The most damning thing of all is the reduction to growth forecasts.
Starmer said his number 1 priority is to raise growth.
And in this very first budget the growth foreacsts have been reduced.
And that is important to how much income raised by tax rates. Continued sluggish growth, meaning lower than hoped tax yields, £T spending committed, shortfall on balanced budget, extra borrowing at extra expensive rates, requires further cost cutting (largely on investment) and stealthy and brazen tax rises. Looks like more of these austerity budgets at least the next couple of years too. That’s the accurate summing up of this afternoons statement isn’t it. Even before we see what’s hidden in small print (she didn’t mention saving schemes, pasty’s or even windows).
Just no - the only purpose for it is if we have run out of other places to store solar / wind generated energy and even then I don't see the point..
There's an interesting company in the States looking at Solar -> Hydrogen -> Methane (Sabatier), using atmospheric CO2
Interesting because they admit the inefficiency - but make up for it on the cheapness of solar. Also things like having no storage for power - system runs when sun is up. And no conversion electronics on the solar cells - directly powering the reaction.
Very impressed with Rachel Reeves even disregarding the content
Yep. It was a sound performance, but the devil is always in the detail. Not too much sounding awful to me.
The cut in employees NI followed by the rise in Employers NI is like a compulsory payrise for everyone at their employers expense when looked at overall.
For a moment I thought another cut in employee NI had been announced! But you're talking about the cut under the last government, aren't you?
Instant reaction: much more short-termist than I expected.
For a Chancellor at the height of her power and flexibility, a bit depressing. Consider the cost of maintaining the fuel duty freeze and triple lock - that's a huge amount of investment cash foregone. Nothing on council tax.
There is a difficult contrast to be made with bus fares and fuel duty. Together, that's a deeply regressive move.
Fuel duty is the most regressive tax of all.
And it's being abolished. It is shameless and vindictive sugar rush politics to raise a tax that is so regressive and being abolished long term.
Pure hatefulness from you and sane not to raise a tax that has no long term future and is purely regressive.
Very impressed with Rachel Reeves even disregarding the content
Yep. It was a sound performance, but the devil is always in the detail. Not too much sounding awful to me.
The cut in employees NI followed by the rise in Employers NI is like a compulsory payrise for everyone at their employers expense when looked at overall.
Feels like the government will live and die by how business reacts to the NI rise.
Reading some of the more deranged comments on here you have to be pleased there are very strict gun control laws in the UK. I would trust - I think - most of PB's rightward leaning demographic to keep their visceral hatred of the government confined to violent words, but not everyone has that level of self-control.
Very impressed with Rachel Reeves even disregarding the content
Yep. It was a sound performance, but the devil is always in the detail. Not too much sounding awful to me.
The cut in employees NI followed by the rise in Employers NI is like a compulsory payrise for everyone at their employers expense when looked at overall.
Foxy, you might want to spare a thought for those who don't have DB pension scheme's. For us it's awful believe me.
Still not convinced this is all adding up….. but difficult to say at this point
Beeb are saying that the reduction in employer NI threshold raises £25 billion. (It's 15% on another £4000 of pay, so that's about £600 per worker, which is a hefty slice of the amount needed.)
True, but there’s a lot of heavy lifting in the small print, it feels to me. I may be wrong…
You are not wrong. And of course every expert saying “it brings in XX billion” is based on predictions for growth - that would be a prediction about 1.1% for 2025? Less than 1.1 and lot less tax coming in, and unbalanced budget.
Taxes are set, growth decides the income, and how many growth predictions prove all that accurate? For example, every expert you hear in next 3 days saying it brings in xx because growth in 25 will be x.x and 26 x.x etc etc, is that factoring in Tariff Trumps victory, or factoring out Tarif Trumps victory? Two very different growth figures.
Whatever side of the argument, or from economist, journalist or politician, what they will pass off as fact, is actually guesswork on unknown unknowns.
Though if growth is higher (and PB Tories constantly tell us that the ONS underestimates it) then the coffers should have a comfortable safety cushion.
I don't know what she means by unlocking the potential of Cambridge. The whole of greater Cambridge is a bloody building site already.
I hope she's referring to things like East-West Rail. Although that's usually promoted as being 'unlocking the potential of the Oxford to Cambridge corridor."
