Emergency Budget

[ophic]

Originally Posted by timwilky

I will get an extra grand of tax free allowance, but they are not moving the higher rate threshold, so swings and roundabouts there for me. less 20% but more 40% tax to pay.

How are you paying more 40% tax if the threshold is frozen? Unless you're talking about payrises.

[anna]

Well yes it could have been worse.

A cap on housing benifit though doesnt take into account the area of the country that the claimant is in. i.e London

Health to be cut by 25% not sure how that is going to be good.

Great news to increase the cap another £1000 for income tax is great for small business´s however, they arent the people that generally employee lots of others. (Still very good news for start ups).

But overall the most staggering thing here is that the debt is still not going to be touched during their term in government. The interest is still going to be going up, ok it is still a little less then previous government plans but, the whole reason of this emergency budget and their logic to bring this is in was to cut this debt. They have failed in this objection.

Im not sure that this budget is enough. They still havent told us where those cuts in the public and private sector are going to be .. I predict more bad news.

[Swin]

the cuts in the public sector are going to be announced October 20th - I think it was.

[timwilky]

Originally Posted by ophic

How are you paying more 40% tax if the threshold is frozen? Unless you're talking about payrises.

Exactly, as my salary increases, I will be paying a higher percentage at 40% as they have failed to increase the threshold in line with inflation etc.

Only one thing for it, I will have to throw more into my pension pot to reduce my taxable earnings. And let some one tax me on that if and when I finally get it.

[gruntygiggles]

Originally Posted by anna

Well yes it could have been worse.

A cap on housing benifit though doesnt take into account the area of the country that the claimant is in. i.e London

Health to be cut by 25% not sure how that is going to be good.

Great news to increase the cap another £1000 for income tax is great for small business´s however, they arent the people that generally employee lots of others. (Still very good news for start ups).

But overall the most staggering thing here is that the debt is still not going to be touched during their term in government. The interest is still going to be going up, ok it is still a little less then previous government plans but, the whole reason of this emergency budget and their logic to bring this is in was to cut this debt. They have failed in this objection.

Im not sure that this budget is enough. They still havent told us where those cuts in the public and private sector are going to be .. I predict more bad news.

Nope, this term won't see the debt being touched much, but it is a very delicate balance that needs to be found to prevent further recession. It will be dne eventually but I have always said and always believed that very little can happen in one term anyway. Any government needs at least 2 terms to be able to realise the strategies.

Problem we have with this government though is that it's a coalition, so who knows what's going to happen.

As for the housing benefits cap...it's perfectly acceptable IMO to put a family that needs it into a 4 bed house/flat in areas like London for £1,600 a month.

I think you're right though. This was his first budget, so not surprising that it's not too horrible. Lots yet to be announced and that's where it will get worse if it's going to.

[rowdy]

Originally Posted by Quedos

I love the outrage on 20%vat - howmany people felt the change from 15% to 17.5% - its going to be the same again - besides its lower than Ireland and other places. Yes its effectively means that we're going to pay more.
We've got a pay freeze for two years - Oh joys - so that will totall probably excess of £10k drop for me in the past 5 years

Everyone felt the increase on VAT the last time and they will again this time.
My wife has a VAT registered business, when your paying the inland revenue approx 4 grand every three months for a small business with a relatively low annual turnover, and this goes up by around £500 or so every quarter, then yes, it is quite noticable.
There are many small business that just manage to stay afloat as it is.

[timwilky]

As for the cap of £400/week on a 4 bedroom house, you could get mortgage repayments of far less than that round here for a 5 bedroom house.

So simples, move the housing benefit claimants out of expensive houses. The landlords either find private tenants willing to pay extortionate rents or lower their rents to what the the public purse is willing to pay.

[ophic]

Originally Posted by timwilky

Exactly, as my salary increases, I will be paying a higher percentage at 40% as they have failed to increase the threshold in line with inflation etc.

Only one thing for it, I will have to throw more into my pension pot to reduce my taxable earnings. And let some one tax me on that if and when I finally get it.

Ta. Thought I might have majorly missed something there. I don't think I'm going to be overly concerned about payrises in the immediate future

pfft, yeh good one tories.

They've already axed NHS waiting list targets, set by Labour for people to be see a GP within 48hours, and a specialist within 18 weeks of their referral. They're also gonna axe the maximum 4-hour wait to be seen when you go into A&E.

But then again they all probably have private health care, so no loss to them eh!

[anna]

Originally Posted by gruntygiggles

Nope, this term won't see the debt being touched much, but it is a very delicate balance that needs to be found to prevent further recession. It will be dne eventually but I have always said and always believed that very little can happen in one term anyway. Any government needs at least 2 terms to be able to realise the strategies.

Problem we have with this government though is that it's a coalition, so who knows what's going to happen.

As for the housing benefits cap...it's perfectly acceptable IMO to put a family that needs it into a 4 bed house/flat in areas like London for £1,600 a month.

I think you're right though. This was his first budget, so not surprising that it's not too horrible. Lots yet to be announced and that's where it will get worse if it's going to.

I appreciate the balance of the economy, but this government has already proven that it doesnt fully appreciate this when they cut the budget for forgemasters.

I dont really understand the concern in the fact that you now have a coalition, some of the best things in this budget were brought about because of the lib deb influences here.

I perhaps jumped at the housing benifit a little too soon and after looking up London house for rent prices I think your right a house in london is a reasonable price at that amount, but other parts of the country are weighted at the same amount.