The Budget

23 Jun 2010

So how do you feel bout the budget, how does it affect you ?
Its brilliant for me as far as i can see smile

I will pay less tax and one thing that really annoys me is how much money people seem to get when on benefits and that has now changed and they will get less ... i do object to my taxes going to pay benefits for people who seem to have a better standard of living than me :)
Never thought i would praise a tory government .... last time they were in i was penniless and almost destitute due to their poll tax !

23 Jun 2010

Hmmm. I reckon the VAT rise will pretty much cancel out the money gained through the raise in income tax threshold.
I've not even begun to look at the rest of it in depth but am guessing with inflation and a freeze on pay rises in the public sector then I will possibly be substantially worse off. Thank goodness I don't have a family to support.
Until I've had a chance to look at it in detail, the jury's out here but on the little I have read, I'm not overjoyed. I just wonder how the Lib Dem MPs feel who made no VAT rise a campaign promise? wink

23 Jun 2010

jobs a goodun
scroungers and bad back brigade are getting a wake up call
farewell to the quangos
and corporation tax to fall
rise in vat is great its only 2.5% and i can still claim it all back on petrol receipts etc
:thumbup::thumbup:

23 Jun 2010

Quote by noladreams
Hmmm. I reckon the VAT rise will pretty much cancel out the money gained through the raise in income tax threshold.
I've not even begun to look at the rest of it in depth but am guessing with inflation and a freeze on pay rises in the public sector then I will possibly be substantially worse off. Thank goodness I don't have a family to support.
Until I've had a chance to look at it in detail, the jury's out here but on the little I have read, I'm not overjoyed. I just wonder how the Lib Dem MPs feel who made no VAT rise a campaign promise?

If they had won the election, perhaps they would not have put VAT up dunno

But, as it happens, they are in a coalition with the Tories who also have had to make compromises on what they would have preferred in the emergency budget.
Overall, I think its a good plan and you could sense the Opposition’s unease! No sign of the honourable member for Kirkcaldy on the back benches though! ‘Arriet ‘Arman was obviously under some difficulty having prepared her response days before hand and she just couldn’t cut the mustard with speedy responses “on the hoof” to some of the measures like reducing the tax burden on Business from where the recovery will come and just continued Labour's age old mantra about Tory cuts. Her response to the DPM and the Business Secretary over their poster campaign about the VAT bombshell missed its target completely. Doesn’t she understand that, in the coalition, a completely new set of rules apply – not least because, as the last Labour Chief Secretary to the Treasury admitted in writing to his successor “there is no money left” and the position is far worse than the fiddled sets of figures they were using to lie to Parliament and the people about!
George Osborne did particularly well I think by saying that there would be a new openness about the detail of the budget. It was always a case in the past of what both Gordon Brown and Alastair Darling didn’t say in the budget statement, rather than what they did say and the new transparency will be welcome by the City.

23 Jun 2010

Firstly the rise in VAT...will force prices up...therefore raise inflation...NOT GOOD...and most definatly the rise is not good for business.
But the main thing that we don't see is the cut backs that are being made to services. Birmingham council..( second biggest in the UK) has been told it will get 96 million less than last year !!! They have quite clearly stated that they will have to reduce workforce by 5%. Also they will have have to cut back on projects such as new roads, new community centres, old peoples homes, Libraries etc etc....we will all suffer. However the biggest problem for me is that because these projects will not go ahead, it will, kill off any chance of a economic recovery, and force us down into a double dip recession.

23 Jun 2010

Quote by Lizaleanrob
jobs a goodun
scroungers and bad back brigade are getting a wake up call

farewell to the quangos
and corporation tax to fall
rise in vat is great its only 2.5% and i can still claim it all back on petrol receipts etc
:thumbup::thumbup:

