Do we trust the government to maintain the Energy Price Guarantee?

[Deleted User]

I don't see a short-term change.  The government is too wedded to their course (you might not agree with their plans, but for the first time in a while they seem keen to stick to them) and the impact on public opinion of taking away the cap (because that is how it would be described) would be too great.

Chrysalis

The_Green_Hornet said:

Chrysalis said:

Just noticed this thread, I will ask the mods to merge mine in.

Sunak's predictions are coming true, and he was against a broad help been supplied across the board and instead targeted help.

I think there is a risk the EPG might be reviewed as the financial news has been absolutely grim the last few days, and the government is now faced with having to make its numbers add up in November, which very likely they wont be able to do without U turns.

If I remember right Martin revealed the government only did 3 month contracts with the suppliers, which meant this always remained a possibility.

Minister rejects U-turn on tax-cutting mini-Budget.

https://www.bbc.co.uk/news/uk-politics-63067163

Sadly that can be taken with a pinch of salt. A currency collapse would easily take precedence.

The minister might not even be in his post in a few months, Truss is on very shaky ground right now.

[Deleted User]

Breaking News:

The Chief Secretary to the Treasury, Chris Philp, will write to government departments in the coming days about and identifying spending efficiencies and living within the spending review, a Whitehall source has confirmed.

Sounds like a plan. What next a General Strike by public sector workers?

I also see reports that the Government’s Market troubles are being blamed on ‘remainer’ traders, and the Market discounting the £ because of the possibility of a Labour Government! We shouldn’t forget that our Chancellor got his PhD by studying currency in 1695.

Political thought of the recoinage crisis of 1695-7

ariarnia

Dolor said:

Sounds like a plan. What next a General Strike by public sector workers?

i was surprised they didn't already. when we got about 4% pay rise earlier in the year i was reading in the papers they were being capped at 2. thought the unions would have been all over that after the last few years with covid and brexit and everything they've been made to take on. might even been good if they did. maybe slow things down so the markets can stabilise a bit before the next shock announcement

QrizB

I'm not confident that the government will last until Christmas, let alone the EPG last two years.

Mstty

QrizB said:

I'm not confident that the government will last until Christmas, let alone the EPG last two years.

Completely agree

wittynamegoeshere

My new word of the day... KamiKwasi.

The_Green_Hornet

What is going on now in the currency markets is no worse that what we saw in 1992. The country (and the government) survived then and will now. If it holds its nerve that is.

As for a general strike by public sector workers. I suppose that will help balance departmental budgets by not having to pay their wages but then I can't see the unions convincing enough nurses and teachers to vote for it.

wittynamegoeshere

1992 was due to the anomalies of the ERM, which was stupidly flawed from the start.  It compelled governments to prop up their currency within defined limits, and speculators saw the opportunity to bet against and make massive profits as a result.

What we have now is much more fundamental - this is not a glitch but the world is starting to fundamentally doubt the credibility of the UK and its government.  Even the IMF have said the sort of things about us that they normally need to tell banana republics.

We've spent the last few decades living on borrowed money, and only got away with it because interest rates reduced over that time.  Now it's game over.

There's likely to be an unbeatable all-time winner in the ranks of shortest term as PM very soon.

The_Green_Hornet

QrizB said:

I'm not confident that the government will last until Christmas, let alone the EPG last two years.

Who would have thought people are already yearning for the days when Boris and Rishi were in charge.