2022 mini-budget discussion

[chroniclard]

So essentially reversing all the bad policies of the recent Tory governments and trying to combat the self inflicted rubbishness of Brexit.

 

[Mrwong]

A nation cannot survive culturally if it owns nothing.

LoL China are building automated factors,

Changshu plant

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He has signaled UK is on trouble.

 

[CapitalOne]

So essentially reversing all the bad policies of the recent Tory governments and trying to combat the self inflicted rubbishness of Brexit.

Do you just mean economic policies? I'm thinking Rwanda is still on the card for example.

 

[Freakbro]

Remember when 'rebalancing the economy' was a thing as we realised it was too distorted in its reliance on the financial sector. Its where 'levelling up the North' (LOL) came from.

Yea, neither do this lot.

The 2010 Govt plan, when they still pretended to be fiscally responsible

Issue​

The financial crisis of 2008 and 2009 exposed an unstable and unbalanced model of economic growth in the UK, which was based on unsustainable levels of public and private sector borrowing.

Rebalancing the economy is not about trading the success of one sector for another. It’s about spreading our success more evenly - both geographically and by sector - and supporting the world class industries we already have, as well as the new ones that we’re developing.

By reducing the deficit (the gap between what we spend and what we raise in taxes), we will put the public finances on a sustainable path again and help achieve balanced economic growth - helping keep interest payments lower for families, businesses and the taxpayer - meaning more jobs and greater prosperity.

 

[chroniclard]

Do you just mean economic policies? I'm thinking Rwanda is still on the card for example.

Yes, thats the topic.

 

[Doobedoo]

Its almost like they (politicians) will tell us (electorate) anything and everything to win an election and will never have to worry about the consequences when they inevitably fail to deliver or even do the opposite.

 

[Uther]

To be honest I'm not really sure what to do.

I feel I have to emigrate. But will it ever really happen?

It no longer seems an exaggeration to say the UK is dying. Being killed off by what should be the "fiscal safe handed" party.

Seeing the pound tank that much in one day is frightening.


Not really sure what to do! This is like a freight train heading to a downed bridge with the tories stoking the engine.

You don't have kids, you work from home, why are you still here? A friend emigrated to Aus back in the 80's and has never regretted it for one second.

 

[Uther]

So essentially reversing all the bad policies of the recent Tory governments and trying to combat the self inflicted rubbishness of Brexit.

Whilst pretending it was nothing to do with them.

 

[Uther]

Its almost like they (politicians) will tell us (electorate) anything and everything to win an election and will never have to worry about the consequences when they inevitably fail to deliver or even do the opposite.

There are never really any consequences for them though are there, they can screw up as much as they like, but always end up wealthy and in directorships or on the speaking circuit making millions afterwards.

 

[adidan]

Its almost like they (politicians) will tell us (electorate) anything and everything to win an election and will never have to worry about the consequences when they inevitably fail to deliver or even do the opposite.

Don't believe that for one second..

Next you'll be telling me that the local women in my area aren't looking to meet me and that poor Prince doesn't need help with his inheritance.

 

[dowie]

Tell me where hes wrong.

I did, he claim that this is all nonsensical and he can't understand it etc. he's either dumb and can't imagine any other perspectives or he's lying.

 

[Destination]

Stick with me,
Since April and util Nov, anyone on let's say 30K a year, above average salary, has been paying extra NI, this is to be removed, and tax rate cut by 1%.
In essence the extra they taxed, and the current drop will leave a person at the end og April 2023 where they would have been if they had not rasied Ni in the first place.
It doesn't actually save anything.
In straight money terms the 1% drop in tax is worth about £3 a week to someone earning 30K.

£3 a week.
Someone on 200K gets 5K a year or more.

How can they sensibly aim this tax cut at anyone they seek to have voting for them?
Why would anyone on 80K a year or less ever vote for this, bar the project fear of labour slapping taxes on the over 100K folks?
It's an utterly insane budget, great for those who earn loads, have loads and fancy investing in extra properties, and for virtually no one else.

