Budget

[pje16]

I still maintain that there should be a fundamental rule. No person who receives a benefit should pay income tax. No person who pays income tax is eligible for a benefit.
TJH

Sounds fine until you consider those on £20-25k p.a

Why?

TJH

that's not enough to live on obvs

[hiriskpaul]

I still maintain that there should be a fundamental rule. No person who receives a benefit should pay income tax. No person who pays income tax is eligible for a benefit.
TJH

Sounds fine until you consider those on £20-25k p.a

They could make all benefits and the state pension not subject to income tax. I think it would be a bad idea though as would narrow the tax base too much.

[1nvest]

Abolish the LTA (and presumably LTA tests). Wow! Did not see that coming as leaks indicated it was going back to the £1.8m it was at under the Brown government. I need to check the small print, but it sounds like I will be into the champagne later.

Revolving doors. Just usual Tory yo-yo'ing, instability/insecurity. But at least perhaps stable for 6 months when at past Tory churn rates they'll maybe someone else with different views (4 Chancellors in 4 years (alongside 3 PM's)).

[Dod101]

SKS sums it up well

Managed decline. Sticky plaster. Tory cupboard as bare as the salad isle in supermarkets, lettuces are our but turnips are in ... As there expiry date draws ever closer

Ha! Ha! Very funny. Nothing more to say than quote Starmer.

Dod

After the Silly Hunt's Eeee ba gum budget speech, there's little to add.
Dragging base state pensioners into taxation as Lootman indicated earlier is a nice Con - increase pensions in line with inflation ... and take some back again via taxation.
Increasing the LTA wont retain GP's, many opted to drop to half weeks after their pay was doubled some years back. Many don't even do their contracted hours, prefer to phone in with a I'm taking the day off short notice to the front desk who are left to frantically phone around for locums. Graduates in their first jobs remain less inclined to increase hours when taxation is increased to 9% student tax, 20% income tax, 12% NI.
Many of the 50+ early retired wont re-enter the workforce, because 9 million of them are serving as carers, on £60 odd week support (carer allowance). Whereas if instead their partner is put into a care home they're expected to pay £1200/week.
Free childcare is a nice gesture, but already the centres can't get the workers, but I guess some might opt to work as child-carers for other peoples children whilst having their own children cared for by others for-free.
Energy support for companies ends as of April, whilst Corporation tax increases, so a natural tendency for contraction/decline (nothing for SME's, where many that have been running for decades are and will continue to simply shut-up-shop).

The LTA was not increased as I heard it, it was abolished. All your other comments are just that, comments with no basis whatever. Anyone who is anti can speculate about the worst outcomes but none of these comments have any meaning. By the way, the 9% (if that is what it is) is not a student tax. At least you could be accurate in your nomenclature.

Dod

[tjh290633]

Why?

TJH

that's not enough to live on obvs

Many do. Many families have more than one earner.

Pensioners manage on much less.

TJH

[pje16]

Why?

TJH

that's not enough to live on obvs

Many do. Many families have more than one ear

Pensioners manage on much less.

TJH

Well I'm very glad I don't have to

[1nvest]

By the way, the 9% (if that is what it is) is not a student tax. At least you could be accurate in your nomenclature.

Student Graduate tax

[1nvest]

Cigarettes up £1.75 for a packet of 20.

The streets are destined towards even higher levels of the scent of skunk.

[1nvest]

Cigarettes up £1.75 for a packet of 20.

The streets are destined towards even higher levels of the scent of skunk.

Live flight tracker (near 3pm Wednesday)

£24 round trip flight (£12 singles) cost, £52 for 200 duty free cigarettes. £7.60/packet of 20 = less than half the price of buying cigarettes in the UK. A dig-back at Sadiq Khan? (Raining down of increase aviation fuel over London).

In times gone, some used to go out for a Sunday pleasure drive/ride. But nowadays driving is more of a bind than a pleasure. A incentive for smokers to have a Sunday jaunt into Europe, a nice beach-side breakfast cafe all-day-full-English before some shopping and returning back home again.

