Check out Manual here and get 55% off your first order using my code DTM55. bit.ly/4a13ZVi

The fastest way to increase income is to stop politicians and their mates from robbing the public purse.

The goverment buying Gamestop shares and hoping for a short squeeze sounds more plausable than any other plans they have put forward to raise revenue.

2 years ago British Gas increased their profits by 900%. If the minimum wage went up 900% it would now be £100 per hour. Sunak paid £500k tax on £2.2M earnings. That's just over 20%. The same rate as someone on £37k per year. There are plenty of ways to raise money without taxing ordinary people and the wealth of the wealthiest has grown significantly over the past few years, so they can certainly afford it. Don't be fooled by the claim that "we" are under the highest tax burden in 70 years. "We" might well be but the richest certainly aren't.

The question shouldn’t be where it comes from, but who it goes to

Genuinely depressing thinking about the state of it all. I don't think any party will be able to fix this mess, this "democracy" is all manipulation to give people the illusion of hope

It’s going to come from where it’s always come from: the middle class.

The 40% tax bracket is really BS, and needs to urgently keep up with inflation. Being poor and paying 40% tax on any pay rise I get whilst not being able to afford a property is backwards and stupid, and quite frankly just feels like they want the poor to stay poor.

This country is completely broken

Where is the money coming from? Us and our future off spring!

That is literally all I have been asking all the way through this, where are they going to get the money from and so far not one of them has said. But we all know where really.

A very honest video Damien. I think in the next Sunak v Starmer debate they should both just say together “you’re screwed “ and walk off. Now that would be refreshing.

We need to get rid of both parties. I don't care who you vote for, but for the love of god, don't let it be Labour or Conservative.

No party is speaking about nationalising Energy, reducing it to lowest level, bringing more factories and industries here. Whats the point in bringing Labour govt who are absolutely useless. Forget Sunak.. he is under 3 years experienced in politics. Why there is no British interest in doing something good for the general public?

Great video mate. I think you'll find the answer from most people will always be "more taxes for people wealthier than myself"

I needed to hear this today. The political storm is melting my head at the moment. Great content as ever Damo. Keep up the good work.

Still waiting for the day someone will implement Land Value Tax, and actually make things properly. Until then it will all be like playing ball inside the court, the ball will stay inside and will just wander side to side :)

Time to move to America. Why anyone would remain in England is beyond me.

I would appreciate it more if they were just honest about the situation we're in. Its kinda like when an MP gets interviewed and they parrot the same line fed to them by their PR team.

That "Be the Chancellor" link looks brilliant! It gives me a nosebleed just thinking about how anyone ever works out what to do next.

It is awful you have had to wait that long and that is unfortunately now considered a timely turnaround! We know offending behaviour goes back further than courts and police. Poverty, both parents having to work to support the family, an education system that fails SEN children, lack of mental health services, etc. Support children and we can prevent a large percentage of them from growing up and being able to justify punching a stranger in the face.

This is a great video. Such a sad country... I came here from Zimbabwe and one thing is for sure... Politicians are all the same. The answer is to simply leave the country if you can.

Freezing the tax thresholds for years will hammer us all and they will both do that to us.

Never forget May saying 'there is no money tree' then finding money for the DUP.

Zero seats.

Someone far cleverer then me came up with quote. Voting for Sunak is like changing your hat after shitting your pants. And voting for Starma is like changing you shirt after doing the same.

The money tree of course, when it's needed it's found. Always is, especially when it's to be assigned to questionable contracts.

Damian you have hit the nail on the head. This is exactly the question that everyone should want answering, but no party is prepared to answer. I would also love to know the details on which taxes outside the “big three” are going to be raised and how.

Neither side are capable of running the country. A new system of running the country need to be thought of. The old system is a waste of time.

Both candidates are proven liars and continue to do so. The saying goes ' 2 cheeks of the same backside ' .