Yes Rob there will now be new medical checks for people getting Disability living allowance....gulp.
I think overall a pretty good budget.
The workshy who now use the benefit system as a lifestyle choice, will find it much harder than they do at the moment.
Child benefit will be frozen but I think it should have been scrapped for people on higher incomes, or at the very least means tested. Single Mothers will be forced to look for work when the child reaches five, which I still think is a tad too soon. I would have liked to see that happen when the child reaches eight.
Housing benefit payment ammounts will be slashed. Ten years ago the figures were 14 billion quid, now it has escalated to 21 billion pounds.....out of control. No longer will we hear about stories of people being housed by their councils for £1000 a week or above rents.
VAT will rise but 20% is in line with a lot of Europe and is a good way of recouping back some money.
Public sector wages will be frozen for two years. Millions of people in private firms have already been clobbered by wage freezes and pay cuts. It is about time the public sector woke up and smelt the coffee, and that they too now have to take some medicine.
For businesses the threshold of which employers pay National Insurance will rise by £21 a week from next year. Which means that employers no longer have to pay NI contributions for workers. Also the small companies tax rate will be cut from 22 to 20 per cent helping firms....good news for small firms.
Tax credits will be phased out for families earning over 40 grand a year....and rightly so.
Forty thousand pounds and still get handouts is ludicrous.....help the needy is what it is supposed to do.
One of the best ones is Council tax FROZEN. At least my exorbitant ammounts I pay will not increase next year. Councils like the rest of us will have to watch what they spend, and how they spend it which is a good thing. Hopefully cut back on the waste.
Duty on cigs and booze and fuel have been frozen at the current rates. There was no need for any further rises as they were put up in the old Labours Budget in March.
Sifting through everything I will be slightly worse off, but there will be the benefit workshy who will be much more worse off come this time next year.
Many good areas that target the people who take a lot from the system.

23 Jun 2010

Quote by deancannock
Firstly the rise in VAT...will force prices up...therefore raise inflation...NOT GOOD...and most definatly the rise is not good for business.
But the main thing that we don't see is the cut backs that are being made to services. Birmingham council..( second biggest in the UK) has been told it will get 96 million less than last year !!! They have quite clearly stated that they will have to reduce workforce by 5%. Also they will have have to cut back on projects such as new roads, new community centres, old peoples homes, Libraries etc etc....we will all suffer. However the biggest problem for me is that because these projects will not go ahead, it will, kill off any chance of a economic recovery, and force us down into a double dip recession.

How so?
Firstly, VAT is a discretionary tax. It is not applied to essentials like food (except in restaurants of course and for big Macs) and if someone can afford a Blueray player for example, surely they can equally afford the extra VAT on the discs? Most people will have already bought a new digital telly by now for the footie anyway.
Secondly, VAT registered business will not pay the extra VAT; they claim it back in their VAT return inputs.
How on earth can Councils, no matter how big they are, justify the enormous salaries they have voted for themselves and just expect joe public to pay? Those days are gone hopefully. On a recent visit to UK, the local council in the area I was staying were spending tens of thousands of pounds of public money on fooking biscuits!! FFS! these public servants need to get real - the Country just cannot afford such profligacy! What is wrong with paying for their own coffee and biscuits like everyone else?
If Birmingham City Council is saying it will have to reduce the workforce by 5% it is their choice to do so. If the paying public are not content with that, they should remove Councillors at the first opportunity and replace them with people who will be proper guardians of the public purse. The first people to go should be the over paid Chief Executives!
Hand the power back to the people!

23 Jun 2010

Quote by GnV
Firstly, VAT is a discretionary tax. It is not applied to essentials like food (except in restaurants of course and for big Macs) and if someone can afford a Blueray player for example, surely they can equally afford the extra VAT on the discs? Most people will have already bought a new digital telly by now for the footie anyway.

Yes that is quite correct GNV.

Quote by GnV
Secondly, VAT registered business will not pay the extra VAT; they claim it back in their VAT return inputs.

Unless the employer spends the VAT money. lol

Quote by GnV
How on earth can Councils, no matter how big they are, justify the enormous salaries they have voted for themselves and just expect joe public to pay? Those days are gone hopefully. On a recent visit to UK, the local council in the area I was staying were spending tens of thousands of pounds of public money on fooking biscuits!! FFS! these public servants need to get real - the Country just cannot afford such profligacy! What is wrong with paying for their own coffee and biscuits like everyone else?

:thumbup::thumbup:
I do not think that everyone will agree with you on the above comments though GNV....all the papers faulty......apparently. :lol:

Quote by GnV
If Birmingham City Council is saying it will have to reduce the workforce by 5% it is their choice to do so. If the paying public are not content with that, they should remove Councillors at the first opportunity and replace them with people who will be proper guardians of the public purse. The first people to go should be the over paid Chief Executives!