[pje16]

In times gone, some used to go out for a Sunday pleasure drive/ride. But nowadays driving is more of a bind than a pleasure. A incentive for smokers to have a Sunday jaunt into Europe, a nice beach-side breakfast cafe all-day-full-English before some shopping and returning back home again.

When I used to smoke I can remember times I was desperate for one, but that takes it to a whole new level

[Adamski]

The biggest winner from budget was higher defence spending from 2% gdp, in next two years to 2.25%, then plan 2.5% after.

This part problem imo cause boosts politicians egos and part of the Conservative mindset, that we're a "major world player". Latest example Rishi bigging it up on world stage standing on tip toes and throwing around billions.

So billions for warships, figher jets etc. to tackle imaginary threats from China, free childcare (more benefits) and a major pensions tax cut for the 1% (some lemonfools). Bizarre priorities in a cost of living crisis.

[Dod101]

By the way, the 9% (if that is what it is) is not a student tax. At least you could be accurate in your nomenclature.

Student Graduate tax

It is not a graduate either ‘tax’ as I assume that you know very well.

Dod

[Dod101]

The biggest winner from budget was higher defence spending from 2% gdp, in next two years to 2.25%, then plan 2.5% after.

This part problem imo cause boosts politicians egos and part of the Conservative mindset, that we're a "major world player". Latest example Rishi bigging it up on world stage standing on tip toes and throwing around billions.

So billions for warships, figher jets etc. to tackle imaginary threats from China, free childcare (more benefits) and a major pensions tax cut for the 1% (some lemonfools). Bizarre priorities in a cost of living crisis.

The cost of living crisis is I imagine short term and in any case we have spent huge amounts on it. As you must know, defence of the realm is fundamental unless you are Nicola Sturgeon or possibly Starmer. It is a very long term strategic judgement and we will never really know if it was right or wrong. It does though give us the opportunity and indeed right, to badger Germany and our other allies in Europe in particular to increase their defence spending. No one can know if the threat from China is imaginary or not and if we succeed in what we are trying to do, then the threats will hopefully remain imaginary. That is the idea.

I think in the last six months, since the disastrous Truss, we are now beginning to see some sensible policies being developed.

Dod

[ursaminortaur]

I don't think it will work, as being indicated, that if the LTA is increased on the basis that will prevent more GP's etc. retiring earlier in having reached their LTA limit.

Many of the early retired have other commitments, I've seen figures of 9 million of that number being carers i.e. for their partner/family members.

Unless personal allowances are increased then more will be pulled into paying more taxation. A inflationary pension increase that is then handed back in the way of taxation ... will further hurt the already low opinion of the Tories. As will those paying uni-tax (graduate 'loans'), who already fall into a high level taxation type rate upon earning more than the minimum wage such that there's low incentive to work more hours etc. £10/hour, with overtime paid at the regular hourly rate and OT yields £5/hour ... type disincentive.

Corporate tax increases with 're-investment' tax breaks, only works for a small proportion, services for instance might not have the option to buy new equipment in order to offset corporate taxation increases.

So far, pre-budget, I'm not foreseeing a good budget. Help with pre-school childcare perhaps being seen as the biggest general winner, at the expense to other taxpayers.

Why am I not surprised. The problem with this country in general is the cynicism that is abroad. I would have thought that abolishing the LTA and increasing the annual contributions to £60,000 would be welcomed and at least it answers the concerns of apparently doctors inter alia.

Dod

I agree, I've always thought the LTA was iniquitous and it over complicates the system. It penalises good performance of your pension fund and is unnecessary as your pension income is taxed when you take it anyway. If they were/are worried about pensions being over generous for the very well off then perhaps the 25% lump sum could be limited ( to say a maximum of £250K in total)

The LTA made more sense when the annual allowance was £215,000 ( rising to £255,000) as it stopped the really rich from contributing at that level for 40 odd years and building up pension pots many times the LTA ( and getting 25% of the tax relief on that out tax free).

As to it being taxed on the way out a lot of the rich will be using their pension to bypass IHT rather than withdrawing money from it which would be taxed at higher rates ( and if they die before age 75 their beneficiaries will even be able to draw down the inherited pension without paying tax on it).

