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Post by northwestman on Nov 1, 2022 10:28:28 GMT 1
www.theguardian.com/politics/2022/oct/31/rishi-sunak-preparing-years-of-tax-rises-to-plug-50bn-fiscal-black-holeRishi Sunak is preparing years of tax rises for Britain in an effort to make up for a £50bn fiscal hole left by Liz Truss’s disastrous tenure in Downing Street, according to a Treasury insider. After a meeting between the prime minister and Jeremy Hunt on Monday to plan the upcoming autumn statement, a Treasury source said things were going to get “rough”. Both Sunak and his chancellor reportedly agreed that “tough decisions” need to be undertaken due to the “eye-watering” size of the blow to public finances dealt by Truss’s mini-budget. “Stealth” increases in income tax and national insurance contributions are expected to be rolled out over the next few years by extending a freeze on personal tax allowances and thresholds. I've already expressed concerns over the freezing of personal tax allowances and thresholds, but now it seems they are to be extended!
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Post by martinshrew on Nov 1, 2022 10:30:38 GMT 1
Knew this was coming, I think Truss' budget was brave, it was just poorly timed and the 45% tax cut was plain stupid.
Let's see what the next budget brings.
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Post by davycrockett on Nov 1, 2022 10:44:32 GMT 1
Knew this was coming, I think Truss' budget was brave, it was just poorly timed and the 45% tax cut was plain stupid. Let's see what the next budget brings. I don’t see it as brave but completely irresponsible and ill thought out. Her utopia of low taxes and GROWTH maybe brave on paper but to introduce it without a care for the consequences at the time she did was purely satisfying her ego……. Rising interest rates and runaway inflation was always going to be tough to manage add the that repaying her £54billion blunder will cost everyone tipping us back to austerity budgets. Thanks Tories. |
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Post by frankwellshrews on Nov 1, 2022 13:16:43 GMT 1
Must admit, as a PAYE mug who didn't get furloughed I'm watching this with interest. I'm not opposed to a general increase to spport the NHS etc but rises need to be primarily targeted at employers who had their payroll covered and self employed who benefitted from the various support schemes.
Instead I expect the government will take the path of least resistance and jack up income tax whilst doing sweet FA to target industrial scale tax avoidance by their support base that also filled their boots during the pandemic. Same old, same old.
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Post by Deleted on Nov 1, 2022 13:48:24 GMT 1
Must admit, as a PAYE mug who didn't get furloughed I'm watching this with interest. I'm not opposed to a general increase to spport the NHS etc but rises need to be primarily targeted at employers who had their payroll covered and self employed who benefitted from the various support schemes. Instead I expect the government will take the path of least resistance and jack up income tax whilst doing sweet FA to target industrial scale tax avoidance by their support base that also filled their boots during the pandemic. Same old, same old. Same here. Objectively speaking I don’t mind paying a little more in hard times, but will be hard to stomach another change hindering my quality of life. These 1%s all add up. |
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Post by sheltonsalopian on Nov 1, 2022 17:41:23 GMT 1
Must admit, as a PAYE mug who didn't get furloughed I'm watching this with interest. I'm not opposed to a general increase to spport the NHS etc but rises need to be primarily targeted at employers who had their payroll covered and self employed who benefitted from the various support schemes. Instead I expect the government will take the path of least resistance and jack up income tax whilst doing sweet FA to target industrial scale tax avoidance by their support base that also filled their boots during the pandemic. Same old, same old. Probably my most unpopular opinion and I always get shouted at but as someone else who worked through-out the entire pandemic while others were enjoying long paid holidays I was always a bit envious and I'd like to think a "furlough tax" or something similar could be possible to get back some of the money that was spent on paying people to take time off. I had a few friends and family members who essentially had four-six months off (with great weather as well!) and most of them had their employers top it up to 100% of their salary. Their comeback to me was always "well at least you know you'll have a job in the future" despite all of them retaining their jobs they were in pre furlough anyway! |
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Post by Deleted on Nov 1, 2022 18:51:55 GMT 1
I was off for a few weeks on furlough, but it was a choice between me and the guy I work with, who has 3 young kids. I could afford to take a 20% hit on my top line, he couldn't without having to claim benefits.
I am more than happy to potentially pay an extra 1% income tax, just as I was happy with the NI increase to fund social care. Yes it will put a dent in my disposable income, but I would much rather a small dent now, than sitting back and watching the NHS and care system collapse.
However before they come after the likes of me they need to put something in place to ensure that every penny that Amazon, Starbucks, etc. make in the UK is taxed in the UK. Why should I take a hit if they don't have to?
