Feb 06 2025 29 mins
Like a patient on the operating table with no pulse, the UK economy is barely growing. Prime Minister, Keir Starmer and Rachel Reeves are desperately banging on the chest of the patient trying to revive it, but they don’t know how to bring it back to life.
December figures show that the economy barely grew by just 0.1%.
They talk of growth, but where is it going to come from?
10,000 millionaires have quit the UK in the last six months!
China’s economy grew by 5% last year.
Watch video version - https://youtu.be/FgXuoDMFE3c
Retail sales were down in December! I’ve never heard of retail sales falling over Christmas.
More inflation is expected as UK borrowing costs and bond yields have risen sharply.
The country’s additional borrowing costs will run to £12 billion per annum. Paid by us, taxpayers of course. Governments screw up, we foot the bill.
This could mean higher interest rates and higher mortgage costs for all of us at a time, and the Bank of England should be cutting rates.
The market has lost confidence in the UK chancellor Rachel Reeves. She is out of her depth and reminds me the person that talks a good game and job interview but in reality hasn’t got a clue when they’ve got the job.
Labour have got off to the worst start and any government I’ve never known.
They want to give away the Chagos islands to Mauritius, and then lease it back at a cost of £9 billion!
I’ve heard of sale and leaseback, but not “give” and leaseback.
This will surely be remembered as the Prime Minister’s “Gordon Brown” moment. Gordon Brown was the Labour chancellor who sold off the U.K.’s gold reserves to China at rock bottom prices. Gold has risen by at least 10 times since the ill-fated sell-off.
They inexplicably cut the small winter fuel allowance for millions of pensioners, taxed private school fees, and raised national insurance costs for employers, taxed our farmers and borrowed an additional £145 billion, all of which have made them hugely unpopular.
And yet, the FT 100 index, reached a record level today! Apparently they expect interest rates to be cut by 0.25% when the Bank of England meet next month
Will the Bank of England hold or cut rates next month?
The implications are huge for the country and for the 700,000 borrowers who will come off fixed interest rates this year, as well as the first-time buyers who want to go on the property ladder.
Buy to let property investment has become almost unviable, unless you have a large deposit or buying cheap properties up in the north-east.
Some good news could be on the horizon for first time buyers as regulators are expected to relax lending rules. However, could this lead to another boom and bust?
The massive building firm Taylor Wimpey has reported good profits of over £400 million last year and they built almost 10,000 new homes. Perhaps labours plan to relax planning rules will bring more homes onto the housing market.
China
What is going on between Labour and China?
Why did Rachel Reeves desert her post at the time of the bond crisis last week?
What are they given away for China to buy UK bonds? The Chinese government does not give anything without expecting something in return, and they normally bargain very hard.
Foreign Secretary, David Lammy is expected to approve a new super embassy for China on the site of the old Royal Mint.
Why does any country need a super embassy with hundreds of “diplomats”?
Donald Trump could turn the US economy around, but will we get a decent trade deal after labour have alienating themselves from the new president elect?
David Lammy, with his personal attacks, labour sending 100 people to America to canvas for Joe Biden during the US elections and now rushing to sign a deal with Mauritius before the presidential inauguration on January 20.
Now it appears Labour are getting closer to China.
The previous government cooled relations with China over Chinese technology, tensions over Hong Kong and Taiwan, the South China Sea, cyber security and allegations of spying.
In summary, the lunatics have taken over the asylum!
What does this mean for you?
What can we do to cope on a personal level?
If you believe we are entering choppy waters and stormy weather, now is the time to batten down the hatches and tighten your belts.
This is not the time to purchase an £80,000 car on a lease or buy a fast-food franchise and open up yet another burger bar on the High Street.
I’ve seen at least two or three new fast-food outlets or restaurants popping up on the High Street in the last couple of months. They are occupying premises that previous owners of similar businesses who went bust.
I’ve talked to some of the business owners, and they are struggling. I walk past their restaurants and see the empty tables.
I talk to a lady who opened up to bubble tea outlets and lost all her savings within six months.
Her sign is still above the empty shop, which means the landlord has not been able to let the property again.
- Manage your money and control your spending.
- Invest wisely.
- If you’re nearing retirement, I would check with your financial advisor as to where your pension funds are invested.
- If you are young, I would learn more about AI.
AI will kill 300 million jobs worldwide according to a recent report.
People already been laid off in the City of London and Wall Street due to the impact of AI.
A massive rise in employer national insurance contributions will hardly encourage employers to take on more staff. Worse still, it could lead to redundancies.
Could be an easier time for homebuyers, if interest rates fall and the regulators ease the stringent restrictions on mortgage lending.
Expect the best but prepare for the worst.
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See also:
Is Great Britain Finished?
As the UK faces mounting economic challenges, many are asking, "Is Great Britain finished?" The debt crisis in the bond market, combined with political and economic turmoil, paints a grim picture.
Watch full video - https://youtu.be/smyXgIM0lWg
Section 24 Landlord Tax Hike
Interview with Chartered Accountant and property tax specialist who reveals options and solutions to move your properties from your own name into a limited company or LLP whilst mitigating the potential HMRC pitfalls.
Email [email protected] for a free consultation on how to deal with Section 24.
Watch video now: https://youtu.be/aMuGs_ek17s
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