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Between the tax cuts and the energy-price guarantee, the bigger problem is the energy-price guarantee that has been announced by the government. It will put a c
by ksaxena 4y ago
Between the tax cuts and the energy-price guarantee, the bigger problem is the energy-price guarantee that has been announced by the government. It will put a cap on fuel prices for consumers and the resulting deficit is planned to be funded by the treasury. The deficit is estimated to be more than 100 Billion pounds, and it is planned to be funded by government borrowing. This has resulted in a weaker pound.
- hunglee2 4y agoI believe it is up to £150 Billion, and yes does indeed contribute to the weakening of the pound. However, orthogonal factors like Fed Reserve interest rate hike has larger effect, as great deal of debt is denominated in USD
- chimprich 4y ago> The deficit is estimated to be more than 100 Billion pounds If any of our US friends were wondering what that is in your currency, it's about 100 billion dollars (following our new PM's economic "experiments").
- rcarr 4y agoYou stole my joke from yesterday! https://news.ycombinator.com/item?id=33009959 https://news.ycombinator.com/item?id=33009959