Anyone watching the Budget 2024?

[LadyofRutshire]

I couldn't find a thread on today's budget. Anyone watching live?

It’s not a point it’s just in their list of potential implications of this budget- all of which are fairly obvious. They are simply providing their independent analysis, as per their remit. No one is saying it’s good or bad thing, I don’t know where this simplistic conversation is actually going to get us!

It 100% will.

Because employers will either need to not increase wages, or cut staff, or increase the cost of their services they provide in order to make up for the loss. Someone on the thread earlier said it would cost her business an extra £24K a year she doesn't have...

@AquaPeer ah ok, I thought it would be broken down.

Well no it's not that easy as it's still the same day, I'm sure it will take a bit longer than that.

there is the potential that companies will hold back future pay increases to compensate

And that is good why?

Of course not- you’re trying a bit of a trumpian boxing in there aren’t you 😉 we can have a discussion that isn’t black and white.

Furthermore when you farm the best farmers don’t farm for tomorrow, or next month or next year. My Dad did things 40 years ago that are benefitting the soil today. He’s doing things now that won’t pay financial dividends for decades.

farming for the short term is a recipe for disaster

The OBR just do analysis but you sound quite supportive of Labour's tax rises for businesses. Are you not?

Re taking paying IHT on pensions

I actually agree with the policy, but does anyone else think this may backfire? I am 59 and am lucky to have a decent pension pot. Because of the budget, I think I may as well just stop work and spend it until it runs out!
If I am thinking this, I would imagine many higher tax earners (I'm not now) may be thinking the same, as they have more than likely factored this in their IHT planning - to leave to children tax free.
I know the government is keen that people continue to be economically active until up to state pension age.

1. who said it was good?
2. it has a more minimal impact, since that’s not money lost to the employees pocket. Ideally, longer term that would be “caught up”, of course.
3. again, it is simply a potential impact. Nothing comes without impact.

there is the potential that companies will hold back future pay increases to compensate

Some will but it turn some staff will leave for competitors if pay is frozen or move into other industries. Some companies will operate with less staff and some will pass the cost on.

I mean - in the fictional example you’ve created the privately owned business is still making 800k profit for presumably single digit shareholders if they absorb 100% of the cost.

It’s fair to say a lot of the impacts will be passed onto employees and customers, but let’s not pretend that private business owners aren’t in the business to make money for themselves and can make decisions about how to absorb or spread costs.

Publically traded companies are in a more rough spot.

1. again, it is simply a potential impact. Nothing comes without impact.

Particularly not a budget!

Yes, of course we do... Budget day always makes me feel sick and irrational.

i Don’t really know whether many people would make decisions that impact the last 30/40 years of their life based on the possibility their heirs could save tax? Maybe my family are weird but they take all sorts of things from employment and wouldn’t consider this.

@Thislittlepiggylikeschocolate some will want to spend but many will still want to hold onto the security of it I think. Plenty won’t want to run out.

I’ve also just twigged with the whole APR IHT they haven’t mentioned rollover. I will be fuming if they continue to allow rollover and hit family farms with IHT.

Well I am saying that it will have an impact and have been clear on that in my posts. You were the one challenging my view. Either it will have an impact or it won’t. Make up your mind.

i don’t really understand why that’s an accusation?! It’s not really relevant to the conversation. I wouldn’t make things up in order to demonstrate how anti the budget I am, which many people on this thread are doing.

Well yes that's the point there is an impact.

It affects 'working people' after all and we'll see what happens to growth

Because employers will either need to not increase wages, or cut staff, or increase the cost of their services they provide in order to make up for the loss. Someone on the thread earlier said it would cost her business an extra £24K a year she doesn't have...

Its not a given.

You can't not increase wages if your competitors take the hit to profit to compete for staff.

You can't cut staff if doing so will lose you business (or lose you staff if you try to overwork them)

If you have unproductive staff who can be cut without business impact, that's not a bad thing and actually given we have a labour shortage it frees up people to take other roles.

You can't increase your prices if your customers won't pay more.

People claim its not the case but sometimes costs like these simply reduce:

• corporate profits
• executive/senior pay

Everything has an impact. Impacts are not, or course all equal. It is raising a shit ton of tax revenue, which is one impact. We might see 5,000,000 million people made redundant, which is another impact. I don’t really get your point.

It affects 'working people' after all and we'll see what happens to growth

Would it have more or less of an impact if it was put directly onto employees NI?

people don’t deserve a business just because they want one

WTF

Yes- for example, in every company I’ve worked in for 4 years now, the executive have forgone pay increases and bonus’ and but they’ve prioritised lower paid workers pay increases.

this year we’ve given a pay increase to everyone under £26k, but no one else has had one. People may chose to leave because of this of course, but that impact was taken into accounts as part of the decision.

last year i worked for a company who gave everyone another 2 days annual leave instead.

Ah so you are saying that it will only have a positive impact…well the OBR disagrees with you.