I was selfishly hoping that East-West rail would be dumped as it's going to result in another half decade of building noise outside my flat and the proposed station for St Neots is actually out in the middle of nowhere so won't be very convenient for me anyway.
But Cambourne station will be very convenient for me.
I wonder where your flat is... Central Cambridge shouldn't be too affected by EWR AIUI (though I might be wrong, and the plans are still flexible). The first impact further south will be where the four tracks from Shepreth Junction become two, I *think* south of the new Cambridge South station?
I live in St Neots near the current railway bridge which I believe will need to be upgraded because EWR. It's been a while since I looked at the plans though. Despite my own personal annoyance it's a good idea really.
Reading some of the more deranged comments on here you have to be pleased there are very strict gun control laws in the UK. I would trust - I think - most of PB's rightward leaning demographic to keep their visceral hatred of the government confined to violent words, but not everyone has that level of self-control.
Nakedly political as she is hitting companies who don't have votes and groups like investors who have few votes. Odd as they don't have to face the voters for nearly five years.
Overall, the most anti-growth, short-termist peacetime budget ever. The country's depressing stagnation will continue, and it will be poorer and more divided as a result.
Don't worry, drivers will pay for it with Pay-Per-Mile in a couple of years...
A good way to kill their political chances with anyone not living in a metropolitan centre.
Fuel duty is going to bring in less and less in not all that long with EVs, so unless you ramp up tax on electricity (with all the side-effects that brings), then road charging is the only sensible way to replace it. But that runs into the problem of simplicity v fairness. You'd also need a comprehensive and effective monitoring network to process all the fees. But it could, in principle, be done.
Surely the simplest way would be some combination of mileage at MOT time and address of registered keeper.
Simplest way is to find the money for general taxation from the general public and not fleece drivers.
Too many here take for grabted the beneftis of off road parking for EVs but millions don't have that. Paying to charge an EV at a public charging point costs more than filling a hybrid with petrol even though the petrol vehicle has fuel duty.
The idea that people should pay that and then road charges on top is preposterous.
It doesn't seem unreasonable that those who make the most use of the roads should contribute the most towards the maintenance of the system that provides said roads.
Birmingham tram extension gets funding. Anything for Nottingham, Manchester metros etc?
Nothing for North East transport either.
She announced that she is to fund the electrification of Church Fenton to York - which is already funded and underway. And various other existing live being delivered schemes.
Would you have been happier had she announced funding of rail services to Ashington in a similar vein...?
Electrifying Church Fenton to York is completely pointless unless the programme is continued through to Leeds (at least), now that HS2(Yorks) has been binned.
Not *completely* useless - I believe that faster acceleration of Transpennine Services out of York on electric power will add a little more capacity.
"On HS2 - the high speed rail project - Reeves says they are committing the funding to begin tunnelling work to London Euston, meaning Old Oak Common in West London and Euston. It was one of the sections of the multi-billion pound rail project that had been scrapped by the Conservative government. Without the link to Euston, people travelling between Birmingham and London would arrive at Old Oak Common and have to take another train to travel into the centre of the capital."
Not a new announcement. The tunnelling to Euston has never been cancelled. It's the station that was delayed/cancelled:
Yes, if it's as in the quote above, that's very disappointing. AIUI it's more expensive to stop tunnelling, only to restart later, than it is just to dig the blooming tunnels. But the vast majority of the expense of OOC to Euston would be Euston station.
Very impressed with Rachel Reeves even disregarding the content
Yep. It was a sound performance, but the devil is always in the detail. Not too much sounding awful to me.
The cut in employees NI followed by the rise in Employers NI is like a compulsory payrise for everyone at their employers expense when looked at overall.
Foxy, you might want to spare a thought for those who don't have DB pension scheme's. For us it's awful believe me.
What was said on pensions or ISAs that bothers you?
Don't worry, drivers will pay for it with Pay-Per-Mile in a couple of years...
A good way to kill their political chances with anyone not living in a metropolitan centre.
Fuel duty is going to bring in less and less in not all that long with EVs, so unless you ramp up tax on electricity (with all the side-effects that brings), then road charging is the only sensible way to replace it. But that runs into the problem of simplicity v fairness. You'd also need a comprehensive and effective monitoring network to process all the fees. But it could, in principle, be done.
