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  • FIRST POST
    • MSE Guy
    • By MSE Guy 12th May 10, 5:23 PM
    • 1,628Posts
    • 1,255Thanks
    MSE Guy
    MSE News: Massive changes for your pocket: coalition plans revealed
    • #1
    • 12th May 10, 5:23 PM
    MSE News: Massive changes for your pocket: coalition plans revealed 12th May 10 at 5:23 PM
    This is the discussion thread for the following MSE News Story:

    "The Tories and Lib Dems say they will tackle the £163bn budget deficit through spending cuts rather than tax rises ..."


Page 1
    • shjo558
    • By shjo558 12th May 10, 5:29 PM
    • 1,508 Posts
    • 6,911 Thanks
    shjo558
    • #2
    • 12th May 10, 5:29 PM
    • #2
    • 12th May 10, 5:29 PM
    I'm a bit disappointed with the increase in Tax Allowance not happening until 2011. We're only in May so it wouln't be hard to give us an increase for 2010/11
    Back to serious comping after a 2 year break - 25/05/13.
    • seven-day-weekend
    • By seven-day-weekend 12th May 10, 8:33 PM
    • 32,473 Posts
    • 64,319 Thanks
    seven-day-weekend
    • #3
    • 12th May 10, 8:33 PM
    • #3
    • 12th May 10, 8:33 PM
    I'm pleased with the proposed Tax Allowance increases; it will mean my husband will pay hardly any tax instead of the £75 a month he pays at the moment (his income is made up of his Teachers' Pension and a reduced amount of Incapacity Benefit) and last year (2009-10) was a total of £10880.

    My only income is State Pension of £104 a week; I already pay no tax and now I will continue to not pay any when I draw my Local Government Pension in 2014.
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
    • dori2o
    • By dori2o 12th May 10, 9:40 PM
    • 7,811 Posts
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    dori2o
    • #4
    • 12th May 10, 9:40 PM
    • #4
    • 12th May 10, 9:40 PM
    Unfortunately we do not yert know the extent to which Tax Credits will be hit. With people who get almost all CTC but no WTC, i'e those just over the limits for receiving both, are they likely to see a large reduction in their incomes in exchange for a £70 a month deduction in monthly tax?

    I know many on here will not care, and may even comment that people should be self sufficient, but when you have had this disposable income for 6-7 years or so, any drop in the benefit which equals, or outweighs the reduction in taxes, is going to leave those in the lower income bracket potentially worse off......again!!!!!!
    • globalds
    • By globalds 12th May 10, 9:44 PM
    • 8,905 Posts
    • 16,706 Thanks
    globalds
    • #5
    • 12th May 10, 9:44 PM
    • #5
    • 12th May 10, 9:44 PM
    No mention of VAT there.

    I have a gut feeling that VAT will go up.
    • Paulgonnabedebtfree
    • By Paulgonnabedebtfree 13th May 10, 1:45 AM
    • 2,703 Posts
    • 28,940 Thanks
    Paulgonnabedebtfree
    • #6
    • 13th May 10, 1:45 AM
    • #6
    • 13th May 10, 1:45 AM
    Doesn't look to be anything too horrific (yet) but, as ever, the devil will be in the detail.
    Although it won't affect me directly, I do want to express concerns over the reduction in tax credits. Firstly (as ever) it is likely to affect most harshly those who need them the most. Secondly, it will remove spending power from the economy. I have a hunch that raising personal tax allowances will not fully compensate for that shortfall. Indeed, although VAT has not yet been mentioned, it wouldn't surprise me if the personal allowance increase will be wiped out by the extra VAT. If/when VAT does increase, the new chancellors (Messrs Osborne and Clegg (sarcasm !!) ) would do well to remove/reduce the 5%?? VAT on domestic fuel bills WITHOUT removing the winter payments from those most in need.

    Also, a side note to Mr Clegg. The story goes that Judas Iscariot had the decency to hang himself. What are you going to do? Hopefully Clegg will settle for moderating the worst effects of Toryism and avoid a return to Thatcherism. If that's the case then I may retract the previous statement. Not that any politician gives a damn what I think.
    • pompeyrich
    • By pompeyrich 13th May 10, 6:50 AM
    • 3,066 Posts
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    pompeyrich
    • #7
    • 13th May 10, 6:50 AM
    • #7
    • 13th May 10, 6:50 AM
    If only the parties pre-election statements could be made "enforcable" but reading the article it seems not. Didn't take them long to change their minds did it?

