Budget rumours

[longfingernails]

This seems to be the most informed article yet

blogs.notw.co.uk/politics/2010/06/george-osborne-is-sharpening-his-axe-for-a-30---billion-assault-on -public-sector-wages-pensions-and-benefits-this-weekthe.html

It doesn't seem as drastic as I was expecting, if it is true.

The prediction in the article, if true, is definitely drastic but the pain seems to be evenly spread. VAT rises, tax loopholes, closed, personal allowances up, benefits for the wealthy scrapped... no single group taking the 'big hit' in other words. There has been a few weeks now of serious downplaying of expectations, deliberately letting the rumour-mills run unchecked, and it was always on the cards that the truth wouldn't quite match the lurid horrors of our own imaginations.

are they stopping child benefit?

Talking of cutting Cb for high income earners...

what do they class as that though? 30K, 50K 100K???

am very worried....

who knows - have seen both 30 and 40 banded about for child tax credits....

I dont think 30K is high for a family - individuals then yes it is a good wage, but not for a family to live off.

Heard Nick say on GMTV last week that CB won't be means tested

According to the office of National Statistics the average national gross household income in the UK was around £35,000 in 2009.

"I reckon there should be a tax on junk food"

This one usually gets dismissed, partly because it's seen as a 'tax on the poor', and partly because it's very difficult to define 'junk'.

It could be that someone is using a different calculation for 'average'... median rather than mean, for example. Also, it varies by location. In Wales, for example, the average gross household income is about £4-5k lower than in the UK as a whole.

Think it's really funny how everyone said this is a new conservative party, more progressive, not like in the Thatcher years, blah blah blah.

Yet low and behold Osbourne seems to be taking tips off of Nigel Lawson, Norman Lamont and Ken Clarke.

[now fetch me a bucket to throw up into because I can't get the thought of those men slobbering and dribbling over lunch together - no doubt on our tax payers money too].

Looking at it again I think it is the distinction between median and mean. Average (the 'mean') individual gross income taken across all jobs, full and part-time, in 2008 was about £26k. But the 'median' income was £20,800 i.e. 50% of people earned more than that and 50% earned less.

Interestingly, in 2008, a salary of £45k would have been enough to class you in the 'top 10% of earners'. Above £59k and you would have been in the 'top 5%'. When you consider that an income of £55k qualifies for CTC at the moment you can see why the bill is so high.... that's 90%+ qualification.

Whether you see yourself as wealthy or not at a particular salary level is very subjective and will depend on where you live and what your expectations are.

"Yet low and behold Osbourne seems to be taking tips off of Nigel Lawson, Norman Lamont and Ken Clarke"

And Vince Cable and 'Poverty Tsar' Labour MP Frank Field.... and don't forget that Darling mentioned cuts 'deeper and tougher' than those in the Thatcher era before he was silenced pre-election.

Oh and by the way, it is not "evenly spread"-not one bit.

Maybe you can help me with this:
If you earn anything from £0 to £50 you will be effected by VAT, benefits being frozen or taken away.

What is happening to the people earning over say, £70k? or 100k or £200k or more? How will they be effected, what will they be loosing/foregoing?

Vince Cable went on Question time and basically took back everything he said pre-election.

-or was it just an interview with Paxman? Cant remember but he was going on about figures he had not previously seen unitl he was in the coalition and that made him think differently! so does that mean we all voted on policies that were pie in the sky?

oh, and thats £0k to £50k.

"does that mean we all voted on policies that were pie in the sky? "

Pre-election independent reports showed that all the main parties' spend/tax manifesto pledges fell far short of what was going to be required. Whoever got in was going to have to rethink their plans but the sitting government at least had the full facts at their disposal. Read into that what you will

how will these things in the News of World article at the top of the page effect people on earning of over £50k, 60, 100, £200k?

"What is happening to the people earning over say, £70k? or 100k or £200k or more? How will they be effected, what will they be loosing/foregoing?"

They'll be paying more for VAT, fuel and the rest - and their job (private or public sector) is unlikely to be any more safe than anyone else's - they pay tax at a much higher rate already. Having assets/income does tend to cushion you against short-term cost of living increases.... which is why most of us are trying to improve our circumstances or win the lottery, let's be honest.