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Post by martinshrew on Nov 1, 2022 19:17:29 GMT 1
I was off for a few weeks on furlough, but it was a choice between me and the guy I work with, who has 3 young kids. I could afford to take a 20% hit on my top line, he couldn't without having to claim benefits. I am more than happy to potentially pay an extra 1% income tax, just as I was happy with the NI increase to fund social care. Yes it will put a dent in my disposable income, but I would much rather a small dent now, than sitting back and watching the NHS and care system collapse. However before they come after the likes of me they need to put something in place to ensure that every penny that Amazon, Starbucks, etc. make in the UK is taxed in the UK. Why should I take a hit if they don't have to? Agree with you, they can hit the big players before they hit me. If they're taxing all the big hitters they can have their extra 1% off me. |
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Post by frankwellshrews on Nov 1, 2022 19:39:24 GMT 1
I was off for a few weeks on furlough, but it was a choice between me and the guy I work with, who has 3 young kids. I could afford to take a 20% hit on my top line, he couldn't without having to claim benefits. I am more than happy to potentially pay an extra 1% income tax, just as I was happy with the NI increase to fund social care. Yes it will put a dent in my disposable income, but I would much rather a small dent now, than sitting back and watching the NHS and care system collapse. However before they come after the likes of me they need to put something in place to ensure that every penny that Amazon, Starbucks, etc. make in the UK is taxed in the UK. Why should I take a hit if they don't have to? Agree with you, they can hit the big players before they hit me. If they're taxing all the big hitters they can have their extra 1% off me. This is pretty spot on; I don't object to chipping in (I pay a shedload of tax as it is) but think the repayment needs to be proportionate to what was taken out. I doubt it will be though and anticipate yet again it'll be salaried staff bearing the brunt whilst the big boys dodge it as usual with the full blessing of our Lords and masters. |
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Post by northwestman on Nov 1, 2022 19:53:03 GMT 1
Agree with you, they can hit the big players before they hit me. If they're taxing all the big hitters they can have their extra 1% off me. This is pretty spot on; I don't object to chipping in (I pay a shedload of tax as it is) but think the repayment needs to be proportionate to what was taken out. I doubt it will be though and anticipate yet again it'll be salaried staff bearing the brunt whilst the big boys dodge it as usual with the full blessing of our Lords and masters. They aren't regular donors to Conservative Party funds for nothing. They do expect a return. |
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Post by zenfootball2 on Nov 2, 2022 18:40:09 GMT 1
this is not a suprise and a prudent thing to do but the middle income will get the hit, i expect another period of austerity and the low income will get the worst of it,i have no issue with paying higher tax rates as long as it is fairly done and it helps hte country. this goes against the grain for me but in the short term we should review the £14 billion foreign aid
i will resent it if we see no windfall tax on oil and energy companies and no new measures to make the likes amazon get away with paying virtually no tax.
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Post by staffordshrew on Nov 2, 2022 22:49:50 GMT 1
Doesn't sound anything like the last manifesto that got them voted in. Want/need to go back on those promises? Then have a General Election!
And don't even consider raising personal taxation until you have finally got around to taking windfall taxes from those windfall profits the energy companies have made.
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Post by frankwellshrews on Nov 3, 2022 10:04:34 GMT 1
Doesn't sound anything like the last manifesto that got them voted in. Want/need to go back on those promises? Then have a General Election!
And don't even consider raising personal taxation until you have finally got around to taking windfall taxes from those windfall profits the energy companies have made.
Sounds like it will be yet more smoke and mirrors. They are going down the "fiscal drag" route, so whilst headline rates for things like income tax, NICs, VAT etc probably won't change now until 2024 at the earliest the freezing of thresholds is going to be extended until 2028, meaning they will be thousands of pounds behind inflation at that point. Saw an estimate that it works out at about £3.5k additional tax paid for an "average" salary (whatever that is) by 2028. Galling to see about half of any additional pay you get go to the exchequer with no additional allowance but at least we aren't going backwards in nominal terms so that's something. On the other hand, if Hunt goes ahead with the frankly insane levels of spending cuts rumoured to be being considered things like council tax, hospital parking charges etc will be here to stay and rising for the foreseeable plus you are likely to have to pay for things like green waste collection (if you don't already), plus a whole host of other services that councils and local NHS bodies simply won't be able to perform despite local taxation and NICs increasing or staying static. What is interesting to me is that the additional 6 points on corporation tax is staying but there's no word on whether they'll go back to the reduced banking surcharge that Rushi planned originally. The banks could be about to be hit hard. Rumours that they are going to look at things like capital gains, inheritance tax etc to avoid the unpopular spectacle of having to raise headline income tax rates. On the face of it, it does seem like they are at least trying to spread the pain (though it remains to be seen how effective things like the corporation tax increase will be at delivering more tax revenues if businesses just break out the creative accounting). Think the MPC meet later today so it will be interesting to see how they respond to this and whether the forecast bumper rate rise is a bit lower now. Lots of stuff in the press yesterday about mortgage rates being forecast to come down in 2023 now (though we also had the first nationwide month on month fall in house prices in over a year so may just be industry types trying to buoy up the market). |
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Post by northwestman on Oct 6, 2023 22:52:51 GMT 1
www.theguardian.com/politics/2023/oct/06/rishi-sunak-responsible-for-biggest-income-tax-rise-in-at-least-50-yearsResolution Foundation analysis claims stealth move of freezing tax thresholds will raise £40bn a year. Rishi Sunak’s government is responsible for the biggest income tax rise for decades in a stealth move that will raise £40bn a year, according to new analysis. Taxpayers in the higher bracket will be handing over £3,700 a year more in tax as a result of a six-year freeze to income tax thresholds by 2027-28, the Resolution Foundation calculated. In findings that are likely to anger Conservatives pressing Rishi Sunak to cut taxes, the think tank found that it will have been Britain’s biggest tax rise in at least 50 years by the time the freeze is fully rolled out.
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