The Budget trick

Floss

luvchocolate said:

MikeJXE said:

luvchocolate said:

I see an increase of 8.5% a reasonable increase...I appreciate we will pay a little more tax..I've estimated I'll be about £15 a week better of after tax is taken off my works pension 

Yep I agree

I'm a pensioner and I will be about £15 a week better off but hoping I don't get a rent increase 

I live in housing association property and last year rent increases were fixed at I think 7 ot 8%
Pretty sure mine will go up 

The 2024/25 HA rent increase is capped at the September rate of CPI + 1.5%, so 6.7%+1.5% = 8.2%

Indout96

Wife will get 8.5% as based on average wage rises, my (real world) wage rise was 2% so we are happy

Sterlingtimes

I lose £185 per year through fiscal drag.

My State Pension increases by 8.5% - 6.7% (CPI) = 1.8% in real terms. About £221 per year in my case.

I have a DB pension linked to RPI but capped at 5%. That is a loss of 5% - 6.7% (CPI) = -1.7% in real terms.

I have another DB pension linked to CPI capped at 3%, That is a loss of 3% - 6.7% = -3.7% in real terms.

My SIPP pension are exposed to the market which may benefit from the Government's support of business in the budget.

I do not work so I do not benefit from National Insurance savings.

I know that we have to repay the National Debt, but I see no direct gain for myself from the budget.

AlanP_2

Why should you see a personal, direct gain from a government budget?

Sterlingtimes

AlanP_2 said:

Why should you see a personal, direct gain from a government budget?

I do not, actually. But this was represented as a tax concessionary budget. 

Albermarle

Sterlingtimes said:

AlanP_2 said:

Why should you see a personal, direct gain from a government budget?

I do not, actually. But this was represented as a tax concessionary budget. 

Like all budgets before and in the future, there is always a large element of smoke and mirrors.

Public wants to pay less tax.
Public wants better public services.
Politicians are forced to dress up announcements so it seems like they are somehow they are fulfilling both wishes at the same time, otherwise it is a vote loser.

QrizB

Sterlingtimes said:

AlanP_2 said:

Why should you see a personal, direct gain from a government budget?

I do not, actually. But this was represented as a tax concessionary budget. 

Presented that way by the government, perhaps, but on their own numbers the tax take as a % of GDP will actually increase - which isn't what you'd usually call a concession!

From the OBR (see para 1.16):

Tax changes in this Autumn Statement reduce the tax burden by 0.7 per cent of GDP but it still rises in every year to a post-war high of 37.7 per cent of GDP by 2028-29.

So it's a "concession" inasmuch that taxes aren't rising by as much as they were expected to.