Live on Bloomberg TV

00:00Let me just just put it plain and simple for us how significant is this big is big money. And it's targeted. It's targeted at the poorest households and it's targeted in the fourth quarter when energy bills are set to rise. It answers the call of lobby groups. It's a boon for consumers and the UK economy because most of this money is set to be spent which means the UK should despite Mark's pessimism avoid a recession this year. But it does create an inflation risk. It adds to the headache for the Bank of England. The ball is very much back in Threadneedle Street's court. Bloomberg Economics previously thought that you'd see a pause in tightening in the second half of this year. Now our economists see four rate hikes before the end of 2022. Be a recession. So where's the idea to make two things clear. If it comes to the U.K. economy I'm listening to Lizzie over me. Just ignore everything I've said. Listen to Lizzie on this. Right. So guess this is partially funded by a 25 percent windfall tax on energy companies. How is that being received and why don't you have real papers. I think this would be better if you could run through the papers to show early to go out and get papers. I got mine through the letterbox. Anyway this is controversial on multiple fronts. Firstly because the conservatives have stolen Labour's clothes. The opposition Labour Party of course had been proposing a windfall tax. And now the Conservatives have gone even further than that proposal. This means that the UK's tax burden is the highest since the 1950s is the first windfall tax since Tony Blair was in parliament in government. And it means that really soon is not the tax cutting heir to Margaret Thatcher that he had hoped to be. It's also very unlike the conservatives own brand of themselves. They say they're the party of business. And yet here they are taxing businesses higher and also telling them how to invest because they've doubled the investment alone. So even some of Boris Johnson's own employees are saying that this is simply not the conservative way. Never mind the uproar that it's caused among the energy bosses as we've been talking about.

No schedule data available.

Sunak’s £15 Billion Spending Spree Puts Pressure on BOE

UK Chancellor of the Exchequer Rishi Sunak’s £15 billion ($19 billion) plan to help the poorest households through a painful spike in energy bills comes with a catch: economists say it will stoke inflationary pressures and force the Bank of England to go faster and further with its already historically quick series of interest-rate increases. Lizzy Burden reports on Bloomberg Television. (Source: Bloomberg)

Bloomberg Technology
The only daily news program focused exclusively on technology, innovation and the future of business from San Francisco. Hosted by Emily Chang.
More episodes and clips