10p Tax Climbdown: Personal Tax Allowance Raised By £600

#1
http://news.bbc.co.uk/1/hi/uk_politics/7397705.stm

I haven't seen anything about this. Basically to mitigate the effects of the the removal of the 10p tax band, the government has decided to raise the personal tax allowance to £6,035.

Not sure if this is good news. The government seems to me to be spending alot of money in times of economic uncertainty (22% to 20% - Supposedly paid for in part by abolishing the 10p tax rate - now mitigated by a rise in personal tax allowance).

Apparently, this will cost the government 2.7 billion pounds.

All in all then, the budget is a disaster. What is worrying is how broke the government is. This surely spells catastrophe for the public sector including the army, and the public. This all has to be paid for and the govt can either cut spending later or raise taxes. I'm fed up with being taxed tbh, as I'm sure are most people in the country. That just leaves spending cuts...
 
#2
It is a complete cockup. I thought that Radio 4 got it spot on yesterday when it was said that this "mini budget" is not for prudent economics, rather urgent political necessity and Labour was not even going to bother denying it.

Remember also that the higher tax band will drop as well to ensure that higher tax earners don't pick up this new advantage.

As to your comment about public spending. I agree. The diffictuly will be strongest felt in those out of favour services such as the HM Forces. Personnally I think we are screwed.

I only hope that the CoC is strong enough to ensure lives are not put in danger by acceding to new winging cuts to the detrement of training and equipments. Tough times ahead......
 
#3
I have said it before on this forum and I will say it again
Just give Labour, Neu or Old, time and they will crew the economy.
It's the PFI that really worry me, I'll be dead and gone when your childre will be paying them off.
john
 
#4
Its just window dressing.
Take roughly £230 a year off the lowest paid and then give them back £120. So they are still over a hundred quid a year worse off than they were in the 1st place.
It isn't costing the government £2.7billion, they didn't have that money in the 1st place. It's just loosing £2.7billion of the increase they inflicted upon the public at the budget.
Public spending needs cutting back and it needs doing in a massive way (although I doubt it will be cut from social security etc where the real waste is).
I made the mistake of going shopping with Mrs Jagman yesterday, supermarket food prices have escalated wildly over the last couple of months, Tesco's slipped another 10pence a gallon on petrol yesterday.
The country is financially seriously in the shit and blame lies directly with Brown. The biggest reason we are all in the doodoo is taxation. How can the economy remain strong or even grow if every spare penny people have is stolen by the thick cnut in Downing Street?
Its not rocket science, peoples spending is curtailed becasue Brown is taking too much of their money, they have little left for themselves.
Unlike the government, once Joe Soap has run out of money he has to stop spending. Brown just rifles our pockets for more.
 
#5
FFS Brown gets my vote - he's just given the poorest people in the country a tax busting inflation gobbling soopa doopa 32.8 pence a day - I'm off out to blow it on fags and booze!

What a despicable to55er!
 
#6
I seem to remember the pathetic morally bankrupt waste of space saying that as a result of the budget no one would loose out and that the budget would stand. There are still over 1million people who are getting scr3ed over by this. The sad thing is I wouldn’t be surprised if many intelligence challenged votes will think this is wonderful and help keep this shower in power.
 
#7
Malteser said:
The sad thing is I wouldn’t be surprised if many intelligence challenged votes will think this is wonderful and help keep this shower in power.
Well I'm convinced. He gets my vote! :D BTW please don't use long words in your posts Maltezer.
 
#9
mmmmm....a tax cut, funded by further borrowing. No mention on whether it will be carried forward until next year, ie is the tax code going to rise next year with inflation, or is it going to be pegged back to claw the money back in.

Oh, and is this extra money in the system going to stoke up inflation even more??

Still, if that donkey gets voted in in Crew and Nantwich it will be worth the short term gain!!!
 

Biped

LE
Book Reviewer
#10
How do you reckon they'll pay for this?

Here's what I think will happen:

The gobment will reduce central gobment funding to local councils by something roughly totalling 2.7 billion pounds now that your local council has ALREADY set the rate for this year.

Local councils will increase council tax by on average £160 next year across all bands, thus generating the funds cut from central gobment.

Your total tax output will therefore increase next year over and above the so-called give away by more than the amount you are supposed to be saving.

An ingenious and typically underhanded gobment solution to what is yet another short-sighted screw-up.

Just my thought on the subject.

Where this gobment is concerned, there is deffo no such thing as a free lunch. What they give with one hand, the come back later and take back with both.
 
#11
Council tax is one of the big areas that are being fought at the moment, over the last 5 years they have gone up well above inflation and the government and councils know they can't keep doing this without a backlash sooner or later, infact this year there were stipulations that they had to show why they put it up and couldn't go above certain limits.

As for the £2.7 billion lost, well maybe the 'new' labour government might have to go out and get stuck into the big corporations, the amount of tax avoidance by these corporations is over 10 times the £2.7 billion the government has to claw back from somewhere, but will they really go into these companies, probably not since most of the MPs are 'non executives' or have 'directorships' at the big companies, in the US if a company is caught doing what all the big companies do over here then the director and the board are looking at serious jailtime as well as fines well in excess of the tax amount, over here the director gets a knighthood, try to work that one out.
 
