Sir Keir Starmer and the budget

[disappointed101]

Can someone explain in layman‘s teens how “The middle” will be affected by the budget? We are comfortable but not stinking rich by any means. Reading what people are saying makes me feel sick. We have a good disposable income due to almost being mortgage free, older kids etc but don’t spend on luxury items save for holidays. Is it even worth working at this point? Is it worth having savings or should we spend our savings and upsize in property? I’m so worried he’s coming for everything we have worked for in the past 20 years.

Is the budget even published yet?

The budget is on Wednesday so it's all rumours and counter rumours at this moment in time.

But, is it worth working? Really?? You are almost mortgage free - a great position to be in. Would you be in that position if you didn't work?

Same for me. I've just done the 'are you classed as a working person according to Kier Starmer' in the Telegraph Quiz. Answer was no.
I'm comfortable. Have worked hard since I was 17. Nice home. One holiday a year. 2 grown up children at uni. Only took 3 month maternity leave and juggled young children and a career.
I'll be interested to see what the budget holds for me (or not). And frankly I'll be hopping mad if all my hard work was gir nothing.

Not until Wednesday when the details of the budget are actually released.

How would “it all be for nothing”?

How do you think the government are going to remove all of your worked for assets, house, income etc?

Yes they may add some tax to some of these things, but tax by its nature is marginal, they won’t just remove all of your money, particularly as you are as you say comfortable.

Honestly people are acting like we’re under some mad dictator who’s going to actually take away their houses.

Reading between the lines of absolute nonsense and hyperbole, the most likely outcome is that they're going to increase taxes on assets that are currently disproportionately undertaxed compared with income.

Plus maybe limit the amount of tax that higher income people are able to avoid by putting extra money into pensions.

Most people won't be affected because they simply don't have the assets to fall into these categories or what they have will fall under the allowances. Then only the truely asset rich see a tax increase that falls into the 'it's a nice problem to have' category, rather than something to 'feel sick' about, because it means they are much more comfortable than the majority and certainly those who are currently struggling to pay for even basic essentials.

I'm sure if you're worried about paying a bit extra tax on a small proportion of wealth you've built up there will be a queue of people currently not even scraping by happy to change places with you.

Excellent post!

I'm on universal credit, I work full time and have had my savings decimated by childcare costs. I struggle month to month. I am curious to know how the budget will help me.

Need more info OP, what is the middle and what are you worried about?

OP you are absolutely entitled to feel worried, based on the snippets of information being released to prime us by those who already know what will be included in the budget. Don't let anyone on here tell you otherwise.

We have to wait and see of course. What appears likely is that it isn't going to be kind to those of us who have worked hard, and saved hard for a comfortable future. And I say this as a nurse who is definitely not a high earner. Note the contempt that seeps out of some posters on this threads attitude to your concerns. It is clear the prime minster feels the same. Be poor, stay poor is what this government wants

Cool your jets, OP. Yes, it seems like there will unfavorable changes for those with semi-significant savings and/or investments. But those changes will (likely) be something like increased tax on or a decreased allowance for 'unearned' (in inverted commas, because some will argue that they have earned that money) GAINS. If you're making 20k a year on the market currently and losing 45% of it to tax then losing 50% of it to tax next year isn't fun, but it's not going to ruin you. Ditto if they lower the ISA or pension limits.

I’m so worried he’s coming for everything we have worked for in the past 20 years.

This is melodramatic. Coming for "everything you have worked for"?

Is it even worth working at this point?

What makes you think you'd be better off quitting your job?

There is no point to asking for an explanation in layman's terms when everything is just rumours and "Labour could do x" - the budget is 4 days away. Wait for it to come out, then look into how you're affected. MN does have some very knowledgeable posters who will probably be able to explain things after but no one can explain anything now.

He's coming for your houses, for your savings, for your car, for your dog. Since Labour was elected the government now has this little known ability to take away your house while you sleep, leaving you a tent in it's place 😔 thoughts and prayers op, at least it's still mild out

@Restlessinthenorth

You know what really annoys people? The "those who have worked hard" brigade who drone on about their hard won assets.

So someone who works on a minimum wage job as a cleaner, carer or on a production line doesn't "work hard"? Or do such people not deserve good housing and good public services?

Should someone who can't work due to disability be be working a bit harder too?

I’m very lucky to be comfortable. I’ve worked whenever I could health permitting. I have been supported a lot by my parents who worked very hard. I expect to be affected by this budget. I might need to cut back but it won’t be deciding between heating and eating.

i don’t begrudge more tax - our wealth was hard won by my parents.

However there was also luck. My parents had good health and good jobs and didn’t have a child with a serious disability. Lots of people work equally hard but a carers for their disabled children or in a job such as caring or cleaning that aren’t well paid or (like me) haven’t had great health.

@Nameinspirationneeded

Exactly. I hate this "people get where they are as they have worked hard" line.

The main driver for people's life chances is their family background and yes luck.

Erm where did I say people who work as cleaners don't work hard? My mum worked filling shelves in a supermarket all her life. I'm a nurse...my wage is shit. But yes we have both worked really hard for what we have and have made sacrifices along the way to do so. So frankly I couldn't give a shiny shit who it bothers if I talk about working hard for what I have and not wanting to be fucked over by a government who are very invested in keeping people poor.

For goodness sake! Of course the government are not going to come after you for everything!

Unless your idea of working hard is that you have a load of acquired assets which you have been stockpiling and may have to pay more capital gains on when you sell, are expecting a huge inheritance that you may have to pay more tax on or are putting a shed load of money into a pension to lower your current tax contributions and might lose some of that tax relief.

They are already committed to not increasing income tax or national insurance. They may re-evaluate council tax, raise fuel and alcohol duty or VAT but that will affect everyone, not just the middle!

And to be quite honest, as someone who is also in the 'middle' and a higher rate tax payer, I'd rather they did up income tax on higher earners than increase VAT or fuel duty which disproportionately affects poorer people!

@Restlessinthenorth

So the previous government looked after the NHS did they? You say you are nurse. Happy with the pay rises you got? Happy with the shit state of the NHS? Work a "bit harder" - that will sort it!

A very well laid out post.
I wonder if the hand-wringing-Tory-bots will be able to digest it

So @Bjorkdidit what you are saying is that I should feel grateful that my life isn’t completely shit and be thankful that I have enough money to help the Labour Party make my life worse.

And the answer is no!

You would think that going out and earning money is somehow 'stealing' from others based on the responses from some other posters!

I earn minimum wage and my job is tough. My DH earns more, not a lot by Mumsnet standards. He is out of the house for 14 hours every day. We live frugally to save and put in our pensions. I completely understand the OPs worry.

Agreed.