Businesses asked to cut prices for consumers - what do you think to the new government campaign?

[JuliaClementsRoche]

According to the BBC, UK businesses will be asked to cut prices for consumers in a new government campaign starting next month.

Given that inflation is now the number one concern for both consumers and business owners, we want to know: what do small businesses think of the proposal?

How has your business been affected by the cost of living crisis and what steps have you taken to minimise the impact? For example, have you increased prices as a result of inflation?

 

[MBE2017]

Maybe MP’s could take a 50% salary reduction for five years and show the rest of us how it works?

Nahhh, I didn’t think for a second that would happen.

 

[Mark T Jones]

Which businesses? and what prices? spring to mind.

As a broad rule, random price cutting is the classic start of a race to the bottom. A lot of businesses are now in a position where they really need to be raising prices in order to survive - but will probably be afraid to do so, so will limp along until their armes are forced (one way or another)

That leaves businesses with minimal competition and high gross marins, which I suspect are the monority.

In short, it's a populist headline that is deeply flawed in reality.

 

[MOIC]

According to the BBC, UK businesses will be asked to cut prices for consumers in a new government campaign starting next month.

Energy giants maybe, but certainly not your average business.

Increased wages, increased utility bills, increased interest rates, less turnover, less profits = bankruptcy.

Edit: Perhaps this is primarily aimed at the supermarket giants.

 

[japancool]

Who does the government believe is going to pay for these price cuts?

The government could cut rates, corporation tax, NI and VAT to bring prices down for consumers. I'll give you a guess as to which of these it will do.

 

[WaveJumper]

It truly goes to show they live in fantasy land as above maybe 50% cut in their salaries, 50% cut in council tax and business rates ...... oh and perhaps a big cut in the amount they take out of the fuel

 

[MOIC]

oh and perhaps a big cut

Had to reread that!

 

[The Byre]

Given that inflation is now the number one concern for both consumers and business owners, we want to know: what do small businesses think of the proposal?

I think this government should shut the F. up until it's got its own house in order. And Baby Sunak should go back to school and learn some basic economics and whilst he is there, he could take the gaggle of bankers (rhyming slang?) running the BoE to sit alongside him on the school bench. We'll start with MV=PY=GDPn. When they've mastered that, we'll move on to calculating the Laffer Curve and the Multiplier Curve for the various income groups.

I would listen to what they say just as soon as they stop running up government debt to new irresponsible highs and stop wasting money hand-over-fist. Britain ran an Empire with 4,000 civil servants. Now they are quetching about defense costs - conveniently forgetting that they are spending MORE on interest payments on all that debt that they ran up over the past 12 years than on defense!

There is the old economics debate about guns-or-butter. Well, 60,000 civil servants at the MoD are neither. They are a motley collection of unproductive aging men who should be kicked out onto the street by the shiny seats of their collective Mos Bros pants and told to get real jobs. So you want to spend more on defense and better weapons? OK, just get rid of 55,000 of those lazy and totally useless 60,000 bodies at the MoD!

And the same applies to just about every other government department. Simples!

As one crusty old Southern US senator once said "Getting rid of bureaucrats is like trying to shoo flies off of a shi1 wagon!"

 

[japancool]

OK, just get rid of 55,000 of those lazy and totally useless 60,000 bodies at the MoD!

Maybe we can repurpose them to pick fruit, drive lorries, work in airports and so on - you know, fill those vacancies that we have shortages of.

 

[Casually made]

I emailed my local council yesterday to tell them i can't afford to pay my council tax arrears due to inflation and general cost of living increasing 20 fold in the last 6 months and how exactly they propose i find the money for it .

From the letters i have been receiving explaining why it's important to pay my council tax
i sense the councils are starting to become a little anxious of a mass council tax rebellion which naturally is one of the biggest drains on peoples disposable income

It is indeed a tax thats shrouded in legal mystery

one i am happy to have a little amusement with.

 

[Mark T Jones]

Maybe we can repurpose them to pick fruit, drive lorries, work in airports and so on - you know, fill those vacancies that we have shortages of.

To be fair I think it suggested that they will be relieved of their jobs - to less than universal applause

 

[Mark T Jones]

I emailed my local council yesterday to tell them i can't afford to pay my council tax arrears due to inflation and general cost of living increasing 20 fold in the last 6 months and how exactly they propose i find the money for it .