Yes they should be the first to go...but never are.
If they have to reduce the workforce then join the club of the private sector over the last couple of years. Working for the council does not mean a job for life.

Quote by GnV
Hand the power back to the people!

They will not want to do that, how else will they claim back their expenses or pay for their Skodas?:giggle:

23 Jun 2010

Yep - pretty much agree with most of the above.
I'll be a bit worse off - but not much
Don't forget VAT goes on road fuel too, which is a necessity for most, though most could cut back on vehicle use.
I'd like to see public sector pay cuts - but that will never happen, so all we can do is freeze it and wait for inflation to take it's toll.

23 Jun 2010

Quote by easyrider_xxx
Yep - pretty much agree with most of the above.
I'll be a bit worse off - but not much
Don't forget VAT goes on road fuel too, which is a necessity for most, though most could cut back on vehicle use.
I'd like to see public sector pay cuts - but that will never happen, so all we can do is freeze it and wait for inflation to take it's toll.

Quite right. However, so far as I can see, the lower domestic fuel rate (if it still exists) has not been altered so direct heating costs should not rise under this budget.

23 Jun 2010

What a wonderful grasp of Economics you have. So you think the increase to 20% for VAT will not force up prices, and will not cause inflation to rise !!! Thats what I said..if you bothered to read...was bad for business.
All expenditure of councils is audited and published for all to see. Now the 5% reduction in staff will be across the board, both at high and low level. Now then these people were contributing to the public purse in taxes.......now they goning to be taking from the public purse in unemployment allowance. So we lose income and increase outgoings. Not a way to save money when I was at school.
But as I said....the biggest problem is lack of public expenditure on new buildings, and new roads, etc etc. The private commercial and industrial section is dead at the moment, the only real work for construction firma and all that rely on them has been the public sector. If this is cut in the way, it is planned.....more people laid off....once again less income...more outgoings.
Compere the economy to your back lawn that you not cut for 4 weeks. Grass is long, a mess and untidy. It needs cutting. If you set your blades on the mower to the lowest setting.....you just rip up the grass..and it never recovers again. The sensible person would take just the top off at first, and then a few days later set blade a bit lower, and then a week later, you will be cut properly to its lowest setting, leaving the lawn finnally smart and healthy.
We all know we have to cut, the view here is to much and to deep can damage things beyond repair.

23 Jun 2010

Quote by deancannock
What a wonderful grasp of Economics you have. Snip...

:laughabove: Pity Labour didn't have a grasp of the economy! They must have been following your example!
As we are trading examples:- If you want to build an extension on your house and you don't have the money for it and the lender won't lend you any more money, you have to abandon your plan and make do with what you have...
You can't keep spending what you don't have.

23 Jun 2010

I would have liked to have seen the foriegn aid budget cut.

23 Jun 2010

Flower....
maybe you would like to tell these people made unmeployed in the public...where these jobs are in the private sector. whilst you at it..maybe tell those that are being laid off in private sector....as well !!
And just going back.. cutting really long grass, in one go...will simply result in it being ripped up by the roots...lol I'm no gardener but even I know that..lol

23 Jun 2010

Yeah but gardens just look pretty. Think about 'bottoming' out grazing ground and you'll see how productive cutting grass short can be.

23 Jun 2010

I have this strange memory that when you put VAT up you cant bring it down again under our Eu agreements---am I right.

23 Jun 2010

I find it staggering that you feel that giving our already underpaid nurses,soldiers,firemen,police etc etc a pay cut, yes that is what it amounts to and has been agreed by the right honourable twat in charge of the country as in effect being a pay cut, is a fair budget, but of course if your a tyranical business owner with a good accountant everything will look rosey,cos you can keep claiming back the vat, tell your staff they cant have a rise because of the state of the economy and keep coining it in for yourselves!!

23 Jun 2010

Quote by GnV
Firstly the rise in VAT...is not good for business.

