Here comes the tax rises

[papa smurf]

Originally Posted by Damien

The best thing about a Labour Government is the people who suddenly care about benefits being cut. They're right of course but it would have been good to have their support when it was literally every other sector of society being targetted.

i wonder how many labour MP's will be unhappy about benefit cuts once parliament reopens.

Probably quite a few, especially with energy prices going up

[Kursk]

Was the Prime Minister's speech yesterday from Downing Street's rose garden accidentally mixed up with the lyrics of Lynn Anderson's hit of the same name from the 1970's?

He seems to be singing the same old tune: https://www.youtube.com/watch?v=8iAKUqzID4o

[Pierre]

Originally Posted by denphone

With a £22 billion financial black hole that the previous government left the new incumbents, hard choices have to be made and the Tories would have had the same hard choices if they had retained power.

I doubt the Tories would have capitulated so easily. Didn’t seem like a hard choice to give out the recent pay bonanzas, with more to come no doubt.

[Mr K]

Originally Posted by denphone

With a £22 billion financial black hole that the previous government left the new incumbents, hard choices have to be made and the Tories would have had the same hard choices if they had retained power.

They knew they weren't going to get back in Den, so took the money for themselves and chums and ran.

Time for the idle rich to shell out. The good times are over for them. Landlords, share speculators, ex tory mps, might have to get off their backsides and do a real job. It's an outrage ( we'll it is according to the Torygraph). Their kids might even have to join the riff raff in a state school, it's appalling...

[Escapee]

Originally Posted by Mr K

Time for the idle rich to shell out.

But they won't, they will start with the easy targets!

The first will be on money earned via PAYE, it's the only source of income they are guaranteed to collect. The first target will most likely be pension tax relief, with think-tanks saying it costs a lot of money. (That always gets me, the left seem to think it's free money being given to others but not them)

I also suspect that pay per mile and free parking provided by an employer could be potential targets, anything that hit those who work.

They may not touch employee tax or NI, but it will likely be employers NI that will increase. Corporation tax is another likely area that they will target, the knock on will be stagnation of wages except for those working for their unions.

There are too many Labour MPs with property portfolios to hit landlords, they will need private landlords to house all the immigrants that are going to get amnesties and the ones he will agree to take from the EU, unless of course Angela meets her house building target.

They won't be chasing unicorn tax from the rich, it will be the easy targets that get clobbered.

[papa smurf]

Originally Posted by Escapee

But they won't, they will start with the easy targets!

The first will be on money earned via PAYE, it's the only source of income they are guaranteed to collect. The first target will most likely be pension tax relief, with think-tanks saying it costs a lot of money. (That always gets me, the left seem to think it's free money being given to others but not them)

I also suspect that pay per mile and free parking provided by an employer could be potential targets, anything that hit those who work.

They may not touch employee tax or NI, but it will likely be employers NI that will increase. Corporation tax is another likely area that they will target, the knock on will be stagnation of wages except for those working for their unions.



There are too many Labour MPs with property portfolios to hit landlords, they will need private landlords to house all the immigrants that are going to get amnesties and the ones he will agree to take from the EU, unless of course Angela meets her house building target.

They won't be chasing unicorn tax from the rich, it will be the easy targets that get clobbered.

Sounds like the turkeys just voted for xmas

I’ve avoided this thread until now because I didn’t think I could engage with anyone who somehow still managed to hold their head high and vote Tory without blowing a gasket.

All I’ll say at this point is that I seriously doubt that any non-traditional Labour voter gave Starmer their vote this year thinking that Labour wouldn’t put taxes up. It was painfully obvious that Johnson, Truss and Sunak ran the ship so hard against the rocks that we were all going to end up paying for it.

And yet here we are with a thread of 170 posts and counting, liberally sprinkled with with pearl-clutching, faux-outrage and performative ‘I told you so’.

It’s 24-carat bovine excreta.

Originally Posted by Escapee

But they won't, they will start with the easy targets!

The first will be on money earned via PAYE, it's the only source of income they are guaranteed to collect. The first target will most likely be pension tax relief, with think-tanks saying it costs a lot of money. (That always gets me, the left seem to think it's free money being given to others but not them)

I also suspect that pay per mile and free parking provided by an employer could be potential targets, anything that hit those who work.

They may not touch employee tax or NI, but it will likely be employers NI that will increase. Corporation tax is another likely area that they will target, the knock on will be stagnation of wages except for those working for their unions.

