UK is facing a '?18 billion divorce bill for Brexit'

[GastonJ]

Now that is timing...

Rising prices for clothes, hotel rooms and petrol have led to the highest rate of inflation in nearly two years, official figures show.
Inflation rose to 1.0% in September, up from 0.6% in August, the Office for National Statistics (ONS) said.
Clothing saw its biggest price rise since 2010 and fuel, which was falling a year ago, was also more expensive.
However, the ONS said there was "no explicit evidence" the weaker pound was the reason for higher prices.


Benefits hit

September's inflation figure has traditionally been crucial because it decided what rate benefits would increase by in the following year.
However, with the government having frozen many benefits and tax credits until 2020, many families will no longer see them keep up with rising prices.


More than 11 million households will, on average, be ?360 a year worse off if inflation rises to 2.8% in the next few years, according to the Institute for Fiscal Studies (IFS).
For families on lower incomes who receive more in benefits, the hit will be bigger - on average a reduction of ?470 a year, the IFS said.


Kathleen Brooks, research director at City Index, said that with the fall in the pound: "Oil imports are getting more expensive, clothing imports are also costing more, and the weak pound is boosting the tourism industry, which appears to already be fuelling a rise in hotel prices."
Others said these pressures left the UK on course to exceed the Bank of England's target of a 2% inflation rate.
Chris Williamson from forecasters IHS Markit said the Bank's target could be "breached within months, though much depends on the exchange rate and the extent to which costs continue to rise".



http://www.bbc.co.uk/news/business-37688593

and as has been said before, typically the way to control inflation is to raise interest rates so people have less money, coupled with the rises in prices for fuel, energy, food and clothes it may become impossible for some.

We live in interesting times......

[lush29]

Also don't forget about the visa. If they really put visa in place.😢 college like Cambridge and so on will be harder to get to it so less people will come...farmers no benefit from UE....all companies non profit keepet runing by UE founds....and so on...

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[GastonJ]

It's interesting to see where this is headed. Higher inflation, which means the Boe will have to raise the interest rates to keep inflation in check. Wages certainly won't keep pace, so those already struggling will sink, those who think they're comfortable now maybe won't be once their mortgage goes up, fuel prices, utilities (it is winter almost) prices rise and food goes up. Could be a bumper year next year for debt collectors after Christmas *spit* and those that voted for brexit can be the governments scapegoat


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and I don't mean intersting in a good way.

[Mariajackson]

yeah, the 20 billion euro "upper estimate" was said to cover the UK's share of continuing multi-year liabilities including 241 billion euros (?217 billion) of unpaid budget appropriations, pension liabilities of 63.8 billion euros (?57.5 billion), and other commitments totalling around 32 billion euros (?29 billion).

[GastonJ]

and here's the bite

Mark Carney hedges bets on interest rate rise

The next move in UK interest rates could be up or down, Bank of England governor Mark Carney has again warned.
At present, UK households appeared to be "entirely looking through Brexit-related uncertainties", he said in a speech at the London School of Economics.
However, the country was "entering a period of somewhat higher consumer price inflation", he added.
As a result, monetary policy could respond "in either direction".
The Bank of England's Monetary Policy Committee (MPC) is required to achieve price stability, defined by the government as an annual inflation rate of 2%.
Higher inflation in the near future would help to moderate possible increases in unemployment, Mr Carney said.


http://www.bbc.co.uk/news/business-38644963

So all those who are borderline f**ked if the interest rate goes up; prepare to be f**ked. As I wrote in October, this year could be a bumper year for debt collectors, sorry.

[Meat-Head]

OFF TOPIC:-

Gaston, "why" can't EVERYBODY drop their prices to 1975 overnite?

ok you loose out making bread, but gain buying wheat
cars cost ?5000 but parts buy in now cheaper.

Thankssss

[GastonJ]

The average weekly wage for a worker carrying out manual labour in 1975 was ?48.63 before tax. I think the tax rate back then was 25%, so take home, after tax and NI would be around ?34 a week. Taking that into account you'd be able to buy the car in around 150 weeks, or 3 years - if you never had to buy food, pay rent, water rates, housing rates or anything else. Minimum wage now is around ?6.50, so ?260 a week, tax at (is it?) 20% and NI so around ?200 a week take home, so around 60 weeks to buy a car at ?12k saving just under 2 years of your life having to starve and live in a kelloggs box. So cars cost around twice as much in relative terms, but people used to earn a 1/5th what they earn now. That's using your figure of ?5k for a car, so likely to be very inaccurate. probably out by 80% and I would think more like ?800 for a car, so 25 weeks pay. You do know I don't know how much a car is nowadays don't you?..... Still with all the changes the government will be making it'll soon be like you were living in Dikension times anyway, work form dawn to dusk for ?1.27 an hour and if you don't go to grammar school you can work from the age of 12 until you're 75 or you die.

[ifred]

Gas you forgot Mortgages (Mort) Death (gage) strangulation derived from French meaning death by slow strangulation good deal for the Banks as we bleed you dry over your entire life if you miss a payment or two we reposes rob you blind again.
Did you know if you paid the mortgage daily instead of monthly you'll clear the mortgage in less that half the time for the same money paid over!?

[GastonJ]

Ah well, this government and previous governments use house ownership as a con against people anyway. The government and house builders ensure that there are never enough houses built each year to cope with demand. This ensures that demand outstrips supply and keeps teh prices high and always rising. That way people think that they actually have money "in bricks and mortar" when in reality all that most of them have is a roof over their head that, if they sold, they'd have to spend the same amount if not more to buy another. So in reality they have nothing other than a roof over their heads. The trick being that as house prices going up, people then rush out and borrow money to buy cars and sh*t against the 'equity' in their house. So then they end up paying more and more to banks, while thinking the have actually made money.

Average house price in 1975 would be just over ?10k.

[ifred]

Average house price in 1975 would be just over ?10k.

Crikey that's the price of a garage door share of a lock up garage in some cities ( based on garage has floor, roof, three walls and roof. Price of garage door ex store ?200 ? That's some expensive hinges Ex store ?11 get the drift
Mind you MHM lock-up cost ?1.50 a a jumble sale in 19:: so I hear! Current value priceless due to Meaties recent nuclear submarine ECU re-chip failure (code name terry and june canal boat) deny it if you dare meaty

[GastonJ]

Mind you MHM lock-up cost ?1.50 a a jumble sale in 19:: so I hear!

He was ripped off even back then

[GastonJ]

Civil servants are to be trained in international trade negotiating to prepare for the UK's exit from the EU.
An invitation to tender has been put out for a contract to coach staff from across Whitehall about trade policy.
Staff will be expected to get a thorough grounding in the UK's trade priorities and those of major partners and to understand relevant terminology.
The UK hopes to seal a raft of free trade deals after Brexit but there are concerns about a lack of know-how.
In his resignation letter last month, the former UK ambassador to the EU Sir Ivan Rogers claimed multilateral negotiating experience was in "short supply" in the UK.
The EU has handled trade negotiations on the UK's behalf for decades, with many of the UK's specialists in the field working in Brussels.
The Foreign Office and the Department for International Trade are now seeking a supplier to provide "short-term civil service training in international trade policy and negotiations".
The successful bidder will be expected to "provide staff across Whitehall departments with a thorough knowledge of the key areas and terminology of international trade policy and the trading priorities of the UK and its key partners".

http://www.bbc.co.uk/news/uk-politics-38737966

I do hope they put the tender out through the correct OJEU tender process to employ people from Europe to train them