Election Year or Fear!

[Geoff Parkstone]

I don't usually comment on this thread, because I don't really care for political tittle tattle, but as this budget genuinely impacts people... I don't see it as sensible, I see it as taxing the working class, it's about as "Red Tory" as it could get. People on lower earnings will be hit hardest:

?2k cap on salary sacrifice pension contributions (which is not much over a year, particularly as inflation grows), meaning that any contributions over ?2k in a year, will now be subject to NI. That's 8% for low earners, 2% for high earners. Employers will also have to foot ERNIC costs for this at 15% - guesses for how they'll fund this? Smaller wages and reduced matching contributions. Working class people will be squeezed more and disincentivised to save for their retirement.

Freezing tax thresholds, means that more working class people will be pushed into the 40% tax bracket, as inflation effectively means that the threshold is reduced over time. They'll also lose any associated childcare and marriage benefits.

Basically, if you're a high earner, you'll take a small hit on some of your tax efficient benefits. If you're not working, no change at all. If you're working class, lube up your asshole because Labour are coming to give you a long slow shafting.
But hey, cheaper train tickets may stimulate the takeaway coffee industry, so that people can go and sit in a London office rather than log on from a computer at home, and maybe the extra kids that people get benefits for now will pay for my retirement. And I suppose if all the low earners are pushed into a higher tax bracket, then they'll also only pay 2% NI over the threshold.

You should comment more often

[Geoff Parkstone]

I wonder how they will monitor the mileage for the levy on electric and hybrid cars that's to come in.

Saw an interview with Reeves and she was asked about it and she said MOTs but obviously new cars don't have an MOT for 3 years, all she said was it's easy to look at your mileage when in your car. Surely if you do mileage overseas that's not going to count either.

The tourist tax sounds like it's not excessive but it will put extra costs on accommodation as businesses have to administer the tax and alter systems to accommodate it.

Labour will be getting the tax rises etc in noe then they will throw in some reductions in the final year or two of this term,just as all governments do.

I saw that interview she seemed clueless in trying to answer it. FWIW if the answeris self certification the it isnt going to raise anything apart from profit for the "clocking" industry and a bit of expense in creating an electric car audit police

[SithHappens]

I saw that interview she seemed clueless in trying to answer it. FWIW if the answeris self certification the it isnt going to raise anything apart from profit for the "clocking" industry and a bit of expense in creating an electric car audit police

If an EV driver does average mileage looks to me like it will be more than road tax. It does seem a strange move at a time we are trying to encourage the move to EV.

She didn't handle the questions well but very few politicians seem able to these days. I just don't get it, if I suggest an initiative at work when I'm pressed about it I have all my answers ready, I prepare. Why do politicians seem unable to do this?

[Andy_Faber]

If an EV driver does average mileage looks to me like it will be more than road tax. It does seem a strange move at a time we are trying to encourage the move to EV.

She didn't handle the questions well but very few politicians seem able to these days. I just don't get it, if I suggest an initiative at work when I'm pressed about it I have all my answers ready, I prepare. Why do politicians seem unable to do this?

Did you see newsnight last evening? Two labour supporters on the settee last night, one a successful businessman the other an MP, the former made mincemeat of the latter who quite simply not up to speed with the issues. I haven?t said if for a while but IMO the country should be begun by business professionals not politicians

[Geoff Parkstone]

But think of the huge petrol revenue tax that they aren't paying....I'm not sure the new levy is just to cover RFD

[Andy_Faber]

You should comment more often

Agreed

[SithHappens]

But think of the huge petrol revenue tax that they aren't paying....I'm not sure the new levy is just to cover RFD

I know , they pay vat or whatever on electricity though don't they?

[Geoff Parkstone]

No idea why you’d say that, but if you ask Google, William Hill or the BBC you’ll get much the same answer and my guess is it’ll be a woman, with Jayne Turton the current favourite.

VAT on electric is 5% though. 20% on petrol...

[SithHappens]

Did you see newsnight last evening? Two labour supporters on the settee last night, one a successful businessman the other an MP, the former made mincemeat of the latter who quite simply not up to speed with the issues. I haven?t said if for a while but IMO the country should be begun by business professionals not politicians

Thing is you would expect they have advisors though who can work out the detail.

They should take a leaf out of Mick Lynchs book. He's always prepared and knows the detail on what he is talking about.

[ramAnag]

Did you see newsnight last evening? Two labour supporters on the settee last night, one a successful businessman the other an MP, the former made mincemeat of the latter who quite simply not up to speed with the issues. I haven?t said if for a while but IMO the country should be begun by business professionals not politicians

Presume ‘begun’ should read ‘be run’ and I agree that governments and politicians could learn a great deal from certain successful business professionals and that certain business people would run rings around the majority of politicians.

However isn’t the purpose of business to make a profit, while the purpose of government is, or should be, to serve and provide for the needs of the people i.e. neither the NHS nor the national education service can possibly make a conventional profit, but both must be funded to serve the people and ultimately benefit society by providing a healthier and better educated population.