Budget 2015 - what do you think?

[KateMumsnet]

Today at 12.30pm - and with only 50 days until the general election - chancellor George Osborne will deliver the last budget of this government. Amongst other things, he’s expected to announce an increase in the personal tax allowance, a reduction in the rate at which savings are taxed and, possibly, a move on inheritance tax. We'd love to know what you'd like to see emerge from his briefcase - and to hear what you think as he announces his measures.

[TooExtraImmatureCheddar]

Am I getting my maths right? The so-called Google tax would save £3.1 billion over 5 years, so £620 million per year. Is that right? I always get confused about how many zeros there are in a billion. However, to put that in perspective, the total budget for the City of Edinburgh Council for one year is usually approx £1.1 billion. And that's only one of all the councils, Westminster, Holyrood, etc etc, the NHS, the Armed Forces and god knows what else we spend public money on. It's not an amount to be sneezed at, but it's not really a massive increase in the scheme of things. It gets my goat when savings are rounded up like this to sound bigger. If you mean £620 M a year, then say so! None of this "over 5 years" bollocks. I don't say I get paid £150k over 5 years.

[rubbishdeskhoover]

People earning over £100K don't get the personal allowance gently, but the tax threshold for the 40% rate is being pushed back so that people earning £42kish don't have to pay it. Quite a lot people paying 40% tax beween £42k and £100k will be benefiting from the personal allowance increase.

[GentlyBenevolent]

rubbish an earlier poster claimed that high earners would benefit from the increase in the personal allowance. I was just pointing out that no, we won't.

[ihategeorgeosborne]

HRT payers have been hit hard by this government. The higher rate was reduced from 44K to 42K and many higher rate tax payers also lost child benefit. I think it's fair that they get to keep more of their own money.

[YonicScrewdriver]

Gently, I think she meant HRTs.

[ihategeorgeosborne]

In fact, with the measures George Osborne announced today, the HRT thresholds will just be going back to where they were under Labour.

[Isitmebut]

rubbishdeskhoover .... re your view "on a Labour Keynesian approach" - so you believe any spending is good spending, as whatever a government spends it on is will provide SUSTAINABLE economic growth?

How will that help all the small and medium sized businesses needing direct help rather than a million or so extra public sector employees in non front line jobs - through osmosis to the private sector?

That if we pay a quangocrat £100k and get back £30k in tax, we will REDUCE a budget deficit and its sustainable?

Our over £150 billion 2010 budget deficit was the largest in Europe due to our unbalanced public vs private sector numbers, especially after the 7% fall in our GDP from 2008 - so thats more mismanagement than 'austerity cuts.

[JillyR2015]

It is looking increasingly unlikely thankfully that Labour will get in next time and today's budget will have helped the Tories,which is a good thing.
If UKIP and SNP can split the Labour vote in Scotland and the North we might be home and dry.

[needastrongone]

What are they going to do with the HRT? Didn't they decrease this last year? We were definitely worse off, despite the increase in the LRT. Which I don't mind. We don't qualify for CB either, which again I absolutely don't mind. But to say higher earners haven't been hit by the govt isn't true. That pisses me off. And I agree with progressive taxation.

[ihategeorgeosborne]

need, they are going to increase the HRT threshold to where it was when they came to power by 2018.

[needastrongone]

Thanks, I should have known this, I am listening to Five Live now, digesting

[GentlyBenevolent]

Higher earners have been hammered by this government (at least, the people falling between the thresholds for losing the nil band and the point at which it finally disappears who have been paying tax at a marginal rate of something like 67%). But, you know - fair enough. Better higher earners than people who are struggling. I'd happily (well, perhaps not happily but you know what I mean) pay 50% on the top slice of my income if I was confident the government would spend it wisely, rather than on tax breaks for the very rich (for example increasing the IHT limit). I have consistently, where the opportunity was available, voted for higher taxes throughout my career and I will continue to do so because I too believe in progressive taxation.

[vitamink]

The first time buyer ISA thing is rubbish. It will just push up house prices even more without increasing supply. So first time buyers will have to pay £450k for a house in London (average pre tax wage about £30k, so 15 times income for a small dilapidated terrace in some depressing suburb) and they will get £3k towards it (which won't even cover the stamp duty). George is basically just ensuring that his landlord and house builder friends keep getting money. So much for letting supply and demand dictate house much house prices should cost rather than artificially propping it up. And the money that the FTB ISA is costing could instead be used to build 1000s of social homes rather than making homes even more unaffordable. The Tories really are scum of the earth.