Surely the simplest way would be some combination of mileage at MOT time and address of registered keeper.
Simplest way is to find the money for general taxation from the general public and not fleece drivers.
Too many here take for grabted the beneftis of off road parking for EVs but millions don't have that. Paying to charge an EV at a public charging point costs more than filling a hybrid with petrol even though the petrol vehicle has fuel duty.
The idea that people should pay that and then road charges on top is preposterous.
It doesn't seem unreasonable that those who make the most use of the roads should contribute the most towards the maintenance of the system that provides said roads.
Indeed.
And road tax raises roughly the same amount as road expenditure.
Fuel duty was just a tax grab. There is no need to replace it as its abolished.
Just balance road tax with road expenditure. Done.
No surprises in the budget. As expected higher taxes on employers and small businesses, family businesses and large farms and entrepreneurs and those with private pensions and private school parents and those seeking right to buy.
Very impressed with Rachel Reeves even disregarding the content
Yep. It was a sound performance, but the devil is always in the detail. Not too much sounding awful to me.
The cut in employees NI followed by the rise in Employers NI is like a compulsory payrise for everyone at their employers expense when looked at overall.
Foxy, you might want to spare a thought for those who don't have DB pension scheme's. For us it's awful believe me.
What was said on pensions or ISAs that bothers you?
DC pensions coming into estate for IHT purposes. Goodness knows if this is doable given pensions are in trust.
Don't worry, drivers will pay for it with Pay-Per-Mile in a couple of years...
A good way to kill their political chances with anyone not living in a metropolitan centre.
Fuel duty is going to bring in less and less in not all that long with EVs, so unless you ramp up tax on electricity (with all the side-effects that brings), then road charging is the only sensible way to replace it. But that runs into the problem of simplicity v fairness. You'd also need a comprehensive and effective monitoring network to process all the fees. But it could, in principle, be done.
Surely the simplest way would be some combination of mileage at MOT time and address of registered keeper.
Simplest way is to find the money for general taxation from the general public and not fleece drivers.
Too many here take for grabted the beneftis of off road parking for EVs but millions don't have that. Paying to charge an EV at a public charging point costs more than filling a hybrid with petrol even though the petrol vehicle has fuel duty.
The idea that people should pay that and then road charges on top is preposterous.
It doesn't seem unreasonable that those who make the most use of the roads should contribute the most towards the maintenance of the system that provides said roads.
Indeed.
And road tax raises roughly the same amount as road expenditure.
Fuel duty was just a tax grab. There is no need to replace it as its abolished.
Just balance road tax with road expenditure. Done.
The cost to society of car use isn't limited to the cost of road maintenance.
Very impressed with Rachel Reeves even disregarding the content
Yep. It was a sound performance, but the devil is always in the detail. Not too much sounding awful to me.
The cut in employees NI followed by the rise in Employers NI is like a compulsory payrise for everyone at their employers expense when looked at overall.
Foxy, you might want to spare a thought for those who don't have DB pension scheme's. For us it's awful believe me.
What was said on pensions or ISAs that bothers you?
DC pensions coming into estate for IHT purposes. Goodness knows if this is doable given pensions are in trust.
Can you or Foxy enlighten me - What happens if someone with a DB pension drops dead the day after they turn 68 ?
The big one was the bringing in pension funds to IHT. Massive.
This will not affect public sector workers with DB schemes.
So the balance once more from private sector to public.
Details to come but thoughts include:
What about inheritance by spouse?
At what rate - 40%?!
Death below age 75 too?
What about tax on withdrawals*?
* people think that unexhausted pension funds can pass down tax free. This is not true - IHT free yes but withdrawals are taxed at withdrawer's marginal rate of income tax as earned income (assuming deceased was over 75 on death). If these unexhausted funds are to be brought into the estate for IHT calculation, does this mean no further tax on withdrawals by the beneficiaries. Or will the fund be taxed twice?
The logical thing is that the pension wrapper ends on transfer out of the estate. So no further income tax on withdrawals but also no further tax shelter from dividends or CGT.
Not sure if that is what they will do but think that is fairer than the current system. Pension tax shelters should be for individuals retirements not passing inter generational wealth.
Don't worry, drivers will pay for it with Pay-Per-Mile in a couple of years...
