Share Sounds. related to Economics - UK

The past seventy years have seen remarkable progress in so many areas, but they have also been accompanied by a growing addiction to debt. We've lost connection with the disciplines which should govern the use of debt: like the road runner who has just lost touch with the cliff edge, there is no longer any solid ground on which we can land — so we must now anticipate painful re-adjustment as markets fall. We need to move to a mindset where debt is a form of investment for the future, to be drawn down carefully and sparingly — not to be used either for chasing higher and higher prices, or for incessant Government bail-outs. Background music: 'Addicted' by VYEN

There's a key missing link in Kwasi Kwarteng's mini-Budget strategy — workforce capacity. The unemployment rate is already at a record low of 3.6%, with many more vacancies than job-seekers: if we don’t tackle workplace capacity, the new Growth Plan won’t work. However there are initiatives we can take at both ends of the working age-range which could increase the available workforce by at least half a million people, together with significantly improving mobility for young adults to take advantage of work opportunities wherever they arise, and reducing public expenditure on health and care services. So, while the current focus is understandably on Government borrowing and the exchange rate, we must increase workforce capacity for the Growth Plan to succeed. Background music: 'The Plan's Working' by Cooper Cannell

If you missed Kwasi Kwarteng’s speech on Friday 23 September, here’s the opportunity to hear it in full, as delivered.

Britain's new Chancellor Kwasi Kwarteng delivered a blistering mini-Budget this week that was anything that small. A wave of tax cuts were unleashed. Some had been heavily trailed, such as spiking the National Insurance hike and a stamp duty reduction, but there were also two rabbits out of the hat: a cut in basic rate income tax to 19p from April and abolishing the 45p income tax rate. Those tax cuts joined a wave of spending commitments, most notably the huge energy price guarantee bailout for Britain's households and businesses. Paul Johnson, of the IFS, said: 'Mr Kwarteng is not just gambling on a new strategy, he is betting the house'. Georgie Frost, Lee Boyce and Simon Lambert discuss what the going for growth mini-Budget means for people, how much they may save in tax, and whether it will work or cause the UK economy even more problems down the line. One thing was clear in the aftermath: markets didn't like the break from the orthodoxy that they saw, and the pound tumbled below $1.10 while UK gilt yields jumped. But how much does that have to do with the mini-Budget and how much does it have to do with the Bank of England's rate decision that delivered a bumper rise of 0.5%, which was still considered small next to the US Federal Reserve's 0.75% bazooka? And finally, we've heard lots of 'glass half-empty' verdicts on our current economic situation but what is the 'glass half-full' one? Simon has a crack.

Base rate has gone from 0.1% to 1.25% in the space of six months, in a flurry of rate rising that would have been considered unthinkable a year ago. Yet, as the Bank of England delivered another 0.25% raise, voices were raised in some corners to demand why it hadn't gone further. Why not a 0.5% jump or even a 0.75% one, as the Fed had delivered in the US? With inflation running at 9% and expected to head north into double digits, the onus is on the Bank of England to show it has a grip and we aren't heading back to the 1970s. But is rapidly raising rates the right thing to do and how will it affect savers, borrowers and investors? Georgie Frost, Lee Boyce and Simon Lambert discuss the case for and against rate rises and what the impact is for the economy and people. Mortgage rates have risen even faster than the base rate, so what can those who need to remortgage do - and will this sink house prices? The team assess the prospects for the property market and offer their tips on what borrowers should do to prepare and protect themselves. Meanwhile, over in the US, it's the stock market that's suffering as rates rise. Why is that, and how bad could this bear market be? And finally, petrol prices keep hitting record highs and we want people to switch to electric cars but the Government has swiped away the £1,500 grant that helps people buy more affordable models. Will that make a difference, or has electric car demand reached a level where ditching a bung to help out is wise?

The Bank of England expects the price inflation peak to be high, but short-lived: however if it feeds into wage inflation it could seriously undermine both national debt servicing and the property market: that's why the Government appears to be adopting a tight fiscal stance and announcing a large reduction in the civil service. Carefully targeted support with the swiftly rising cost of living is urgently needed for those most in need and, if the Government can't or won't respond, it could be enabled through the voluntary sector: with Government acting as catalyst. However this is a role to which they're not currently accustomed. Background music: 'Everything has a Beginning' by Joel Cummins.

There's no question over Rishi Sunak's commitment to a strategy to encourage people to work; however, faced with a major cost of living crisis for those on the breadline,there's a real need to complement it with a strategy for sharing. If HM Treasury is not inclined to assist, it should at least set out a plan to encourage those who will. Accompanying music - Bike Sharing to Paradise, by Dan Bodan

Chancellor Rishi Sunak delivers his statement, unabridged and with no additional comment. Major initiatives include a 5p/litre cut in fuel duty for 12 months, simplification and relief for energy saving home improvements, a doubling of household support via local authorities, a £3,000 increase in the National Insurance threshold, and a promise to cut the basic rate of income tax from 20p/£ to 19p/£ by the next election; plus reform of training, R&D credits and capital-raising.

On Monday, we take a step towards normality – you can get your hair cut, have a beer outside at the pub and visit a clothes shop. But what about the future of the office? Will we ever go back full-time, or is a hybrid model more likely – and if you're tempted by a shed office, what should you look out for? On this week's podcast, Lee Boyce and Georgie Frost discuss the future of work and the pros and cons of WFH life, including the 'shoffice.' Elsewhere, should you claim home working tax relief and how much could you get for doing so? And what can you do if you want to change career, whether that is a huge leap or a 'bridging' one. Plus, are workers heading for a horrible shock when it comes to retirement and what can be done to navigate it?

Financial scams are on the rise. The coronavirus lockdowns have seen a fresh burst of investment cons with fraudsters impersonating legitimate companies to steal tens of thousands of pounds. Unwitting savers are being lured into fake savings and investments, such as fixed term bonds or share schemes, and transferring large sums to fall victim to clone fraud. What’s behind this burst of crime and how can people protect themselves? On this week’s podcast, Georgie Frost and Simon Lambert discuss the rising tide of fraud, how to stay safe and what more can be done to combat it. Also, on the show, the pair look into the cases of the mortgage prisoners, trapped paying high rates ever since the financial crisis while others have seen their monthly payments slashed. The Deliveroo float is also on the agenda – why did the shares slump as it hit the stock market? And finally, campervans are in hot demand, making this a good time for VW to be launching its new mini Caddy California: with sleeping space for two and an optional tent that turns into a home on wheels for all the family. Would you want one?