[Viviennemary]

I'd like to have seen a bigger increase in the tax free allowance. But apart from that I thought it was an OK budget. I don't want a Labour government. And they could have raised the age for winter fuel allowance to say 75. But I think it should remain a universal benefit.

[kilmuir]

not scum of the earth. tories have turned round the economic mess labour left country in

[Trenzalore]

see the sod hasn't done anything about the bedroom tax for disabled or more help for carers.

bloody useless lot.

[Trenzalore]

economic mess? by taking from the poor and vulnerable and disabled ?

[Justanotherlurker]

Did you watch the same budget as me Trenzalore?

It looks like they hit the core Tory demographic, cuts to wealthy pensioners, 'diverting profits' etc, and yet they increased the minimum wage and the tax free threshold has increased.

What is there in the budget that is taking from the poor and disabled?

[JillyR2015]

A ver good budget all round.
Most people int he UK by the way including Labour voters are behind the change to stop bed blockers in subsidised rented accommodation. It's been a very popular move despite what the left wing elements of the press suggest.

[DianeLockhart]

Impressed based on the main points I've seen. Looks a good budget.

Question on the help to buy ISA if anyone has looked into it in more detail -

apparently you can save a max of £12k in it which means you receive £3k.

However, I understand the max contribution is £200 per month and the scheme will run for 4 years, so I don't understand how it's possible to save £12k. Based on my maths 200 x 12 = £2,400 a year, so £9,600 over the life of the scheme. What am I missing?

It's a shame they have the £200 a month max as I've been slowly saving for the last year and a top up on my deposit would be absolutely great, but I'm not going to be able to drip feed it into an account at £200 a month to get it. Too slow.

Nice scheme in general though. A good sweetener for deposit savers when interest is so low.

[Justanotherlurker]

Help to buy ISA is nothing more than another prop to try and shore the housing market, unless your buying a house below 125k (which is well below national adveradge) then it's just paying stamp duty fees, it's not helping first time buyers or rebalancing the cost of housing.

It's an enabler of our economy to be built on the collection of wealth.

[cocacolakid63]

Cancelling the Class 2 NIC contributions is not necessarily the good thing it sounds. If like me, you don't earn enough to pay Class 4 you will no longer be contributing to a state pension and other benefits. Effectively you have just been deprived of a pension.

[williaminajetfighter]

I am still very unclear how the govt is going to tackle the massive debt and just feel that it's never addressed and because the public don't like bad news no party will discuss it. Not even when announcing a budget. It's irresponsible

I also wish the govt would do more to support British industry and buying British.

As an aside I was really hoping 2015 was the year we stop using the phrase 'the most vulnerable in society' but it's still used constantly. I hate it. It's a pat, meaningless subjective phrase that is overly emotive but lacking any qualifiers. Poorest - I understand. Oldest - I understand. Most vulnerable- it could be anything at all but somehow conjures up a human version of a sad puppy. I really hope that 'most vulnerable leaves our vocabulary soon. Because,quite frankly,the more ubiquitous itis the more meaningless it becomes.

[redrubyindigo]

Scrap 'road' tax and put a 0.001 pence per litre on a price of petrol. Save us the hassle of 'taxing' our cars.

Car/vehicle owners should have to by law display a current insurance disc.

The car/vehicle owners who use the roads frequently pay more and the elderly etc who pop down to the shops pay less.

Scrap child benefit for any child born after 1st Jan 2016 and the money goes to midwifery/ante/post natal care for children. Means testing is a joke.

Put a tax of 0.1 pence on every piece of chocolate/confectionary/soft drink to pay for NHS dentistry.

Speed cameras - the 'fines' should go to the community they are placed in.
If you are clocked speeding and a matrix sign says 'Congrats you have just given £60 to your local ante natal clinic/Old Peoples Home/Hospice/ for being x miles over the speed limit. Same for parking fines.

It would soften the blow for many people.

Just a few thoughts.

[SteamTrainsRealAleandOpenFires]

And as usual no mention of Multi-Corps being fully taxed...I wonder why? Oh yes, that would mean his rich mates would be upset.

I also noticed that Utility/Train Companies haven't been ordered to cut their prices to the bare minimum either, hmm strange that...isn't it? rich mates syndrome yet again

I can (wrongly) guess at cleggy's budget though:- buy a basic knighthood starting at £10 raising to £10 million (min.) for a Baronetcy