Can someone explain to me why/how the Labour government has directly made them worse off in the last 15 months?

[MotherofAdults]

Can someone explain to me why/how the Labour government has directly made them worse off in the last 15 months? I see this claim a lot on these pages, but I don't understand why. Sorry if I sound stupid, I am just trying to get clear.

I totally understand that the cost of living keeps going up - that inflation keeps rising (3.5-3.8%?) and that mortgage interest remains relatively high, but I don't understand why or how this is the fault of the current government? What have/haven't they done? Are people angry that they haven't curbed inflation? What should they be doing?

If we could avoid mentioning the things that didn't actually happen (eg the Winter Fuel Allowence cuts) and speculation about what the next budget will do (doubling of council tax, rise in minimum wage etc), that would be really helpful. I am looking for actual changes made by this that have directly affected your financial situation since Labour got it.

Yes that’s us. We’re poorer and looking to move countries

Fair enough, enjoy.

Yep, me too. Moving next year.

Can I ask where? We are looking . Happy anywhere really. A fair country - happy to keep paying schools, healthcare etc but we are at a point where we struggle each month so need a country where we have more disposable income left

I just don’t think that would work, can you see Reform working with Islamist parties for example?
I utterly despair of this Government, but it’s fair they’ve had the chance to enact their ideology on the country and the electorate can see how it’s worked out quite clearly. In the long run, this will be beneficial.

Oh, and to add, meanwhile, HMRC has received an extra £32bn since April compared to the same six month period last year.

So, my business and my clients' businesses are all paying in so much more, but aren't getting any improvements in anything in return, but are being told we'll have to pay even more.

Well, as it happens, I do know a few private school parents who don't necessarily relish paying the extra but still feel on balance that it's fair.

But tbh, I'm not asking anyone to be happy about it. I'm not asking people to be happy about paying income tax or stamp duty or NI or any of the other taxes that we pay. I'm simply asking them to accept it, in the same way that most of us accept VAT on most of our purchases.

Well, we have family in Germany and German citizenship so will be moving back. Taxes are also high there but medical care and the standard of living infinitely better because life is cheaper and for example universities are free. I don't think economy in the UK can improve after Brexit. It's just not possible.

@PeninsulaOfDoomsums it up at in 11.52 post

For posters claiming otherwise up thread, private schools were not paying VAT not because they were charities, but because EU laws prohibited tax on education. Thanks to Brexit, that's now possible 🫩

I think that this governments major mistake is being very naive. When you look at what their “intentions” are, in general, they are quite audible. Unfortunately they haven’t thought through the repercussions.
So, for example, they wanted to improve living conditions for tenants, and ensure they can’t be evicted for no justifiable reason. It’s a great idea. The reality is that they cannot force landlords to be landlords, and the majority of landlords are landlords because they make money out of it, and not for altruistic reasons. Result - landlords are selling up and investing their money elsewhere. This has meant that there is a huge rise in the number of basic properties on the market, house prices are dropping, people are finding that they are in negative equity, and rents are rising due to a shortage in suitable properties.
Again, the rise in minimum wage. I fail to see any good reason, why the tax payer should be responsible for topping up the wages of the workers, while the business owners take home large profits. That’s not actually a “business”. Having said that, once the business owners are no longer making this income off the back of the tax payer, they decide to retire or sell up and invest elsewhere, putting people out of those low paid jobs.

These are serious problems that need a well thought out approach, covering all basis, rather than an idealistic, knee jerk reaction that fails to deliver the positives hoped for.

So do I. There are people who are prepared to acknowledge their privilege-respect to them. Nobody likes paying tax-some of us accept that it’s essential, however reluctantly.

NMW is now between £23k and £24k depending on hours. The minimum NMW role will involve taking stock, operating tills, creating displays.

The head of retail will involve developing the retail strategy, oversight of all shops (often 20+), line management of staff, workforce planning, contract negotiations with leaseholders, opening / closing / relocating shops, managing restructures, health and safety, profitability, performance, technology, delivery against mulit-million £ sales targets .... the list goes on and on......

.... all whilst knowing that charity retail is on it's knees due to a decline in quality donations and that by not meeting targets, their charity may fold.

This is a good example of the NMW level squeeze, where a senior manager with that level of accountability is not even paid double that of NMW staff.

What are you paying that’s increased?

