Can’t just be me who is sick of the moaning about the private school VAT and winter fuel payments

[TruthorDie]

The moaning about them seems to be never ending. So tone death and indulgent on both counts. Not sure which is worse. A friends mum was ranting on social media earlier about winter fuel payments being stopped and how “worried about being cold” she was. Bad news is Lynn you haven’t needed to work since 1989, married to an oil exec and have had lots of the good life. I’m sure all of your Florida holidays keep you warm enough!

Bright children can get on anywhere, my siblings and l went to a comprehensive. We all have a couple of degrees, one of us has a PhD so it didn’t hold us back too much in life. Before anyone comes at it from the neurodiversity angle then l am and l wouldn’t be surprised if my younger sibling isn’t

I don't know anybody it affects. I don't feel sorry for the private school parents. I have a bit of sympathy for pensioners just above the pension credit limit. It's nothing like as generous as benefits for families.

you are expecting lower paid tax payers to subsidise your educational needs

What? I paid for four to go through private school while also paying a huge amount of tax, some used for other people's state education - a benefit which I didn't use.

I don't expect there's anyone in the country who feels sorry for people paying more for something than they do!

SugarandSpiceandAllThingsNaice, BBC radio 4 More or Less programme did an item on how 2 statements could both be true - highest tax burden in 70 years and also tax cuts. They found that due to reductions in national insurance tax had gone down for most people. However for the top 10% loss of things like the single person tax allowance, no child benefit, meant their tax had risen. I think also rise in the minimum wage played a part. I agree that the upper marginal rate of tax and NI is 45% and 2% NI but if you factor in no single person tax allowance the effective top rate is higher and many of those people also now have 9% student loan tax/charge.

Be thankful for being in such a situation, millions of people would give their eye teeth to be able put 4 children through PS.

Paying taxes towards services you don't receive is very common, just ask the millions who don't have children at all, yet their taxes pay towards others Child Benefit and Education, its how we run as a society.

Private schooling is a luxury that the vast majority cannot afford, many luxury services are VAT rated, if the £7bn, over 5 years, isn't collected from School Fees, it will have to be found from either other (less well off) people paying more tax or even more services cut, which hits the poorest.

As for the pp on the wealthiest in the UK "owning half of Poland" i was wrong, the 350 people in the Sunday Times rich list actually have far more than the GDP of Poland (which is 580 billion) the richest in the UK have a combined wealth of £790 billion.

Thats about 1/3rd of the GDP of the UK..... just 350 people.

Yet we have no money & cannot tax more!

They found that due to reductions in national insurance tax had gone down for most people.

In the OBR analysis, the NI reduction is more than offset by the freeze on the personal allowance at £12,570. Nearly 4 mn people at the basic rate of 20% will pay more tax overall between 2022-23 and 2028-29. A further 3 mn will pay more tax as a result of moving into the higher rate 40% band at £50,271, while 400k more people will be pulled into the top “additional” 45% rate on income over £125,140.

So roughly, at least half a million (500,000) more workers in the bottom 90% will pay more tax than the number of people in the top 10% who will end up paying more tax.

So it is not accurate to generalise things as the top 10% having an overall tax rise while the bottom 90% has had an overall tax cut.

Paying off student loan debt is not a tax and should not be counted as such.

I'm sure with your "couple of degrees" you can think of better things to fill your time with. Humble brag. Sad

I just find it strange that some people still think that any money obtained from the VAT (dubious, small amount) will actually go to state schools. The increase in public sector pay has spent it several times over already. And we have an autumn of strikes to come I think - more will be spent of money we do not have.

As for the pensioners, I feel beyond sorry for anyone who now find themselves unable to hear their house as they are a few pounds above the limit.

So private school parent unless gaining bursary has to have on average £18,000 spare cash each year floating around. Not struggling at all. Goodness, very tone deaf to people than really struggle.

Sorry, I'm still not clear how your taxes subsidise private education?

Boarding at the dcs old school costs 36k a year. Some have three children there. That's over 100k after tax. I agree there are some insanely rich people out there.

Economics is not Labour’s strong suit, as we know.

The VAT was a populist move, designed purely to show their electoral base that they are sticking it to ‘the wealthy’. Similarly with Landlords.

Capital will flee (the UK is second only to China in the exodus of millionnaires). Those who remain will be poorer, but the poorest will be hit the hardest, because their benefits and support will be hit.

Expat packages or overseas students predominantly.

Speaking from experience.

No - there are some but also loads of wealthy British parents with second homes and huge cars. It's extraordinary.

£7 billion over 5 years, has to go somewhere, like i said, if its not collected from school fees, it will need to come other budgets ie service cuts or the taxpayer.

I m sure if the government announced a cut of 7 billion over 5 years in the notional SENs budget, you wouldn't be saying it was a small amount and make no difference.

Pay increases are separate debate.

7 billion over 5 years?! Is that what they think they are going to collect from vat on school fees?

Oh dear oh dear

Economics is not Labour’s strong suit, as we know.

The Chancellor is a former Bank of England economist. 🤷‍♀️

Im sure shes a very clever woman, but she doesn't work in a vacuum though.

I predict a winter of strikes, a winter of pay settlements then an April budget full of tax rises and cuts.

Kind of belies economics not being Labour’s strong suit. And she’s made it very clear this government is Treasury led. Inconvenient for some people though it is.

We'll see. I'd be all here for a higher rate of tax for high earners, but they are too chicken shit to do that.

I’d settle for unearned income taxed at the same rate as earnings - despite being one of the people it hits.

But pay increases are not a separate matter.

The government has income and expenditure. They have spent a massive amount in pay increases (expenditure) and there is more to come. This is like me starting to shop exclusively at the deli in Waitrose and redecorating the entire house after a minor pay increase.

The train drivers and doctors who are getting pay increases by the government are also getting massive pensions, paid for by the taxpayer linked to this pay (I think I made an example earlier about equivalent to a £350k pension pot for someone on£50k - which is a LOT less than the salaries of train drivers and most doctors after the first few years. These people will never struggle for fuel allowance - they are sorted for.

the money those pay increases (and associated pensions) cost could have been used for education in state schools with a massive impact, but it wasn’t… not important enough… I am waiting for the next set of pay increases in the public sector.

Well done for trotting out the obvious.

I am very familiar with the BOE - I work in finance. Central bankers don’t always make competent chancellors. Reeves is an ideologist.

How do you know they have second homes? They all tell you?

Big cars tell you little about wealth, as we know.

They don't all have. But lots do - I've stayed in them!