Budget 2025

[briantrumpet]

The exchange rates for the £ look fairly relaxed about it all.

 

[Psamathe]

Income tax threshold freeze will hit poorer households harder, experts say
Move will have greater impact on living standards of taxpayers in bottom half of income scale, thinktanks say
...
The Resolution Foundation said the freeze on income tax thresholds for a further three years to 2031 would harm the living standards of taxpayers in the bottom half of the income scale.
...
Ruth Curtice, the chief executive of the Resolution Foundation, said the chancellor should have instead increased headline income tax rates to bring in extra revenues, which would have affected all households, but generated more cash for the Treasury from the better off.

She said: “The manifesto tax pledge has cost working people. Having previously hinted at raising income tax rates, the chancellor chose instead to freeze personal tax thresholds for three more years.”

A 1p tax rise would have raised the same amount of money but been less costly than freezing thresholds for anyone with an income below £35,000, she said.

Again, daft decision from Labour costing those at the lower income end.

 

[Dorset Boy]

We and most of the west have what can be referred to as 'K-shaped' economies, which simply means that those in lower income brackets have a greater propensity to spend any extra income they receive. Which makes freezing the Personal Allowance and basic rate tax band utterly dumb if you have a growth agenda.
RfA and her advisers are really pretty crap at thinking thinks through fully.

 

[briantrumpet]

From Jonathan Portes (presented at the IMF last week) - the migration doom loop.

 

[briantrumpet]

Just FWIW, emigration from the UK increased markedly under the Tories, especially after 2016. (Graph from https://www.statista.com/statistics/283287/net-migration-figures-of-the-united-kingdom-y-on-y/)

 

[icowden]

Broken election manifesto both in spirit and the letter

National Insurance - freezing bands is increasing National Insurance
Income Tax - increase in savings rates in an increase in the rate of income tax.

So manifesto pledges just discarded when they actually didn't need to.

I can tell you aren't a politician. The rates of income tax haven't changed and neither has National Insurance. Thus they have "kept their promise". They have raised more tax by changing the thresholds. That's all that matters to them.

It's the same as if they sold lemonade and said "we will not increase the price of lemonade" and then just put less lemonade in the bottle.

 

[CXRAndy]

Just FWIW, emigration from the UK increased markedly under the Tories, especially after 2016. (Graph from https://www.statista.com/statistics/283287/net-migration-figures-of-the-united-kingdom-y-on-y/)

View attachment 11288

And it's going up again under Labour

 

[C R]

I can tell you aren't a politician. The rates of income tax haven't changed and neither has National Insurance. Thus they have "kept their promise". They have raised more tax by changing the thresholds. That's all that matters to them.

It's the same as if they sold lemonade and said "we will not increase the price of lemonade" and then just put less lemonade in the bottle.

Shrinkflation of the take home pay, rather than tax inflation. In the meantime, the loopholes for those who aren't taxed via PAYE, the ones that really have money, remain untouched.

 

[Pross]

Exactly. Not raising taxes when everyone expects them to go up will be an election bonus. Throw in raised thresholds for the less well off and you have a winning formula.
Of course, we have to be in a position where that is possible so no guarantees but they will get tanked if they can’t.

Or better still, know you are going to lose the election so cut taxes so that the new Government have to raise them or adjust their spending proposals / debt plans accordingly. I can't think of any Governments that did that recently (or prospective Governments that fell for the tactic hook, line and sinker).

 

[Dorset Boy]

Shrinkflation of the take home pay, rather than tax inflation. In the meantime, the loopholes for those who aren't taxed via PAYE, the ones that really have money, remain untouched.

Which loopholes are yuou referring to?

 

[First Aspect]

Well, it depends how you define “mansion”, but, in all probability they are houses which anywhere else would be a fraction of that price.

I know these are all choices. Those people get london wages and will eventually benefit from having £2M equity.

It is very much a poor me I live in an expensive part of Cambridge and have a long commute into London type of an argument. (That's a BR forum reference)

 

[CXRAndy]

What a dopey bitch.

Next April EVs will be paying VED


View: https://x.com/AutoPap/status/1993981440099303496?t=aU2HRGrhedyyEq2I4zFWVg&s=19

 

[First Aspect]

What is it you imagine is the "gotcha" in that clip?

 

[CXRAndy]

What is it you imagine is the "gotcha" in that clip?

She started out with the position every year people will have MOT. He repeated the point about new car MOT requirements. She then plainly ignored next April BEV are taxed through VED. £195 which is far greater than a petrol town car at £20.

Don't forget this is the person who is in control of the UK finances. She cant recall the basics of VED in what was a softball interview

 

[First Aspect]

She started out with the position every year people will have MOT. He repeated the point about new car MOT requirements. She then plainly ignored next April BEV are taxed through VED. £195 which is far greater than a petrol town car at £20.

Don't forget this is the person who is in control of the UK finances. She cant recall the basics of VED in what was a softball interview

She didn't get the point he was asking the first first time, but the did at least indicate MOTs might be an option. Second time she answered it fully, albeit it indicates there is as yet no answer.

The question of the flat fee part of VED wasn't asked and is not relevant. She didn't talk about fuel duty either, or taxes on Jaffa cakes. What's your point?