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?

It has to be tax that raises a lot and there are not that many highly paid people and they already pay the highest tax burden in 70 years. Apparently percentage rates of income tax, NI, VAT and corporation tax will not be going up - Labour promise ie where most tax money comes from. As well as the cut backs they are going to make, they also say they need to raise more money fast. I am not sure thing like CGT raise a lot of money fast as people have a choice as to whether they sell an asset and when in many cases. We shall see.

That's not all tax, you've included the temporary levy to claw back some of the obscene profits made by energy companies, so extraordinary that even the Tories balked at them.

https://www.gov.uk/government/publications/july-statement-2024-changes-to-the-energy-oil-and-gas-profits-levy/changes-to-the-energy-oil-and-gas-profits-levy

You said it in your original post, unpopular opinion. My opinion are your views are extreme. Come back down to the real world.

No you were disgusting and said I smoked.
I don't do disgusting things like you and smoke.

The thing is the ‘windfall’ conditions which caused the ridiculous profits (start of Ukraine war and gas and oil supply crisis) and initiated the levy ended a while ago. There was a point in time where oil and gas producers were making insane profits but commodity prices have returned to fairly normal levels. But the high rate of tax (via the levy) remains and will increase and is planned until 2029. It’s not a windfall tax, it’s a tax and the industry is suffering already. Importing (more) hydrocarbons is not the answer

Labour also want to pull the investment allowance (some would call subsidy) also.

It’s just a case of one thing being cheaper though the whole picture needs to be looked at. If a child is in a specialist placement then their needs will be significantly greater than just mild dyslexia and they will most probably have had to take their local authority to tribunal to prove that no other school can meet needs.

my child is in a specialist placement for autism, we had to go to tribunal to get this as the local authority said his needs could be met in the local mainstream with no additional support. They couldn’t, the school said they couldn’t meet needs and used to regularly exclude him so we won tribunal and got specialist placement,

hes now settled in specialist school for several years , I don’t get called to collect him. I work full time in a job and pay higher rate tax. His school isn’t one of the really expensive ones but it’s still more expensive than a mainstream placement and it’s 10 miles away so we get transport budget. It would be cheaper for the la to pay a tutor a few hours a week as it would be cheaper than the school and transport. However I’d have to give up work so would no longer pay tax and would also have to claim benefits. Ds’s school also do a lot of work on life skills so hopefully one day he can have some sort of a job himself and not be reliant on benefits. If he’s sat at home all day with a few hours of tutoring he’s not developing any social skills and is unlikely ever to work- that’s potentially 60 plus years of claiming benefits. Sometimes the bigger picture needs to be looked at.

I agree that more could be provided in mainstream schools before a child’s needs have escalated but generally that’s where the government has been saving money for the last 14 years by cutting all the early intervention to save money in the short term and we’re now paying the long term cost of those young children not being supported in school.

Excellent points and great to get your input as someone with first hand experience. I think you've demonstrated why it's really important to look at bigger/longer term picture of cuts and changes.