    Tories have abandoned plans to reverse Labour's one percentage point rise in NI, which will come into effect next April. Tory plans to cut IHT have been put on hold. Lib Dem MPs will abstain on plans in the Budget to introduce tax allowances for married couples.
  • Dopple
    • #8
    • 13th May 10, 9:42 AM
    • #8
    • 13th May 10, 9:42 AM
    Why was VAT missed out of the article? That will be one of the first taxes to go up.
    • neneromanova
    • By neneromanova 13th May 10, 2:39 PM
    • 2,922 Posts
    • 6,907 Thanks
    neneromanova
    • #9
    • 13th May 10, 2:39 PM
    • #9
    • 13th May 10, 2:39 PM
    Here's the BBC news for VAT
    http://news.bbc.co.uk/1/hi/business/10112936.stm

    I do agree that something has to happen to get rid of this debt and the tories are doing a bold thing. Good on them.
    DD1 Born 31st March 2008
    DD2 Born 29th August 2010
    DS1 Born 28th October 2013
    Got Married 15th September 2012 Now Mrs Clark


  • BERFFRO
    I really hope they give the benefit system a really good shake up. I'm really angry that people who have never worked have everything, I see it more now been out of work, I have to travel by bus as i cant afford to keep a car but i see "fake" disability claimants passing in their brand new cars, make me so angry!

    A suggestion for them is to cap child benefits at 2 or 3 kids for the unemployed. I know im going to get slated but how many none working parents to you see every day? If you want kids then fair enough, But the government doesn't have to pay for them.
    • pompeyrich
    • By pompeyrich 13th May 10, 8:07 PM
    • 3,066 Posts
    • 3,087 Thanks
    pompeyrich
    I really hope they give the benefit system a really good shake up. I'm really angry that people who have never worked have everything, I see it more now been out of work, I have to travel by bus as i cant afford to keep a car but i see "fake" disability claimants passing in their brand new cars, make me so angry!

    A suggestion for them is to cap child benefits at 2 or 3 kids for the unemployed. I know im going to get slated but how many none working parents to you see every day? If you want kids then fair enough, But the government doesn't have to pay for them.
    Originally posted by BERFFRO
    You mean the hard working tax payer pays for them I think.
    • Paulgonnabedebtfree
    • By Paulgonnabedebtfree 14th May 10, 5:03 AM
    • 2,703 Posts
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    Paulgonnabedebtfree
    [QUOTE=BERFFRO;32786957]I really hope they give the benefit system a really good shake up. I'm really angry that people who have never worked have everything, I see it more now been out of work, I have to travel by bus as i cant afford to keep a car but i see "fake" disability claimants passing in their brand new cars, make me so angry!

    QUOTE]

    I'm not so sure it's a good idea to assess someone being fake or not by external appearances. There are many kinds of disability.
    I have been angrier about the hoops that genuinely disabled have been made to jump through. In years gone by, I have had two friends who were finally sent letters (after years of wrangling and appealing) accepting them for disability benefit - shortly after they died due the illnesses that were causing their disabilities. I also once knew an older man who was turned down flat for disability benefit - even though both legs had been amputated. Unfortunately he came from a generation that accepted authorities' decisions and never followed it up. He too later died from the illness that caused his disability (diabetes).
    I don't doubt that there are fakers too but the current stance of automatically turning down initial applications and the first few appeals needs to be urgently reviewed IMO.
    Also bear in mind that (IIRC) disabled people only qualify for a car if they are at the worst level of disability (I could be wrong on this). Also, the car is in lieu of the disability part of the payment. The payment is partly to allow mobility such as for paying fares for public transport or taxis. They are merely given the choice as to whether they wish to have use of a more convenient means of transport. They never actually own the vehicle.
    I feel it would be a bad move to remove this facility just because the assessment board MAY HAVE assessed a small minority incorrectly. The car is returned to the car pool where it may be sold as a used car or whatever they wish to do with it so the disabled person never actually benefits from any residual value in the vehicle. Indeed, if they have been unable to look after it properly (or have chosen not to) there can sometimes be a payment due.
  • qball101
    The thing about these tax rises and benefits is that they affect different regions differently. I think you'll find that a couple earning £25k each with 3 kids who living in London are a lot poorer than a similar couple in Cumbria for example. Not only are housing costs likely to be more expensive for the London couple, but so is childcare, entertainment and a whole host of other things. The limits for these benefits should be tied to the cost of living in that region.
  • Mac Sami
    National Insurance: To fund the tax break for some, the Tories have abandoned plans to reverse Labour's one percentage point rise in NI, which will come into effect next April. However, the Government will shelve Labour plans to raise the amount of NI employers pay.
    Am I the only one who thinks this is strangely worded - "abandoned plans to reverse Labour's one percentage point rise in NI".

    In other words, they're saying the Tories won't prevent a rise in NI in April 2011?

