View Full Version : emergency budget
whaddya all think?
heres a taster...
The Chancellor called the measures in this historic Budget (http://www.telegraph.co.uk/finance/financetopics/budget/) "unavoidable," and announced the following changes to tax and spending:
Taxes:
Mr Osborne has made the following changes to tax:
-VAT rises to 20pc from 17.5pc from January 4 2011
-Food, children's clothing and other VAT-free items remain exempt from VAT for current Parliament
-Capital gains tax (CGT) to rise for higher-rate taxpayers to 28pc from midnight
-Capital gains tax to remain at 18pc for basic-rate taxpayers
-CGT exempt amount remains at £10,100 this year
-Personal income tax allowance increased by £1,000 in April to £7,475
-Higher rate income tax rate remains frozen to 2013/14
-National Insurance threshold rises by £21 next year
Sin taxes:
-No new increase on alcohol, tobacco or fuel
-Planned increase in cider duty to 10pc above inflation scrapped from end of June
Public sector cuts and benefit reform:
-Child benefit to be frozen for next three years
-Child benefit removed from families on an income of more than £40,000
-Benefits to rise in line with consumer prices
-Tax credits reduced for families earning more than £40,000
-Child element of child tax credit increased by £150 above inflation
-Housing benefit restricted to maximum £400 a week
-Medical assessment for Disability Living Allowance from 2013 for new and existing claimants
-Two year pay freeze for public sector workers
-Public sector workers earning less than £21,000 to be paid
-Basic state pension linked to earnings from April next year
-Pensions guaranteed to rise in line with with earnings, prices or 2.5pc, whichever is greatest
-The Government will accelerate the increase in state pension age to 66
Deficit and debt:
Mr Osborne announced plans to cut the deficit, or the level of public borrowing:
-Deficit to fall to 1.1pc of gross domestic product (GDP) by 2015/16 vs. 10.1pc in 2011
-Budget deficit to be £149bn in 2010/11, lower than forecast at the last Budget
-Budget deficit to fall to £116bn in 2011/12
Spending:
Government spending will be £637bn in 2010/11
Government spending will be £711bn in 2015/16
Growth:
UK economy to grow by 1.2pc in 2010
UK economy to grow by 2.3pc in 2011
UK economy to grow by 2.8pc in 2012
Unemployment:
Unemployment to peak at 8.1pc in 2010/11
Unemployment to fall each year to 6.1pc in 2015
Business:
-Corporation tax cut to 27pc next year
-Corporation tax cut by 1pc point a year for next three years to 24pc
-Small companies tax rate cut to 20pc
-Tax relief for video games industry scrapped
-UK bank and building society levy from 2011
-Levy also on UK operations of foreign banks
-Smaller banks not liable for a levy
-Banks levy expected to raise more than £2bn a year
-10pc CGT rate for entrepreneurs extended to first £5m of qualifying gains
-Government looks to sell shareholding in air traffic control agency Nats, the student loan book will be sold and the future of the Tote bookmaker will be resolved
The background to the Budget:
The new Chancellor has to balance the need to cut the country's Budget deficit without threatening the fragile economic recovery. Mr Osborne (http://www.telegraph.co.uk/news/newstopics/politics/conservative/georgeosborne/)knows that financial markets are expecting the emergency Budget to lay out a credible plan for bringing the deficit down to sustainable levels. Failure is not an option. The 38-year old Chancellor knows that investors will punish sterling and drive interest rates up across the economy if the plan isn't credible.
What was expected:
The coalition Government has already said its plan will include a painful combination of spending cuts and tax rises. An increase and extension of Capital Gains Tax has been signalled, while experts are convinced that VAT will also be increased. With growth still fragile, the Government is also preparing to take the axe to parts of the benefit system it judges the country's coffers can no longer afford. Child tax credits, for example, are expected to be restricted to those on lower incomes. And outside health, whose spending Mr Cameron has ring-fenced, Government departments won't be spared. All are likely to see hefty cuts in their budgets
discuss
-Public sector workers earning less than £21,000 to be paid
So those earning over £21k won't be paid any more? lol
Nova_Tek
22-06-10, 02:27 PM
lol don't apply for jobs that pay £21,001
They left the cider alone! Thats good enough for me :)
IMO could have been a lot worse.
