[Finance] BoE Interest Rise

[Tom Hark Preston Park]

Maybe quadrupling airport taxes would be a victimless crime? Might thin out the hordes that clog our rubbish airports and are happy to splurge huge amounts of cash on foreign holidays. Not much sign of recession in the aviation sector, other than nobody wants to work there anymore

 

[Weststander]

R4's brilliant You & Yours:

From 26:00
https://www.bbc.co.uk/sounds/play/m0019r05

 

[Machiavelli]

Seriously, if we'd talking about millions becoming destitute on base rates of 1.75% then lending is more out of control than I thought.

Of course it is, as are house prices. We've been storing up trouble for a long time

 

[Hotchilidog]

Wages and consumer spending are not fuelling this inflationary spiral, the interest rate will not address the root cause of it. It's just another jackboot heading straight to the nether regions of the general public.

 

[Weststander]

Of course it is, as are house prices. We've been storing up trouble for a long time

Something really serious/strategic will have to give in this country. The cost of living crisis, fuel poverty will rightly dominate headlines this winter.

I suspect that those who are blasé about this have either:
a) No or next to no mortgage; and/or
b) Are sitting very comfortably with a great pension.

It will dominate Truss's 27 months, before she's booted out. She won't have the big idea or social conscience to rejig tax and spend.

 

[Live by the sea]

Just my opinion but personally don't think it's a crazy decision.

In fact I think they have left it rather late - should have happened a month ago - and should have probably been an additional 3/4%

Unless inflation is bought under control (and it's heading for 15% by next Spring) then the spiral of increased prices, increased wages will continue unabated.

That’s my understanding too .

 

[Badger]

It seems like quite a small increase. I didn't realise the UK interest rate was still so low.

Here in Canada, they increased the rate by a full 1% a few weeks ago. That was after a 0.75% increase a couple of months earlier. It's now at 2.5%.

 

[Kinky Gerbil]

Maybe quadrupling airport taxes would be a victimless crime? Might thin out the hordes that clog our rubbish airports and are happy to splurge huge amounts of cash on foreign holidays. Not much sign of recession in the aviation sector, other than nobody wants to work there anymore

Virgin are 2.6 billion in debt
EasyJet lost millions
Heathrow lost over a billion I believe
Gatwick lost millions

Tickets are taxed massively, you are taxed/charged for flying out of Heathrow before you even start

The whole sector is a mess.

 

[Kinky Gerbil]

Might be nice for the contenders to be PM to come up with some ideas for how to fix the problems rather than whinging about the existence of gay people and threatening people who talk about our national history with re-education.

Hint - the answer is not, and never will be, tax cuts.

Sunak started off as the adult in the room and was right, Im not sure it was too far away from what Labour are saying, however it wasn’t popular with Tories so he turned.

 

[Nobby Cybergoat]

Virgin are 2.6 billion in debt
EasyJet lost millions
Heathrow lost over a billion I believe
Gatwick lost millions

Tickets are taxed massively, you are taxed/charged for flying out of Heathrow before you even start

The whole sector is a mess.

Yet I can still go on my weekend jaunt to the other side of the continent for less than it would cost me to get the train to Manchester this weekend

 

[Gwylan]

Virgin are 2.6 billion in debt
EasyJet lost millions
Heathrow lost over a billion I believe
Gatwick lost millions

Tickets are taxed massively, you are taxed/charged for flying out of Heathrow before you even start

The whole sector is a mess.

Just last week Ryanair posted profits of 170m euros for the first quarter of the year (and is expecting that to rise over the year). Yearly profits of around three-quarters of a billion doesn't sound like much of a mess to me.

 

[Kinky Gerbil]

Yet I can still go on my weekend jaunt to the other side of the continent for less than it would cost me to get the train to Manchester this weekend

I imagine most of that ticket is tax, which is also going up again in April

That also says more about the trains in this country than aviation

 

[Kinky Gerbil]

Just last week Ryanair posted profits of 170m euros for the first quarter of the year (and is expecting that to rise over the year). Yearly profits of around three-quarters of a billion doesn't sound like much of a mess to me.

They lost 815 million euros last year

 

[Gwylan]

They lost 815 million euros last year

During a lockdown when no-one was flying! I'm not sure how they were meant to make money

 

[dazzer6666]

Something really serious/strategic will have to give in this country. The cost of living crisis, fuel poverty will rightly dominate headlines this winter.

I suspect that those who are blasé about this have either:
a) No or next to no mortgage; and/or
b) Are sitting very comfortably with a great pension.

It will dominate Truss's 27 months, before she's booted out. She won't have the big idea or social conscience to rejig tax and spend.

Agreed. I’m very lucky to be a & b but far from blasé because my kids are neither. People like my son (lowly paid in the football industry) and his GF (teacher), and daughter (NHS nurse) are going to struggle with the combination of increases hitting Joe Public. Daughter has already taken a new job closer to her home due in part to enormous petrol costs. Massive crisis looming, higher mortgages are just another straw on the camel’s back.

 

[Tom Hark Preston Park]

Virgin are 2.6 billion in debt
EasyJet lost millions
Heathrow lost over a billion I believe
Gatwick lost millions

Tickets are taxed massively, you are taxed/charged for flying out of Heathrow before you even start

The whole sector is a mess.

Just a cursory glance at the EasyJet site shows that a one way flight from UK to just about anywhere in Europe on the Easyjet network can be had in October for under 25 quid. Not complaining, will doubtless fill me boots, but how can fares that low be anything other than head-mental on any number of levels?

 

[Kinky Gerbil]

During a lockdown when no-one was flying! I'm not sure how they were meant to make money

That’s still a rather big hole to fill in the finances.

To claim the aviation industry isn’t affected is just wrong.

 

[Kinky Gerbil]

Just a cursory glance at the EasyJet site shows that a one way flight from UK to just about anywhere in Europe on the Easyjet network can be had in October for under 25 quid. Not complaining, will doubtless fill me boots, but how can fares that low be anything other than head-mental on any number of levels?

They will be making a loss on that price I imagine, or given what’s going on cancel it!

https://www.gov.uk/guidance/rates-and-allowances-for-air-passenger-duty#rate-types

 

[Uncle C]

A .5% increase on 170k mortgage over 30 years is less than 50 quid a month. Unpleasant, but nothing compared with the £200 - 500 increases in energy costs that are being reported, that's what needs to be tackled.

House prices according to the Nationwide went up 11% in the last year. So on a modest £200,000 property the owners have made £22,000 over the last year. That's £1833 per month, so there's a long way to go before mortgage holders will have any right to moan.

 

[Beach Hut]

Airlines had little choice but make huge redundancies given furlough ended before the industry restarted