A good way to kill their political chances with anyone not living in a metropolitan centre.
Fuel duty is going to bring in less and less in not all that long with EVs, so unless you ramp up tax on electricity (with all the side-effects that brings), then road charging is the only sensible way to replace it. But that runs into the problem of simplicity v fairness. You'd also need a comprehensive and effective monitoring network to process all the fees. But it could, in principle, be done.
Surely the simplest way would be some combination of mileage at MOT time and address of registered keeper.
Simplest way is to find the money for general taxation from the general public and not fleece drivers.
Too many here take for grabted the beneftis of off road parking for EVs but millions don't have that. Paying to charge an EV at a public charging point costs more than filling a hybrid with petrol even though the petrol vehicle has fuel duty.
The idea that people should pay that and then road charges on top is preposterous.
It doesn't seem unreasonable that those who make the most use of the roads should contribute the most towards the maintenance of the system that provides said roads.
Indeed.
And road tax raises roughly the same amount as road expenditure.
Fuel duty was just a tax grab. There is no need to replace it as its abolished.
Just balance road tax with road expenditure. Done.
The cost to society of car use isn't limited to the cost of road maintenance.
One big budget takeaway is that Reeves is a lot better at politics than her boss.
Surprising on the upside?
It's an easier gig- speaking for an hour on a subject of your choosing as opposed to fielding questions on anything at all of your questioner's choosing. But yeah, she done fine. Though as usual, small print.
The lurid speculation probably helped her, too. Compared with that, this looks relatively mild, given that billions had to come from somewhere.
I've mentioned before a comment Bill Hartston made on one of those "chess players narrating their thoughts during the game" shows the BBC used to do. When good players make blunders, they somehow always manage to get compensation for whatever they lost.
Worth mentioning that sole director companies do not get access to Employment Allowance, so this will massively impact on small businesses.
Hope RR factored that in.
It seems small businesses have been relatively hammered the most. Which a bit like bashing the bus wankers versus drivers seem wrong way up.
Lots of media people love a good sole director company....they often very angry when people mess with those e.g. Hammond trying to increase NI on them by a few £100, was like end of the world stuff.
If he'd been that good when he was PM and if people had found out about Starmer's freebies a couple of months earlier things might have been very different ...
Sterling rising, this is quite an inflationary budget so I expect interest rates will stay higher for longer.
Great news for savers.
Double whammy for risk takers though. Government protecting old people who keep their money in the bank over risk takers who put their money into businesses and equities.
Instant reaction: much more short-termist than I expected.
For a Chancellor at the height of her power and flexibility, a bit depressing. Consider the cost of maintaining the fuel duty freeze and triple lock - that's a huge amount of investment cash foregone. Nothing on council tax.
There is a difficult contrast to be made with bus fares and fuel duty. Together, that's a deeply regressive move.
Fuel duty is the most regressive tax of all.
And it's being abolished. It is shameless and vindictive sugar rush politics to raise a tax that is so regressive and being abolished long term.
Pure hatefulness from you and sane not to raise a tax that has no long term future and is purely regressive.
The highest income quintile do 3x as much car mileage as the lowest.
The lowest income quintile do 2.7x as much bus mileage as the highest.
The big one was the bringing in pension funds to IHT. Massive.
This will not affect public sector workers with DB schemes.
So the balance once more from private sector to public.
Details to come but thoughts include:
What about inheritance by spouse?
At what rate - 40%?!
Death below age 75 too?
What about tax on withdrawals*?
* people think that unexhausted pension funds can pass down tax free. This is not true - IHT free yes but withdrawals are taxed at withdrawer's marginal rate of income tax as earned income (assuming deceased was over 75 on death). If these unexhausted funds are to be brought into the estate for IHT calculation, does this mean no further tax on withdrawals by the beneficiaries. Or will the fund be taxed twice?
The logical thing is that the pension wrapper ends on transfer out of the estate. So no further income tax on withdrawals but also no further tax shelter from dividends or CGT.
Not sure if that is what they will do but think that is fairer than the current system. Pension tax shelters should be for individuals retirements not passing inter generational wealth.
Indeed, and those of us on DB pensions can not bequeath the pension at all, with or without tax.
Worth mentioning that sole director companies do not get access to Employment Allowance, so this will massively impact on small businesses.
