pension tax abuses
Higher public wages....
Not without higher private sector wages you won't, because theres no tax to pay for them....
And labour are already walking into less Tax as interest rates and operational costs rise with yet more government legislation and intervention.
I think with added operational costs this year my taxes will half, and i won't be the only small businesses who has tge same problems....
Here comes a bigger black hole, IMF is cued ready to set in
A MONUMENTAL COLLAPSE.
It is interesting to see this new Government that displays an ambition to play an active role in shaping and encouraging the development of the economy. I contrast this with the previous lassaiz-fair administration with no plan, seeking to play almost no role in economy. Is it a surprise that people have lost confidence in the ability of politicians to impact people's lives?
"Mission Government" does not assume it is important only to respond to "market failure"
They actively destroyed contracting with ir35 and rentals with mortgage interest.
The central play was to monetise financialisaton. Taking profits off the assets they own, which there is an information edge on. This does two things, it makes makes it harder or less attractive to do business (because you choose investing over entrepreneurship). This squeezes the labour market if you’re not doing financialisaton work. Two and it stops Britains investment in Tech, Britain is absolutely awful for starting a tech startup everyone goes abroad, there would be 2-3 generations of tech cycles if enabled but the emphasis was not there at all. Essentially a financial ponzi-scheme with squeezed value generation, and a bad (Big) tech skillset. This wasn't no plan, it was executing it to perfection.
Such a load of nonsense. The government need to get out of the way and let us get on with our lives. Their constant interference will cras and burn...
🎉The good news is bigger state. So if you don’t work for the state or live off it (same thing) you’re going to be paying for it with the shirt of your back.
Makes sense, keep your voters who voted for you, state employees or people who benefit from the new USS(R)GB 🎉🎉🎉
The plan is to keep doing exactly the same thing
How do we as a country encourage more private sector investment?
She is a very wise woman.
If you believe that you must believe in fairies!
@@stevejacobs9320 I'm referring to Christine Farquharson. Even if you don't agree with her views, you can't deny she is a smart lady.
If They told you They have a strategy.... its called tiddlywinks.
When they realise theyre crap at that they'll start fishing with dynamite. Prepare for carnage cos theres going to be guts everywhere.
Could you do an episode on the striking forecast from the UBS annual global wealth report about the UK losing 17% of its current number of adults with a networth of over $1MM? We are at the bottom of that table by a country mile!!!
Collapse collapse the only way is down
TAX and SPEND. How novel for them. Pay off their backers and drive away wealth creators. We’ve seen this movie before.
The pay settlements will keep rates up for longer costing the country millions.
It will also add to the inflation!
Why nobody talks about energy prices for the final consumer in the context of EU comparison and profiteering from monopolies in energy sector? Is this a taboo topic or Labour has no teeth to address these issues affecting millions of households?..🤔
A new note saying no money left coming soon.
S21 is a negative output
Every landlord I know is now selling at least 1 property, so we've lost 300,000 PRS properties in the last few years, you're likely to lose another 50,000 in labours first year. That means less to rent, still mass migration, and rising operational costs on the sector forcing rents up and homelessness higher. This will only bring more damage to landlords and tenants.
those properties don't just disappear.
@@tonygair no they're sold to a growing population, like the extra 650,000 increase in the population last year when we only build 200,000 houses....
It's all simple maths, but socialists can't do maths or economics
@@tonygair no they're sold to people that want to live in them, especially with 650,000 increase in population last year... When you only build 200,000 houses a year
@@tonygair We are withdrawing a family held property in Wimbledon that would otherwise be rented out. We simply don't wish to have to pursue a legal process in order to make the property available for family usage in the future.
No cost regulations may well have a £££££ cost .
Indeed. We left UK for regulatory reasons more than tax. We simply wouldn't believe the amount 9f paperwork we were having to do with no visiblr improvements in our sector. We felt the biz and the growth was being strangled. Our biz turns over £8m and we were employing about.25 people.at time of leaving. Hopr you're not affected.
More debt - that's a definite!
Sadly reform were the only ones offering a good solution. Luckily they didnt get in with just under half the numbers of labour😂
What really is the point of a skills policy that it takes such a large amount of time and effort to come up with and is a big mess?
Just put some procedural policies in place - like funding for adult training if you want to improve skills, or find some way of funding it jointly with employers. Stop messing about trying to micromanage the skills of entire workforce?
Can anybody tell me what Rachel' Reeves fiscal rules are ?
Don't get high on your own supply was one of Jeremy Hunts.
Blame the Tories forever.
@@IainFrame Just like the Tories did for a decade.
@@IainFrameYES BECAUSE THEU RUINED EVERYTHING. 14 days Vs 14 years.
@@AgentGreyFox You're not old enough to remember that it was fucked even before the last cluster of shite got in?
Its the same old Labour TAX TAX TAX SPEND SPEND SPEND maybe its hidden delayed but one thing is certain, its coming and the poor will be the hardest hit. Sure public sector wages will go up, please the Unions who lets be honest donate substantially into the Labour Party coffers so that keeps em quiet, we shall see. AS for migrants, easy fix NO one without a NIC number gets access to free Schools, NHS and benefits. Make it easier for everyone to get a NIC number even if for foreign workers its only temp for the length of their VESA the rest without a NIC fend for themselves until they do qualify. VAT on private schools, CON, cos now Private Schools will get just reclaim in VAT back, maybe it will even cost more than it saves. AS for most of the rest The Cons had did discuss them just never got off their lazy ass to implement them. AS for growth? Never going to happen until the working man has more money in their pockets to spend and that aint gonna happen any time soon
The IFS needs to stop shilling fot the Tories.
That's what they're there for.
Also the comments are laughable too.
"Won't somebody think of the landlords"
Stop the state pension ❤
Wait why
It could be means tested
There are many things to cut well before we need to look at pensions!
👎🏻