Chancellor’s spring statement

[Cheesecakeandwineinasuitcase]

AIBU to think that today we are about to be hugely disappointed by what Rishi says in his spring statement and just to realise just how out of touch he is with the grim reality that normal people (I.e. not millionaire politicians) in the Uk face?

My prediction is that he won’t back down on the 1.25% increase in NI contributions that he is making people pay from April. There will be a paltry reduction in fuel duty (maybe a few pence if we are lucky - but that will easily be cancelled out within a few days as prices increase to compensate). Maybe he will reduce the duty on champagne this time or some other gimmicky sweetener (wasn’t it Prosecco last time?). He might raise the threshold from which people have to start paying tax but for most working families that won’t make a jot of difference.

So it feels like we are sitting ducks and that as time goes by more and more people end up really struggling.

Yep this is exactly how I feel , they are on another planet and really don't have a clue about how much people are genuinely struggling.

They are in a position to stop the NI rise even for a period of time but apparently they absolutely won't (given that Rishi is married to a daughter of a billionaire ). I recently read that this government has taxed people more than any other government in history so what does that say.

What I also don't understand is who the fuck votes for these arses.

I don’t think they should cancel the ni increase as the everyone gets the savings but increasing the limit before you start paying ni will cancel out the increase for lower and middle earners

@saltnvinegarlover

Yep this is exactly how I feel , they are on another planet and really don't have a clue about how much people are genuinely struggling.

They are in a position to stop the NI rise even for a period of time but apparently they absolutely won't (given that Rishi is married to a daughter of a billionaire ). I recently read that this government has taxed people more than any other government in history so what does that say.

It says that we have just spent an absolute fortune in a pandemic

To take 1.25% away from people during a cost of living crisis when people are seeing massive hikes in energy bills and soaring fuel and price inflation seems like madness to me.

Yes YANBU. Give it 6 months the economy and house market will crash and he'll suddenly offer more help reculantly.

Erm

It will make a difference to us. I think the threshold should go to 15 grand a year.
Minimum ni and no tax.
Realistically it should be 20 grand no tax token ni.
That would massively help everyone.
Give people incentives etc.

National Insurance. The 1.25 is actually a much bigger increase as it goes from 12 to 13.25 which is an increase of 10.4 %

I'm concerned that by raising the point NI gets applied, many (mostly women working part time) will lose their qualifying years for state pension purposes. I'm talking about women with kids older than 12.

@LizzieMacQueen

National Insurance. The 1.25 is actually a much bigger increase as it goes from 12 to 13.25 which is an increase of 10.4 %

I'm concerned that by raising the point NI gets applied, many (mostly women working part time) will lose their qualifying years for state pension purposes. I'm talking about women with kids older than 12.

They on on about raising the primary threshold which is the point at which you start paying ni. As long as you have earnings above the lower earning limit you still get ni credit for state pension purposes. There is a band in between lel and pt where you pay no ni but get ni credit as though you had. The reports of raising the ni threshold leaked so far they are saying a rise in primary threshold but leave the lower earnings limit as it is. Plus anyone in receipt of child benefit gets state pension credit anyway so it won’t effect stay at home mothers/ fathers

@Morph22010 ah, thank you for explaining, I hadn't realised that - despite googling.

What exactly can he do?
Inflation is a theoretical 6% but we all know it's much more on day to day living costs.
Energy is going to double maybe treble before next winter.

The NHS is an a total mess, CV hasn't gone away, it still has 110k vacancies and where are these 40 hospitals???

He could tax energy companies but thats a one off (also said no to that)

A wealth tax is needed but he wont do it, its the old "but they'll go elsewhere" yes of course they will... where? every developed country is taxing more, we all have too but BJ will protect tory donors as he did Russian ones.

One thing he could do is put in price controls on petrol/Diesel, there a huge amount of profiteering going on as when crude was at $140 a barrel, petrol was £1.45 a litre in 2013/14.

I think he will raise thresholds, small cut to duty and thats it, not even extra defence spending :(

Gov are so out of touch with the realities of the financial burden on families.

@Alexandra2001

What exactly can he do? Inflation is a theoretical 6% but we all know it's much more on day to day living costs. Energy is going to double maybe treble before next winter.

The NHS is an a total mess, CV hasn't gone away, it still has 110k vacancies and where are these 40 hospitals???

He could tax energy companies but thats a one off (also said no to that)

A wealth tax is needed but he wont do it, its the old "but they'll go elsewhere" yes of course they will... where? every developed country is taxing more, we all have too but BJ will protect tory donors as he did Russian ones.

