Concerned that Labour govt might fleece me in upcoming budget?

[RightOh9oo]

Aibu to be concerned that Labour government might fleece myself/family in the next budget?

If they remove the right to UK pension for all, by making it means tested....I think I'll stop working this year. I'm early 50s, does anyone else feel like this?

I'm going without so much to save in my private pension, so no holidays to speak of.

Does anyone know what is in store in the upcoming budget?

One word: devolution.

Now I know Labour has fucked up a bit, but it would be political suicide to remove the 25% discount in England only.

There is no way the Scottish Goverment would introduce such a cut and Welsh Labour has already committed to keeping the discount. Not sure about NI's system.

How will stopping working help you? Whatcwill you live off? If you access your private pension now it will be lower
Otoh if you have enough assets to retire go right ahead

Institute for Fiscal Studies has some recent videos and content on future budget outcomes.

They basically think Labour party pledge on income tax, vat and the recent big hike in corporation tax means Labour have made it very complicated for themselves in terms of what they go for.

Interestingly Institute for Fiscal Studies said the Tory government had changed tax burden away from low and average earners towards higher earners. This meant that under the Tories higher earners in the UK pay some of the highest levels of tax comparably globally whilst average earners in the UK pay the lowest levels of tax in western Europe.

IFS suggested capital gains tax, stamp duty and inheritance tax would all go up and tax relief on pensions would change.

I’m confused - why would it be bad if pensions were means tested?

Well for a start it would discourage people from paying into private pensions and generally saving for their retirement.

Because some stupid people would decide not to make adequate private provision for themselves.

It removes the incentive to save for a pension yourself.

If you save for your own pension and lose the state pension plus other state benefits you may as well have not saved.

If they means test pensions then means testing the NHS is a logical next step (and not unreasonable).

Because most people rely on it being available. Very few people (other than perhaps on MN!) could really afford for it to be taken away. So if it was to be means tested at a high enough level for people to not suffer, it wouldn’t save much money.

There’s also the social contract of paying something in to get something back (yes, I know NI isn’t a “pot“ of money and only pays for current pensioners).

I think if means testing is introduced, it should be from a certain date - so perhaps for people who are under 16 now, so they know there wouldn’t be a state pension for most.

They would presumably taper it to avoid it.

It does seem like Labour will tax anyone who tries to do any better than the bare minimum.

@itzthTtimeGib because that's not the deal we have been sold. It's a clear social contract- achieve the right levels of contributions and get a set amount in old age. It's not the only model and means testing for some things is fair- but like the NhS this is the way the social contract is set up here.

The tories were talking about getting rid of NI- if that is followed through and there's a greater focus on decent private contributions then I can see it happening over a long long time period. But look at winter fuel, tv licences, waspi women etc. and the protests they caused. I can't see any party just means testing pensions without a long lead in. It would be suicide.

Evidence for this assertion,?

I think very few people are wealthy enough for losing it altogether not to be a huge hit.

You’ll have a long wait.

More stamp duty!!!

insane - at what level and how much?

It’s already pretty punitive IMO.

Those claiming they won't save are the same idiots who moan about pension credits or say they will quit work and claim benefits. Go on then. Live on pittance and you'll really be showing us all/teaching the silly government a lesson.

Reading this - good luck then this is all stuff that impacts behaviour and people opting out

It’s also something you pay a handful of times in a lifetime and easily avoided by just not moving. I can’t see it raising much.

@BIossomtoes insane to incentivise people to not move and live in housing that does not suit their needs.

Starmer is on record as saying anyone who saves money is middle class not working class and that the Labour party is the party for the working class.

There are various comments he has made which imply he regards extra taxes on savings and pensions as fair game. You can see this in action through the proposed taxes on capital gains tax which is another tax on savings/investment (out of income already taxed once). There are some other examples.

Oh FFS
you’ve survived 14 years of the Tories absolutely buggering everything in order to enrich themselves. You’ll be fine for five years of labour, stop being a ridiculous drama queen.
BTW,
are you deliberately posting scare stories to freak people out?

Link? It doesn’t sound like anything I’ve heard him say.

Starmer is on record as saying anyone who saves money is middle class not working class and that the Labour party is the party for the working class.

I know he said that but it’s a bloody stupid definition of middle class. IME it’s the traditional working class who try to save (sometimex small amounts) where they can. But I don’t think some of the Labour leadership like the traditional working class these days.

Yes IFS also think Stamp Duty is a bad tax which damages the economy. The first 250k is tax free/exempt currently. They said the threshold would be brought down from 250k to zero, so people will pay tax on the full amount.

Euthanised, hopefully…

I’m a single parent and very anxious about all the ports re council tax discount being withdrawn. It will make a huge difference pa to my household budget which is already tight with COL. I can’t think it’s going to go well with pensioner widows either with the fuel payment being withdrawn.
all feeling very gloomy with the new administration