I'm surprised you didn't see this windfall coming BT, you didn't really think the Tories were averse to buying votes did you, did you really think the Tories were strangers to the concept of 'pork barrel politics' ? My man in Tory HQ tells me that the retention of Burnley as a Tory seat is high on their list of priorities. Don't be surprised if a few more brown envelopes aren't heading that way in the next couple of years.
Having had a little more time to reflect on the budget and it's broader implications, for me it's a mixed bag affecting people in different circumstances in different ways.
Millions of people will be worse off according to the Institute of Fiscal Studies but it's not as simple as that.
Despite the showboating rhetoric about no new taxes....in September Sunak announced
that all employees, employers and the self-employed will pay an additional 1.25% in National Insurance contributions.
Technically, he wasn't actually lying - as he'd already announced it so it's not "new"
For me personally i.e. a pensioner I know and accept that my State Pension and my savings will be outstripped by price rises and inflation lag (which the OBR were quick to say is more likely to be 5% and rising after Sunak claimed it would peak at 4%) but I like beer and with the reduction in tax partially offsetting the increase in transport and ingredients costs theoretically the price shouldn't rocket in the foreseeable future so I'm happy with that. But the below inflation 3.1% "increase" in the State Pension will be immediately eaten up by increased Council Tax, rising fuel costs, and general price increases due to inflation.
The "super rich" were unaffected - so no wealth tax and nothing to get after the tax dodgers.
People on low incomes were given a few crumbs with which to offset the trouble ahead.
But Sunak had already said that the lower tax threshold will be frozen for 5 years from April 2021 - which as we head into the "higher wage/higher prices" economy will push more and more lower income earners into paying tax.
Middle income earners were slammed though with increased NI and prices rising at the fastest rate in 30 years. https://www.bbc.co.uk/news/business-59062392
- an estimated £3000 per household per year https://www.bbc.co.uk/news/business-59074026
And I'm still wondering how reducing the tax on internal flights fits with their agenda for climate change? Surely that would encourage folk to fly more if the saving is passed on to the customers? Why aren't they looking at greener alternatives like a decent rail network that compares with our European neighbours?
If borrowing is finally going to be cut back from it's current all time high in the next few years as Sunak claims it will there is only one way to pay for it all - increased GDP - so Britain is going to have to start working smarter and harder and moreover, resolve all the supply chain issues and skills shortages pronto.
One thing that did cross the line though was Sunak gleefully suggesting that public sector workers including the NHS would get a pay rise next year. No they won't. What is actually happening is that the pay freeze will be lifted - so they will be legally allowed to negotiate - but as Mr Frosty Brexit found out negotiation doesn't necessarily mean they'll get it. And if they do, will it even cover the rise in the cost of living?
Perhaps the only slightly amusing thing in the whole budget was Sunak saying that this government was going to get economy back into the healthy shape it was in 2010.
Didn't his script writers bother to tell him that the economy in 2010 was built on 13 years of Labour government?
...not that I have any confidence in the current Labour lot sorting it out.
Last edited by wanderlust; 28-10-2021 at 12:20 PM.
I let it all wash over my head and just assumed I'm going to be worse off, and for the foreseeable future. As are we all.
During my lifetime (68 years and counting) the government of Britain has moved from conservatism to centrist to left of centre. In the same way, during that time and especially post Thatcher, the thrust of all governments has been increasingly, not what is good for the country, but what will win votes and retain power.
Sadly, the rubbish that is now the government has lost control, if it ever had control.
As I sit on the outside in Switzerland, it may be that an outsider can see the wood for the trees. Any society where a person living on social handouts can say that it is a “life choice” to live on benefits rather than work, as quoted in The Times today, is a sick society.
Sadly, Swiss. that is the mentality of lots of members of our society who just expect that they will be provided for, even though they can't be bothered to go out and earn money. PLain fact is that there are lots of very lazy people, bear in mind that these are not to be confused with those who are genuinely out of work and unable to find anything.
With reference to people living on benefits --you have to remember that the State Pension is now classed as a benefit so we have to be content with being classed as part of the society who have that "life choice" but prefer to take our benefits.