Boom! Rachael Reeves....

[Psamathe]

My main issue is that Reeves expects me to be able to magic up school fees with 8 weeks notice, straight after Christmas in the middle of a school year. Yes, I know, I could just put the kids in state school - except one is doing GCSEs next year, and the other A-Levels paid for by financial planning on my part which involved re-mortgaging the house such that I'm on the limit of what I can afford. It beggars belief that she thinks every parent with kids at private school has a magic money tree.

(I've not seen the budget but) with regard to VAT on Private School fees, reports I've seen are that Private Schools are intending to increase their fees by 20% to cover the VAT they'll have to pay. BUT now that they'll have to become VAT registered they can start reclaiming VAT on stuff they purchase so their bills will be lower. House of Lords estimated the actual net increase is nearer 15% NOT the full 20% VAT. So those Private Schools increasing fees by 20% are seaking in a fee increase along with the VAT increases.

Also, to make it even more of a rip-off for parents, some of the larger private schools will now be able to reclaim VAT on capital expenditure going back over the last 10 years - giving them a significant windfall.

Ian

 

[Psamathe]

Aviation fuel is taxed less heavily than road fuel, which given the fuel consumption of aircraft does not fit well with the paradigm of the polluter must pay. Green party policy is to tackle that, so expect to hear from them in parliament some time soon.

(Again, I've not yet seen this budget but) a lot of potential tax revenus from aviation fuel taxing (matching that motorists pay on their fuel)

Jet fuel tax could raise £6bn a year in the UK, says thinktank
...
An analysis by the thinktank Transport & Environment (T&E) UK said introducing a “fair” equivalent to the fuel duty paid in other sectors could raise between £400m and £5.9bn a year, based on the 11m tonnes of kerosene consumed by planes taking off from the UK in 2023.
...
(from https://www.theguardian.com/busines...uld-raise-6bn-a-year-in-the-uk-says-thinktank)

Both good for revenue we seem to desperately need as well as helping reduce our impacts cuasing Climate Change.

Ian

 

[BoldonLad]

In your opinion, how much will deter them?

No idea, I am not the Chancellor, but, £400 will not do it. Might be more effective to target the purchase/owning private jets, through measures such adjusting accounting rules to disallow depreciation, input-vat, etc etc

 

[albion]

Headline calculation is that almost everyone who is a PAYE worker is unaffected by this budget.

Unless you visit the Telegraph. Their current first 8 headline takes on it are all negatives.

 

[spen666]

Headline calculation is that almost everyone who is a PAYE worker is unaffected by this budget.
.....

That is so false - everyone will be affected by the budget as they are by any budget - they may not be affected directly in their pay packet, but companies will pass on the increases in NI etc to consumers and may also be more reluctant on pay rises as any rise will cost them more.


Everyone is affected by any budget

 

[Psamathe]

Headline calculation is that almost everyone who is a PAYE worker is unaffected by this budget.
I do worry for business having to stump up the NI. Which means any potential pay rises will be stifled.

In my simplistic approach, the extra costs for employers who have to pay significantly NI increases, that money has to come from somewhere and in reality it will come from lower pay for employees and increased charges to customers - and that means the money comes from"us" (real people getting payed and paying for things).

Ian

 

[BoldonLad]

In my simplistic approach, the extra costs for employers who have to pay significantly NI increases, that money has to come from somewhere and in reality it will come from lower pay for employees and increased charges to customers - and that means the money comes from"us" (real people getting payed and paying for things).

Oan

Ultimately, doesn't it always?

 

[Bromptonaut]

In my simplistic approach, the extra costs for employers who have to pay significantly NI increases, that money has to come from somewhere and in reality it will come from lower pay for employees and increased charges to customers - and that means the money comes from"us" (real people getting payed and paying for things).

Ian

Like any other increased cost it has to be borne. Maybe by wages, maybe on profit/bottom line or maybe by pressure on suppliers.

If it being borne by wages affects recruitment/retention or motivation it'll go elsewhere.

 

[monkers]

Ultimately, doesn't it always?

Yes because the business model is that things are assets and labour is a cost; and of course shareholders come first before consumers and workers.

When in a city the hourly cost of parking a car on a 16ft x 8ft patch of tarmac is valued about the same as an hour of human labour that signals a structural problem.

 

[AuroraSaab]

The tax on family farms seems like it might lead to farms being broken up and sold off. I wonder if changes to planning on green belt are in the offing as a solution to housing issues. It would dovetail with farmers needing to sell off land to avoid tax.

What tax do business owners pay if they own a factory and pass it on to offspring who work for the family company? Is the farm tax thing just bringing farms into line with other businesses?

 

[Mark999]

Aviation fuel is taxed less heavily than road fuel, which given the fuel consumption of aircraft does not fit well with the paradigm of the polluter must pay. Green party policy is to tackle that, so expect to hear from them in parliament some time soon.

What is the definition of ‘private jet’? Many of us fly around on private corporate jets to various offices - as casual as taking a train. So these corporations now need to allocate more funding to this expenditure line? If so, that won’t be an issue of any kind to these corporations.

 

[icowden]

What is the definition of ‘private jet’?

It's like a commercial jet, but private. You can't buy tickets. You either own or lease the jet, or you are a guest of the person who owns or leases the jet. They tend to be owned by rich people.

 

[Mark999]

It's like a commercial jet, but private. You can't buy tickets. You either own or lease the jet, or you are a guest of the person who owns or leases the jet. They tend to be owned by rich people.

I highly suspect the vast majority of private jets, by this definition are not owned by wealthy individuals but rather leased by corporations.

 

[Psamathe]

Amazing interview with Minister re budget money for NHS. Not long ago Starmer was saying no additional money for NHS without reform. But budget gives more money to NHS. So Minister asked if it has conditions and apparently it does. But when asked what the conditions were he went vague and evasive waffling about "reforms" -and he was the Minister sent out to defend the budget. So NHS thinking it has money it desperately needs but Government not yet decided or telling anybody what it can actually be spent on subject to what changes NHS has tomale to get it.

Ian

 

[fozy tornip]

It's like a commercial jet, but private. You can't buy tickets. You either own or lease the jet, or you are a guest of the person who owns or leases the jet. They tend to be owned by rich people.

Not always. We don't consider ourselves rich but made sacrifices to purchase our private jet so our neuro-diverse and delicate offspring could get around with a degree of inflight attention proportionate to their exceptional needs; care unavailable on crowded passenger jets containing hundreds of unwashed oiks and low flight-attendant-to-passenger ratios. Frankly, this additional tax is short sighted of Reeves, forcing as it will many middle-class private jetters like us to leave private jettery and piling additional pressure on the Ryanair sector.