Who is going to Blog the Budget for us?

daveyjp

Very easy to be quite blase about this budget - wait until the spending review in the Autumn.

That's when all those saying "this doesn't really affect me" may start to think differently.

lemonjelly

My concern in this budget is 2-fold.

First, it is a phenomenal move back towarsd laissez-faire economics, & is only a minor distance short of anything dreamed up by the chicago school. What worries me is that if/when the effects of the budget are spun to argue a win by the coalition, there will be further public sector contraction.

Secondly, the notion that it is a fair budget is a bit of a myth I feel, as the low income earners aren't going to be better off, as VAT has risen. However services they regularly access will be cut.

PasturesNew

When I was at school I had a friend who lived in a caravan. Total of 12 kids, it was a towing caravan. They also lived just inside the three mile rule for school buses, so they all walked to school.... along an unlit country winding lane without pavements or proper edges to the road. In blizzards (from Siberia) and the scorching sun... mind you that did take them past strawberry fields which they could pop into.

At school dinners, my mate's brother used to fill his parker pockets with roast spuds when it got to "2nds time".

Pennywise

lemonjelly wrote: »

Secondly, the notion that it is a fair budget is a bit of a myth I feel, as the low income earners aren't going to be better off, as VAT has risen. However services they regularly access will be cut.

With hundreds of billions of pounds of debt, the Budget was never going to make anyone better off as the country simply can't afford to. It's a matter of how worse off people will be. From what I've seen, the poorest are likely to be least affected which is exactly the aim so to that end, it's a good job well done.

Personally, I think the coalition has done very well here. The Libdems have clearly stopped the possible excesses of the Tories' tax rises and cuts, and have acted as a moderating influence to help the vulnerable. Even with the CGT rise, I think they've got the right balance - i.e. increasing it for those with higher incomes/gains and leaving it alone for basic rate taxpayers, yet not going too high as to put off potential investors - a max rate of 28% is very sensible indeed.

The sad fact is that if the debt isn't brought under control, the poor and vulnerable would be a lot worse off - with inflation, currency exchange, loss of AAA credit rating, higher interest rates, even higher tax and even lower public spending. The earlier and sooner the deficit is tackled, the less will be the impact on everyone.

AMILLIONDOLLARS

JoeCrystal wrote: »

Been reading document and came across this:

From April 2011, Local Housing Allowance Rates will be capped at £250 per week for a one bedroom property, £290 per week for a two bedroom property, £340 per week for a three bedroom property and £400 per week for four bedrooms or more.

Is this big change?

I don't see it really since it still mean £1000 per month for a one bedroom property, £1160 per month for a two bedroom property, £1360 per month for a three bedroom property and £1600 per month for four bedrooms or more. Yikes!

In my area the cheapest rental for a three bed house, looking on Rightmove is £1500 per month. So looks like the shortfall will have to be made up from somewhere!

AMD

StevieJ

IveSeenTheLight wrote: »

By higher rate, I presume you mean the earners £37,401 and above and not the £150,000 and above earners.

Certainly means I'm less likely to sell until I retire.

I also know someone planning to sell this year but will likely wait until he retires next year.

Can't see there bein a mass influx os BTL sellers now given that the rate is immediate.

£43k not £37k ? not sure how it will work now.

tomterm8

My concern is this: when you total it all up, this budget as announced comes to £110 billion pounds of spending cuts, tax cuts & etc. Almost all of the spending cuts have not really been assigned... in terms of spending cuts, we've had less than 10% of the total so far.

So, our position is worse than it was in the last budget, and we still have no real clue as to how they are going to achieve these savings.

All we know is that there are many unanswered questions... and a lot of reviews... and the projections for growth seem wildly optomistic if these cuts are going to take place, at least in the short term.

ILW

AMILLIONDOLLARS wrote: »

In my area the cheapest rental for a three bed house, looking on Rightmove is £1500 per month. So looks like the shortfall will have to be made up from somewhere!

AMD

Simple, those claiming LHA will just have to move elsewhere, or landlords accept lower rents.
What is so difficult to understand, or am I missing something?

mitchaa

Higher rate tax threshold to remain at £43,875 until 2013-14:eek:

Bol*ocks.

lemonjelly

ILW wrote: »

Simple, those claiming LHA will just have to move elsewhere, or landlords accept lower rents.
What is so difficult to understand, or am I missing something?

House prices will accordingly crash, as BTL is being subsidised by LHA.

Which will mean Hamish will have a coronary.

Which may mean less aberdeen based [STRIKE]postings[/STRIKE] ravings.