zip106

Well done, you fu ckwits.

A triple dip recession will be nothing compared to what's coming....

Angry?
You fu cking bet I am.

Oldun

They need to join Credit Expert, they'll help.

hodgy0_2

the downgrade is irrelevant in pure economic terms,

the market has already marked our debt

it only matters because Osborne pinned his credibility to the triple A


If we are banking on Osborne to really get us out of this mess, (he is a clueless buffoon)

then I am afraid the vast vast majority in this country are really fvcked

they will steadily and inevitably get poorer and poorer

dpb

Stock market went up


But. http://seekingalpha.com/article/1218...ce=google_news



Alcazar won't be happy

r32

Surely it does affect us financially. Our interest payments go up on our huge debt dont they? Or at least on any borrowing.

f1_fan

iTrader: (9)

Yep and Osborne the cnnt's response to this.... we will not deviate from our economic policy as it is working... what f**king planet is the **** on?

He is starting to make Brown look good

ScoobyWon't

I'd like to see cuts in VAT, Corporation Tax, increases in personal tax allowance in the next budget to put more money in the working man's pocket and encourage investment from overseas.

And scrap all foreign aid until Great Britain has repaid it's debts.

I expect the budget was being re-written after the 4G licencing brought in less than was expected. Maybe they'll re-write it again - though I expect they will carry on regardless.

Gear Head

iTrader: (2)

Completely agree with that.
People are struggling just to put food on the table.

Let's get people spending again. That is the only way to pull ourselves out of this.

The Tories were always going to make the average bloke poorer. Whoever thought otherwise and voted for them have very short memories.

alcazar

iTrader: (2)

Can't see this being good for the UK at all. It doesn't seem to have affected the € yet, but we are sinking against the $ which means even higher oil prices.......

TBH, this has been coming, but now it's HERE, it's a disaster.

madscoob

iTrader: (3)

on the plus side it might stop the ***** spending money we haven't got.

dpb

f1_fan

iTrader: (9)

Don't wish to say I told you so, but I will!

I said nearly 3 years ago we needed to bring in austerity measures at a slower rate and try and give the economy some impetus to grow. Maybe the IMF and the likes should employ me as they now seem to be saying the same thing ... just took them 2 years longer. Better than that kick Osborne out and let me have a go... I couldn't do any worse!

To me it was so obvious his plans were not going to work... you can't keep cutting away at an economy that is stagnating at best as one of the reasons it is stagnating is the severity of those cuts!

There are loads of people who now can't afford to anything other than exist due to massive increases in fuel and energy, VAT, food prices etc. etc. and wages effectively dropping and those that can afford it don't because there is no confidence in the economic future of the UK... hence why the cedit rating has been cut!

Osborne and Cameron are Grade A solid gold *****!!!!

Leslie

I have to say that this is very disappointing but to be absolutely fair, the Conservatives did inherit an economy in a terrible mess after the efforts of the previous government.

Anyone like to say what is likely to have happened if Labour had still been in charge of our economy during the same period? It was very strong when they took it over after the previous Conservative government. Look what happened to it after that!

Les

stedee

iTrader: (4)

as above, there is no money in the coffers, do you tighten the belt or carry on borrowing and spend. that aaa rating would have gone along time ago if labour were still in.

PaulC72

Leslie,

I can guess where it would be but I am a realist if they took a country from a good position to a bad one it would have been reasonable to think they would be unlikely to recover it (they had long enough when in power) so things would be allot worse now.

It is very hard to fix something that was in the state the Tories took it over in, it takes many years to recover but only a few to ruin it.

pslewis

The Tories have destroyed our Credit rating?

OH, JOY!!!

This is what you get when little rich boyz are running the country ....... never done a days work in their lives!!!

This is the very start of a disastrous 2013 - we need growth ....... not the destruction of our country!!

January saw the lowest fuel consumption in a generation - this affects tax income.

The new Governor of the BoE has openly suggested that he will be pumping £175 BILLION into the economy by printing money .... giving it to the Banks!!

