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.

From article following the last Budget -

"The chancellor Rachel Reeves announced the core schools budget would increase by £2.3 billion next year. However, £1 billion is specifically for high-needs.
The Institute for Fiscal Studies (IFS) has said the increase represents a 1.4 per cent real-terms increase in total spending, or 1.6 per cent in spending per pupil.
Luke Sibieta, an IFS research fellow, said the growth in core school spending would lift spending per pupil, after adjusting for inflation, to about £8,100 – just above its “high point of £8,000 in 2010”.

https://schoolsweek.co.uk/labours-first-budget-after-the-dust-has-settled-heres-what-we-know/

I agree with this also. Ideally this should be addressed, but Labour won’t be able to, as we’ve seen. So I think it will just be tax rises

I agree! She must be deluded if she is calling this centrist Labour Government's very timid policies 'socialism'.

Starmer never stops banging on about 'working people' but people like this poster still think he's to the left of Fidel Castro.

If people have less money they can’t pay more and housing costs will drop.

I expect housing welfare costs will increase, that's a much larger portion of our spending vs other countries.

Why would landlords reduce rents?

People should listen when someone says this will cause a tax hike and anti growth cycle and avoid doing that. Tricky as everyone was so pro Labour pre GE and it wasn’t going in.

Now we’re in it idk just brace and wait for the system to deal with it in some way.

I think they are talking about getting rid of the tax free lump sum for pensions or at least changing it. I've read lots of people over 55 are hurrying to take out their tax free lump sums before the rules change.

Could it be that your FIL is doing this year? If so it kind of makes sense actually.

At the moment 25% from your pension is tax free (up to a certain limit)

The other change is pensions never used to be included in estates for IHT. That has been changed and from (I think it's next year) they will now be included in your estate and subject to IHT.

Your FIL actually sounds very switched on and making good decisions (to benefit his family, not the country)

The trouble is the goverment is making pensions less tax efficient which will encourage people to use them less. In turn this makes more people reliant on the goverment and state pension when they retire.

They is also talk of changing the tax relief you get when you make contributions to your pensions.

Lots of changes that will affect us all in the future but perhaps not right now. I think lots of people are not realising this. (in fairness some are too worried about bills today to worry about what happens in retirement)

By increasing it by 4p?

As you say, it will only hit a small percentage of relatively well off taxpayers.

I think they are talking about getting rid of the tax free lump sum for pensions or at least changing it. I've read lots of people over 55 are hurrying to take out their tax free lump sums before the rules change.

I know people doing this, and they all have excellent final salary pensions.

DH, a net contributor, will now take early retirement or work only 3 days a week. DS, another net contributor at only 22, is already looking for foreign posts with his firm.
Not all net contributors will keep working uncomplainingly to pay for people who don't.

Honestly, they might as well. I'd suggest that a large % of the grey vote will not vote Labour whatever Labour does. Appeasing pensioners is pointless at this stage imo

The other change is pensions never used to be included in estates for IHT. That has been changed and from (I think it's next year) they will now be included in your estate and subject to IHT.

I agree with this policy

But you said “instead of wanting a tax rise, remember what Reeves said about one not happening”. So I was wondering whether there was something else you think people should actively want the gov to do (as opposed to just general anger at their competence).

I'll be amazed if it's a straightforward 1/2p increase, but we do need to increase tax revenues so how would you do it?

There is around £10bn in benefits overpaid due to fraud and error every year. Even halving this would make a big difference.

The waste in the NHS isn’t insignificant either. Hundreds of millions of pounds is wasted on unused prescriptions each year for example.

Not all net contributors will keep working uncomplainingly to pay for people who don't.

Exactly this. The number of net contributors is falling and simply isn’t sustainable. Many of the net contributors have simply had enough.

Tax does need to rise but costs also need to be cut.

As someone has already pointed out the bond markets like the tax cuts as it's sensible. If she cuts costs as well they will give another clap which will make our interest on debt cheaper.

To dig us out of the whole we are in where we are borrowing to pay interest on our debt (thus increasing the debt for next month) we have to hit it at all sides. So raise taxes yes but also cut costs and also grow the economy as that's the real long term solution.

If she does nothing but raise taxes (and god forbid increases spending) we will be no better off. I obviously hope she cuts areas with waste such as benefits for anxiety etc. Most of us need the NHS and the police and I would be glad if they were improved with more cash. However more cash does not seem to improve the services as the systems especially the NHS just don't work with our population and complex treatments/ageing population.

She needs to overhaul the NHS or start charging a small amount for services or something to stop all the waste.

It's very scary how short staffed front line police are. I do not want to live in a lawless society. All the shoplifting is bad enough.

Not increase taxes.

we already pay enough tax. I am not against it as it stands. The wealth divide is so much. Everyone seems terrified of this. I don't mean middle England.

What a way to silence people. Ridiculous!

Thing I seen yesterday was an increase in tax in conjunction with a reduction in the higher tax bands, 40% tax limit coming down as much as £5k, if they do that, they can go fuck themselves.

I wouldn’t be against looking at the triple lock, but politicians don’t seem to want to do this.

Look at the outcry over winter fuel

To be fair, I think the triple lock is on the way out - noises from both main parties about it. But agree it's unsustainable, and a product of a time when pensioner poverty was more widespread that working-age poverty, which is no longer the case

Isn't it more the case that housing costs are driven by how much (and at what interest rate) lenders are prepared to lend?

I can’t imagine it will go towards improving services, surely it will be used to service the ever increasing national debt?