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To be concerned about tax u turn

94 replies

Costaoff · 14/11/2025 09:43

https://www.theguardian.com/uk-news/2025/nov/14/rachel-reeves-to-abandon-plans-to-raise-income-tax-rates-in-budget

It's evident that Reeves has been forced to back pedal by Starmer. How can you promise not to raise income tax; leak story after story about the need to increase income tax; and then make a last minute u-turn.

I think they will just target everything: pensions, lower the tax threshold; insurance tax; alcohol duty; capital gains taxs; stamp duty.

I think their proposal to increase income tax by 2% but reduce NI by 2% was sensible.

Rachel Reeves to abandon plans to raise income tax rates in budget

Labour had laid the ground to break a manifesto pledge on taxes for working people but has now made a U-turn

https://www.theguardian.com/uk-news/2025/nov/14/rachel-reeves-to-abandon-plans-to-raise-income-tax-rates-in-budget

OP posts:
sunstreaming · 14/11/2025 13:28

The disgraceful thing is that the press are whipping this up: if someone they talk to speculates about what might happen, it's presented as definitely going to happen. I think there are also 'mischief-makers' talking to the press to make the whole situation seems more threatening and chaotic. Fear-mongering. Also what many people forget is that the Tories reduced NI in their last budget before the GE, fully realising that they probably wouldn't be in power any more and thus putting the next government in a difficult position. If this government raises NI to what it was before this cynical move, people see it as a much worse thing to do than it actually is.
Another also: many people don't realise what NI contributions are spent on. Even if you use private medicine/dentists, you have still almost certainly benefitted from the NHS when you were younger .If you were the
unfortunate victim of an accident or need ground breaking treatment such as organ transplant or some cancer treatments, you'd use the NHS.

Finally NI is used in the following ways: to support state pension/job seekers' allowance/employment support/maternity support/bereavement support. The NHS is funded from NI contributions and general taxation, plus some money from prescription charges and NHS dental charges.

YYURYYUCICYYUR4ME · 14/11/2025 13:25

They need to target value for money. They feed billions of pounds out, with little or no return, thinking DWP sub-contractors, councils paying out grants and not managing what next... care needs to be taken from private contractors, housing back from failing housing associations, job centres made to actually properly check, assess, help every job seeker. No matter how much money they take from us, if they can't manage their household and stop funding those who bring nothing to the table, then we are doomed!

ilovesooty · 14/11/2025 13:25

millymollymoomoo · 14/11/2025 13:19

I presume you think it was sensible as you’re probably not impacted and now you might be by other means ….

I think income tax needs to rise. I think it was short sighted to say it wouldn't prior to the election.

EasternStandard · 14/11/2025 13:21

ilovesooty · 14/11/2025 13:17

So do. I. But the people who've had it in for the party since before the election will continue to sow discontent, despite the fact that world events have had an impact since the election.

Look up polling. It might surprise you. The people propping up Labour are declining every day.

millymollymoomoo · 14/11/2025 13:20

And what they actually need to do is

cut spending

not raise taxes on business and individuals

millymollymoomoo · 14/11/2025 13:19

I presume you think it was sensible as you’re probably not impacted and now you might be by other means ….

Meadowfinch · 14/11/2025 13:17

YANBU. The pair of them are ridiculous.

Reeves is supposed to be a skilled financier. She is supposed to make a decision based on her expert knowledge and understanding of economics.

She is not meant to change her mind every time a back bencher whines about it.

Where is her conviction? She needs to take a decision, get on with it, and let all the companies and households work out how they will survive.

And then she needs to not come back for more, for the rest of the parliament.

Instead, she's hopeless 🙁

ilovesooty · 14/11/2025 13:17

MO0N · 14/11/2025 12:21

There is simply no easy answer that people will be happy with
I agree with you @DisappearingGirl

So do. I. But the people who've had it in for the party since before the election will continue to sow discontent, despite the fact that world events have had an impact since the election.

ilovesooty · 14/11/2025 13:14

Parker231 · 14/11/2025 10:22

Same as any party!

The procedure for removing a sitting PM varies from party to party.

blurblebarb · 14/11/2025 13:13

Glennponder · 14/11/2025 10:16

They need to up NI to 20%
People will happily pay it if they can actually access a gp/dentist!

No they won't. This is bonkers and naive. Workers don't want to pay even more tax or NI for something they already pay huge amounts towards and they will still be last in the queue as everyone else is prioritised before them. Every year taxes go up and our services get worse. The Government is getting more money from us than ever and productivity is just getting worse and worse. Throwing money at something endlessly doesn't make it better (remember that old saying about doing the same thing over and over again in the hope it will work is a sign of insanity).