Hope RR factored that in.
It seems small businesses have been relatively hammered the most. Which a bit like bashing the bus wankers versus drivers seem wrong way up.
Lots of media people love a good sole director company....they often very angry when people mess with those e.g. Hammond trying to increase NI on them.
Over 1m small businesses are going to pay less or no employers NI. So not true.
"On HS2 - the high speed rail project - Reeves says they are committing the funding to begin tunnelling work to London Euston, meaning Old Oak Common in West London and Euston. It was one of the sections of the multi-billion pound rail project that had been scrapped by the Conservative government. Without the link to Euston, people travelling between Birmingham and London would arrive at Old Oak Common and have to take another train to travel into the centre of the capital."
Not a new announcement. The tunnelling to Euston has never been cancelled. It's the station that was delayed/cancelled:
Yes, if it's as in the quote above, that's very disappointing. AIUI it's more expensive to stop tunnelling, only to restart later, than it is just to dig the blooming tunnels. But the vast majority of the expense of OOC to Euston would be Euston station.
And that's because the Euston station work is multiple projects at the same time
1) rebuild Euston to be fit for purpose 2) rebuild Euston Underground to be fit for purpose 3) Add the platforms HS2 needs...
And the top 2 of those have nothing to do with HS2 it's just work that should have been done sometime in the past 20 years..
Worth mentioning that sole director companies do not get access to Employment Allowance, so this will massively impact on small businesses.
Hope RR factored that in.
It seems small businesses have been relatively hammered the most. Which a bit like bashing the bus wankers versus drivers seem wrong way up.
Lots of media people love a good sole director company....they often very angry when people mess with those e.g. Hammond trying to increase NI on them.
Over 1m small businesses are going to pay less or no employers NI. So not true.
Lots of other costs up. The new workers rights will most effect the small businesses, significant minimum wage increases, business rates doubled....
Instant reaction: much more short-termist than I expected.
For a Chancellor at the height of her power and flexibility, a bit depressing. Consider the cost of maintaining the fuel duty freeze and triple lock - that's a huge amount of investment cash foregone. Nothing on council tax.
There is a difficult contrast to be made with bus fares and fuel duty. Together, that's a deeply regressive move.
Fuel duty is the most regressive tax of all.
And it's being abolished. It is shameless and vindictive sugar rush politics to raise a tax that is so regressive and being abolished long term.
Pure hatefulness from you and sane not to raise a tax that has no long term future and is purely regressive.
The highest income quintile do 3x as much car mileage as the lowest.
The lowest income quintile do 2.7x as much bus mileage as the highest.
Which says absolutely nothing about how regressive a tax is.
Which quintile spends a higher percentage of their income on fuel duty? The poorest.
By a long shot. It's not even close.
Doing more miles in a new Tesla doesn't have a penny in fuel duty. Driving to work in a banger you rely.on does.
I don't know what she means by unlocking the potential of Cambridge. The whole of greater Cambridge is a bloody building site already.
I hope she's referring to things like East-West Rail. Although that's usually promoted as being 'unlocking the potential of the Oxford to Cambridge corridor."
I was selfishly hoping that East-West rail would be dumped as it's going to result in another half decade of building noise outside my flat and the proposed station for St Neots is actually out in the middle of nowhere so won't be very convenient for me anyway.
But Cambourne station will be very convenient for me.
I wonder where your flat is... Central Cambridge shouldn't be too affected by EWR AIUI (though I might be wrong, and the plans are still flexible). The first impact further south will be where the four tracks from Shepreth Junction become two, I *think* south of the new Cambridge South station?
I live in St Neots near the current railway bridge which I believe will need to be upgraded because EWR. It's been a while since I looked at the plans though. Despite my own personal annoyance it's a good idea really.
Oooh, my turf. I'll have run past your place, potentially many times. Not that I'm trying to be stalkerish or anything...
I've not been keeping up to date with the latest EWR proposals as I've been expecing the Bedford to Cam section (BedCam? (*)), but I thought it was going to go slightly further east, skirting to the east of Wintringham and the hideously-named 'Monksfield' development (**).