[mc2fool]

By the way, the 9% (if that is what it is) is not a student tax. At least you could be accurate in your nomenclature.

Student Graduate tax

It is not a graduate either ‘tax’ as I assume that you know very well.

Dod

Martin Lewis: "Government student loan plans are a big increase to the cost of uni – it’s effectively a lifelong graduate tax for most."

https://www.moneysavingexpert.com/pressoffice/2022/02/martin-lewis---government-student-loan-plans-are-a-big-increase-/

[Dod101]

By the way, the 9% (if that is what it is) is not a student tax. At least you could be accurate in your nomenclature.

Student Graduate tax

It is not a graduate either ‘tax’ as I assume that you know very well.

Dod

Martin Lewis: "Government student loan plans are a big increase to the cost of uni – it’s effectively a lifelong graduate tax for most."

https://www.moneysavingexpert.com/pressoffice/2022/02/martin-lewis---government-student-loan-plans-are-a-big-increase-/

1. Martin Lewis is not the arbiter of what is or is not effectively a tax.

2. Whether the graduate borrows money or not to fund their university course , there is no way the cost of repaying the loan is a graduate tax.

Not a lot to do with the Budget anyway.

Dod

[1nvest]

As to it being taxed on the way out a lot of the rich will be using their pension to bypass IHT rather than withdrawing money from it which would be taxed at higher rates ( and if they die before age 75 their beneficiaries will even be able to draw down the inherited pension without paying tax on it).

Relatively simple long/short trading methods can migrate SIPP into ISA, so not taxed on the way in, or on the way out, and can even be 'drawn down' early. Whilst leaving it outside of IHT.

I would imagine it wont last, when Lab is the executive in 2 years time, they'll likely plug that hole, resulting in negatives for both SIPP's and ISA's.

[1nvest]

By the way, the 9% (if that is what it is) is not a student tax. At least you could be accurate in your nomenclature.

Student Graduate tax

It is not a graduate either ‘tax’ as I assume that you know very well.

Dod

Martin Lewis: "Government student loan plans are a big increase to the cost of uni – it’s effectively a lifelong graduate tax for most."

https://www.moneysavingexpert.com/pressoffice/2022/02/martin-lewis---government-student-loan-plans-are-a-big-increase-/

1. Martin Lewis is not the arbiter of what is or is not effectively a tax.

2. Whether the graduate borrows money or not to fund their university course , there is no way the cost of repaying the loan is a graduate tax.

Not a lot to do with the Budget anyway.

Dod

Says someone who didn't pay/incur such costs as £9K/year fees and £8K/year lodgings, along with £10K/year living expenses, to come out with £80K of debt and a inflation+3% interest rate applied to that debt, to in effect be taught to no more than former A-Level standards.

[Tedx]

Bloomberg - Fiscal Drag (should be free to read)

https://www.bloomberg.com/graphics/2023 ... scal-drag/

[Dod101]

Student Graduate tax

It is not a graduate either ‘tax’ as I assume that you know very well.

Dod

Martin Lewis: "Government student loan plans are a big increase to the cost of uni – it’s effectively a lifelong graduate tax for most."

https://www.moneysavingexpert.com/pressoffice/2022/02/martin-lewis---government-student-loan-plans-are-a-big-increase-/

1. Martin Lewis is not the arbiter of what is or is not effectively a tax.

2. Whether the graduate borrows money or not to fund their university course , there is no way the cost of repaying the loan is a graduate tax.

Not a lot to do with the Budget anyway.

Dod

Says someone who didn't pay/incur such costs as £9K/year fees and £8K/year lodgings, along with £10K/year living expenses, to come out with £80K of debt and a inflation+3% interest rate applied to that debt, to in effect be taught to no more than former A-Level standards.

Clearly you have a very good crystal ball. How do you know that these were my circumstances? Actually in my day it was very unusual for young people from my background to go to university. I got the school qualifications to attend and was offered a place but felt that it was unfair all round so went off and found myself a job. Was it not your leftie PM, a guy called Tony Blair, that set up this nonsense in the first place? There is no requirement to attend university you know.

Dod