The 2010 Emergency Budget thread

[Grahame]

I was just exploring your idea in this post:

 

Fair enough.

[taxman]

Unfortunately, the 17.5 band seems to contain most of the things that you need to buy

 

It also omits my brilliant idea of charging 25% on Mercedes, Rolexes and food from Waitrose *

 

*This is a form of self harm.

 

Come along old chap, there's fairness and there's downright Communism!

[Wildcat]

I do not believe the public sector is being asked to fund the bankers crisis, but to give a hand in sorting out the Nation's finances. Something which the private sector has been busy doing for the last year and a bit already (can I ask, objectively, where has most of the additional unemployment stemmed from so far?)

 

Private sector job losses in the last year, but prior to that my last 5 years have been spent in an apparently endless cycle of consultations over reductions in staffing and early exit schemes. The Civil Service had seen around a sixth of its staff go in that period. A period where pay has been kept below inflation and now we are expected to tighten our belts further to pay for the impacts of the banker's crisis.... And I remind you that at the high point of the recession public secotr pay rises were half that of the private sector.

 

If you are concerned about equity then your concerns should be with the scapegoating of public sector workers, mothers and the poor who's services are being cut. Rather than with those that are seeing tax loopholes widened for them and are the very people that profited most and were most responsible for the crisis.

 

Even if it (the public sector) was (being asked to fund the bankers crisis), I am failing to see in which way would a public sector worker be in any way less responsible than the private sector worker: loans and credit were consumed by all. And private sector workers have been, and will continue to be, doing their bit to fund it.

Food and drink for human consumption, Welfare, Health, Education, Power, Utilities, Baby wear, Children's clothes and footwear. All between 0% and 5% max rated.

 

What else do you need to buy?

 

The budget is not just about VAT... Parents have lost on average £1300 in benefits. Public sector workers are seeing their pay frozen. Benefits claimants (including tax credits) are seeing long term reductions in what they take home because of the linking to CPI. And that is without even adding in the detriments the poor will suffer because of the cuts in spending rather increasing taxation... like where was the income tax rise?. Instead we have the introduction of loopholes for the rich to help them avoid paying CGT.

[Anna B]

Should people also be rewarded for the wealth they generate?

 

In that case the bankers owe us big time.

[crookesey]

Well the owt for nowt brigade can whinge as much as it wants, they have had 13 years of hand outs and stupidity that benefited them greatly, but it's all over now. Oh dear, they will have to pay more VAT on some of the things that they buy out of their reduced benefits, my heart bleeds for them.

 

It will cost me more, but then again I have more because I worked for it, so what the hell? The tax system suits me and the wife, only £1,000 to pay on joint pension income of circa £25K p/a, so not that bad. Capital Gains tax will cost us no more than 18% after a £10,100 p/a exemption each, just as it stood prior to the budget.

 

I would have liked the IHT exemption to have increased, but as the £325.000 exemption passes on to the surviving spouse £650,000 will more or less sort us out, however it's tough on folk who's family home and investments come to more than £650K.

[JFKvsNixon]

In that case the bankers owe us big time.

 

Too right they do, lets hope they pay back with interest over the next few years.

[espadrille]

Just so that people dont get mixed up, here is the summary from The Telegraph.

 

 

http://www.telegraph.co.uk/finance/financetopics/budget/7510939/Budget-2010-key-points.html

 

Public sector workers earning less than £21,000 to be paid £250 extra each year for two years. So public sector employees who are earning a lowish wage benefit from a payment of £250 as well as the benefit from having the tax threshold raised.

 

So everyone seemed to ignore this post. Could it be that is because it talked about something positive for those on lower incomes .

As long as people dont then go out and buy products that they cant afford then they will be better off wouldn't they?

Dont hear of any SMEs paying their staff £250 when they actually cant afford to pay them a pay rise.

[Anna B]

The politics of envy and jealousy, have's vs have not's is a powerful impulse that will easily sway those of such a predisposition.

 

There seems to be an assumption that the wealthy have become so because of hard work and diligence and are therefore deserving of more than the lion's share of income, and be able to spend it as they wish.

 

Hard work has nothing to do with it.

 

Many many people work extremely hard and end up with very little to show for it. What they don't have is influence, friends in the right places, the right family background, The right old school tie, introductions to the people who matter, expert help and a leg up.

 

Why else would 20 members of the cabinet be old Etonians.

[Wildcat]

So everyone seemed to ignore this post. Could it be that is because it talked about something positive for those on lower incomes .

As long as people dont then go out and buy products that they cant afford then they will be better off wouldn't they?

Dont hear of any SMEs paying their staff £250 when they actually cant afford to pay them a pay rise.

 

A pay rise at half the national average is good in what sense?

 

Last year national payrises in the private sector ran at 2%. In the public sector 1%. This is the same 1% but only for those on below average incomes.

 

Excuse me if I don't splash out on the champagne to celebrate my real terms pay cut.

[funkymiss]

There seems to be an assumption that the wealthy have become so because of hard work and diligence and are therefore deserving of more than the lion's share of income, and be able to spend it as they wish.

 

Hard work has nothing to do with it.

 

Many many people work extremely hard and end up with very little to show for it. What they don't have is influence, friends in the right places, the right family background, The right old school tie, introductions to the people who matter, expert help and a leg up.

 

Why else would 20 members of the cabinet be old Etonians.

 

I'm glad someone said it.