(*) Bedford to St Pancras electrified services were known as 'BedPan'. I quite like the idea of this being BedCam... (**) Hideously-named as there's a 'Monkfield' area in Cambourne, just eight miles away, including a Monkfield Medical Practice, Monkfield School etc. Having a 'Monkfield' area and a 'Monksfield' in such close proximity is utterly stupid.
Don't worry, drivers will pay for it with Pay-Per-Mile in a couple of years...
A good way to kill their political chances with anyone not living in a metropolitan centre.
Fuel duty is going to bring in less and less in not all that long with EVs, so unless you ramp up tax on electricity (with all the side-effects that brings), then road charging is the only sensible way to replace it. But that runs into the problem of simplicity v fairness. You'd also need a comprehensive and effective monitoring network to process all the fees. But it could, in principle, be done.
Surely the simplest way would be some combination of mileage at MOT time and address of registered keeper.
Simplest way is to find the money for general taxation from the general public and not fleece drivers.
Too many here take for grabted the beneftis of off road parking for EVs but millions don't have that. Paying to charge an EV at a public charging point costs more than filling a hybrid with petrol even though the petrol vehicle has fuel duty.
The idea that people should pay that and then road charges on top is preposterous.
It doesn't seem unreasonable that those who make the most use of the roads should contribute the most towards the maintenance of the system that provides said roads.
Indeed.
And road tax raises roughly the same amount as road expenditure.
Fuel duty was just a tax grab. There is no need to replace it as its abolished.
Just balance road tax with road expenditure. Done.
The cost to society of car use isn't limited to the cost of road maintenance.
Yes it is.
The benefits go well beyond it though.
Of course car use has costs to society. This article outlines them. It's referring to the US, but the same arguments apply here.
Don't worry, drivers will pay for it with Pay-Per-Mile in a couple of years...
A good way to kill their political chances with anyone not living in a metropolitan centre.
Fuel duty is going to bring in less and less in not all that long with EVs, so unless you ramp up tax on electricity (with all the side-effects that brings), then road charging is the only sensible way to replace it. But that runs into the problem of simplicity v fairness. You'd also need a comprehensive and effective monitoring network to process all the fees. But it could, in principle, be done.
Surely the simplest way would be some combination of mileage at MOT time and address of registered keeper.
Simplest way is to find the money for general taxation from the general public and not fleece drivers.
Too many here take for grabted the beneftis of off road parking for EVs but millions don't have that. Paying to charge an EV at a public charging point costs more than filling a hybrid with petrol even though the petrol vehicle has fuel duty.
The idea that people should pay that and then road charges on top is preposterous.
It doesn't seem unreasonable that those who make the most use of the roads should contribute the most towards the maintenance of the system that provides said roads.
Indeed.
And road tax raises roughly the same amount as road expenditure.
Fuel duty was just a tax grab. There is no need to replace it as its abolished.
Just balance road tax with road expenditure. Done.
The cost to society of car use isn't limited to the cost of road maintenance.
But the cost to society of carbon emissions is reducing, so the taxation should be reduced accordingly.
Instant reaction: much more short-termist than I expected.
For a Chancellor at the height of her power and flexibility, a bit depressing. Consider the cost of maintaining the fuel duty freeze and triple lock - that's a huge amount of investment cash foregone. Nothing on council tax.
There is a difficult contrast to be made with bus fares and fuel duty. Together, that's a deeply regressive move.
Fuel duty is the most regressive tax of all.
And it's being abolished. It is shameless and vindictive sugar rush politics to raise a tax that is so regressive and being abolished long term.
Pure hatefulness from you and sane not to raise a tax that has no long term future and is purely regressive.
The highest income quintile do 3x as much car mileage as the lowest.
The lowest income quintile do 2.7x as much bus mileage as the highest.
Indeed, the poorest quintile actually do 3.5x as many bus trips as the richest.
Reading some of the more deranged comments on here you have to be pleased there are very strict gun control laws in the UK. I would trust - I think - most of PB's rightward leaning demographic to keep their visceral hatred of the government confined to violent words, but not everyone has that level of self-control.
Are we reading different PBs?
Well, in the last few days on here I have seen Reeves being described as a bitch, Starmer described as a traitor and the government accused of being engaged in a conspiracy to deceive the British people about the Southport murders. That's pretty extreme. As I say, I doubt anyone on PB will go further than violent language. But not everyone has that level of control.
