MSE News: Massive changes for your pocket: coalition plans revealed

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"The Tories and Lib Dems say they will tackle the £163bn budget deficit through spending cuts rather than tax rises ..."

Read the full story:

Massive changes for your pocket: coalition plans revealed

shjo558

I'm a bit disappointed with the increase in Tax Allowance not happening until 2011. We're only in May so it wouln't be hard to give us an increase for 2010/11:(

seven-day-weekend

I'm pleased with the proposed Tax Allowance increases; it will mean my husband will pay hardly any tax instead of the £75 a month he pays at the moment (his income is made up of his Teachers' Pension and a reduced amount of Incapacity Benefit) and last year (2009-10) was a total of £10880.

My only income is State Pension of £104 a week; I already pay no tax and now I will continue to not pay any when I draw my Local Government Pension in 2014.

dori2o

Unfortunately we do not yert know the extent to which Tax Credits will be hit. With people who get almost all CTC but no WTC, i'e those just over the limits for receiving both, are they likely to see a large reduction in their incomes in exchange for a £70 a month deduction in monthly tax?

I know many on here will not care, and may even comment that people should be self sufficient, but when you have had this disposable income for 6-7 years or so, any drop in the benefit which equals, or outweighs the reduction in taxes, is going to leave those in the lower income bracket potentially worse off......again!!!!!!

globalds

No mention of VAT there.

I have a gut feeling that VAT will go up.

Paulgonnabedebtfree

Doesn't look to be anything too horrific (yet) but, as ever, the devil will be in the detail.
Although it won't affect me directly, I do want to express concerns over the reduction in tax credits. Firstly (as ever) it is likely to affect most harshly those who need them the most. Secondly, it will remove spending power from the economy. I have a hunch that raising personal tax allowances will not fully compensate for that shortfall. Indeed, although VAT has not yet been mentioned, it wouldn't surprise me if the personal allowance increase will be wiped out by the extra VAT. If/when VAT does increase, the new chancellors (Messrs Osborne and Clegg (sarcasm !!) ) would do well to remove/reduce the 5%?? VAT on domestic fuel bills WITHOUT removing the winter payments from those most in need.

Also, a side note to Mr Clegg. The story goes that Judas Iscariot had the decency to hang himself. What are you going to do? Hopefully Clegg will settle for moderating the worst effects of Toryism and avoid a return to Thatcherism. If that's the case then I may retract the previous statement. Not that any politician gives a damn what I think.

pompeyrich

If only the parties pre-election statements could be made "enforcable" but reading the article it seems not. Didn't take them long to change their minds did it?

Tories have abandoned plans to reverse Labour's one percentage point rise in NI, which will come into effect next April. Tory plans to cut IHT have been put on hold. Lib Dem MPs will abstain on plans in the Budget to introduce tax allowances for married couples.

Dopple

Why was VAT missed out of the article? That will be one of the first taxes to go up.

neneromanova

Here's the BBC news for VAT
http://news.bbc.co.uk/1/hi/business/10112936.stm

I do agree that something has to happen to get rid of this debt and the tories are doing a bold thing. Good on them.

BERFFRO

I really hope they give the benefit system a really good shake up. I'm really angry that people who have never worked have everything, I see it more now been out of work, I have to travel by bus as i cant afford to keep a car but i see "fake" disability claimants passing in their brand new cars, make me so angry!

A suggestion for them is to cap child benefits at 2 or 3 kids for the unemployed. I know im going to get slated but how many none working parents to you see every day? If you want kids then fair enough, But the government doesn't have to pay for them.

pompeyrich

BERFFRO wrote: »

I really hope they give the benefit system a really good shake up. I'm really angry that people who have never worked have everything, I see it more now been out of work, I have to travel by bus as i cant afford to keep a car but i see "fake" disability claimants passing in their brand new cars, make me so angry!

A suggestion for them is to cap child benefits at 2 or 3 kids for the unemployed. I know im going to get slated but how many none working parents to you see every day? If you want kids then fair enough, But the government doesn't have to pay for them.

You mean the hard working tax payer pays for them I think.