#12
Argee2007 said:
in the US if a company is caught doing what all the big companies do over here then the director and the board are looking at serious jailtime as well as fines well in excess of the tax amount, over here the director gets a knighthood, try to work that one out.
Its called corruption
You only have to look at Blairs employers to see how that works.
 
#13
Argee2007 said:
in the US if a company is caught doing what all the big companies do over here then the director and the board are looking at serious jailtime as well as fines well in excess of the tax amount, over here the director gets a knighthood, try to work that one out.
...but also if a UK company ran its accounts like the government the board would be in serious trouble.

For instance PFI costs are kept of the balance sheet, so we the public do not know the full extent of the liabilities for this financing.
 
#14
Vimeiro said:
Argee2007 said:
in the US if a company is caught doing what all the big companies do over here then the director and the board are looking at serious jailtime as well as fines well in excess of the tax amount, over here the director gets a knighthood, try to work that one out.
...but also if a UK company ran its accounts like the government the board would be in serious trouble.

For instance PFI costs are kept of the balance sheet, so we the public do not know the full extent of the liabilities for this financing.
My bold. Up til now they have been, but new international accounting regs come into effect next April - one of the effects of which is that PFI projects must be capitalised (ie on the balance sheet). In fact, they should have come in last month, but HMT's currently running round in circles cacking itself and working out how it can fiddle the figures. Massive implications for us in DE&S.
 
#15
Brown and Darling have given NOTHING back, Nothing that is that will not be CLAWED back by one means or another.

Goodbye Gordon, it wasn,t nice to know you.
 
#16
What I don't understand is why many people credit Broon with being this amazing economic guru who ran the countries finances so well.

My view is this, for the last 12 years people have been able to borrow cheaply and therefore get what they "want" therefore people are happy and think the ecomomy is fine. Now they can no longer borrow and the Govt have not been careful with their spending Gordo's economic management is seen for what it is all "smoke and mirrors"

Is that a fair assumption of the the last 11 years of New Labour's mis management of the economy?
 
#17
Uncivil_Servant said:
Vimeiro said:
Argee2007 said:
in the US if a company is caught doing what all the big companies do over here then the director and the board are looking at serious jailtime as well as fines well in excess of the tax amount, over here the director gets a knighthood, try to work that one out.
...but also if a UK company ran its accounts like the government the board would be in serious trouble.

For instance PFI costs are kept of the balance sheet, so we the public do not know the full extent of the liabilities for this financing.
My bold. Up til now they have been, but new international accounting regs come into effect next April - one of the effects of which is that PFI projects must be capitalised (ie on the balance sheet). In fact, they should have come in last month, but HMT's currently running round in circles cacking itself and working out how it can fiddle the figures. Massive implications for us in DE&S.
I assume then the Long Term Liability is likely to be exceeded by the money borrowed to finance it.
 
#18
Vimeiro said:
Uncivil_Servant said:
Vimeiro said:
Argee2007 said:
in the US if a company is caught doing what all the big companies do over here then the director and the board are looking at serious jailtime as well as fines well in excess of the tax amount, over here the director gets a knighthood, try to work that one out.
...but also if a UK company ran its accounts like the government the board would be in serious trouble.

For instance PFI costs are kept of the balance sheet, so we the public do not know the full extent of the liabilities for this financing.
My bold. Up til now they have been, but new international accounting regs come into effect next April - one of the effects of which is that PFI projects must be capitalised (ie on the balance sheet). In fact, they should have come in last month, but HMT's currently running round in circles cacking itself and working out how it can fiddle the figures. Massive implications for us in DE&S.
I assume then the Long Term Liability is likely to be exceeded by the money borrowed to finance it.
If I remember correctly (and thats not gauranteed) repayment costs are approximately 7 times the values of the assets paid for by PFI.
I will try to find the figures but I think £8 billions worth of new hospitals are due to cost the taxpayer in the region of £53 billion. Stunning value for money huh?
You can add all the new PFI financed schools etc on the top of that figure.
Thats 10 aircraft carriers pissed away to line the pockets of Brown and Blairs friends/ future employers on NHS PFI's alone

Editted to correct
 
#19
I don't know why you're all getting in a huff about 3 billion, thats nothing. I posted this on another thread but its worth repeating here.

Ord_Sgt said:
Just to give you an idea of how incapable of doing anything this lot are a few numbers for you, courtesy of the bumper book of government waste.

The total amount of money constructively flowing around the UK economy is about 1.2 trillion pounds. That sounds a lot but it works out at enough to give 1000 pounds to everyone in Inida and Pakistan. Incidently, it's in the order of the magnitude of the total mortgage debt of UK homeowners, just to give you something else to panic about.