Worth mentioning that sole director companies do not get access to Employment Allowance, so this will massively impact on small businesses.
Hope RR factored that in.
It seems small businesses have been relatively hammered the most. Which a bit like bashing the bus wankers versus drivers seem wrong way up.
Lots of media people love a good sole director company....they often very angry when people mess with those e.g. Hammond trying to increase NI on them.
Over 1m small businesses are going to pay less or no employers NI. So not true.
Lots of other costs up. The new workers rights will most effect the small businesses, significant minimum wage increases, business rates doubled....
I suspect an awful lot of the businesses you are talking about don't pay a penny in business rates and won't do when things change...
The big one was the bringing in pension funds to IHT. Massive.
This will not affect public sector workers with DB schemes.
So the balance once more from private sector to public.
Details to come but thoughts include:
What about inheritance by spouse?
At what rate - 40%?!
Death below age 75 too?
What about tax on withdrawals*?
* people think that unexhausted pension funds can pass down tax free. This is not true - IHT free yes but withdrawals are taxed at withdrawer's marginal rate of income tax as earned income (assuming deceased was over 75 on death). If these unexhausted funds are to be brought into the estate for IHT calculation, does this mean no further tax on withdrawals by the beneficiaries. Or will the fund be taxed twice?
The logical thing is that the pension wrapper ends on transfer out of the estate. So no further income tax on withdrawals but also no further tax shelter from dividends or CGT.
Not sure if that is what they will do but think that is fairer than the current system. Pension tax shelters should be for individuals retirements not passing inter generational wealth.
Indeed, and those of us on DB pensions can not bequeath the pension at all, with or without tax.
Yeah but that is apples and oranges. Private sector annuities would be the comparison there, which are treated identically aiui.
"On HS2 - the high speed rail project - Reeves says they are committing the funding to begin tunnelling work to London Euston, meaning Old Oak Common in West London and Euston. It was one of the sections of the multi-billion pound rail project that had been scrapped by the Conservative government. Without the link to Euston, people travelling between Birmingham and London would arrive at Old Oak Common and have to take another train to travel into the centre of the capital."
Not a new announcement. The tunnelling to Euston has never been cancelled. It's the station that was delayed/cancelled:
Yes, if it's as in the quote above, that's very disappointing. AIUI it's more expensive to stop tunnelling, only to restart later, than it is just to dig the blooming tunnels. But the vast majority of the expense of OOC to Euston would be Euston station.
Euston station HS2 was paused a year ago. Its over capacity as it is.
The tunnels were only due to start in 2022 & two tunnel boring machines are already in place to do so.
Sterling rising, this is quite an inflationary budget so I expect interest rates will stay higher for longer.
Great news for savers.
Double whammy for risk takers though. Government protecting old people who keep their money in the bank over risk takers who put their money into businesses and equities.
I was surprised to see Badenoch mention the asset price bubble in housing since 2008 and the need for more investment in stock and shares.
Worth mentioning that sole director companies do not get access to Employment Allowance, so this will massively impact on small businesses.
Hope RR factored that in.
It seems small businesses have been relatively hammered the most. Which a bit like bashing the bus wankers versus drivers seem wrong way up.
Lots of media people love a good sole director company....they often very angry when people mess with those e.g. Hammond trying to increase NI on them.
Over 1m small businesses are going to pay less or no employers NI. So not true.
Lots of other costs up. The new workers rights will most effect the small businesses, significant minimum wage increases, business rates doubled....
I suspect an awful lot of the businesses you are talking about don't pay a penny in business rates and won't do when things change...
Reading some of the more deranged comments on here you have to be pleased there are very strict gun control laws in the UK. I would trust - I think - most of PB's rightward leaning demographic to keep their visceral hatred of the government confined to violent words, but not everyone has that level of self-control.
Are we reading different PBs?
Well, in the last few days on here I have seen Reeves being described as a bitch, Starmer described as a traitor and the government accused of being engaged in a conspiracy to deceive the British people about the Southport murders. That's pretty extreme. As I say, I doubt anyone on PB will go further than violent language. But not everyone has that level of control.
None of those are violent words, or words that could be construed as inciting violence. I’d understand your point if someone had suggested someone be hurt or killed.
