What Rachel Reeves does next? Surprised no thread on this yet. It's all over Twitter

[Sharingsomewisdom]

https://www.dailymail.co.uk/news/article-13764547/Rachel-Reeves-mulls-tax-hikes-spending-squeeze-raising-rents-social-housing-Chancellor-sees-Government-borrow-3bn-forecast-month.html

Or am I the only one interested what she is eying next? Any comment on the reasonableness or otherwise of Rachel's next focus?

Listening to a radio analyst on innovation we are good at ingenuity and start ups but the tax system is not as favourable for scaling up companies eg as the US is

We should look at how to fix that on a tax basis

Apart from we are not doing better than anyone else, the % growth you quote is the amount we have changed, relative to where we were... & its also a very small amount.

Did you not see the public sector borrowing figures for July? the interest amounts we pay on debt?

We aren't out of Covid, let alone Brexit, the billions Brexit has cost us are on going, a barrier to trade and hence growth, even if we magically paid off the money borrowed for Furlough etc, Brexit is forever.

Then there is the NI cuts to be paid for, some £21 billion in total, which Hunt never set aside a penny for, he also never set aside any money for the Pay Review bodies pay rises, not paying their recommendations has severe economic implications too.

You are living in a different country and yet you wish for the unions to get a stranglehold of the UK once again to cause chaos and disruption. Well cheers, buddy.

I think Labour should put back the NI contributions that Hunt cut.
Whatever the point of that was! Appart of draining the coffers even more?
How can UK reduce NI when we have plenty of people on long long waiting lists, spending almost full days in A&E, having issues accessing medication, taking forever to see their GP?
It makes zero sense.

I think we should improve things whatever it needs to be to allow more people who aren't working to be able to work

What? I think you’re confusing me with someone.

Indeed!
Good healthcare, affordable suitable childcare, good transport will allow more people to work.
Including training to fill vacancies we have shortage of qualified people for.

Why? I think they should get rid of NI I’m entirely and increase the basic rate of income tax to cover it. Wealthy pensioners weren’t caught by NI. They should be paying the same rate of tax for public services as the rest of us.

To be fair, the ONS also told them to stop using this statistic. They committed to not raise specific taxes, and obviously which tax is raised will depend on who it impacts.

Ha ha Yes hammer the average worker again, no mention of increasing taxes for the wealthy, so the basic rate payer would be asked to pay even more.

Simple change to have pensioners pay NI, personally, i'd levy it only on pensioners who are higher rate tax payers.

Like i said earlier, equalise earned and unearned tax rates, there is no reason whatsoever to justify taxing someone who makes 100k on an investment just 20% but taxes at 40% someone who earns 100k.

The problem with getting rid of NI and increasing the basic rate of income tax is that the shortfall from abolishing Employers NI would need to be made up.

Well, whatever works better to get the money into the NHS.
So, if it is better to raise income tax for that amount and pay into the NHS pot that way, I do not oppose it.
But I think it goes against some of labour's commitments.
I am ok with the idea of paying £2000 taxes more per year, if that is going to be used to improve the country's services. How is best to tax me, that I have to leave to the experts. What I do want is to actually get the services I pay for and to help raise the country from this hole, so my daughter has a good chance at life. I am done with paying taxes to get nothing in return.

Can someone please explain to me in simple terms why if we are so much in debt do we give billions to countries such as Ukraine to fund a war ?
Will we ever say No more sorry we can’t afford it .

Talk about illiterate economics! which you accused Labour of.

You ve not a clue about the importance of FS on the UK economy and the tax revenues it generates have you?
Also, FS isn't the main part of the UK economy (just 8.3% of our GDP)

"Services" are and that covers everything from a gardener to an insurance company to a car garage.

Germany's service sector is approx 71% in the UK, its 80%, the UK is still a large manufacturing economy, very similar to France, where services account for 81% of its GDP.

Want to grow the economy? grow services, manufacturing is extremely difficult to do, even if it increased by 50%, it would still be only 12% of direct impact to GDP.... but we need both, a more balanced economy.

Because if Ukraine falls, we could very well be the next ones. Do you remember Putin nuclear threats to the UK? It is not so long ago.
Ukraine is a big agricultural exporter, including grains and sunflower oil. We could see the prices of those goods going rather high or shortages.
I do think they they should put a stop to the war, sign a peace treaty. Each of them get back into their borders and stay there!

This.

Raising SH rents would defeat the purpose. They should be looking at ways to bring private rents not raise SH ones. Social housing is set at a rate even low income people can afford on a full time wage. They’d be pricing low earners out of every type of housing available. Then what? There would be many more homeless if people can’t afford
any type of housing. UC housing benefit is capped so some people wouldn’t be able to get more.

We need more affordable housing not to make the affordable option unaffordable to even more people. If it went up too much there would be more UC housing payments which means people would just be getting the difference back from the pot anyway.

Its such a weird system we have. You'd think Parliament of whatever colour would be keen to share finance details more openly so that when governments change we could do more to keep stability. Its as if the people of this country are just collateral damage for the various parties pet projects.

People need to stop seeing taxes as a bad thing. Of course we need to raise taxes, public services are on their knees.

Well blow me down with a feather. I received a letter from HMRC the other day. I thought 40% tax was on upwards of £40K but it seems it is on £37K and rising. £37K is not a brilliant salary - last year the average salary was £36K. So basically anyone over and above the average salary is being taxed at 40% for what they earn over that. Some of these people are worse off than someone on PIP and UC who also get discounts on lots of things. I'm not saying they shouldn't, but it does get people thinking it doesn't pay to work.

Dora the Explorer needs to look at it properly. Tax all these "high earners" appropriately - by which I mean Richard Branson, Edward Enninful and Alan Sugar types, not your average lawyer.

Did they ask you to send money too, i'd be checking that "HMRC letter"

Personal Allowance
Up to £12,570
0%
Basic rate
£12,571 to £50,270
20%
Higher rate
£50,271 to £125,140
40%
Additional rate
over £125,140
45%

Of course sunak freezing thresholds for so many years has meant more and more average workers get dragged into the 40% band.

Even 50k isn't loads anymore, considering housing costs and very recent high inflation.
Many people are work hard just to stay poor.

@iwishihadknownmore It is not a scam, but from your information it is incorrect. The letter is at home now, I can't access it. But I will deal with it.

Are you being impacted by any tax rises?

So raise the rate of income tax. Its fair then. Otherwise you have a government constantly making value judgements on people's lifestyles

They can you do realize that?, they just choose to pretend they don't know.