how will the government raise the money?

[thereiscustardinthejamtart]

I’m curious as to how the government are going to raise the money for the “£22b black hole”.

Presumably they can either cut spending or raise more money (either through taxation or growth).

They have said they aren’t going to raise income tax, VAT or NI.

They don’t seem to be going for a growth plan.

So what are we expecting to be cut, and what are we expecting to be taxed.

I assume they are looking at pensions (get rid of tax free lump sum, reduce or eliminate relief on contributions), inheritance tax, some kind of additional tax on corporations. They are already doing VAT on private education.

Cuts - winter fuel allowance. I assume reduction in university funding, arts funding. What else?

What other areas?
What do you propose?

We pay so much tax at the moment I want to leave the UK soon.
Taxing even higher earners - like millionaires or billionaires won't work, they'll just leave the country.

Dyson moved his operations aboard - taxing companies more isn't the answer either.

@TransformerZ I have proposed various areas in this thread.

I think the figures are 9 million ish not working and about 1.4 million claiming benefits.

9 million people are economically inactive. This means they are working age (under 67) and not working. They include disabled and ill people and lots of early retired people who are not entitled to any benefits.

The government want those early retired people to go back to work.

I hope you're joking cause otherwise this says a lot about you and none of its pleasant

Your solution is to create ghettos then.

Artifficial towns comprising of high density social housing with few amenities housing the less well off. Already been done. Already failed.

That's right

I don't know where you came up with 10% but I live in the USA and we definitely pay more than that. FICA alone (equivalent of NI) is 6.2%. It's possible to be in negative income tax territory in the USA (outside of FICA) but you need to be fairly poorly paid and have children. Plus you need to pay for health cover. It's not a magical tax free paradise I assure you.

@Nadeed They do want the early retired to go back. Around a third of my friendship group have retired early. Nothing will make any of them go back, none of them claim any sort of benefit. Their lives are now a mixture of voluntary work and holidays. One has just become a grandparent so will be doing some childcare. Most worked in higher education, one was a corporate lawyer and one was an expert in sustainable energy.

The change already coming for anyone wanting early retirement are pensions cannot be claimed till 57 instead of 55.

The opposite will happen as well though...talent will start to leave the UK (or, like us, decide not to relocate to the UK) if the crumbling public services aren't addressed. Like the NHS. So many doctors leave to move to Australia or wherever because the working conditions are so much better. I would prioritise retaining them by raising taxes to improve their work environment rather than worry a few rich people will leave if they're taxed a little bit more.

2 kid policy only.
Unless natural conception of triplets etc.

Er the birth rate is below that because not everyone wants/has any dc. The rest of your suggestions will just lead to mass increases in crime!

@candlewhickgreen but you keep saying 2m are millionaires & I and other posters have pointed out that there aren’t 2m people earning 1m plus so the numbers this will impact are too small as I already said. No one has argued wealth taxes & income taxes shouldnt be more inline though hence the prediction at the beginning of this thread about increased CGT & IHT….

How is cutting aid a false economy? Genuinely interested.

I believe the contract had already been cancelled by the Conservatives.

The last government were burying their heads in the sand though.

I'd rather have a government who is honest with people about the situation and trying to do something about it, than a government who lies and denies everything.

It would be a welcome change if just for once the billionaires and multi millionaires were finally heavily taxed instead of it always being the working class/ stroke struggling middle class if that's even such a class these days.
And those that dodge tax by banking abroad take their homes off them to sell to cover the taxes for a change.

Fed up of it always being the struggling families low income people being fleeced and squeezed and suffering.

Also the government needs to stop these private companies raising costs it's beyond disgusting.
How about taking the profits they've stolen off of us all over the years to cover the money.

They've worked for their money.
They already pay taxes.
They will just move because they can afford to.

Which profit has been stolen from you?

Re taxing millionaires,

My concern with not taxing people with over 1 million in assets while taxing those who earn over 1 million or have it in the bank, is that surely this just encourages the very rich to buy property and become BTL landlords, worsening the property crisis?

9 million economically inactive. 1.4 million unemployed, although these stats are from June so will probably be out of date. I’d expect it to be higher due to education leavers. In July 1.8 million people were claiming some form of unemployment benefit, 4.2 million of working age claiming health related benefits (pip, dla etc), and over 20 million people were claiming some form of benefit. Half the working age population of the UK claims some form of benefit.

Did you read the report I linked? I said millionaires; people who earn millions and people who have millions. I then outlined ways we can tax them. Perhaps address the points made instead of repeating yourself over and over again.

Currently, the UK’s tax regime makes it the most profitable country in the world to develop big offshore oil and gas projects. Most spending on oil and gas exploration can be offset against tax, as it is classified as ‘research and development’. Almost all spending on new fields can be offset in the first year of development, and companies can claim tax relief for decommissioning offshore installations.

Since the Paris Agreement, the government has provided £13.6 billion in subsidies to the UK oil and gas industry. From 2016 to 2020 companies received £9.9 billion in tax relief for new exploration and production, including £15 million of direct grants for exploration, and £3.7 billion in payments towards decommissioning costs.

what does "have Millions" mean though. There are very few people with £1m+ sitting as cash in a bank account because that is just bloody stupid.

People with wealth have invested in property, in shares, in physical assets like art, cars etc. These things are already taxed through different regimes. You can't just go in and grab someone's money.

You can increase the tax they pay going forwards but not backwards (or at least not easily).

However the vast majority of paper millionaires are millionaires due to the value of their homes and are not rolling in cash that can be used to fund additional taxes. MIL lives in a house which is fairly small but is very high value purely due to its location (tourist area with a view effectively). She has lived there for 40 years. She doesn't have stacks of cash since she was a nurse (FIL was a teacher but has passed away). She lives a fairly basic life. She is a "multi millionaire" on paper simply due to the fact that her house is worth a couple of million.

It's all very well chanting "off with their heads!" but the reality is complex

I've addressed this in previous posts. Read the thread.

Scrap subsidies and tax relief for oil and gas companies and scrap subsidies for agricultural (but not tax relief such as IHT).
Nearly have the 22 billion the country is apparently short without the rest of us having to pay more.

In reality what I think will happen is they stick 5-10p a litre on petrol and diesel
I I think they will also come after the small self employed as this was hinted at before the election was called. Larger companies can afford tax advice someone charging £25-50 an hour as a trade won’t be doing that. There are loads of self employed people now from hairdressers renting a chair to Amazon drivers, ebay sellers, gardeners, tradional trades, tutors, cleaners.

It would be preferable for the wealthy and large businesses to pay more but it will be harder to extract money from them.