Clear, evidenced based brilliance as ever, great video Damien 👏

After playing with that IFS be the chancellor web app, it’s clear that we spend so much on health and social services that everything else is just tinkering around the edges. Basically we can’t afford to meaningfully upgrade the NHS even if we hike up taxation and cut spending everywhere else. We need in this country for someone to start thinking beyond 5 years, and to think about 50 years down the line, for example to replace the State Pension with a different system starting with citizens that are children now. Surely we can use the power of compound interest to secure our childrens future if we invest now so that future government doesn’t need to pay out state pensions…

I wonder if Rishi's plan will include checking the weather forecast

Very good video, Damien. Plus, nobody is talking about the ballooning £23bn Housing Benefit budget. Totally unsustainable. How did we get into a situation where tax is the least efficient form of investment people in this country will ever make, just wasted, squandered, and frittered away. If you put parliament in charge of a massive corporation it would be bankrupt in less than a year.

Just registered an LPA with the gov department Office of the Public Guardian, they say it will take 20 weeks to now process. The cuts are already in most departments, it’s not looking good.

Fix the NHS, I’m up for paying doctors more, but we need to see this list cleared, that’s the deal.

Nice timing!

I've now got the theme tune to Dad's Army stuck in my head, thanks, Damien!

Sweden got itself out of its govt debt problem in the 90s. Setting a surplus target for budget and following it fiercely. Not an easy answer to the problem, but an simple one. Hasn't solved health care problems, but they will never be solved, only ever worsening or improving. Health care is consumption, you will always be prone to overspend and overpromise, you will never have enough. You as a people need to decide how much you want to set aside, and make the most out of it, and develop a culture of realistic expectations, that will go up and down with the cycles in the economy..

On public debt as a share of GDP reducing - I think the reduction is going to take longer than 2-3 years for productivity-enhancing policies to lift forecasts for GDP. In my opinion, this is why private investment is crucial in stimulating growth because without it [assuming Labour win the election], Reeves’s room to boost public investment will be limited. My personal view is that the specific level of UK debt matters less than investors’ confidence in the country’s ability to grow and repay it. The more Britain can invest in infrastructure that helps industry and boosts productivity in some of its biggest cities, the better. Reeves has adopted the fiscal constraints of the Conservatives because Labour sees that as a necessity to win voters’ trust. That will limit their room for maneuvering and could hold Britain back, but I’m still optimistic that a few years of stable and sensible rule (please!) can open up space for public investment. Perhaps after a couple of years in power and with some OBR forecasts of longer-term returns, Reeves could start to loosen the Tories’ debt rule, too.

Housing in the UK is ridiculous. Street homelessness in the UK at the moment is heartbreaking. 💔 Local Authority housing budgets have been underfunded for decades 😢

You have it exactly right. The National Debt means it is impossible to fund the promises they are making. The only Party even talking about the Debt is Reform.

dianne abbot was quoted to say labour would borrow enough money to pay off all the debt

I think the need to look at Corporation Tax for organisations that generate revenue in excess of a specific amount. Say, £100m. For any organisation that has more than this in revenue, then their corporation tax has to be a /minimum/ of 5% (for example) of revenue OR the standard corporation tax rates, whichever is greater. i.e. stop these large organisations from "moving their profit" to some other country/area where they can reduce tax paid in the country in which it's generated.

Taxes are so unfair how high they are, freezing of the bands is unfair, young people have been shafted am surpised anyone ages 20-35 isn't just leaving to go to australia or other places, how do you get ahead have adecent life when its tax tax tax. They need to focus on waste of money.

So well edited and packed with information 💪

You're right to raise court delays and cuts to public services!

The simple answer is taxes. There’s plenty of taxes outside of the ones mentioned.

I've tried looking down the back of my settee and I can not find where the moneys gone, bugger.

Excellent point of view

Great video Damien. Appreciate the transparency and ease of visualisation as always. It would be interesting to know if there are any other governments in the same situation (now or in the past), with high debt to GDP and high interest rates, and how they’re tackled this.

It seems like all politicians care about is optimising little parts of the system in isolation without taking into account the whole. They try to optimise individual metrics and when a metric becomes a goal, it's no longer a good metric. You touched on that point with your argument of how underfunding in one area pressures another. No easy solution to any of that...