There are too many Labour MPs with property portfolios to hit landlords, they will need private landlords to house all the immigrants that are going to get amnesties and the ones he will agree to take from the EU, unless of course Angela meets her house building target.

They won't be chasing unicorn tax from the rich, it will be the easy targets that get clobbered.

Another easy target is the Tax Free Allowances, freeze them for even longer.

Of course, if you're getting a 20% or more payrise, you might not notice so much.

[Pierre]

Looks Capital Gains is going to cop it.

There’s already a risk associated with investing.

So you invest your cash, and if you invest it wisely they’ll take more off you.

So if you invest it and lose it all, I doubt they’ll come and compensate you.

So then less people will be inclined to invest in the economy………….genius. There’s a policy for growth right there!

[papa smurf]

Originally Posted by Pierre

Looks Capital Gains is going to cop it.

There’s already a risk associated with investing.

So you invest your cash, and if you invest it wisely they’ll take more off you.

So if you invest it and lose it all, I doubt they’ll come and compensate you.

So then less people will be inclined to invest in the economy………….genius. There’s a policy for growth right there!

i wouldn't invest a penny in this country all you get in return is fleeced.
labour are all about the politics of envy.

[daveeb]

Originally Posted by papa smurf

i wouldn't invest a penny in this country all you get in return is fleeced.
labour are all about the politics of envy.

Don't know about Labour but I certainly envy Michelle Mone , Matt Hancocks landlord and all the other duckers and divers who creamed off £millions of public money at the Tory trough of plenty. £60 Million would come in quite useful on big shop day.

[Escapee]

Originally Posted by Paul

Another easy target is the Tax Free Allowances, freeze them for even longer.

Of course, if you're getting a 20% or more payrise, you might not notice so much.

The 20% payrise is unlikely to be the end to it, once they see that the tax increases have eroded what they were expecting to have in their pocket, they will be asking for more.

ps. O think continuing to freeze tax allowances is a given.

---------- Post added at 20:35 ---------- Previous post was at 20:26 ----------

Originally Posted by Chris

All I’ll say at this point is that I seriously doubt that any non-traditional Labour voter gave Starmer their vote this year thinking that Labour wouldn’t put taxes up.

It's not that those that voted for Starmer didn't expect him to hike tax, but they were silly enough to think he would be getting extra dosh from the rich.

I must admit that I have been having a good laugh about the fuel allowance, because the pensioner friends I have that are complaining the most about it are traditional Labour voters.

[Taf]

Originally Posted by Escapee

The 20% payrise is unlikely to be the end to it, once they see that the tax increases have eroded what they were expecting to have in their pocket, they will be asking for more.

It's the same with Minimum Wage / Living Wage.

The government tells bosses to pay their lowest paid workers more. That means the bosses pay more in National Insurance and the workers pay more in National Insurance and Income Tax.

Then the bosses increase the cost of their goods or services to pay for the rises.

As it spreads, the Cost Of Living increases, nullifying their pay rises.

"Please Sir, can I have more?"

"Someone in a full-time permanent role working a 40-hour week will earn a gross annual salary of £23,795.20, up from £21,673.60. £424.32 extra IS for the Treasury. From 1st April 2024, the National Minimum Wage for 18-20 year olds will be £8.60, up from £7.49."

Originally Posted by Escapee

I must admit that I have been having a good laugh about the fuel allowance, because the pensioner friends I have that are complaining the most about it are traditional Labour voters.

That's probably demographically unrepresentative though. Pensioners as a block are Tory learning, even in 2024, but we're talking about ones who are - on paper anyway - 'better off' so probably the strongest Tory demographic in the country.

---------- Post added at 21:21 ---------- Previous post was at 21:17 ----------

Originally Posted by Escapee

The 20% payrise is unlikely to be the end to it, once they see that the tax increases have eroded what they were expecting to have in their pocket, they will be asking for more.

Well, they already were. Their whole thing is 'Full Pay Restoration' which is to be paid what they were in 2008 in real terms. Not so much on tax but relative to inflation. They will come back to it.

Remember the full pay increase is not a literal 20% bump to their annual salary but an amalgamation of prior raises already agreed, one-off bonuses and a 5% actual salary bump IIRC.

ps. O think continuing to freeze tax allowances is a given.

Yeah they're not gonna move for the entire Parliament.