UK Q4 GDP contracts unexpectedly by 0.5 pct qq

lemonjelly

But National Insurance is going up - hitting business' & all employees.

AndyGuil

lemonjelly wrote: »

But National Insurance is going up - hitting business' & all employees.

All employees earning over 20k will pay more. The NI allowance is increasing as well. Those earning less than 20k will pay less NI.

shortchanged_2

AndyGuil wrote: »

Increasing the personal allowance before income tax has two effects. It reduces the burden of tax on lower income people and it also makes working a little more attractive than claiming benefits. The VAT tax rise is a pain as it hits everything for everyone indiscriminantly.

So are you saying that some people will be better off with the new tax rises and cuts?

AndyGuil

shortchanged wrote: »

So are you saying that some people will be better off with the new tax rises and cuts?

Low earners will.

blueboy43

IronWolf wrote: »

I love how everyone blames the conservatives and the spending cuts, which have barely even taken effect. Its not like they came in and cut 20% of spending off the bat, theyve cut maybe 1-2% of actual government spending so far, so its stupid to think this is the reason for anything seen in the economy.

Perhaps Osborne should have reflected before boasting in October how the Q3 (0.8%) figures were "a vote of confidence in the coalition government's economic policies"

gagahouse

inspector_monkfish wrote: »

09:30 25Jan11 - UK Q4 GDP contracts unexpectedly by 0.5 pct qq


- December's public sector net borrowing including financial sector interventions is the highest for a month of December since records began in Jan 1993, though below the all-time monthly record set in November 2010
- Public sector net debt as a percentage of GDP excluding financial sector interventions hit a monthly record of 59.3 percent.
- Public sector net debt as a percentage of GDP including financial sector interventions was 154.9 percent, the third highest monthly value on record. The ONS fully incorporated figures from RBS and Lloyds Banking Group into this measure and revised back data to reflect this. The measure hit a record high of 157.9 percent in December 2009

With all the hoopla the debt including financial sector interventions has been overlooked. Now for the first time we can see the total potential govt liability and it doesn't look pretty - 155% of GDP or £2322.7 billion.

http://www.statistics.gov.uk/cci/nugget.asp?id=206

blueboy43

lemonjelly wrote: »

But National Insurance is going up - hitting business' & all employees.

This is pure insanity (by all 3 parties).

In what possible way does it make economic sense to increase taxes on employment ?

Surely better to increase income tax by 1% and reduce NI by the equivalent amount.

Spiv_2

RenovationMan wrote: »

All I know is that its looking good for my oversized mortgage.

But you need to keep your job to service it

ukcarper

I thought they were not increasing employer’s contribution

Graham_Devon

blueboy43 wrote: »

Perhaps Osborne should have reflected before boasting in October how the Q3 (0.8%) figures were "a vote of confidence in the coalition government's economic policies"

Perhaps labour would have done better than arguing it was actually THEIR policies which the Q3 figure showed..

...and then accusing the coalition on THESE figures, when it's still THEIR policies.