“Pound rebounds: How have the markets reacted to Rishi Sunak becoming PM?”

Oct 28, 2022 | Economy, Inflation

An independent (financial adviser’s) view

Every single joke and witty aside that could be, has been made. So I thought that some idea of the economic, stock and housing market effects of the Rishi Regime, which we have to assume will be around for a year or so, might be a tad more useful. Well, the £ went up in value, but not by enough to give you more than an inch extra of tonic in your holiday gin. Our stock market did very little, but certainly didn’t plummet. It’s probably too late for mortgage rates, but they may not go up much more, as interest rates have ‘stabilised’. And, another headline. “Dramatic fall in house prices ‘far less likely’ with Rishi Sunak’. Not desperately convincing, I know. A proviso, however, to all of the above potential ‘stability’: it will depend on the confirmation on 17th November of some pretty killer (in many ways) spending cuts and tax rises. Happy Halloween.

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“Rachel Reeves may be forced to raise taxes”

“Rachel Reeves may be forced to raise taxes”

Why did she/they (in the old sense) think that tinkering around with IHT and CGT would be enough to sort out the NHS; and the potholes; and…and the list goes on. My guess is  that they asked the Treasury for a list of anything not involving income tax that they could get away with lightly, although they should already have learned from the winter fuel stuff that all publicity is not good publicity.