Nova_Tek
22-06-10, 02:28 PM
At the end of the day if the country is in mega huge massive debt then something needs to be done to help reduce it.
All unavoidable because of the MASSIVE f*ck up that Labour did.
Could of been worse IMO but then I'm not in the public sector.
what makes me lol is the 100billion unclaimed tax they could go after....
So those earning over £21k won't be paid any more? lol
pass, i just copied and pasted..lol
-VAT rises to 20pc from 17.5pc from January 4 2011
As expected, no great problem here. Although just wait til people realise that will add around 4ppl on the price of petrol (come January I'd say we'll be looking at £1.25 a litre if oil stays sub $90)
-Capital gains tax (CGT) to rise for higher-rate taxpayers to 28pc from midnight
-Capital gains tax to remain at 18pc for basic-rate taxpayers
Slight jibe at the bankers there methinks
-Personal income tax allowance increased by £1,000 in April to £7,475
-Higher rate income tax rate remains frozen to 2013/14
IMO they should have upped the higher rate by a small percent as well, but then that would hurt the typical tory toff voters
-No new increase on alcohol, tobacco or fuel
-Planned increase in cider duty to 10pc above inflation scrapped from end of June
Would have thought they'd stick a little bit on cigs and alcohol, but this is probably just a popularity attempt (esp. fuel duty). VAT should see them with good income here though.
-Child benefit removed from families on an income of more than £40,000
-Tax credits reduced for families earning more than £40,000
I should bloody think so!
-Housing benefit restricted to maximum £400 a week
Absolutely disgusting, it should be half that. Thats £20k a year; thats not far off my post-tax income and I work a full time job!
-Two year pay freeze for public sector workers
...but current increases are honoured. No mention of the shocking bonus system operated by many civil service departments I see.
-Tax relief for video games industry scrapped
I never really understood why there was a tax relief there in the first place lol
Whats the deal with the selling of the student loan book? Are the privatising the SLC? That'll put the willies up those £40k-in-debt serial uni soap dodgers lol
Quote:
-VAT rises to 20pc from 17.5pc from January 4 2011
As expected, no great problem here. Although just wait til people realise that will add around 4ppl on the price of petrol (come January I'd say we'll be looking at £1.25 a litre if oil stays sub $90)
i'll put money on oil rocketing post bp fiasco...
Quote:
-Child benefit removed from families on an income of more than £40,000
-Tax credits reduced for families earning more than £40,000
I should bloody think so! too little too late, scrap it altogether. having kids is a privelidge not a right. cant afford it? pull out ;)
Quote:
-Housing benefit restricted to maximum £400 a week
Absolutely disgusting, it should be half that. Thats £20k a year; thats not far off my post-tax income and I work a full time job! agree, my rent is less than that and i still struggle.
Quote:
-Two year pay freeze for public sector workers
...but current increases are honoured. No mention of the shocking bonus system operated by many civil service departments I see. only certian depts, i'll add... not the big ones...
Quote:
-Tax relief for video games industry scrapped
I never really understood why there was a tax relief there in the first place lol
too busy playing cod y0!!!!
Whats the deal with the selling of the student loan book? Are the privatising the SLC? That'll put the willies up those £40k-in-debt serial uni soap dodgers lol
good, too many over eductaed students with no life experience out there cluttering up the place. heres a message to you, mr lazy student to$$er, your media studies degree means sh1t mate, now go stack shelves haha!
booo @ losing chind benefit... lol
tbh we get naff all in the way of tax credits so binning them for over £40K households really really really really wont save the govt much money at all.