The NHS generates a lot of money for the country…. It is not just an expenditure… For example, the NHS saved my wife’s life this year … helped her recover in a way that means she is now back at work… she is not permanently disabled because of the care… she is alive and now paying taxes again.. By improving the NHS we can have better health outcomes… people working that otherwise would be waiting for operations and unable to work.. people being able to work longer … if resources are targeting the right way the money spent on the NHS could help the country financially… but it’s complicated and it’s easier to look at it from a more simplistic perspective… Also, I do think tax raises are need in the short term.. but this does not have to be paid for by the everyday people… tax the people with wealth over 30 million and there is your shortfall I think … Reduce red tape.. and focus on an immigration policy that values people with high level skills.. Promote a high value added workforce… Grow the pie…. It is interesting in the cart about worst conditions to run a country, that all are blue

Spot on as always

If possible, make higher pension contributions to keep some of this taxable money instead of giving it away.

It was ten years plus ago now, but I was on bail for 18 months waiting on the police getting their shit together. Even the Judge got a bit annoyed by the end lol....and just to add it was nothing nasty or violent lol

I've been contemplating moving back to the UK having lived in Australia for about 7 years. No country is perfect of course, with each having their own unique challenges but whenever I see stuff like this, its honestly depressing. It doesnt look like there is going to be any meaningful change or improvement for at least another decade.

Excellent video as always!

The questions should be What are we actually getting for our money and Who is profiting

Glad you’re okay after that attack. It really is shocking

I almost forgot this is Damien Talks Money, not Damien Talks Personal Finance. Good video, well said.

Hmmm, we've seen some murmurings about a raid on ISAs previously. I do have worries that Labour won't be able to resist doing something to a certain percentage of savings over a limit, it's all in how you sell it coupled with (I assume) a healthy majority, why shouldn't the wealthy pay a bit more ? Which ignores the fact that many are using these for retirement and not to be a burden on the state later in life.

The answer to the question in the title of this video is answered in "The Deficit Myth" by Stephanie Kelton PD: great work with this channel 👍

D-Day means nothing to Rishi. Theres no money to be made from it so hes not interested. Tbh none of them are.

The government are the issuers of their own currency. Their constraints is their own fiscal rules they are applying to themselves. Who is to say national debt should be 50%, 100%, 150% or 200% as in Japan. The national debt is a our private sector savings. To eliminate the national debt is to eliminate private sector savings.

Trying to access some of your spreadsheets and information guidance, however when I enter my email address it’s saying I’m blocked from receiving. Do you know why?

So sad to see the declining state of the UK. I'm glad I moved to Australia in the 90's.

Spot on and honest as usual

Reverse privatising of public services and INVEST in business. Stop asset stripping and protect U.K. companies.

What a catastrophe

it wouldnt even bother me paying slightly more tax to get some of these services up to scratch, but then savings (at least in some areas) can come from within. I vaguely remember something in the news years back where it says contractors and consultants are rinsing the NHS for millions (on top of all the PPE deals etc). Sadly any government we get are not really fit for purpose, I think we should get in Kevin Kline as depected in the film Dave, Im sure he would do a tremendous job.

Great video Damo 🔥

Thing is, I imagine a large proportion of society would actually be okay with high tax rates IF the public services offered were up to scratch. Currently we have worst of both worlds - a terrible public service system where every service feels historically under-funded and under-staffed, AND a very high tax burden.

Thanks Damien for the great content no one is talking notice of the banking bust by design

Counter intuitively reducing taxes and increasing debt into high growth sectors like tech and finance, and transportation links, would likely increase gdp and hence government revenues through growth. The government should focus on automation and business process improvement. Efficiency like any large corporate. The truth is the UK is a badly run business.

or they can stop paying of their 'mates' and wasting money, fix the council tax system and maybe make the likes of Amazon, Google, Microsoft etc pay their actual tax bill!

Great video I hope they all see it.

Nowhere, there's no money left, the fabled money tree has been uprooted and turned into mulch.

How about 50% tax rate on 2nd home and an extra 10% on each additional home. Would in increase rev or bring down house prices as people cash out and helping reliving housing shortages. With revenues going to building social housing.

