What Brexit did was heap pressure on a country already struggling with weak public infrastructure and stagnant wages, mainly by limiting the labour market and diminishing volumes of trade.
Yes, Love. If you limit those who may enter the labour market then you push up wages, don’t you? Even at The G you should get this – straight Marx that is, reduce the reserve army of the unemployed.
Brexit did not break the housing market, so that stock is low and housing so unaffordable that the average first-time buyer in London had a deposit of £150,000 last year, and recent rises in interest rates will be passed on from buy-to-let landlords to tenants.
Landlords are cost plus now, are they? Rather than price takers in a market?
Brexit didn’t slash NHS funding.
Given that NHS funding wasn’t slashed I suppose that is one thing you got right. Brexit didn’t slash it.
Sigh.
Given that NHS funding wasn’t slashed…
Polispeak 101… A “cut” is actually a reduced increase. “Slashed” is a slightly larger reduction in the increase.
“Landlords are cost plus now, are they? Rather than price takers in a market?”
Well if everyone’s costs go up because their mortgage costs go up, then they either have to put their rents up to compensate or get out of the market. The latter will have the effect of meaning excess demand over supply and rents will go up by demand pull. So either way, rents go up when there’s a pretty universal change in the cost of supply.
Yes, NHS funding was not slashed. In fact am surprised that more has not been made of the NHS now having the full additional £350m a week, even after excluding Covid spending and adjusting for inflation. https://www.kingsfund.org.uk/projects/nhs-in-a-nutshell/nhs-budget
‘… and recent rises in interest rates will be passed on from buy-to-let landlords to tenants.‘
Wasn’t that Government policy which removed mortgage interest payments as a tax allowable expense? Ergo nothing to do with Brexit.
Not all landlords have mortgages.
So the theory that they will all pass on the increase in interest rates through rent increases is bsed on false axiom.
‘Wasn’t that Government policy which removed mortgage interest payments as a tax allowable expense?’
From personnel experience yes, thanks a lot George Osbourne.
“Wasn’t that Government policy which removed mortgage interest payments as a tax allowable expense”
Thats not strictly true. They removed allowing mortgage interest to be offset against rental income yes, but gave you a tax credit of 20% of the value of your interest payments instead. You still get an allowance against tax for interest, its just limited to standard rate tax. So if you are a standard rate tax payer you’ll be no worse off, if you’re a higher or top rate payer then you will pay more tax.
https://www.which.co.uk/money/tax/income-tax/tax-on-property-and-rental-income/buy-to-let-mortgage-tax-relief-changes-explained-aHQIA2d4bjXj
The UK, alone of all European nations, is tipping into recession. It’s worth analysing why this happened. Given that France, Italy and Spain are also run by incompetent morons, that’s not the full explanation. I hate to say it, but Brexit is an obvious candidate. It would be worth someone’s time to come up with an alternative.
It’s not Brexit per se, but the inability of the politicians we have to operate in the new political environment. Just like post-Independence America, or post-Independence Ireland, or post-Aparteid South Africa, the pollies who transitioned to the new environment are crap at working in the new environment. Just like post-1832 UK as well, you need a clear-out of the previous polititians who are incompatible with the new environment. They were revolutionaries, we now need administrators. Thanks very much, you got the job done, now bugger off.
“The UK, alone of all European nations, is tipping into recession”
Citation?
Someone from the IMF doesn’t think so
https://www.euronews.com/next/2023/01/02/half-of-the-european-union-and-one-third-of-the-world-face-recession-in-2023-imf-warns1
The European Commission also seems to be expecting the EU and the Euro area to go into recession