“SS Sunak – rats deserting the Sinking Ship!”
“I’ve been saving this for a rainy day, Mr. Sunak – but I think you might need it now.”
Bank of England offers no election help to Rishi Sunak as the UK interest rate is held at 5.25%. Not that they should.
But the UK inflation is on target now at 2% so that’s some consolation. The PM claimed credit as the inflation target was met – happily informing us that his plan was working. But isn’t it the job of the Bank of England to maintain inflation at 2%?
Not that they have done a very good job of that either.
“Let me introduce you to my secret election weapon – the election protection device – it can even stop rain!”
Election and UK politics
It started off soggy and now it’s just… wet!
Museum of Conservative Party artifacts
“Look at this… the actual umbrella Rishi Sunak didn’t use during the UK 2024 election announcement!”
Institute for Fiscal Studies (IFS) says UK has highest tax burden since Second World War
It has been suggested Rishi Sunak and Boris Johnson have overseen biggest tax rises since the Second World War
‘Fiscal responsibility’ – code words for ‘cock-up!’
Chancellor Jeremy Hunt and Prime Minister Rishi Sunak have stressed the need for ‘fiscal responsibility’ amid still-high inflation and rising debt costs.
According to the Institute for Fiscal Studies (IFS), by the time of the next general election, taxes will likely have risen to around 37% of national income, which is the highest level since comparable records began in the 1950’s.
The IFS said that this is equivalent to around £3,500 more per household, but it will not be shared equally across income group.
Health and Welfare massive tax burden
The IFS also said that this is not a direct consequence of the pandemic, but rather a result of decisions to increase government spending on health and welfare, and some unwinding of austerity. They predicted that this parliament would mark a decisive and permanent shift to a higher-tax economy.
Other think tanks, such as the Nuffield Foundation, have echoed this view and said that there will be strong pressure in future parliaments to raise taxes further to meet growing demand for public services.
Dissatisfied
Some Conservative MPs have expressed their dissatisfaction with the lack of tax cuts from the government, as they believe that reducing taxes is a key part of the party’s philosophy. Chancellor Jeremy Hunt and Prime Minister Rishi Sunak have stressed the need for fiscal responsibility amid still-high inflation and rising debt costs.
Lurching from one problem to the next
We saw this type of response under George Osborne during the ‘austerity’ period after the financial crisis of 2008. And now again, after Brexit and the pandemic. They were all Conservative governments.
Hunt has reportedly said it would be virtually impossible to cut taxes at the moment – no surprise there then!
Labour has criticised the government for clobbering the general public with tax rises and failing to deliver growth and wages.
The development of a controversial UK oil field, Rosebank, has been given the go-ahead
The Rosebank oil and gas field is a controversial project that has been approved by the UK government despite the concerns of environmental activists and some politicians.
It is located about 80 miles west of Shetland in the North Sea and is estimated to contain 500 million barrels of oil. It is operated by Equinor, a Norwegian state-owned energy company, with its partners Ithaca Energy and Suncor Energy. The development of the field is expected to cost £6 billion and create 2,000 jobs.
Carbon conflict
It is also expected to produce 200 million tonnes of carbon dioxide over its lifetime, which is equivalent to the annual emissions of 40 million cars.
The approval of the Rosebank field has sparked a debate over the role of fossil fuels in the UK’s energy transition and its commitment to net zero emissions by 2050. Critics argue that the project is incompatible with the UK’s climate goals and that it will undermine its credibility. They also claim that most of the cost of the development will be borne by the taxpayers through tax reliefs and subsidies.
UK not yet ready to turn off the oil and gas
However, some supporters of the project contend that it will provide a reliable source of energy and revenue for the UK, as well as support thousands of jobs in the oil and gas sector. They also point out that the UK still relies on fossil fuels for most of its energy needs and that it will need to import more oil and gas from abroad if it does not develop its own resources.
They argue that the Rosebank field will be developed with high environmental standards and that it will contribute to the UK’s transition to a low-carbon economy by investing in renewable energy and carbon capture technologies.
Contentious
The Rosebank oil and gas field is a complex and contentious issue that reflects the challenges and trade-offs involved in balancing economic growth, energy security, and environmental protection. It is likely to remain a topic of heated discussion.
The field is expected to start producing oil from 2026
If drilling starts on time, Rosebank could account for 8% of the UK’s total oil production between 2026 and 2030.
Roughly 245 million barrels will be produced in the first five years of drilling, with the remaining being extracted between 2032 and 2051.
Though oil is the main product, the site will also produce gas.
About 1,600 jobs are expected to be created during the peak of construction. Long term, the operation will create 450 jobs.
Will it mean lower energy bills in the UK?
No! Oil and gas from UK waters is not necessarily used here – it is sold to the highest bidder on global markets.
What Rosebank produces will be sold at world market prices, so the project will not cut energy prices for UK consumers.
The Norwegian state oil company Equinor – which is the majority owner of Rosebank – has confirmed this.
Oil also tends to be sent around the world to be refined – the UK does not have the capacity to refine all its own oil-based products.