The governments take of that has increased over the last few years. According to the OECD, it was 37.5% in 2000. In 2007, it is estimated to be 45.3%. This means we are now way behind the United States (36.9%) and Japan (36.2%) in having a competitive economy, and about to fall behind Germany, whose tax take is high but falling.

In practical terms, consider this: if we were paying the tax rate we were paying in 2000 instead of the one we will be paying in 2007-08, the country would be paying 97.6 billion less.

On an individual scale, that translates as a tax hike of 1,545 pounds for each person in the country. That's how much extra is being drained from the economy to fund central government schemes.

It gets worse. The latest figures show that the covernment ran a defecit in 2006 of approaching 30 billion pounds. This is the amount it spent more than it collected through taxes.

As a comparison, the Bank of England has gold and foreign currency reserves, in total, of around two thirds that overspend.

Not only, therefore, is it taking more money from the taxpayer, and crucially taking more money from the people who generate wealth to provide the taxes, but it even has to take out loans and indebt us in the process.

This is, frankly, incompetent financial management.

Where is all this money spent? Here are the big takeers:

121 billion goes on social security spending. The concept is fine, until you look at the levels of fraud and the cisincentives in the system that sop people going back to work.

30 billion goes on debt interest - simply paying the ceditors for money loaned to the government. Theres a doubling of the defence budget there

104 billion goes into the NHS, including administration (the pensions scheme alone absorbs 10 billion and is going up by a billion a year).

By comparison, the Department of Transport has a budget of 20 billion to keep Britain moving.
The Conservatives couldn't do a worse job even if they set out with the intention in mind.

If you want to find out how monumentally incompetent this bunch of fcukers are, wasting our money at a huge rate, I suggest you take a look in the book. Clicky They document how 101 billion pounds, yes that's 101 BILLION pounds, is squandered every year by these chancers.

And breathe.
When you go home tonight remember that over and above what they have taxed out of your pocket they've put every household in the UK in debt for almost another 28,000 pounds, nice of them eh. It's worth remembering this is your money they are squandering and you have to pay it back at some point. Thats a lot of pain coming and with the economic slowdown, this country is in deep, deep sh1t.
 
#20
Ord_Sgt said:
I don't know why you're all getting in a huff about 3 billion, thats nothing. I posted this on another thread but its worth repeating here.

Ord_Sgt said:
Just to give you an idea of how incapable of doing anything this lot are a few numbers for you, courtesy of the bumper book of government waste.

The total amount of money constructively flowing around the UK economy is about 1.2 trillion pounds. That sounds a lot but it works out at enough to give 1000 pounds to everyone in Inida and Pakistan. Incidently, it's in the order of the magnitude of the total mortgage debt of UK homeowners, just to give you something else to panic about.

The governments take of that has increased over the last few years. According to the OECD, it was 37.5% in 2000. In 2007, it is estimated to be 45.3%. This means we are now way behind the United States (36.9%) and Japan (36.2%) in having a competitive economy, and about to fall behind Germany, whose tax take is high but falling.

In practical terms, consider this: if we were paying the tax rate we were paying in 2000 instead of the one we will be paying in 2007-08, the country would be paying 97.6 billion less.

On an individual scale, that translates as a tax hike of 1,545 pounds for each person in the country. That's how much extra is being drained from the economy to fund central government schemes.

It gets worse. The latest figures show that the covernment ran a defecit in 2006 of approaching 30 billion pounds. This is the amount it spent more than it collected through taxes.

As a comparison, the Bank of England has gold and foreign currency reserves, in total, of around two thirds that overspend.

Not only, therefore, is it taking more money from the taxpayer, and crucially taking more money from the people who generate wealth to provide the taxes, but it even has to take out loans and indebt us in the process.

This is, frankly, incompetent financial management.

Where is all this money spent? Here are the big takeers:

121 billion goes on social security spending. The concept is fine, until you look at the levels of fraud and the cisincentives in the system that sop people going back to work.

30 billion goes on debt interest - simply paying the ceditors for money loaned to the government. Theres a doubling of the defence budget there

104 billion goes into the NHS, including administration (the pensions scheme alone absorbs 10 billion and is going up by a billion a year).

By comparison, the Department of Transport has a budget of 20 billion to keep Britain moving.
The Conservatives couldn't do a worse job even if they set out with the intention in mind.

If you want to find out how monumentally incompetent this bunch of fcukers are, wasting our money at a huge rate, I suggest you take a look in the book. Clicky They document how 101 billion pounds, yes that's 101 BILLION pounds, is squandered every year by these chancers.

And breathe.
When you go home tonight remember that over and above what they have taxed out of your pocket they've put every household in the UK in debt for almost another 28,000 pounds, nice of them eh. It's worth remembering this is your money they are squandering and you have to pay it back at some point. Thats a lot of pain coming and with the economic slowdown, this country is in deep, deep sh1t.
I agree Ord Sgt. I believe in Titanic terms we have still only just hit the ice berg and the Govt are pretending nothing has happened. Many are going to suffer....and many will profit too, those that have saved and been careful may well find this an excellent time to move up the property ladder. What a mess.
 

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