Where should the money come from?

[Noras]

I am just wondering where people believe that money should come from to make things better in society and pay higher wages to the public sector?

The personal allowance was removed for high earners ( Conservative) The ability to pay into pensions with high earnings was severely restricted (Conservative) A higher tax rate of 45% was only introduced by Labour in the absolutely final legs of their tenure and retained by Conservatives. ( except for the Liz Truss blip) The tax free dividend for basic tax payers was removed. ( Conservative) Thereafter the amount allowed tax free for dividends was £10,000 , reduced to £2000 and then to £500. People who use limited companies to channel earning now pay both corporation tax and also tax on dividends ( Conservative) We now have the highest tax take in years on the higher middle classes. High earners pay more tax than in Italy and almost as much as France but without the large pension payments from gov that high earners in France get as we now have a flat pension. The amount of IHT paid in the UK is phenomenal now from being a barely there tax under Labour due to the artificial inflation of asset values and fiscal drag. ( People inherit less property as more is taken by IHT).

In contrast in the UK some large organisations can use expensive licences or Hugh interest loans issued to sub companies to wipe out any profits generated in the UK remitting the licence fee or loan repayment to somewhere like say Liechtenstein. These companies can also pay low wages which the government has to supplement with benefits.

So where should the money come from? Unless we produce and are more profitable this country is messed up really?

Maybe they should reduce the massive public sector pensions and make them more equal to the private sector.

@DemonSpawn yep very much agree. It's a huge part of the budget and unfair and unsustainable.

Yes, currently quite a few of my mid fifties friends are retiring with massive public sector pensions because it isn't worth their while to carry on working.
Probably an unpopular opinion but I think ways absolutely have to be devised to reduce the benefits bill also. I know there are no easy answers.

Benefits bill - somehow, minefield

Public sector pensions - all ongoing DB should be closed to further accrual and replaced with DC ones, some of the savings should be passed on broad 5-10% pay rises

Defence - stop exceeding/meeting nato spending targets as lots of other members also do this and seem to be fine

Care costs and IHT - needs a serious rethink. The unpopular plan previously proposed was good. People with assets (typically a house) should fund their own care with a modest amount of their value ringfenced to be inherited. Inheritance tax dodges need to be clamped down on

I'm a civil servant.

My salary is laughably low when considering the pressure of work and responsibility I have.

The pension is good though so that's why I stay and don't go and work at Aldi or somewhere similar where I could probably earn more with about 10% of the stress.

Get rid of the decent pension and the civil service will haemorrhage staff.

This is incorrect in respect of your claim about companies using licenses or high interest loans. There are a number of rules that prevent what’s called “profit shifting” from the uK to other jurisdictions. There are also what’s called “cfc” rules to stop this with intra group loans. also transfer pricing rules prevent structures like this.

So it isn’t possible to do that - any licenses etc must be at arms length value.

I doubt as well to be honest that the minimum wage in the uK is significantly lower than elsewhere. In fact I think it’s one of the highest in the world. Many people are not entitled to benefits even on the minimum wage - it depends on your circumstances.

I agree we should close all public sector defined benefit schemes. They are incredibly expensive. When you take pensions into account, public sector workers are paid about 10% more than private. Having worked in both sectors there is also a lot of waste in the public sector. I think it’s a good thing to have a more efficient public sector that gives better value for money

Legalise cannabis and then tax it.

People would still buy illegal cannabis as it would be cheaper. So we would have more cannabis users as it would be deemed to be safe as it has been legalised. And 20 years down the line there would be an increase in psychosis, depression and schizophrenia.

People with assets are already funding their own care. And they are also subsidising the care for those without any assets as the council pay a lot less to fund a care home place than you can get privately.

Grow the economy by reversing brexit. Stop wasting billions of pounds every year on making their mates filthy rich on services that should be run by the state. Tax the tax-dodging companies a more reasonable amount.

A really simple way to reduce the benefits bill would be to give the cms the powers and support needed to enforce non-paying non resident parents.

Along with a more joined up approach so large dividends, inheritance, savings etc are considered if you’re not working. And discrepancies between lifestyle and declarations are investigated quickly and easily.

Not supporting your children needs to be as socially unacceptable as smoking whilst pregnant, and as recognisably bad for the child.

So many single women are left holding the kids- financially, emotionally, in time and work and every other way. Of course in the majority of cases they then need to claim support/top up from the state.

Not sure how this would reduce the benefits bill when some lone parents already do get significant amounts of CM and it doesn't reduce their entitlement to benefits at all as it isn't counted as income. Unless the rules are going to be changed whereby lone parents are paid benefits and then that is directly recuperated from the non resident parents, it isn't going to change a thing. Lone parents aren't going to suddenly stop claiming UC because their ex starts paying CM !

Well you will be pleased to know that those younger than you/your friends won't be retiring in their mid-fifties with massive public sector pensions. I've been in the civil service a decade and the current pension scheme is tied to state pension age. Not that I/my friends will really be able to retire at any point due to exponential house price growth and stagnant wages, plus the state pension probably won't even exist.

Yes this!

Everybody thinks that they're underpaid and overworked. Private sector has some very stressful roles without the perks of very generous pensions paid for out the public purse (I.e. my taxes). Like most of the public sector you're in a bubble and don't realise it.

Correct.

Making maintenance count as income will not be popular (although it is probably more fair if it was) and chasing after and enforcing NRPs to pay is costly and will eat a chunk of the savings. Can’t see it happening.

My NHS pension isn’t as good as people think after 40 years of service, prob won’t be collecting it for long either due to chronic illness from working all those years in crap conditions, no breaks, being assaulted, 14hour night shifts , etc etc. Nursing really is the pits!

How much do you know about civil service pensions? Those working in the civil service don't have gold plated pensions it's a thing of the past.