Give every working person in the country £10,000 credit - this credit is to be spent on British goods within 2013. Hell, everyone would feel better and the Taxman will get most of it back!

dpb

LOL can you even begin to imagine what our position would be under the last regime

We wouldn't even be rated let alone a rating

AndyBaker

Pete, for the last 30 years or so Labour f-ck it up the Tories put right and become unpopular so labour get in again, build a massive public sector, f-ck it up again and then the Tories have to sort it out again. I suspect that Labour might well be in again next time. Nothing is long term enough to sort owt so we will still be in the same pie of **** in five 6 years time and then the Tories will have to come and sort it again. Oh joy

stilover

Oh course, the Global credit crisis is all the fault of the Torries...........

Lets not forget Labour were in charge when this all happened. Quick, lets vote them back in because they'd be able to sort it out better than the current government by spending our way out of it!!!!!

f1_fan

iTrader: (9)

I am sick of hearing it would have been worse if Labour had been in like that makes the current mess somehow alright.

How about neither of them know what they are doing and like I have been saying the best solution lies in the middle ground between the Tories 'cut everything now and don't spend a thing' and Labour's 'borrow more and spend like there is no tomorrow' ideas!!

As for those who really believe it's a case of Labour always **** it up and the Tories always put it right grow the **** up and see if you can find a brain in there while you do!

r32

You know I find what happens amazing. Oil prices are high, but dont forget they still get the extra VAT, fuel is expensive and it's resulted in people buying less so why should George be surprised when he gets less revenue. Same with the increasing unemployment (yes I know the figures show it's dropping but it depends how you count it) less people paying income tax and NI and they wonder why spending is down and tax revenues are down too.

super_ted

iTrader: (30)

The most sensible thing written on SN for a long time

alcazar

iTrader: (2)

If they didn't want this to happen, WHY have they been talking the £ down for the last year or so, keeping us artificially low?

First off, we are a nett importing country, so higher prices = inflation.
Then there's oil, traded in $.....we pay more, therefore inflation.

What did these idiots think was going to happen?

f1_fan

iTrader: (9)

Just heard the latest on the news from Osborne who says that the credit downgrading illustrates more than ever the need to cintinue with his current program for the economy

Is he on drugs? FFS!!!

RA Dunk

If he's not he should be!

Lower taxes get people confident in spending again rather than tax them to the brink then wonder why people aren't spending anymore.

******* jokers!

f1_fan

iTrader: (9)

I know, it's not rocket science is it?

zip106

They just won't listen - economists with no political beef are even telling them that what they're doing is wrong.

So bloody minded, Osbourne's a fu cking retard.

Martin2005

There is no easy tax cutting option here (as nice as that would be)

If we cut taxes we will have to reduce spending, unless we want the Spainish levels of interest on government borrowing.

I don't know what the solution is, there seem to me to be fairly unpleasant consequences to most options.

Western economies are going through a huge correction, this could last 5 more years, regardless of what the government does

f1_fan

iTrader: (9)

What Dunk is getting at is if you give people some impetus to get the economy moving then tax revenues will rise and benefit payments will drop and you won't need to make the same level of cuts.

Anyway all irrelevant as the a55hat that is Osborne thinks he knows best.... another in a long line of expert chancellors... Lamont anybody

ScoobyWon't

If you cut the taxes now, it will reduce slightly in the short-term what HMRC collects, but by encouraging the consumer to spend and new investment from companies outside of the UK, HMRC will have more corporations and goods/services to tax in the future.

Even as a very basic example, if I buy something at £100 + 20% VAT, that's £120 out of my pocket. If VAT is 10%, £110 leaves my pocket on that transaction.

The other £10 which I saved from not paying as much VAT, is then spent in the pub - as I feel I have a little disposable income. £9 for 3 pints, gets HMRC around £3 in alcohol duty. The other £6 goes to the pub, who then pay their taxes, for arguments sake let's call it £1
of the £6. So that's £4 tax HMRC are collecting from alcohol and corporation tax.

Therefore even with a 10% cut on VAT, in this example, they would only be taking £6 less in tax.

As I said, an extremely basic example.