One thing he could do is put in price controls on petrol/Diesel, there a huge amount of profiteering going on as when crude was at $140 a barrel, petrol was £1.45 a litre in 2013/14.

I think he will raise thresholds, small cut to duty and thats it, not even extra defence spending :(

Well he’s got to do something pretty drastic because people will end up losing their homes and not being able to afford basic essentials such as food.

@PaperTyger

Erm

It will make a difference to us. I think the threshold should go to 15 grand a year.
Minimum ni and no tax.
Realistically it should be 20 grand no tax token ni.
That would massively help everyone.
Give people incentives etc.

The thing is that the personal allowances have already been massively increased to just short of £13k - double what it was a decade ago when Labour were kicked out. That's far in advance of inflation and average wage increases over the same period. Yes, I know it was driven by the Libdems in coalition, but it's still a fact.

If we keep raising it and continue taking more people out of tax, then the shortfall has to be made up somewhere else.

It says that we have just spent an absolute fortune in a pandemic
Most countries have - government spending isn't like an overdraft or a credit card (despite politicians sound bite claims for the dim) - not every country that's spent on government support is now trying to recover it with a massive regressive tax rise for the poorest people who are in work.

I agree. I'm so worried about rising costs, but my biggest worry is the workers who earn too much for UC / tax credits etc. The focus is always those on benefits which is important but not enough focus on the working / middle class as well.

@Thatsveryniceofyou

I agree. I'm so worried about rising costs, but my biggest worry is the workers who earn too much for UC / tax credits etc. The focus is always those on benefits which is important but not enough focus on the working / middle class as well.

Yes, indeed. The average earning working person is always the target. NIC has risen massively in the last couple of decades, which only impacts workers. Whilst at the same time, income tax rates have remained unchanged and personal allowances risen massively, which benefit non-workers, i.e. pensioners, those with investment income, etc. It's time that workers were given a break and the tax rising burden spread more evenly to include those who've escaped rises over the past couple of decades.

The money has to come from somewhere to pay for Furlough and NHS overtime. Amongst other claims on our money.

Neutral Question: Have there been proposals from other parties on a way forward?

I don't recall seeing any real ideas.

@Thatsveryniceofyou

I agree. I'm so worried about rising costs, but my biggest worry is the workers who earn too much for UC / tax credits etc. The focus is always those on benefits which is important but not enough focus on the working / middle class as well.

Absolutely agree with this. We're just over the threshold wherein we get no benefits or financial support.

We're not struggling at the moment compared to others and I'm thankful for this, but have to be very careful with what we spend. We work really hard and don't have anything left at the end of the month, and the fear of affording fuel to get to work and electric for the house is very very real.

I genuinely think until businessess start folding and the public starts making a noise nothing has any imputus to change. We can all sit here in outrage and be so offended with how things are but that will never be enough to enact change.

@Iputthetrampintrampoline

I genuinely think until businessess start folding and the public starts making a noise nothing has any imputus to change. We can all sit here in outrage and be so offended with how things are but that will never be enough to enact change.

But businesses ARE folding and have been for the past 2 years. Huge numbers of freelancers/small businesses have ceased trading, mostly those who weren't eligible for the scatter-gun covid support grants.

As for "making a noise", the "excluded" group (representing the 3 million who weren't eligible for furlough, SEISS and other covid grants) made a lot of noise, held rallies, were often in the media, but were completely ignored, not only by the Govt, but by the rest of the population who DID get furlough/grants! So don't hold your breath there'll be any protests, and if there are, don't hold your breath they'll make a difference.

Yep this is exactly how I feel , they are on another planet and really don't have a clue about how much people are genuinely struggling.

I don't understand this point of view. Of course they know exactly how people are struggling, they aren't stupid. The point is that they just don't care enough

Maybe you could take in some ironing?

@James44

The money has to come from somewhere to pay for Furlough and NHS overtime. Amongst other claims on our money. Neutral Question: Have there been proposals from other parties on a way forward? I don't recall seeing any real ideas.

It's not a credit card though.

Rising prices and the 10% NI rise isn't going to help stimulate the growth we need - taxing poorer people who are working is only going to benefit the already wealthy.

Other parties aren't in government - but Labour has proposed a windfall tax on energy companies.

@Iputthetrampintrampoline

I genuinely think until businessess start folding and the public starts making a noise nothing has any imputus to change. We can all sit here in outrage and be so offended with how things are but that will never be enough to enact change.

Many businesses were hit hard enough to fold during the pandemic. And made plenty of noise to try and keep sectors open.

It’s part of the overall issue