The Budget

ukcarper

LplateSaver wrote: »

It is. Boyfriend is working non-stop, in order to save up to buy a house and hopefully start a family, he's gained a whole £80 a year.
His father, finished raising kids, on a great wage, has plenty of excess cash has gained £141. He doesnt want or need that £141. His father has been getting promotions throughout his career and even said himself that he wouldn't have been able to do it without help from tax credits in the beginning.

How old is your boyfriend's father tax credits weren't introduced until 2003.

Graham_Devon

Some results are out now, and seems those pleased with the budget fall into two camps. Those aged over 60 and those on "middle to high" incomes.

The young don't seem to pleased at all.

The results seems quite devisive between the generations, with the over 60s feeling (by an overwhelming majority) that not enough money is spent on them, however, too much money is spent on the younger generation with families.

The young however, appear to believe that not enough money is spent on the retired and also not enough money is spent on them.

Thrugelmir

Graham_Devon wrote: »

Some results are out now, and seems those pleased with the budget fall into two camps. Those aged over 60 and those on "middle to high" incomes.

The young don't seem to pleased at all.

The results seems quite devisive between the generations, with the over 60s feeling (by an overwhelming majority) that not enough money is spent on them, however, too much money is spent on the younger generation with families.

The young however, appear to believe that not enough money is spent on the retired and also not enough money is spent on them.

The aim of the budget is to reduce spending and raise tax revenues. This it has done. Biggest concern is the imposition of the Living Wage. As this potentially could hit the smaller business where margins and profitability are already low.

PixelPound

Thrugelmir wrote: »

The aim of the budget is to reduce spending and raise tax revenues. This it has done. Biggest concern is the imposition of the Living Wage. As this potentially could hit the smaller business where margins and profitability are already low.

There was already due an increase in the minimum wage, and this "living Wage" is just slightly more than the planned increase.

The problem has been tax credits instead of been a facility to help lowest earners has become an accepted supplement to the wage. Part time jobs are aimed wit hours so that people can get tax credits. Indeed people getting mortgages can have it taken into account.

Thrugelmir

nic_c wrote: »

is just slightly more than the planned increase.

What do regard as slightly? The impact on a low wage business can be significant. Nor is the answer to simply increase the cost of the service to the customer.

Generali

Thrugelmir wrote: »

What do regard as slightly? The impact on a low wage business can be significant. Nor is the answer to simply increase the cost of the service to the customer.

Generally the assumption is that an increase in the costs to a company are partly absorbed in the form of reduced profits and partly passed on to the customer in the form of higher prices or lower quality product.

I'd expect this to cause a small increase in the cost of living, especially for those that consume in services heavily. That is generally the rich and the old. As an example, look at the number of staff per customer in McDonalds vs L'Hotel Posh or some other 3 Michelin starred joint.

An interesting side-effect of upping the minimum wage so dramatically is that a lot more people will now get the minimum wage who were previously earning considerably more than that will get dragged into the minimum wage.

For many that won't be a problem, in fact it will be a bonus (if they can hang on to their job). However, for people in supervisory roles in low paying industries they will suddenly find that they are paid the same as the people they are supervising. Presumably they will want a pay rise.

It'll be interesting to see how this will play out. I admit I was one of those who incorrectly thought that the minimum wage would increase unemployment. I look forward to seeing what will happen now.

Anything that generally makes people personally richer and less reliant on the state is a good thing in my book.

BobQ

Graham_Devon wrote: »

Some results are out now, and seems those pleased with the budget fall into two camps. Those aged over 60 and those on "middle to high" incomes.

The young don't seem to pleased at all.

The results seems quite devisive between the generations, with the over 60s feeling (by an overwhelming majority) that not enough money is spent on them, however, too much money is spent on the younger generation with families.

The young however, appear to believe that not enough money is spent on the retired and also not enough money is spent on them.

Obviously that does not apply to the 30% of under 40s who voted Conservative, or perhaps they got what they voted for.

Generali

BobQ wrote: »

Obviously that does not apply to the 30% of under 40s who voted Conservative, or perhaps they got what they voted for.

The young are likely to do best of all out of the raised minimum wage, as long as it doesn't increase youth unemployment.