Rachel Reeves’ mortgage gamble is the move of a chancellor who is running out of options
ARachel Reeves, who joined the Treasury sources, wants the people to start taking risks again.
The analysis it works is that it has entered under several banks or that the financial collapse of 2008, which needs to be nationalized, makes the country very risky.
However, the biggest risk buyer can be a chancellor with plans to release the mortgage market and cut bureaucracy for financial services in the city.
Like many gamblers, the return of the financial services to be announced in MS Reeves’s Konak home speech this evening is largely asked because of the exhaustion of options.
As a result, when the worker won the election a year ago, Mrs. Reeves started to work with economic growth as the önemür Number One Mission ”.
It could actually be neglected for his speech to have the best economic growth in the G7, and in fact he went back a little back in the last quarter.
He also insisted that he did not want to collect taxes and even said he would prefer to reduce tax during the election. However, when it came to power, it controlled a major increase in expenditures in the first budget of the tax increase in the tax increase, often a hike to employer contributions to national insurance, which often affecting the labor market.
The attempts to control the expenditures by fighting welfare ended with U -turns in winter fuel payment deductions for retirees, cost £ 1.25 billion, and planned welfare deductions on the benefits of disability, which mostly cost £ 5 billion more.
Disappointments and pressure on Ms Reeves could not be rolled better than tears during the PMQS session, where Prime Minister Keir Starmer could not even guarantee the future of the future.
After this unfortunate incident, Sir Keir had to give him a delayed vote of confidence in order to prevent the recognition of the markets in the idea that he could be dismissed.
But now, more painful, growth-lethal taxes-probably retirement funds or dividends or secret taxes, or both of them freezing hidden taxes-there is only one way to find growth.
This is to return to the pre -2008 financial services and mortgage model to encourage investors and buyers to take risks again for the first time.
Tony is what fully nurtures the high growth that characterizes the last workers’ government under Blair. Most of the country’s economic success swim in the city’s ‘rich’ model.
The problem is that the result of this model is that the irregular financial services industry has a lot of risk in 2008 and the blogabl economy dived into the crisis by taking all banks.
Some of this was due to the mortgage market in which people have become very easy for people to borrow the unsustainable amounts that people could not pay on the sub-prime mortgages.
Mrs. Reeves shook her head in this direction. It does not fully repeat the mistakes of the 2000s, where people can fully decide on their own by reducing the minimum wage to get mortgages and increasing the rating from 3.5 times to 4.5 times.
However, it goes slowly in this direction and brings a tremendous risk of short -term economic growth potential.
Probably greater concern for Mrs. Reeves, if this does not work, and the bureaucracy festival fire does not produce an increase in the reserve of the country it needs to finance the bill for the increases of public expenditures before the next election.
There may be no more dice for MS Reeves to throw in this case. And despite his recent guarantees, this may mean that the Prime Minister is looking for someone else to do the job.