Wonder what kind of dole 'salary' Carly could get by not working lol
Other than that, not toooooo bad for an interim effort
Hactually, taken from the actual budget document...
"
1.104 This Budget announces a number of reforms to tax credits, to ensure
support is targeted on those most in need by reducing unaffordable support
for higher earners, and to simplify the system. As part of this package the
Government will reduce tax credit eligibility for families with
household income above £40,000 from April 2011 and make further
changes to this threshold in 2012-13 to focus tax credits on lower
income families. The Government will also increase the rate at which
tax credits are withdrawn once household incomes rise. The
Government will freeze Child Benefit to help fund significant above indexation
increases in the Child Tax Credit which is better targeted on low-income
families. This means that support will be better targeted at low-income
families with children and that this Budget will have no measurable impact on
child poverty in the next two years.28 In the meantime, the Government has
also asked Frank Field to lead an independent review on poverty which,
among other things, will make recommendations on potential action to tackle
the underlying causes of poverty and enhance life chances, consistent with the
Government’s fiscal strategy."
no statement on pulling child benefit from us "richies" lol
mmm, interesting. i predict darker times ahead...
all the major stuff takes about 2 years to implement anyway, its just impossible to get stuff shifted round on a national scale any quicker.
kinda. there has been major changes at work since day 1 of the condemned govt....
blue_peg_16v
22-06-10, 04:23 PM
what makes me lol is the 100billion unclaimed tax they could go after....
they do try to go after it but cash in hand payments are very difficult to prove and also the 100billion is a guestimate due to the nature of cash in hand knowone nows the figure its a shock figure imo just like weapons of mass distruction, lets face it the war in iraq and afganistan is costing a fortune and was based on lies again by labour
the budget is very mild i was expecting alot worse tbf, and yup vat and a few other things have gone up a little but id rather that than get into the state greece are in
Please explain why it's a condemed goverment ?
Would you rather have Labour still in charge ffs ?
Racking up more debt, wasting money etc.
the tory led leics county council had massive spending cuts slapped on it from central government last october/november..... and our local council which is a mix of tory & lib dem, had an enormous 11000 house allocation stuck on it, causing major planning upheavals & basically wholesale selling off of land in 'soon to be ex' green belts to the big developers....which thankfully the new government has scrapped.....
there will be more cuts, but it will take time to implement a lot of them, healthcare & education reform will be a long term one. for every quid spent on patient care in the nhs, about 20 get wasted, my missus is always finding out about yet more middle management at her work & they have just been told to cut the staff numbers on the wards again as they have been assessed & they are deemed safe...... Oh and the hospital got built about 8 years ago & was carpetted from front to back.. & nhs infection control have demanded it is removed as it is a risk.....
i feel sorry for anyone in an office job in a major organisation, cos when the civil service gets slowly cut back, they will have a lot of competition for jobs
General Baxter
22-06-10, 04:28 PM
ok what will i get/no get, cant be arsed in going init all
basic wage £24k, around £35k with over time,
no kids, no house, loads of savings
private pension
what do i get ?
Please explain why it's a condemed goverment ?
Would you rather have Labour still in charge ffs ?
Racking up more debt, wasting money etc.
condemned = conservative + lib dem :thumb:
they do try to go after it but cash in hand payments are very difficult to prove and also the 100billion is a guestimate due to the nature of cash in hand knowone nows the figure its a shock figure imo
its not a guesstimate, its an approx figure released last week by hmrc. :thumb:
blue_peg_16v
22-06-10, 04:30 PM
ok what will i get/no get, cant be arsed in going init all
basic wage £24k, around £35k with over time,
no kids, no house, loads of savings
private pension
what do i get ?
more tax lol
ok what will i get/no get, cant be arsed in going init all
basic wage £24k, around £35k with over time,
no kids, no house, loads of savings
private pension
what do i get ?
a free grinder. lol
seriously, not much.
