Budget announcements for Savers

Milarky

RetiredInThailand wrote: »

Maybe they are finally going to scrap tax on savings interest, as of course they should.
Especially as they tax you on the total return and not the return after inflation (which recently has been negative for most savers).

Watch this classic clip (from January 2009) and decide for yourself whether this had ever been a 'policy' at the time or just a 'budget submission' as he later put it.

As the Guardian (2009) put it:

David Cameron widened the gulf between the Tories and Labour over the economic crisis today by announcing that a Conservative government would abolish income tax on savings for basic-rate taxpayers and raise the tax allowance for pensioners by £2,000

and the Indy (2010) :helpfully clarified

Mr Cameron said yesterday that this had been a "Budget submission" to the Government last year, adding: "That is not something we can currently pledge to do." A year ago, Mr Cameron said: "To help deal with Labour's debt crisis and help turn Britain from a spend, spend, spend society into a save, save, save society, it is time to abolish income tax on savings for everyone on the basic rate of tax."

pqrdef

Milarky wrote: »

To help deal with Labour's debt crisis and help turn Britain from a spend, spend, spend society into a save, save, save society[.I]

Cameron is on a crusade for what he thinks are traditional moral values. Osborne has to keep going round and giving him a slap.

But it's quite astounding that even in 2009 he was arguing for less consumer spending and more budget deficit.

pqrdef

alanq wrote: »

What next? Can we expect further "simplifications" to really upset the elderly?

It'll all go when the £140 pension comes in. Winter fuel, bus passes, prescriptions, the lot.

Of course only new pensioners will get the £140 pension. Those already on pension will never see it. But the other stuff will all go anyway.

opinions4u

pqrdef wrote: »

Of course only new pensioners will get the £140 pension. Those already on pension will never see it. But the other stuff will all go anyway.

Minimum Income Guarantee is already £137.35.

I'm sure all existing pensioners will get the £140.00 promise.

After a couple more years of fiscal drag.

And after a few other pressies disappear.

pqrdef

We were told that the £140 figure was at 2010 prices, and index-linked, so the number would be bigger by the time it came in.

innovate

opinions4u wrote: »

Minimum Income Guarantee is already £137.35.

What is Mininum Income Guarantee?

atypical

innovate wrote: »

What is Mininum Income Guarantee?

There's more info here:
http://www.direct.gov.uk/en/Pensionsandretirementplanning/PensionCredit/DG_10018692

The government guarantees pensioners an income of £137.35 a week.

crittertog

MoneySaverLog wrote: »

Impossible to do as they don't know whether you will fall into this bracket.

Meh, they could simply ask "are you a higher rate tax payer?" on the application forms, and deduct for those that ticked it. It won't catch borderline cases (or fibbers), but it would make it simpler for those with a basic salary of £45,000+ (or whatever the current threshold is) as they wouldn't have to budget for the extra tax bill. That would then leave HMRC to chase the others or those who didn't indicate it to be deducted. Said in the hope that the above might represent a small saving for HMRC as some money would be automatically passed directly to them by the banks...