From the letters i have been receiving explaining why it's important to pay my council tax
i sense the councils are starting to become a little anxious of a mass council tax rebellion which naturally is one of the biggest drains on peoples disposable income

It is indeed a tax thats shrouded in legal mystery

one i am happy to have a little amusement with.

Council tax to my mind is a very logical tax - far from perfect but pretty transparent in both calculation and application

 

[japancool]

Council tax to my mind is a very logical tax - far from perfect but pretty transparent in both calculation and application

It's also one of those costs that causes the most grief for those who can't pay it.

Given the choice of paying rent, buying food and staying warm, or paying council tax, councils would prefer people to starve, or rely on food banks, and freeze than to miss paying their council tax.

And if you don't, they send bailiffs who will slap more and more charges on, which causes a spiral of debt and mental health issues. Must be hell especially for those with families and young children to be in that position. I suspect we will see more of that in the current climate.

Government needs to realise that they have to share some of the pain, not lump it all on business.

Governments are supposed to make things better, not make them worse.

 

[Mark T Jones]

It's also one of those costs that causes the most grief for those who can't pay it.

Given the choice of paying rent, buying food and staying warm, or paying council tax, councils would prefer people to starve, or rely on food banks, and freeze than to miss paying their council tax.

And if you don't, they send bailiffs who will slap more and more charges on, which causes a spiral of debt and mental health issues. Must be hell especially for those with families and young children to be in that position. I suspect we will see more of that in the current climate.

Government needs to realise that they have to share some of the pain, not lump it all on business.

Governments are supposed to make things better, not make them worse.

They are also supposed to manage the economy - and after 2 years of handing out cash they need to start recovering it.

I absolutely agree that a portion of society needs support- that is those I genuine hardship, not ghost who are annoyed at big fuel bills for their fat SUVs

 

[japancool]

They are also supposed to manage the economy - and after 2 years of handing out cash they need to start recovering it.

True, although so far, it's not been a rip-roaring success.

 

[The Byre]

Governments are supposed to make things better, not make them worse.

Good luck with that sentiment! Successive Conservative governments have shown themselves to be totally fiscally irresponsible. They only kick the can down the road with more issuing of government bonds, i.e. borrowing and in ever-increasing amounts!

The public sector borrowed £144.6 billion in the financial year ending (FYE) March 2022. This was £16.8 billion more than the £127.8 billion forecast by the Office for Budget Responsibility (OBR) in its Economic and fiscal outlook – March 2022.

Public sector net debt was £2,347.7 billion at the end of April 2022, or around 95.7% of GDP, an increase of £179.1 billion or 0.9 percentage points of GDP compared with April 2021. That excludes the much larger sums owed by government-owned banks (inc. BoE) and other liabilities, such as unfunded public sector and state pensions and other unfunded commitments.

This time, a 2008-style bail-out can't happen without triggering hyperinflation (i.e. over 50% p.c.m.)

The same idiotic situation is more or less true for nearly all countries everywhere. What is happening in Sri Lanka today could happen here if we don't pull the ship around and start facing some unpalatable truths. The party is over. Let the vomiting begin!

I've been warning you all about this for about two years now and a lot longer elsewhere!

 

[Fagin2021]

According to the BBC, UK businesses will be asked to cut prices for consumers in a new government campaign starting next month.

Given that inflation is now the number one concern for both consumers and business owners, we want to know: what do small businesses think of the proposal?

How has your business been affected by the cost of living crisis and what steps have you taken to minimise the impact? For example, have you increased prices as a result of inflation?

Quite right too! It's about time the cost of essential basics like moat-cleaning and tree houses was put under strict control.

 

[Mark T Jones]

Quite right too! It's about time the cost of essential basics like moat-cleaning and tree houses was put under strict control.

Haha duck houses, from memory

 

[japancool]

MPs have had a pay rise of £2,212 this year, only in line with the average public sector pay rise of 2.7%, taking their pay up to £84,144.

Oh, poor them.

 

[japancool]

Here's an idea, they could flog the Palace of Westminster and move MPs into inexpensive accommodation in MIddlesbrough or Oldham.

 

[The Byre]

Scunthorpe beckons. That area could do with an economic boost and the surrounding countryside is quite nice.

