Where is all this money going to come from?

Bf109

pickles110564 wrote: »

Actually I heard a whisper that he is going to heavily tax anyone with savings over 20 grand and any over 30 grand he will be allowed to take a 5% cut each year.
This way he will be able to prop up the people who have already bought and can not keep up with thier mortgage payments.
He has definately got my vote on this one.:beer:

And witness a mass exodus of the few remaining responsible and prudent citizens?

I certainly wouldnt stick around for longer than I absolutely had too... which is a few months more than it would take me to offshore all my savings.

HelpWhereIcan

baby_boomer wrote: »

The Telegraph has discovered where the money is coming from to pointlessly prop up an ailing housing market

Gordon is going to milk the poor!

"....From October 6, the maximum period that many means-tested benefits can be backdated will be cut from one year to three months. This may sound innocuous enough until you consider that the charity Age Concern estimates the total unclaimed value of pension credit, housing benefit and council tax benefit amounts to £5bn a year........ ........During the most recent year for which there are official figures, the average value of backdated claims was £700. Cutting the maximum period of backdating to a quarter of its current level will slash that to nearer £175....."

Gordon's "relaunch" doesn't look like it is going to get off the ground / out of the harbour .

Hate to stick up for 'Gordon Darling' but they announced this Welfare Reform some time ago. I became aware of it back end of last year so it must have been announced before (poss Nov Budget 2007 ).

http://www.unum.co.uk/Home/Individuals/State_Benefits.htm

Very lazy of the Telegraph to imply that it has something to do with paying for the housing measures they have just announced if that is what it has done.

Although it is possible that any resulting savings earmarked for other projects may be re-directed, this year's budget will have already been done using assumptions calculated with these savings already in mind.

HelpWhereIcan

pickles110564 wrote: »

Actually I heard a whisper that he is going to heavily tax anyone with savings over 20 grand and any over 30 grand he will be allowed to take a 5% cut each year.
This way he will be able to prop up the people who have already bought and can not keep up with thier mortgage payments.
He has definately got my vote on this one.:beer:

Either a very informed whisper or I suspect one of a 'chinese' variety.

When they introduced them, the Government guaranteed that ISAs would be free of tax for 10 years from 6 April 1999. This was done in 2006

http://www.hm-treasury.gov.uk/pre_budget_report/prebud_pbr06/other_docs/prebud_pbr06_odisa.cfm

but, for as long as I can remember there have been stories doing the rounds that they will be abolished and that all tax free savings will go and people will be heavily taxed on anything they save.

There are still some 'pub based experts' out there who claim that ISAs are dead from next year and so a waste of time so the same people may make claims about the government introducing new tax regimes.

History shows that even if abolished they are likely to be replaced (PEPs, TESSa etc), but part of the idea of making saving tax efficient is to reduce reliance on the state in times of ill health and at retirement.

Starting to heavily tax people on savings will have the opposite effect and we will switch to spending now and not saving for retirement (the government's real financial time bomb) etc.

Many 'normal' people have above £20k & £30k - I know one fairly small IFA who will not look at you if you have less than £50k to invest - so it would actually increase reliance on state funds rather than reduce it.

"For that reason only ... I'm out!"

lostinrates

HelpWhereIcan wrote: »

- I know one fairly small IFA who will not look at you if you have less than £50k to invest

We had to pass a similar 'test' with a hgher margin for our IFA.

vigesimal

pickles110564 wrote: »

Actually I heard a whisper that he is going to heavily tax anyone with savings over 20 grand and any over 30 grand he will be allowed to take a 5% cut each year.
This way he will be able to prop up the people who have already bought and can not keep up with thier mortgage payments.
He has definately got my vote on this one.:beer:

I heard that they are looking at how other countries tax and in particular, the way Australia only allows tax relief on the original mortgage amount for BTLs.

baby_boomer

HelpWhereIcan wrote: »

Hate to stick up for 'Gordon Darling' but they announced this Welfare Reform some time ago. I became aware of it back end of last year so it must have been announced before (poss Nov Budget 2007 ).

http://www.unum.co.uk/Home/Individuals/State_Benefits.htm

Very lazy of the Telegraph to imply that it has something to do with paying for the housing measures they have just announced if that is what it has done.

Although it is possible that any resulting savings earmarked for other projects may be re-directed, this year's budget will have already been done using assumptions calculated with these savings already in mind.

You make a good, well balanced point.

To be fair to the Telegraph, the government seemed to say that the measures had already been funded. Officials claimed that the housing package would come from a “reprioritisation” of existing budgets".

If the government is going to be deliberately obtuse, then it can't be surprised when others attempt to get to the bottom of how they are raising and spending our money.

Bf109 wrote: »

No £1bn isnt a pittance!

I think I get your point .

In fact we are of a similar view. All I was trying to emphasis is that £1bn wasn't going to make any difference to the direction or final resting place of the UK housing market.

baby_boomer

The rescue plan will run into chaos and waste.

People will be assessed by local money advisers - appointed by local authorities - and they will come from a variety of backgrounds eg municipal employees, charities or private debt advisory firms.

The interpretation of whether people recklessly borrowed too much will be left to these people.

There will be varying interpretations between and within local authorities.

And the taxpayer will have to foot the bill for disgruntled applicants who make a complaint about their individual cases .

A bureaucratic nightmare, in other words, of the sort that Gordon's meddling is so brilliant at producing - witness the tax credits fiasco.

StevieJ

Bf109 wrote: »

And witness a mass exodus of the few remaining responsible and prudent citizens?

I certainly wouldnt stick around for longer than I absolutely had too... which is a few months more than it would take me to offshore all my savings.

I actually thought Pickles was winding you lot up again.

timcrips

OK, so

£600m on a break so once ive bought my house with less stamp duty and all goes well... I go to sell my house and mr smith buying when the stamp duty is break is over will have to pay it again, no doubt they will increase this amount and recover the amounts.

£200 for councils to buy repossesions... eh nice so I lose my house and someone gets to live their free... why do I work

£400 for new council houses..... I really shouldnt have listened to "Go to uni, its worth it"

I want my money back!

PasturesNew

fiodyl wrote: »

So far today I have read the government will be spending

• £300 million on loans for FTBs
• £600 million on a stamp duty break
• £200 million for councils to buy repossesions
• £400 million on new council housing
• £100 million on ISMI payments

Where is the money for all this spending going to come from? Did Gordon Brown win the Euromillions Lottery?

Hard working singles with no dependents.