2022 mini-budget discussion

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Richie said:
I've already said before - the fairest tax cut would have been to keep the bandings the same and lift the basic allowance to £17,290. This is the same as the NMW for a 40 hour weekly wage (35 hour plus 1 hour unpaid break each day for 8 hour day).

This would give the lowest paid a huge lift out of poverty whilst also giving everyone else in the higher bands an equivalent monetary lift as well.

This would have been fairer than giving the chunk of a tax break to the higher paid by cutting the top rate of tax. Note that these higher and highest rate tax payers would get the same cut as their basic tax won't start till £5k later i.e. everyone benefits with the lowest benefiting more as a proportion.

Also note (as evidenced by this very thread) - more of this would end up back in the economy as the lower paid spend it rather than squirrelling it away as wealthy people do.
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But that would mean the poor would be better off?
 
Richie said:
I've already said before - the fairest tax cut would have been to keep the bandings the same and lift the basic allowance to £17,290. This is the same as the NMW for a 40 hour weekly wage (35 hour plus 1 hour unpaid break each day for 8 hour day).

This would give the lowest paid a huge lift out of poverty whilst also giving everyone else in the higher bands an equivalent monetary lift as well.

This would have been fairer than giving the chunk of a tax break to the higher paid by cutting the top rate of tax. Note that these higher and highest rate tax payers would get the same cut as their basic tax won't start till £5k later i.e. everyone benefits with the lowest benefiting more as a proportion.

Also note (as evidenced by this very thread) - more of this would end up back in the economy as the lower paid spend it rather than squirrelling it away as wealthy people do.
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That would be ok and certainly better then what has been done, but income tax is a progressive tax so I feel regressive taxes such as fuel duty and VAT on energy should be cut first.

I read the earlier post about people choosing where to live based on this scrapping of the top rate band.

I just find that so hard to believe, so someone who earns lets say 300k a year. Are they going to think the disruption to their life is worth that? I know there is people who are so addicted to been anti tax, but hating paying tax and moving countries because of it are entirely different things.
 
chrcoluk said:
.I just find that so hard to believe, so someone who earns lets say 300k a year. Are they going to think the disruption to their life is worth that? I know there is people who are so addicted to been anti tax, but hating paying tax and moving countries because of it are entirely different things.
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In HK I paid a smidge over 10% income tax, (and no sales taxes) , on a comfortably six figure GBP salary. I got to keep nearly all my monies. There are options out there for people that care about such things.

The people that don't like paying taxes sufficiently to move countries are already living in places like HK and Singapore. None of them are leaving the UK over a piddling 5%...it's complete nonsense.
 
mid_gen said:
In HK I paid a smidge over 10% income tax, (and no sales taxes) , on a comfortably six figure GBP salary. I got to keep nearly all my monies. There are options out there for people that care about such things.

The people that don't like paying taxes sufficiently to move countries are already living in places like HK and Singapore. None of them are leaving the UK over a piddling 5%...it's complete nonsense.
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You talking a very extreme difference though, So yep I agree with you, they already wont be here.
 
Richie said:
I've already said before - the fairest tax cut would have been to keep the bandings the same and lift the basic allowance to £17,290. This is the same as the NMW for a 40 hour weekly wage (35 hour plus 1 hour unpaid break each day for 8 hour day).
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I say! You're not allowed to post anything sensible here!
 
Well, next week we'll see the first fruits of the Kwasi budget, a run on the pound, continued collapse in gilts, at least talk of, if not an actual emergency intervention by the BoE to raise interest rates to try and protect the currency, all further driving up inflation, slowing the economy, and taking money out of people's pockets.

Looking forward to seeing how the Tory drones try and spin it.
 
mid_gen said:
Well, next week we'll see the first fruits of the Kwasi budget, a run on the pound, continued collapse in gilts, at least talk of, if not an actual emergency intervention by the BoE to raise interest rates to try and protect the currency, all further driving up inflation, slowing the economy, and taking money out of people's pockets.

Looking forward to seeing how the Tory drones try and spin it.
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The early Asian trades are going to be fun to watch, with thin markets and high volatility in times like this.
 
SpeedFreak said:
HS2 should have started in the north for example.
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I was educated on this by someone knowledgeable. The soundbite of cutting the time between Birmingham and London by half an hour completely misses the point. By moving the high-speed trains to a separate line you massively increase the capacity of both because you can pack the trains more closely.
 
mid_gen said:
Well, next week we'll see the first fruits of the Kwasi budget, a run on the pound, continued collapse in gilts, at least talk of, if not an actual emergency intervention by the BoE to raise interest rates to try and protect the currency, all further driving up inflation, slowing the economy, and taking money out of people's pockets.

Looking forward to seeing how the Tory drones try and spin it.
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This opportunity is just perfect for the Bank Of England to finally get those interest rates up to where they need to be. It's a gift, and a great get-out for Bailey and Co as they know they're going to be blamed for future rate rises of which there are going to be many. Just get it out of the way now - with all the negative press around at the moment following the budget, it's only the government who the public are going to blame, and quite rightly so.
 
Quartz said:
Anyone who wants to keep paying the old tax rates need only move to Scotland.
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Correction, pay a little bit more at the 40% band (41%) and a little bit less below that as we already have a 19% band in Scotland.
Doobedoo said:
No one wants to move to Scotland especially not with these energy prices. :p
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Yes, I'm always dreaming about giving up my 4 bed detached for a studio flat in London at double the price. :p
 
purplesky said:
This opportunity is just perfect for the Bank Of England to finally get those interest rates up to where they need to be. It's a gift, and a great get-out for Bailey and Co as they know they're going to be blamed for future rate rises of which there are going to be many. Just get it out of the way now - with all the negative press around at the moment following the budget, it's only the government who the public are going to blame, and quite rightly so.
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What makes you think Bailey is going to suddenly start doing the right thing now, he's watched GBP slide 20% already, what's another 5 %..
 
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purplesky said:
It's been sliding gradually. Friday's events are a catalyst. I highly doubt Bailey will act next week but I will be happy to be wrong.
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Kwasi's spouting over the weekend that he's going to keep making more unfunded unicorn tax cuts will have added fuel to the fire. The markets are going to respond.
 
Something I've missed is why this budget - and in particular the cutting of the top tax rate - has caused the slide in the pound.
 
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