The 2p tax cut

[emmlou85]

Aibu to think this is a total waste of time. I will not notice if 2p is cut off my tax but cumulatively 2p off everyone paying tax is huge reduction. I've never understood these minute reductions when 2p won't make an individual difference to anyone.

It wouldn't make me vote for this party as I think it's just pointless and our services need this money. I can live without 2p.

Lifting the Personal Allowance would have helped the lowest paid more. As someone who paid over 30% tax in my early working life, I think 20% starting rate is pretty reasonable. It’s a panic decision IMO, and won’t garner many votes.

It's because they know they will lose. Then Labour get in and have to decide whether to raise it back to where it was before or not. It's just a trap for the other side.

Reducing NI means folk in Scotland will see a reduction in overall tax, if they lifted the personal allowance it would make no difference north of the border because we already have different tax thresholds and rates of tax and pay significantly more tax.

Do you think the reduction is actually 2 pence? Like literally 2p per person?

Someone on an average wage will get about £37 extra a month. It's better than nothing but I agree with pp that raising the personal allowance needs to happen; people on min wage should not be paying tax on nearly half their income.

@emmlou85 I dont think it is a tax cut. It is a national insurance cut!

I’m so irritated by it. Public services are ruined, the money needs to go there. What’s the selling point in being a party of low taxation when the country is on its knees, schools are fucked, councils bankrupt, fraud and corruption is on the rise, and the NHS is beyond salvation.

Yep, this, totally.

I don't want a fucking tax cut, I want reliable public transport and good primary care access, and I want to pay for it! No amount of gee gaws will improve my quality of life, only better public services.

Signed, Angry and Tired Middle Aged woman.

It’s not a policy that benefits everyone, It benefits workers. I pay income tax but I don’t pay NI. This policy will make zero difference to those of us who have to do tax returns but don’t work. Eg. Retired people, people living off other income etc so it costs the economy less than raising the tax free allowance which would benefit everyone.

@emmlou85 your national insurance comes off before your wages are taxed so you could be paying marginally more in tax

That’s what it reads like!

It’s 2p in the pound OP - I.E. 2%

And it’s not tax, it’s NI, so the band levels will differ.

And some people don’t pay NI, so there will be no gain for them.

Yes I understood it's a NI cut

Another angry person here, it's not being offered with any good intention IMO, it's going to further contribute to a dying array of services all for two fingers up at labour who may need to reverse the decision at a later date.

Stop swinging your billy big balls around and do the right f'ing thing I'd say. Our "leaders" are an absolute joke.

Yes I understand it's not just 2p and that it's 2p in the pound. It is not noticeable for many and we need money for services that are dying in their arse. Make me so mad with these idiots running the show.

No it doesn’t. You pay tax on NI.

Raising the threshold for income tax would help everyone, but especially those on min wage, rather than this.

I'm far from wealthy, but basic services are crumbling, support is needed there

It won't get much support from voters , it won't help people much

but it will make life harder for the next government with less revenue and a need to increase taxes quickly

It's spite not support

I'd rather have functioning systems for health, education, care, transport etc

Why do they quibble so much about nhs pay then dole out national insurance cuts that no one asked for?

Raising thresholds and correctly calculating entitlement to child benefit I’d be all for.

this utterly stupid!

I think it’s 2%

from bbc

1. It would mean the main rate falling from 10% to 8% - which could save the average worker around £450 a year

The whole point of a 2p NI rate cut is so the Daily Mail and other right-wing nutters can hail it as a tax-cutting budget!

This ☝️

It's all about trying to gain votes and keep in power and nothing to do with helping the working population!

Yes, it's 2p in the £1, so 2%.

I think the whole point of cutting it now is because they know they won't get in and they can do what they want to try to buy votes. They know that labour wouldn't want to reduce national insurance.

When the country is in such a mess with every single government department affected by austerity cuts and cost-of-living crisis, it seems crazy to me to reduce national insurance

I’ll take the 2p tax cut and continue to pay for my health insurance thanks. I gave up on the NHS when my dimwit BIL was being paid nearly a grand a day to locum as a GP and my DH nearly died because he was left in a hospital bed for a day and a half with appendicitis.

it’s time to put the service out of its misery.