 

[UKSBD]

I'm not a Conservative but

Think this is thread a perfect example of whatever they try and do, people will just see the headline and just criticize it.

What don't people like about this?

"The campaign would be about recognising the efforts of businesses who are trying to help consumers with the rising cost of living, and "amplifying and channelling them" as well as encouraging other businesses to do the same."

 

[Mark T Jones]

I'm not a Conservative but

Think this is thread a perfect example of whatever they try and do, people will just see the headline and just criticize it.

What don't people like about this?

"The campaign would be about recognising the efforts of businesses who are trying to help consumers with the rising cost of living, and "amplifying and channelling them" as well as encouraging other businesses to do the same."

I am a Conservative- I've even tried very hard to be supportive of Boris

But to me, this just smacks of platitude and blame shifting which takes no account of the situation that a huge number find themselves in

 

[UKSBD]

But to me, this just smacks of platitude and blame shifting which takes no account of the situation that a huge number find themselves in

But the campaign hasn't even started yet.

You appear to have already judged it without even seeing it.

 

[japancool]

I'm not a Conservative but

Think this is thread a perfect example of whatever they try and do, people will just see the headline and just criticize it.

What don't people like about this?

"The campaign would be about recognising the efforts of businesses who are trying to help consumers with the rising cost of living, and "amplifying and channelling them" as well as encouraging other businesses to do the same."

I am a Conservative too (at least, I would be if I could vote). It's a waste of taxpayers' money, for a start.

What does it achieve, exactly?

 

[UKSBD]

I am a Conservative too (at least, I would be if I could vote). It's a waste of taxpayers' money, for a start.

What does it achieve, exactly?

Is that not a bit like saying;

What does advertising achieve, what does marketing achieve, what does good propaganda achieve?

 

[japancool]

Is that not a bit like saying;

What does advertising achieve, what does marketing achieve, what does good propaganda achieve?

Advertising and marketing is done to increase revenue.

What revenue, exactly, does this campaign increase, and who does it benefit?

 

[UKSBD]

What revenue, exactly, does this campaign increase?

No idea, I haven't seen it yet.

 

[japancool]

No idea,

You're in the same boat as the government then.

 

[UKSBD]

We have a catastrophe looming, little the government can do about it in the short term, but a lot more "we" can do about it.

In my opinion the best way "we" can do more is realise that a lot of us aren't as bad off as others and the best way of getting people to realise this is via campaigns.

If this campaign praises and highlights just little things that businesses are doing to help, hopefully, just hopefully, others will see this and maybe do something tiny as well

 

[Casually made]

They are also supposed to manage the economy - and after 2 years of handing out cash they need to start recovering it.

You mean managing the economy by wantonly pissing away cash like it was water for two years on some extremely skeptical data and an hysterical over reaction to a flu virus

Wasn't 20 billion of our money poured into a track and trace system that was propagated by a tory MP's wife ?

A system that was inherently flawed from the beginning and run off excel spreadsheets

Quite possibly one of the greatest frauds we have seen in this lifetime

But yes poor government lets help them "manage the economy"

 

[Casually made]

It's also one of those costs that causes the most grief for those who can't pay it.

Given the choice of paying rent, buying food and staying warm, or paying council tax, councils would prefer people to starve, or rely on food banks, and freeze than to miss paying their council tax.

And if you don't, they send bailiffs who will slap more and more charges on, which causes a spiral of debt and mental health issues. Must be hell especially for those with families and young children to be in that position. I suspect we will see more of that in the current climate.

Government needs to realise that they have to share some of the pain, not lump it all on business.

Governments are supposed to make things better, not make them worse.

It will only take a few million to defer the monthly payment and the entire system will collapse

Similar story for gas and electric bills this winter

I hope to christ we see a serious insurrection it's what this country desperately needs

 

[UKSBD]

I hope to christ we see a serious insurrection it's what this country desperately needs

Everyone just wants someone else to sort it out, moan when governments do too much, moan when they don't do enough, want to be left alone, want molly coddling.

A big violent insurrection would be a disaster, what is needed is for people to just take things in their own hands more and help each other out for a little while.

