UK government dishes out extensive tax cuts as country braces for recession

Barber's tax cut in 1972 did not end well....are we seeing a repeat of history?

Barely tax cuts. Cancelled increases and reform that will drive growth. An excellent strategy.

They can't afford it
dumb waste of money ideas
5y UK bonds are now well over 4%

You have to borrow or print money if you can't afford something when inflation has rocketed to 10%
also
Energy is still going up 80% in October and the government will borrow the difference of what people pay to that level

Blimey, I can remember Anthony Barber too, and you're right that didn't end well. I think it was called the "Barber Boom", and that lead to the Tories loosing to next election to Labour's Harold Wilson! History repeats itself yet again

Are you sure? It's a massive gamble which if it doesn't work we'll be paying for it for decades. Makes for great trading conditions thought lol

Not sure how someone can claim this not to be a tax cut. The 'mini-budget' is a massive tax cut plus a reversal of several tax rises. I'm trying to figure out the likely scenarios from here, and I can't see anything good. The best case (IMO) is a short boost to the UK economy, which may be just enough to give conservatives something to take to the polls. This will probably be followed by a deeper recession (again IMO), in a repeat of the UK's tax and spend politics of old.

However, the best case seems unlikely. BoE has indicated rate increases will continue and this will probably dampen any stimulus cutting stamp duty will have. The cost of borrowing for UK will continue to rise, but how high and how fast? Will money markets see GBP and UK Plc as a safe haven or a gamble? To me it looks like a gamble...almost as if the chancellor has gone all-in.

The UK will borrow huge amounts at high-interest rates; there will be no windfall tax on energy companies; reducing the cap on banker's bonuses (intended to curb excessive risk-taking); a significant part of the population facing a cost of living crisis; regressive (IMO) tax-cuts.

Short term - maybe some positives, long term looking very shakey.

In 2 years times or even 20years time, our next generation will remember trussonomics that bounded them to long term "tax slavery"!

Damm uk what are you doing?

KwarTruss were voted in by a few Conservative members. Not the UK electorate.

Whether this strategy turns out to have been excellent is only something that can be concluded in hindsight.

I don't recall any instance in history of the leaders of this or any other political party being voted into their position of leadership of said party by anyone other than the party membership. That the conservatives happen to have a majority in the HoC and the new party leader was invited by HMQ to form a government is by the by. I don't see people screaming about Kier Starmer not being voted for by the wider population when he was elected leader of the labour party. Re-inventing rules on the hoof is never a good thing. C'mon. We're supposed to know that most basic of things as traders.