    Labour planned to increase NI by 1% for employees and employers
    Tories plan to increase NI by 1% for employees only

    Or have I misunderstood something?
  • Siemo
    A suggestion for them is to cap child benefits at 2 or 3 kids for the unemployed.
    Originally posted by BERFFRO
    I think it should be capped for everyone, whether employed or not. It is not a 'right' to have children, if you can't afford to look after them you shouldn't have them in the first place.

    Also, I'd like to see the 'Health in Pregnancy' grant removed (£190 for anyone who is pregnant - regardless of income) or at the very least changed to mothercare vouchers or something - at the moment you can spend it on drugs or cigarettes if you want to!!
  • mustin
    The thing about these tax rises and benefits is that they affect different regions differently. I think you'll find that a couple earning £25k each with 3 kids who living in London are a lot poorer than a similar couple in Cumbria for example. Not only are housing costs likely to be more expensive for the London couple, but so is childcare, entertainment and a whole host of other things. The limits for these benefits should be tied to the cost of living in that region.
    Originally posted by qball101

    I have to disagree. London has sucked the life out of the rest of the country for years and the recent banking crisis is the nationís legacy for believing some nonsense about the importance of the city. Why should the rest of the country pay more for people living in the capital ? We should collapse the banking sector and it's bonus culture which falsely props up London and its inhabitants into some disillusionment that it is more prominent and important than the regions. If we stopped diverting billions of taxpayersí pounds regenerating vast swathes of the capital under the falsehood of the Olympics, if we taxed bank bonuses to 75% to regenerate the slums in other parts of the country then property would be cheaper in the capital and you would feel better off. If we fairly distributed lottery funds to the rest of the country and ceased top slicing other regions budgets to pump into London then other areas would be much more attractive for you and the kids (which if you can't afford you shouldn't have). Oh, and to all those blood sucking whingers who claim they would go abroad if we get tough on these slimy city kinds then good riddance and I bid you farewell from Britain. See how far you get abroad. We don't need you.
    • mjm3346
    • By mjm3346 17th May 10, 1:51 PM
    • 40,210 Posts
    • 309,486 Thanks
    mjm3346
    Am I the only one who thinks this is strangely worded - "abandoned plans to reverse Labour's one percentage point rise in NI".

    In other words, they're saying the Tories won't prevent a rise in NI in April 2011?

    Labour planned to increase NI by 1% for employees and employers
    Tories plan to increase NI by 1% for employees only

    Or have I misunderstood something?
    Originally posted by Mac Sami
    The Tories made much of the "jobs tax" that increasing NI can be but by removing the increase for employers it is no longer a "jobs tax". If they are sticking to the Labour plans for employees the NI start point will rise to about £7,000 so employees earning just over £20,000 or under will pay less NI than they do now and someone on £25,000 would pay about £37 a year more.
    Last edited by mjm3346; 17-05-2010 at 7:14 PM.
    • mjm3346
    • By mjm3346 17th May 10, 2:17 PM
    • 40,210 Posts
    • 309,486 Thanks
    mjm3346
    I have to disagree. London has sucked the life out of the rest of the country for years .... and ceased top slicing other regions budgets to pump into London ....We don't need you.
    Originally posted by mustin
    Actually it is the other way round, London and the SE do not need you. For decades money has been been sucked out of the area as the greater south east is the only region where people get back less in public spending than is paid through taxation (upto £19.4 Billion in the 2007/2008 tax year).
    As for the Olympics you are more than welcome to have it as far away from London as you can get it.
  • competitionscafe
    "With the need to find ways to tackle the £169bn budget deficit, what would you do if someone offered a way to save £6bn this year rising to £10bn per year next year and ever after – with no public sector cuts or increases in taxes? And, what if this also boosted the green economy, creating jobs? And met consumer demand? And helped improve health?"..... [continued at link]

    Food for thought.
    "The happiest of people don't necessarily have the
    best of everything; they just make the best
    of everything that comes along their way."
    -- Author Unknown --
    • John_Pierpoint
    • By John_Pierpoint 17th May 10, 6:40 PM
    • 8,248 Posts
    • 7,388 Thanks
    John_Pierpoint
    Just cancel the subsidies already paid to landowners via the common agricultural policy and you would be two thirds of the way to saving the 6 billion.
    But how fair would that be to the big land owners like Tate & Lyle sugar and the Royal family?.

    http://farmsubsidy.org/GB

    http://www.farmersguardian.com/home/latest-news/civil-servants-criticised-for-withholding-uk-cap-data/31773.article
    Last edited by John_Pierpoint; 17-05-2010 at 6:46 PM.
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