AIBU Income Tax rise.

[H202too]

To be panicking about income tax rise.

Things are tight and to loae even £30-60 a month will be difficult.

I know people are talking about the mansion tax being a no go. But I would prefer this than taxing the workers as per usual.
The tax free rate should be put up. What a mess.

Labour absolutely hate the self employed and small businesses. The Tories were also terrible for it under Sunak as he, too, was obsessed with big business. Small employers employ more people than big employers, yet are constantly beaten with sticks whilst politicians of both colours worship big business!

Yes. See also the lack of protection for our smaller businesses and promising start-ups who are then swallowed up by largely foreign huge multi-nationals to prevent competition, which stifles innovation, R&D and growth, and of course offshores their future profits.

I assume this is one reason I'm not rich, I'm not ruthless enough, but I don't think I could ever be happy making a million+ a year knowing there are children in the UK who are cold and hungry.

I'd not be against raising income tax, even though it would make things more difficult for us, given that we've also just suffered a drop in income as well as increasing bills - my wages won't actually cover our outgoings anymore.

I assume this is one reason I'm not rich, I'm not ruthless enough, but I don't think I could ever be happy making a million+ a year knowing there are children in the UK who are cold and hungry.

Benefits exist - if children are going cold and hungry, the parents aren't prioritising them in their spending.

The joy of earning £1million a year is that you get to choose what to spend your money on - so it looks like you'd give it away to children's charities - maybe set one up yourself - stupid reason not to be rich.
We run a very successful company - we're not ruthless, we're very ethical, we pay our team well and we make sizeable donations to charity. You can make life better for people by earning and giving away more money - you don't need the Government to do it for you!

This.. this is exactly my issue!

@SpaceRaccoon Earn it and then give it away to the charities you want! As has been pointed out - what you do with that money is up to you and there are plenty of examples of people who do exactly that. That includes my DF who gave away about £2m in bonuses when he sold his business to those who helped the sale happen in whatever way, from his PA to those that build the products in his factories. This was all money that he could have kept himself as he was the only shareholder

@Zigazigarrr I think you've confused me with a different poster, I'm more towards the wanting to hang onto my money school of thought 😁

Ah yes sorry @SpaceRaccoon it was @EilonwyWithRedGoldHair. pls see above 🤣🤣

The politicians always pick on ordinary people. They don’t want taxes that affect rich people, because it will affect them.

My dad owns a building and joinery business and absolutely detests Labour for that exact reason.

Planet Pluto and 223 Days ........

please don't join the HM Treasury conceptual work-force

Plus, it's much harder to get money out of the wealthy, they use their money to protect their wealth, there's a whole industry based around helping them to hold on to as much of it as possibleñ
Gaming the system like it was going out of fashion, competing with all the other billionaires to see who can accumulate the most wealth.

So then if I have a decent private pension saved, I may as well retire early, use it all up by 67, and then get on the state pension right?

Being in my 50s, trying to stay earning a good living as long as I can - not a given due to health and age discrimination - and balancing saving for retirement and raising 2 kids, if they move the goalposts re. state pension I'll be pretty damn pissed off.

Actually maybe we can do a deal... just give me even half of my taxes back and I'll be fine.

Two of our closest friends are self employed in trades, neither would ever take on an 'appy or employ anyone on PAYE & this has been their view for many years, long before Sunak.

Nothing to do with worker rights, NMW or NI increase etc etc.

Its that once fully trained, this worker will leave and go self employed himself, in competition with his trainer.

So easy to pay someone cash in hand for the odd day here or there and longer term work can be done on a ZHC.

The VAT threshold is also a big reason not to expand, once thats reached, your prices go up 20% compared to your non VAT registered competitors.

Politicians don't hate the SE, they just don't know how to fix the issues.

use it all up by 67, and then get on the state pension right?
I'd say that's what large swathes of people would do if looked like the state pension might be means tested!

Rachel has played a blinder.

Whilst all the people earning £25-150k are arguing about who has it harder and is more/less deserving, no one is asking the fundamental question:

How do any of these policies drive economic growth and efficiency?

Because from where I’m sitting she missed economics lesson 101 and hasn’t got a scooby.

Do what they do in other countries. Link your state pension to how much you have paid in instead of a flat rate.

She’s hasn’t played a blinder she’s toast, but I agree with the rest.

Most of the people who are panicking about paying more are the people who will benefit most from better state services....

Nothing is free. We all have to put in to get out.

I also agree with the pp and really hope you’re right about the toast (although there is no credible replacement either).

She’ll probably hold on but politically this is a toast moment. Starmer too. They’ll likely stay but be out at the next GE. I think they’ve given up anyway.

Well even the Grauniad has skewered Reeves today.

https://www.theguardian.com/commentisfree/2025/nov/04/budget-rachel-reeves-being-honest-tax-chancellor

Marina at her most scathing!

She could do some very simple things to boost growth:
Give everyone a personal allowance, give parents child benefit and childcare.

Drop the VAT registration threshold to £30k.
Ditch the cap on hours carers can work.
Ditch stamp duty. Pay for this with reorganising council tax.

Incentivise people to seek out more income. Stop incentivising them to minimise their hours.