People should be thinking about winter now and looking out for their vulnerable neighbours rather than waiting for them to die and then blaming the governments

When I say government I don't mean Conservatives, Labour, Libs, whoever, I mean whoever is in charge at present time

 

[Fagin2021]

We have a catastrophe looming, little the government can do about it in the short term, but a lot more "we" can do about it.

In my opinion the best way "we" can do more is realise that a lot of us aren't as bad off as others and the best way of getting people to realise this is via campaigns.

If this campaign praises and highlights just little things that businesses are doing to help, hopefully, just hopefully, others will see this and maybe do something tiny as well

It’s nice to see someone with a generous spirit but the reality of what will actually happen is…

• It won’t make a scrap of difference to a anyone’s pricing policy.
• Corporations will take the Government’s campaign logos and use them to pretend they’re do-gooders, (think ‘green’ adverts).
• The government will manipulate a few examples and statistics to proclaim the campaign a huge success.
• After a short time, everyone will get bored and move onto something else.

How do I know all this? Seen it before.

And to clear up another point – this isn’t a Conservative Government.

 

[UKSBD]

It won’t make a scrap of difference to a anyone’s pricing policy.

Even if it doesn't effect prices that much, if it makes a few more businesses add a bargain basement section, add a basket for foodbank donations, even highlight there existing ones more it has done something

The government will manipulate a few examples and statistics to proclaim the campaign a huge success.

Good, that might lead to more campaigns from all sides

After a short time, everyone will get bored and move onto something else.

Hopefully this catastrophe will only be for a short time, let's all just hope it's going to needed for a short time, just get through this winter would be a big win.

 

[The Byre]

But to me, this just smacks of platitude and blame shifting which takes no account of the situation that a huge number find themselves in

It is yet another PR campaign to cover for their obvious F.-ups.

I am neither pro- nor anti-Conservative. I give credit where credit is due. The UK was (from an economic PoV) well-governed under MacMillan, Major and Blair. During those regimes, the economy was freed of political dogma and stupid schemes and even (under Thatcher and Attlee) pointlessly destructive orgies of seeking change, regardless of the economic as well as human cost.

"Steady as she goes!" should be the mantra of any responsible government. No unprepared Brexit. No lockdowns. No mass privatisations. No mass nationalisations. Gentle and much-needed change for the better - no irresponsible state groundnut schemes or the throwing away of vital national assets to the highest bidder.

All changes bring economic costs and violent change brings the highest costs of all.

You mean managing the economy by wantonly pissing away cash like it was water for two years on some extremely skeptical data and an hysterical over reaction to a flu virus

On a point of order, a corona virus counts the various cold viruses as part of its family - flu is very different and can be much more dangerous. But yes, they pissed away cash in as irresponsibly a manner as I have ever seen any government ever do.

But then they are still doing it! See my post above! The Laffer Curve prevents them from going any higher with government revenues, so they just borrow vast sums that they know full well arithmetically can never be repaid!

It's like watching a bunch of school kids that have just been given an unlimited-sum credit card!

 

[UKSBD]

I want to see more campaigns like this, but hopefully ones that aren't politicized, ones that aren't just shot down because of what a headline says and ones that aren't discarded just based on who we think is running the campaign.

 

[japancool]

I want to see more campaigns like this, but hopefully ones that aren't politicized, ones that aren't just shot down because of what a headline says and ones that aren't discarded just based on who we think is running the campaign.

Sorry, but after saying that other people are complaining without knowing the details and not having seen the campaign, how can you say you want more campaigns like this? You don't know any more details about it than the rest of us.

If it's good enough for you to say you want more, then it's good enough for the rest of us to say we don't want it at all.

 

[UKSBD]

Sorry, but after saying that other people are complaining without knowing the details and not having seen the campaign, how can you say you want more campaigns like this? You don't know any more details about it than the rest of us.

If it's good enough for you to say you want more, then it's good enough for the rest of us to say we don't want it at all.

Because I read the article about the campaign rather than just the headline and like what is described.

Did you read it?

 

[UKSBD]

Businesses urged to slash prices by cost of living tsar​

That looks to me like whoever wrote that headline wrote it so that people reading it would immediately think

"What a complete waste of ****ing time, sanctimonious twats blaming others, and wasting money on propaganda"

The only thing they didn't do was make it,

Businesses urged to slash prices by Conservative Government cost of living tsar​

That would have whipped them up even more