RE: UK Economy - Growth kickstart?23 May 2025 09:34
Some valid points Go. I am pleased that we are moving closer to EU for trade. Vilifying the EU to promote the ambitions of pompous Tories who wanted "PM" on their CV before buggering off on a speaking tour was pretty frustrating to watch.
I'd argue Labour will just not escape the Jess Philips idealists of giving away other people's money to whoever crows the loudest. I am genuinely worried from the last few days. Winter Fuel allowance AND the Triple Lock is unaffordable and clearly just trying to buy the older vote again. Add on a 4% pay rises for doctors ( and some lovely defined benefit pension uplifts as a result) and the public finances are going to look horrible. We then get MORE tax rises, which in anyone's book is not good for Capita. The tax doom loop looks inevitable now, as Labour are beholden to the Unions and Jess Philips.
I'd argue this impact on Capita, which we may well see at the next Budget, is going to be bad short term. Higher bond yields (inevitable) will unfortunately affect Capita, which has a high Beta anyways.
The key question is, can all the positive news outside of the economic context offset this?
I bloody hope so as I am knee deep here π