They need to cut tax and encourage companies to be based in the UK - the UK now looks completely uninviting to anyone that wants to invest here. The message is basically that they will punish anyone who wants to make an effort. This is such a negative and destructive message. Why would anyone come here to work or invest if you know you are going to be heavily taxed and treated as though you are scum.

EasternStandard · 14/11/2025 13:11

Have people forgotten “fully funded and fully costed” already?

ilovesooty · 14/11/2025 13:09

The money needed has to come from somewhere, and however it's raised different people won't like it.

Kipperandarthur · 14/11/2025 12:45

They just get more and more incompetent as the days go on.

It's shocking how much they are caving into the back benchers who are on a spend spend spend, no cuts mission.

It's worrying that whilst Reeves and Starmer are both our of their depth and the vultures are circling for them, the cavalry waiting in the wings are going to be even worse.

Whichone1 · 14/11/2025 12:36

Nope 🙂‍↔️ they cannot do this. The country is at breaking point- normal people can’t reduce their incomes any further. Mortgages, bills, food, petrol , everything has increased and salaries have not risen in line so we are all poorer with less disposable income.

The government need to reduce welfare spending for only those who need it and make those who can, work. And it needs to be financially worth it to work. Without the threat of taking off our pensions when we are older.

They need to reallocate funding - the international budget is disproportionate to what we can afford when people in this country are struggling.

We need to not support illegal entry immigrants.

This country has become a joke. Like Macron said; our welfare system is too generous. Our country has been ruined to be honest and people will leave.

Our school systems are inadequate, our health service is inadequate and our personal safety has gone. Going on a train and being stabbed, knife crime, increased rape and attacks on women, unsure why people would live here.

So no they shouldn’t take anymore tax- they should look at how to reallocate what they already have and use it properly and sort this once great country out before all the decent people leave and we’re left with scrounges.

HermioneWeasley · 14/11/2025 12:27

They need to stop bloody spending to appease back benchers

Dgll · 14/11/2025 12:26

Viviennemary · 14/11/2025 12:22

Its quite simple. If they raise taxes they will be out at the next election. They should have cut benefits when they had the chance. Pathetic.

They are Labour though. They are the party of tax and spend.

Viviennemary · 14/11/2025 12:22

Its quite simple. If they raise taxes they will be out at the next election. They should have cut benefits when they had the chance. Pathetic.

MO0N · 14/11/2025 12:21

There is simply no easy answer that people will be happy with
I agree with you @DisappearingGirl

Mantari · 14/11/2025 12:16

Sartre · 14/11/2025 12:09

Agreed. They’re doing some really odd, backwards things to gain money. One example is scrapping the cycle to work scheme, another to scrap electric cars being exempt from congestion charges. Makes no sense. Winter fuel was obviously a majorly stupid decision last year too.

They don’t really know what they’re doing, it’s pretty obvious. The tories didn’t either.

I don't think they are scrapping the cycle to work scheme, but they are putting a cap on the cost of bicycles?

Sartre · 14/11/2025 12:09

Agreed. They’re doing some really odd, backwards things to gain money. One example is scrapping the cycle to work scheme, another to scrap electric cars being exempt from congestion charges. Makes no sense. Winter fuel was obviously a majorly stupid decision last year too.

They don’t really know what they’re doing, it’s pretty obvious. The tories didn’t either.

olderandnonthewiser · 14/11/2025 12:08

Clearly hasnt either a plan or a clue.

useless.

nearlylovemyusername · 14/11/2025 12:07

HelloClouds · 14/11/2025 10:06

This is disappointing. It seems we want the kind of public services they have in northern Europe but we aren't willing to pay for them. We are already a low-tax country.

I think most people who would have paid higher taxes would scarcely have noticed the increase anyway.

What are you about? we're have one of the highest taxation, it's just much lower than in the rest of developed world at the bottom-middle level but way much higher at the top.

I assume you aren't a higher tax payer to make statements about "would scarcely have noticed the increase anyway"

Aaron95 · 14/11/2025 12:06

What they are doing is perfectly normal and is the same thing done by previous governments. They are sending tax proposals to the OBR who then analyse them and respond telling the chancellor what impact they think it will have. This is an iterative process as it should be.

Sadcafe · 14/11/2025 12:04

It will be an interesting budget, every single tax from insurance to flights to inheritance tax will probably rise along with yet another freeze or even lowering of the tax thresholds, might they even increase vat, who knows

Screwyousimon · 14/11/2025 12:00

BeMellowAquaSquid · 14/11/2025 10:23

I have private healthcare and dentist am unsure what I actually pay for in Ni as my DH and kids are all covered with what I pay privately. The NHS is stuck in the 1950s.

Can you get emergency A&E care with your private provider?