So what you're saying is that the music, so to speak, is just slowing

I feel like the following should be done: NHS reform, bring in more technology and add in small costs to use some services to try and help drive down unnecessary visits but make sure that there are credits for people with long term illnesses etc. Introduce a percentage based council tax system so that the lower cost homes pay less tax but larger (cost) homes pay more (based on current market rates). This hopefully would increase council tax revenue for better support with local services. Accountability, have targets that actually impact you job. If I work for a company and under deliver I get penalised. We need a system that tracks performance of politicians and if they do not deliver within a time period they automatically are placed into a system for reelection also get rid of any life long salaries (they don’t need it and currently they are not serving the country but using the systems to better themselves) Increase taxes to foreign imported goods to boost the local economy and decrease carbon emissions. Focus on alternative energy supplies to decrease reliance on foreign support. This should be renewable sources (and nuclear ideally but aware this will take 10-20 years). I also think investing in high quality solar that people can buy at a reduced cost by the government, so you get a grant. Would be more cost effective but aware it will scew towards those with larger homes. Decrease spending on defence Spend more on training and funding education for needed skills such as nurses and doctors. This should also help with immigration numbers since we need so much support. Build more houses or have partnership agreements where all new developments need to offer 20% affordable housing (this may already exist). This should hopefully decrease spending on housing support. Penalise empty homes more, there are too many homes sitting empty as second homes or investments. We need to free up more homes so that again the supply can match the demand. Improve childcare support, so many working families have to reduce work as caring for children is so expensive now. Just a few points I would like to see happen but who knows it seems impossible to fix anything

Damien, would be interested to hear your take on Reforms approach which they discussed yesterday which discusses not paying interest on the BoE money they printed during covid

Keep up the content Damien youve taught me so much will bring ease to my life and others 💙

We will pay, the politicians will profit.

I don't really remember anymore when the GDP grew 3,6%. Their bet would be reducing the base rate, in tandem with US, but only after or right before the November elections. But the real inflation is still high, and low rates would only inflate assets more. Asset owners want inflation especially if they're bought with debt. Gov has spendings, not many assets. There's no way out of here, except to create a Japan style credibility and boom the national debt short term, to turn the debt into investment. And tax the unthinkable... Rich guys asset transactions. Assets are anyway already hidden. On the other hand, a new "Bretton Wood" is needed because debt simply cannot be paid off, unless we invent a new physical dimension. In this one paying off debt equals money to seize to exist. "they" would never agree to loose that "sweet grip"

I read a statistic before that most of the revenue from him income earners in tax receipts comes from a small group of highly paid employees. So going after corporation tax rates will make a difference. It should also be noted despite oil and gas having a 97% tax rate an increase from 78% they still pay tax if any at a rate of less than 10% on profits.

And what determines the interest rate on UK debt?

IFS is doing an amazing job, love the tool they have made.

They will just press print, like they always do

If the inflation rate gets back to 2%, is that a "green light" for more QE? Even higher taxes may well result in lower revenue. Serious spending cuts are politically impossible. What else is there other than to inflate your way out of the debt?

Sooner or later the spending is going to have to increase the complete lack of investment is going to rob the future of more than the interest from that debt. It would’ve been a home run to splurge on investment during the 20 years of low interest rates but they waited until record highs??

Can you talk about Reform please

@DamienTalksMoney The other question to ask: for the last fifteen years, when government borrowing has been really inexpensive, what have they done with that money?

It's worth reading the secret barrister for more on the failings of the justice system.

The IFS quote at the end of this video is exactly what I have said for years.

Rishi and his wife made £142 Million in profits on their shares this year. He'll be ok.

I don’t trust either of them, voting reform time for something different

The NHS needs fixing with a real long term plan thats agreed by all the parties. So many people go to A&E because GP’s are busy, or because they close early, or just use it when they really don’t need to, but thats what happens when something is free, it gets abused. It also needs a massive technological reform and restructure to get rid of unnecessary staff. I never realised until i saw a poster in hospital last year that NHS trusts have marketing directors.

Great video, the UK is in a terrible state

I think more importantly. Where's all our money gone