Spring Budget 2023

[Mr Jack]

The OBR are saying this giveaway to the wealthy is going to cost £1bn/year by '26/'27. Does anyone really think that this is really the best use of a £1bn/year change to pension taxation?

 

[Azza]

The OBR are saying this giveaway to the wealthy is going to cost £1bn/year by '26/'27. Does anyone really think that this is really the best use of a £1bn/year change to pension taxation?

For 15,000 people staying in work a few years longer too.

 

[jpaul]

really the best use - if the 7million NHS waiting queue gets reduced faster ?

Yep. I'm definitely going to bin the EV now.

with voluntary pension sacrifice and complimentary employer contribution, some offer, doubly so.

 

[dlockers]

Weighing up my new riches rn

 

[Mr Jack]

really the best use - if the 7million NHS waiting queue gets reduced faster ?

If that's what its for then (1) I rather doubt a better use of £1bn couldn't be found by the NHS and (2) as The IFS point out, this is sledgehammer to crack a nut material. There are much cheaper ways to target NHS staff in particular.

 

[Ahleckz]

So help for the rich, and the parents who can’t afford childcare. Nowt for the middle earners. Sigh.

 

[thenewoc]

The OBR are saying this giveaway to the wealthy is going to cost £1bn/year by '26/'27. Does anyone really think that this is really the best use of a £1bn/year change to pension taxation?

No, but many didn't want Truss's plan for growth so this is what you got instead!

 

[malachi]

So help for the rich, and the parents who can’t afford childcare. Nowt for the middle earners. Sigh.

I see no change there.

 

[Greebo]

They've cut inequality? That sounds beyond dubious.

Just read today that the gap between men and women's pay has increased and we are way down the world charts.

 

[200sols]

So help for the rich, and the parents who can’t afford childcare. Nowt for the middle earners. Sigh.

Middle earners get shafted every time, middle earners are not poor enough or rich enough to feature on anyone's radar. Fiscal drag is coming for you though.

 

[CapitalOne]

No, but many didn't want Truss's plan for growth so this is what you got instead!

Come on Truss and Kwarteng would have had a better growth plan by writing "growth" on a special piece of paper and closing their eyes really hard whilst going hhhhnnnnnngggg

 

[Greebo]

Thus repaying some of the tax you didn't pay by putting it into the pension pot in the first place. Also, you don't have to use a pension fund at all, you can just put it into other investments.

This. A £1m pension pot today gets you £100k lump sum and £44k per annum. If staying in work or going back to work would mean you have 55% tax to pay by putting more into your pension then dont bother, invest it in something else. Simples. The issue is that this person doesnt need to return to work. I have friends in their 50's maxed out and have given up work and happy with their £44k pension plus all their other investments and buy to let properties etc and quite happy to not work and live on £100k per annum. Cant see them going back to work just cause they could now put more into their pension.

 

[thenewoc]

Come on Truss and Kwarteng would have had a better growth plan by writing "growth" on a special piece of paper and closing their eyes really hard whilst going hhhhnnnnnngggg

6% on corp. tax and no repeat u turn on IR35 isn't going to grow the economy. Truss and Kwasi's plan would have done better on those two points alone.

 

[200sols]

Imagine still defending the Truss plan

 

[Mr Jack]

Wait, what? @thenewoc wasn't being sarcastic!?

 

[muon]

Not really. Workers in later life are far more likely to be in a position to make greater pension contribution. Similarly, those in later working life are more likely to a have salary that can allow high pension contributions.

It will help, to an extent, those making pension contribution later in life so they are less reliant on state pension.

People dropping 40k-60k per year into their pension were never going to be reliant on a state pension. These are wealthy people who are getting tax money to fund their pensions.

 

[Greebo]

where do you think pension money goes?

Well once you have retired to the south of France, on stuff you buy in France obviously

 

[CapitalOne]

6% on corp. tax and no repeat u turn on IR35 isn't going to grow the economy. Truss and Kwasi's plan would have done better on those two points alone.

I think you're over baking the impact of IR35 there

 

[thenewoc]

I think you're over baking the impact of IR35 there

Nah, businesses need less red tape to thrive. There should be zero friction to obtaining IT services, the whole IR35 thing is a total joke, even HMRC can't publish a calculator to understand whether something is inside or outside IR35. Then you have Lineker clearly doing a job for the BBC but getting away with being outside IR35.

 

[EddScott]

These are wealthy people who are getting tax money to fund their pensions.

If that upsets you, try not to think about how corporations are going to be able to reduce or avoid the corporation tax increase by increasing employer contributions. Bar Stewards!

I would say that if pensions have been maxed for many years then maybe that person would not be reliant on state pension - they will of course pay more income tax as state soaks up Personal Allowance.

They will also be less reliant on NHS services as they will have more money for healthcare. Assuming they haven't moved to South of France, Spain, Florida etc.

However, many people are unable to max contributions until later life and even a couple of hundred thousand in a private pension, you're likely to need that state boost.