Quote:
Originally Posted by OLD BOY
The deficit is within a whisker of being paid off. That's why we can look forward to austerity easing off a bit. The answer never was to make matters worse by increasing borrowing!
|
I so wish this was the case. A reminder of the financial issues the UK is now facing:
Quote:
|
Theresa May’s pledge to end austerity, renew the NHS, freeze fuel duties and increase council house building has left the UK Treasury facing a hole in the public finances of up to £35bn-a-year by the end of the current Parliament.
|
https://www.ft.com/content/d4a5a452-...f-ee390057b8c9
So, the reality of the current increased spending commitments is higher taxes and/or higher borrowing. From the FT just now:
Quote:
Philip Hammond has told officials that “nothing is off the table” as he considers a range of controversial tax moves in this month’s Budget to help fund Theresa May’s promised £26bn cash boost to the NHS.
Mr Hammond argues that tax promises contained in the 2017 Conservative manifesto have been rendered void by Mrs May’s unforeseen decision to pump cash into Britain’s health system, the government’s “number one priority”.
The chancellor is considering a range of options including cutting pensions tax relief for higher earners, delaying flagship plans to raise income tax thresholds and a controversial shake-up of VAT rules for small companies.
|
https://www.ft.com/content/7aa69be2-...5-24ad351828ab
Quote:
Originally Posted by Sephiroth
They’ll possibly pay down the debt by increasing VAT. That’s what Thatcher did.
|
Talk is of aligning the level at which companies pay tax with the EU norm of about £20k+ turnover. Currently, only UK companies with an £85k+ turnover have to pay VAT.