To think Rachel Reeves patronised the public with her rhetoric on cash ISAs?!

Post of the day.

Why so aggressive all the time?

If you feel a desperate need to rant and rage about previous governments numerous times a day, why not start a thread about that?

It's not my fault that Labour are a shower of shite.

I disagree, even chucking a tenner a month into a stocks and shares ISA over a ten year period would yield results far greater than a cash ISA.

for comparison, assuming a bank paid 3% PA and the user continues to move it around to get the same rate they'd have after 10 years:
£1394
in a stocks and shares ISA and invested in for example and ETF that tracks the S and P 500 over the same time period using the average annual return of 12.21% over the last decade:
£2243, approximately half would be growth.

There are so many funds that offer low exposure and offer far greater returns than the pittance any bank would pay, but few are educated enough to know about them.

And that's the majority of people! Which is why S+S don't meet needs of majority. Very few people have luxury of affording putting money into S+S

Did you not ready my post? I literally said the only use for a cash ISA is for quick access tax free savings...

Interesting you use ‘legitimate’.

A small data set admittedly, but we have had an increasing number of contractors asking for cash (and willing to discount).

Naturally, we have said ‘nothing doing’ but I can well imagine a boom in tax evasion, given the increasing tax burden.

Yet the advice is to also have 3-4 months salary saved in case of losing job. Plus rainy day savings etc. You need immediate access to that ICE. Not in a S+S ISA where value can fluctuate.
Generally, people with low levels of savings need immediate access over long term interest

Thanks, my point was more how divisive this is for Labour, with Starmer caught between a rock and a hard object. Do nothing, and he appears weak. Withdraw the whip and he appears imperial, with the potential to harden future resolve in the back benches.

It’s a win/win for those of us who despise Labour.

Continue sticking your money into a cash ISA then and have it eaten away in value by inflation.

The only use for a cash ISA is for a quick access savings account that is tax free. Anything long term belongs in a S&S ISA. They don't teach this at school because the system wants you to stay poor .

This move has it have happened would have been one of the few things this government has actually got right. Now the Cash ISA allowance won't be changing I'm hoping there will be incentives or higher deposit limits for us sensible folk who know how to make the money work for them and get a real return that beats inflation.

Cash ISAs are nearly as crap as premium bonds, but I won't get started on those.

I pay enough tax, so no I won’t be investing when this begins - I’ll just put my money elsewhere to legitimately and lawfully avoid paying anymore than what I currently do. I have plenty of options.

Well as Momentum were single handedly responsible for the election of a bunch of incompetent Tories (people voted against Corbyn and Momentum not for the Conservatives) I think I am going to go with Starmer.

Politics is about getting your hands on the levers of power - something the Labour party miserably failed to do for years. You can’t change anything if you are not elected.

Investing is a much better option. If you don’t want to? Don’t, but generate tax revenue instead.

It's now 4 MP. Rachael Maskell is the 4th

Momentum condemns suspension of 3 MPs who voted against welfare bill as 'desperate act'

Momentum, the leftwing Labour group, has criticised the suspension of three MPs who voted against the welfare bill. A spokesperson said:
Suspending the whip from MPs who stood up for disabled people against cuts is a desperate act from a failing government that does not have the solutions to Britain’s problems.

This intolerant crack down on principled dissent, rather than changing course, is a pathetic response to dire poll ratings and threatens to tear apart not the Labour Left but rather the Labour party itself.

So, who is in the right? Starmer, or Momentum?

I really couldn’t give a shit one way or another.

What were the reasons for our super high inflation over the last few years?

Nothing to do with low productivity, the NMW rises, higher fuel costs, increased borrowing costs caused by Truss.... nope!

...all our historical high inflation rates are down to a policy implemented a few months ago.....

Of course its gloating, you love it.

£850,000 lost VAT revenue!

If only someone had tried warning about this...

The closure of that school = £100,000 less VAT revenue + more kids applying to state schools. So more pressure on local resources for an already overstretched council.

THIS is why we warned that this policy would end up costing taxpayer money!

5 x number of kids have left independent schools in the first year than government predicted.
67%+ increse in school closures Vs 'normal' year.
Only 1 mainstream indy school opened last year. 0 have opened since this policy was brought in. The ones to have opened are specialist SEND schools funded by LA through EHCPs.

But hey, we were all scaremongering, being hyperbolic and there was NO evidence this would happen cos we are all wealthy and could afford the VAT by simply cutting out Netflix!

Off topic, but some more ‘good’ news.

State schools in Kent received almost 100 enquiries in the 48 hours after a private school closed citing the VAT raid.

Taxpayers have been left to foot a £1.2m bill after the closure of Bishop Challoner School earlier this month, with around 50 pupils so far applying to join nearby state schools.

The Catholic school, which this year celebrated its 75th birthday, was forced to shut after it lost more than a third of its pupils to Labour’s VAT raid.

You have a point, I find it’s still bad to watch as they are hopeless but I am thinking to those who go on about driving out wealth just see what happens then.

The people who want it most will be impacted the most too.

Not a Reeves or Labour fan, but she/they wants to drive behaviour for whatever reason into investing rather than saving. Changing ISA limits is a very sensible way to drive that behaviour. Everyone is acting like cutting cash ISA limits mean you can no longer save or the government are going to take all your savings. You would still be able to save cash in an interest bearing account with no tax relief.

ISA limits are there to encourage people to save in a tax efficient way. If the government decides it no longer wants to encourage that behaviour then they should adjust the ISA limited.

As someone who uses her full ISA allowance most years, I’m really struggling to see why people are getting so het up about paying a tiny amount more tax on an individual level on income they haven’t earned, and that five years ago they wouldn’t have even been getting anyway.

That’s precisely my point.

Politics has become completely polarised and the electorate are tribal. The majority vote for who they believe will best serve their interests.

So, if you have a government for whom you did not vote, one should do everything in their power to ensure they fail. Small things, every day. Drip drip.

Meanwhile, let the headlines be your friend - for it is only negative at the moment, and for the foreseeable.

Corbyn's new party is level pegging with Labour in polls. They will split the Left vote in same way Reform split the Right vote at last election.

Be careful what you wish for!

If Labour, with their huge majority, fail to get the economy back on track we will see a Reform victory. They can only win by being right wing on social issues and left wing (further to the Left than Labour) on economic issues.

What was that Sun headline? “Will the last person to leave Britain please turn out the lights”

I have changed tack.

Any bad economic news, I now treat as good news - in fact, the worse, the better. Ditto with crime, immigration etc. Bring it on.

Why? Whether wholly or partly to blame, the incumbent Labour shower are the ones who will be blamed for it - via the backbenches, via the markets, before being dumped for at least another 14 years.

I am even beginning to enjoy myself.