Election Year or Fear!

[swaledale]

So the budget didnt turn out to be too hostile, vaguely sensible, but I dont see how it will finance labour's spending plans.

Dividend tax hikes continue to make self employment via a company less and less attractive so may well squash entrepreneurialism which isnt great for future tax planning/ revenues. I like the 2% hike on rental income, although I imagine others here wont agree - but it does raise the question about who is going to invest in private sector rentals to meet the escalating housing needs.

Scrapping the two child benefit cap I think is wrong as it encourages increasing birth rates amongst those who cannot afford to raise children, but Im probably in the minority here.

Finally the new mansion tax - bad luck for rA Towers facing a 2500 tax hike - but its quite well pitched as regards entry values. My concern is that its the thin end of a wedge and will slowly drag more and more people into the net, and at escalating costs. Not sure how it distinguishes between SE England house values and the equivalent property in other areas. There are many 3 bed homes in London costing over 2.5 million whereas the average price of a 3 bedroomed house in Wales is $ 209,000.... but who ever said Labour was about fairness.

Overall B+ it avoids controversy but it doesnt go far enough in revenue growth. I can see public sector borrowing on the rise again in true Labour style - cant afford the promises so dump it on future generations to pay for today's plans. the one day a year I'm happy to be an old git

Fair summary, though of course the devil is in the detail. Exactly how does investing in private sector rentals meet escalating housing needs?

[Geoff Parkstone]

Fair summary, though of course the devil is in the detail. Exactly how does investing in private sector rentals meet escalating housing needs?

Im not sure that it does to be honest, but taxing it more wont improve the likelhood. Private sector landlords who are in it as a business (as opposed to simply letting a deceased parents property out for capital gain) have been hammered for tax over the last 10 years (mostly re changes to mortgage relief) which will no doubt have slowed interest in investing in the sector. What is puzzling is that corporation tax rates on companies investing in property havent been hiked, just income tax rates - although I suppose this is offset by increased dividend taxes.