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

Discussion in 'Current Affairs, News and Analysis' started by Scabster_Mooch, May 14, 2008.

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  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. in_the_cheapseats

    in_the_cheapseats LE Moderator

    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.
  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. Well I'm convinced. He gets my vote! :D BTW please don't use long words in your posts Maltezer.
  8. which word is that? is it "The"? :D
  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!!!
  10. Biped

    Biped LE Book Reviewer

    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. Its called corruption
    You only have to look at Blairs employers to see how that works.
  13. ...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. 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.