blue_peg_16v
22-06-10, 04:32 PM
its not a guesstimate, its an approx figure released last week by hmrc. :thumb:
approximate exactly have you ever had an approximate gas bill how accurate are they lol
its yet more spin on figures
the peice of paper says "estimated within 2% of actual figure" ;)
the peice of paper says "estimated within 2% of actual figure" ;)
the tax office will willingly spend £1000 to chase a fiver owed to them.............
they waste more money than anyone... i told a tax officer that if they had a suggestion box then they should suggest that if the tax return was within a tenner of what it should be, then they should say good enough & leave it. i reckon they could save billions internally from that alone.
blue_peg_16v
22-06-10, 04:44 PM
there is know way of nowing though mate think about it if they know the transactions are happening and the amounts they would be able to stop them and charge people with tax evasion, by the very nature of cash in hand its an unknown payment so they have no idea of the amounts that are changing hands and when or were its happening so the figure they have given is irrelivant.
they also know that there is little chance of stopping it so little chance of finding the true figure so there no chance they can be proven wrong.
and everuyone knows an accountants jobb is to make it so you pay as little tax as possible thats what you pay them for
don't be fooled... people spending large amounts of cash, or banking it gets flagged up on the revenues radar, they always said it was to catch money laundering from drugs..... but they also check on people... if you register loads of cars in a year, they will door knock you.. they have very sneaky ways & the sneakiest is people anonymously dobbing their neighbours in.
blue_peg_16v
22-06-10, 05:00 PM
dont be fooled by those measures either theres ways round them like property auctions a minimum deposit of 10% has to be paid and cash irrespective of the amount is accepted i once saw 8 asians handcuffed together with a case each full of cash
General Baxter
22-06-10, 05:01 PM
don't be fooled... people spending large amounts of cash, or banking it gets flagged up on the revenues radar, they always said it was to catch money laundering from drugs..... but they also check on people... if you register loads of cars in a year, they will door knock you.. they have very sneaky ways & the sneakiest is people anonymously dobbing their neighbours in.
ha my bank blocked my card, they asked me what i spent £5 on every day for 2 weeks,
i told them 10p chews, which was true
i bet you sent them the wrappers as proof too
only certian depts, i'll add... not the big ones...
Are you sure? Its certainly MOD-wide, and they don't get much bigger than that lol
As for the oil price, its been a bit jittery of late, took a tumble and climbed back up again. I still reckon its about $5 down on what it should be.
lets face it the war in iraq and afganistan is costing a fortune and was based on lies again by labour
Only because the government is spending money the wrong way. And what makes you think it was based on lies?
i feel sorry for anyone in an office job in a major organisation, cos when the civil service gets slowly cut back, they will have a lot of competition for jobs
Already do, recruitment has been a minefield for about a year in the CS.
the tax office will willingly spend £1000 to chase a fiver owed to them.............
they waste more money than anyone... i told a tax officer that if they had a suggestion box then they should suggest that if the tax return was within a tenner of what it should be, then they should say good enough & leave it. i reckon they could save billions internally from that alone.
The agent who is chasing you for your £10 is also chasing a whole bunch of other clients for a considerable amount more. The miniscule evasions make up a very small percentage of tax officer's work time tbh.
The £100bn unclaimed tax probably mostly comes from ebay auctions!
The £100bn unclaimed tax probably mostly comes from Mikes ebay auctions!
Edited for troofs
Edited for troofs
FLOLOLOLOLOLOL lol lol lol
EDIT: What is unclaimed tax? As if theres £100 billininionshÃ*toads of it I wanna fooking claim it!!!
Nova_Tek
22-06-10, 10:58 PM
FLOLOLOLOLOLOL lol lol lol
EDIT: What is unclaimed tax?
Peoples that haven't gone to the doll office yet lol .
Peoples that haven't gone to the doll office yet lol .
For a hundred shÃ*load lot of money Id be at that office ricky fooking tick lol lol
Nova_Tek
22-06-10, 11:01 PM
you bet mate, I'd leave my job... if I had one lol
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