Million more people claim universal credit compared to a year ago, I have a business and noticed stagnation, less spending and lots of redundancy. Also seen an increase in skilled jobs being advertised for minimum wage. The increase in minimum wage and NI has had a big impact and impacting on growth. I know a few businesses gone bust or sold. Very tough out there. If Reeve's puts up taxes,this will negatively impact on me. No wonder my neighbours don't work, they seem better off then me. At least benefits isn't taxed!. Also Rachel should raise the tax threshold so the lower earners keep more and it will be more of an incentive instead of choosing benefits. I know a few who choose a life of benefits instead of work.

You accept taxing children’s education is essential? What is different about the U.K. that makes this essential when compared to Albania, Andorra, Australia, US, Canada, Armenia, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, Ireland, Italy, Kazakhstan, Kosovo, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Monaco, Chillie, Brazil, South Africa , Montenegro, Netherlands, North Macedonia, Norway, Poland, Portugal, Romania, San Marino, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine….

You are ridiculous. You’re trying to discount my comments. My comment stands. The only private schools that closed had dwindling students and a poor education.

Going to need some actual stats on that, rather than just a statement.

Name the private schools that closed due to 'poor education'. I assume you can back this statement up with ISI reports and results for each school that closed.

And the specialist schools for SEN children or specialist music schools (for example). Please evidence, rather than just a sweeping statement.

Dwindling students- well yes. The attrition rate due to VAT is what caused many of these schools to close. Obviously.

I know a private school that closed. They announced it was because of VAT etc etc. What they didn't say was that the new owners had bled the place dry, as they had done a different school a couple of years ago, there was an almightly cock up with GCSE exams and parents were leaving in droves. The only thing that was keeping it going was an elite programme that was available via the school mostly run by someone else.

“Well, as it happens, I do know a few private school parents who don't necessarily relish paying the extra but still feel on balance that it's fair.”

@MrsBennetsPoorNervesAreBack and @CurlewKate - more likely your friends are just not telling you two what they actually think, given your views, in general!

My friends tell me what they think and they are all incredibly pissed off about VAT. They would have made different choices and sent their DCs to state schools and moved house or done the 11 plus, and that is why they are so annoyed. That is the demographic I am in. Call it the in-betweeners, the mix and matchers. Those who will also adjust their working hours.
The minority of parents paying for schools are doing it because they are ideologically welded to private education at all costs. Most just slide into it, easier than moving house etc, too busy working, want the wrap around care. That is the reality on the ground. Or their DC has been failed by the state system due to SEND. Pretty horrific to trap these people’s children and no surprise that many with dual nationalities will go elsewhere. If they have to disrupt their kids anyway, may as well make a big change.

There are 25% more unemployed now than when Labour took power. Unemployment always increases under Labour as they need to keep people impoverished to maintain their voter base.
Unemployment will continue to increase as Reeves takes more money out of the economy, energy costs remain the highest in the developed world to fund Milliband's vanity projects, increase business taxes.
Add to this all the corruption (Starmer's free stuff, Raynor/Reeves housing fiddles, etc) and broken promises (smash the gangs lol, WASPI women, WFA, etc)) and it is plain to see it has been a complete s__ show.
To be fair things were bad when they took over but Labour are making things far worse.

Yes. I could swallow the VAT increase if I could see measurable improvements in state schooling. The problem with the VAT on private schools is that it won't make the amount they keep saying it will and they have also boasted about spending the (non) money elsewhere!
So it feels like being punished NOT like being taxed for the greater good.
If it smells like shit....

All those elitist disabled children, they definitely need knocking down a peg or two. What with their expensive communication devices and have you seen how much those powered wheelchairs they have cost? I am sure they can pull themselves up the steps of their local state school if they tried….

@Wheretogotonow we are likely going to Netherlands - we did live in Denmark for awhile but came back for various reasons at the time. Thing is tax and housing in Netherlands are high too, lifestyle I think a little better and for us it’s business related too, Brexit hammered our business. Most of the nicer places in Western Europe have high tax and not cheap housing ( France being a slight exception but my H doesn’t like it much) our first choice was Sweden but it doesn’t have nomad visa and a very long winded process that can take years if self employed ( we are now treated just as if we are from Africa etc - 3rd country and all that) and you need a fair old amount in liquid cash too - around £30k - everywhere will have advantages and disadvantages - you mention Dubai would be your first choice- unless it’s for tax I can’t think of any reason why, I really didn’t like it, but if that’s your mindset then maybe the US??

What percentage of private charitable schools do you think make millions? Have you reported them to the charity commission as charities don’t make profits….