How so?
Firstly, VAT is a discretionary tax.
Secondly, VAT registered business will not pay the extra VAT; they claim it back in their VAT return inputs.
Come on GnV, this is economics 101.
Most businesses who supply the general public are absolutely dependent upon discretionary spending, and their suppliers are dependent upon it in their turn. Given that the bottom line figure on their quotes has just gone up, chances are some of those businesses will see fewer customers exercising their discretionary buying power, unless they reduce margins that are already squeezed still further to offset it.
There are a surprising number of small businesses out there in manufacturing for example, who are not VAT registered, and yet collectively they manage to contribute massively to the turnover of businesses higher up the food chain, and those businesses in their turn support bigger businesses still further up.
Even a small increase in VAT on end-users, or on small manufacturers who can't claim it back and so have to factor the increased cost of the goods and services they pay for into their bottom lines potentially has a massive knock on effect throughout entire industry sectors.
N x x x ;)

23 Jun 2010

Quote by Ben_welshminx
I have this strange memory that when you put VAT up you cant bring it down again under our Eu agreements---am I right.

Not quite.
Once you have set vat on a product/service you cannot remove it.
Within the EU, every country is required to charge a standard VAT rate of at least 15 per cent, and a reduced rate of at least 5 per cent, on a wide range of goods and services.

23 Jun 2010

Run for the hills we're fucked

23 Jun 2010

Our Council Chief Executive will still be earning more than Prime Minister!!
Our Council Tax is now FROZEN AS THE HIGHEST IN THE COUNTRY for 2 more years.....
Our roads are shite...
Our Services are crap....The bin b'stard's still can't put the damm thing back on the drive after they've emptied them!
We'll still be paying for 'hobby-bobbies' rather than 'real' plod....

23 Jun 2010

Quote by GnV
What a wonderful grasp of Economics you have. Snip...

:laughabove: Pity Labour didn't have a grasp of the economy! They must have been following your example!
As we are trading examples:- If you want to build an extension on your house and you don't have the money for it and the lender won't lend you any more money, you have to abandon your plan and make do with what you have...
You can't keep spending what you don't have.
:thumbup:

23 Jun 2010

How I would like to know as at the time my poll tax was a third of my then rates.

23 Jun 2010

Quote by croydoncouple38

I was also better of with the poll-tax, people complained and got it replaced with some thing that cost me far more

23 Jun 2010

Quote by Ben_welshminx
I have this strange memory that when you put VAT up you cant bring it down again under our Eu agreements---am I right.

im aware that if it went to 21% then 20% would the become the min vat figure
but i will check this with a real expert in the matter wink

23 Jun 2010

The standard rate is 15%, which is the lowest that can be set.
The reduced rate is 5%.
Once that 5% rate is set it cannot be removed.

23 Jun 2010

I think, at least for me, it been the best budget in years. (Unless there are hidden mine fields)
I, like others here have said, will be just a little worse off. The biggest part of the VAT rise will be on fuel for me, but as 90% of my fuel is used for business, this I will claim back wink

We new cut back's were coming, and no matter how much we may not like them, if the money is not there, they have to be made. Tighten our belts now for a brighter future. I have had to do that in our house-hold budget,and now the Councils and government must do the same.

23 Jun 2010

Quote by deancannock
Compere the economy to your back lawn that you not cut for 4 weeks. Grass is long, a mess and untidy. It needs cutting. If you set your blades on the mower to the lowest setting.....you just rip up the grass..and it never recovers again. The sensible person would take just the top off at first, and then a few days later set blade a bit lower, and then a week later, you will be cut properly to its lowest setting, leaving the lawn finnally smart and healthy.

The real cuts will come on 20 October, this is just the preliminary round.

23 Jun 2010

Quote by Lizaleanrob
jobs a goodun
scroungers and bad back brigade are getting a wake up call
farewell to the quangos
and corporation tax to fall
rise in vat is great its only 2.5% and i can still claim it all back on petrol receipts etc
:thumbup::thumbup:

Seconded :thumbup:

23 Jun 2010

Quote by BIoke
jobs a goodun
scroungers and bad back brigade are getting a wake up call
farewell to the quangos
and corporation tax to fall
rise in vat is great its only 2.5% and i can still claim it all back on petrol receipts etc
:thumbup::thumbup:

Seconded :thumbup:
*coughs and splutters*
Note to self: Talk to Bloke about what all the cuts in my sector mean for the future of civilisation.
wink