 

[Freakbro]

Stick with me,
Since April and util Nov, anyone on let's say 30K a year, above average salary, has been paying extra NI, this is to be removed, and tax rate cut by 1%.
In essence the extra they taxed, and the current drop will leave a person at the end og April 2023 where they would have been if they had not rasied Ni in the first place.
It doesn't actually save anything.

Plus though, we were told how vital this NI rise was to initially tackle the NHS problems left from Covid and then the looming Social Care disaster.

Neither of those issues have gone away.

 

[Rroff]

£3 a week.
Someone on 200K gets 5K a year or more.

I might have done the maths wrong but I worked out it was something like £17/m for me and just had to LOL.

 

[GordyR]

Stick with me,
Since April and util Nov, anyone on let's say 30K a year, above average salary, has been paying extra NI, this is to be removed, and tax rate cut by 1%.
In essence the extra they taxed, and the current drop will leave a person at the end og April 2023 where they would have been if they had not rasied Ni in the first place.
It doesn't actually save anything.
In straight money terms the 1% drop in tax is worth about £3 a week to someone earning 30K.

£3 a week.
Someone on 200K gets 5K a year or more.

How can they sensibly aim this tax cut at anyone they seek to have voting for them?
Why would anyone on 80K a year or less ever vote for this, bar the project fear of labour slapping taxes on the over 100K folks?
It's an utterly insane budget, great for those who earn loads, have loads and fancy investing in extra properties, and for virtually no one else.

The disparity is worse than that still when you look at the combined effect of all tax changes introduced across the current parliament:

One major set of tax increases that has not been reversed is the freeze in the personal allowance and the higher- and additional-rate income tax thresholds. These are set to run until the end of the parliament. With inflation now so high, those freezes represent big income tax rises. (Note also that the rise in the NICs threshold that took effect this year will be almost completely eroded by inflation by 2025–26, since the NICs threshold is being frozen going forward.)

The chart below illustrates the combined impact in 2025-26 of all reforms to income tax and NICs introduced over the course of the current parliament, announced before and after this mini-Budget (i.e. without and with the cuts to NICs and to the additional rate of income tax). The combined effect of these changes is still to leave the vast majority of income tax payers paying more tax. The biggest losers in cash terms will be those earning between £63,000 and £125,000. They will be paying £1,570 more in direct tax in 2025-26 than if no changes had been made.

Only those with incomes over at least £155,000 will be net beneficiaries. They gain from the abolition of the additional rate, and are unaffected by freezing the personal allowance because their incomes are too high to be eligible for one anyway. This is quite a different picture from that before the mini-Budget, which implied larger tax rises across the board, but especially so for higher earners.

The IFS - Mini budget response

There's a very good reason why they refused to publish the OBR forecasts alongside this budget.

 

[smokedog]

We've hired all the good contractors as permies and in my teams we don't even have a single one anymore.

This is probably a consequence of the IR35 reforms. Now the pay gap between perm and contractors are much narrower.

Being a contractor myself, before the IR35 changes I would never consider going perm, as it would mean an 50%+ pay cut.

 

[CapitalOne]

This is probably a consequence of the IR35 reforms. Now the pay gap between perm and contractors are much narrower.

Being a contractor myself, before the IR35 changes I would never consider going perm, as it would mean an 50%+ pay cut.

Fair play horses for courses and all that. It was absolutely down to the IR35 reforms no doubt about it!

 

[Quartz]

I might have done the maths wrong but I worked out it was something like £17/m for me and just had to LOL.

It's better than nothing. But tax needs fundamental reform.

 

[Surveyor]

I might have done the maths wrong but I worked out it was something like £17/m for me and just had to LOL.

If you're including the income tax and NI changes £17/month is for someone earning around £22k p.a.

 

[mid_gen]

Well, I just put the additional £90 a month that I don't need to good use, and joined the Labour party and set up a donation DD.

Did not see that in my future when I was younger.....but the Tory party I used to vote for is long deceased. This extremist faction that's taken over the party need removing.