Reading some of the more deranged comments on here you have to be pleased there are very strict gun control laws in the UK. I would trust - I think - most of PB's rightward leaning demographic to keep their visceral hatred of the government confined to violent words, but not everyone has that level of self-control.
Are we reading different PBs?
Well, in the last few days on here I have seen Reeves being described as a bitch, Starmer described as a traitor and the government accused of being engaged in a conspiracy to deceive the British people about the Southport murders. That's pretty extreme. As I say, I doubt anyone on PB will go further than violent language. But not everyone has that level of control.
Very impressed with Rachel Reeves even disregarding the content
Yep. It was a sound performance, but the devil is always in the detail. Not too much sounding awful to me.
The cut in employees NI followed by the rise in Employers NI is like a compulsory payrise for everyone at their employers expense when looked at overall.
Foxy, you might want to spare a thought for those who don't have DB pension scheme's. For us it's awful believe me.
What was said on pensions or ISAs that bothers you?
DC pensions coming into estate for IHT purposes. Goodness knows if this is doable given pensions are in trust.
Can you or Foxy enlighten me - What happens if someone with a DB pension drops dead the day after they turn 68 ?
The estate gets nothing.
The widow/er of an NHS pensioner gets a half pension. There's no other death benefit.
Very impressed with Rachel Reeves even disregarding the content
Yep. It was a sound performance, but the devil is always in the detail. Not too much sounding awful to me.
The cut in employees NI followed by the rise in Employers NI is like a compulsory payrise for everyone at their employers expense when looked at overall.
Foxy, you might want to spare a thought for those who don't have DB pension scheme's. For us it's awful believe me.
What was said on pensions or ISAs that bothers you?
DC pensions coming into estate for IHT purposes. Goodness knows if this is doable given pensions are in trust.
Can you or Foxy enlighten me - What happens if someone with a DB pension drops dead the day after they turn 68 ?
The estate gets nothing.
The widow/er of an NHS pensioner gets a half pension. There's no other death benefit.
Don't worry, drivers will pay for it with Pay-Per-Mile in a couple of years...
A good way to kill their political chances with anyone not living in a metropolitan centre.
Fuel duty is going to bring in less and less in not all that long with EVs, so unless you ramp up tax on electricity (with all the side-effects that brings), then road charging is the only sensible way to replace it. But that runs into the problem of simplicity v fairness. You'd also need a comprehensive and effective monitoring network to process all the fees. But it could, in principle, be done.
Surely the simplest way would be some combination of mileage at MOT time and address of registered keeper.
Simplest way is to find the money for general taxation from the general public and not fleece drivers.
Too many here take for grabted the beneftis of off road parking for EVs but millions don't have that. Paying to charge an EV at a public charging point costs more than filling a hybrid with petrol even though the petrol vehicle has fuel duty.
The idea that people should pay that and then road charges on top is preposterous.
It doesn't seem unreasonable that those who make the most use of the roads should contribute the most towards the maintenance of the system that provides said roads.
Indeed.
And road tax raises roughly the same amount as road expenditure.
Fuel duty was just a tax grab. There is no need to replace it as its abolished.
Just balance road tax with road expenditure. Done.
The cost to society of car use isn't limited to the cost of road maintenance.
Yes it is.
The benefits go well beyond it though.
Of course car use has costs to society. This article outlines them. It's referring to the US, but the same arguments apply here.
Worth mentioning that sole director companies do not get access to Employment Allowance, so this will massively impact on small businesses.
Hope RR factored that in.
It seems small businesses have been relatively hammered the most. Which a bit like bashing the bus wankers versus drivers seem wrong way up.
Lots of media people love a good sole director company....they often very angry when people mess with those e.g. Hammond trying to increase NI on them.
Over 1m small businesses are going to pay less or no employers NI. So not true.
Lots of other costs up. The new workers rights will most effect the small businesses, significant minimum wage increases, business rates doubled....
I suspect an awful lot of the businesses you are talking about don't pay a penny in business rates and won't do when things change...
Yes, they'll be bankrupt.
Let's take the cafe I frequent down the village
She doesn't pay business rates (rateable value is to low) The allowance covered her employer NI costs as will the new allowance. Worker rights may be a problem but she's had the same staff almost since the day she opened so I doubt it. Minimum wage will have gone up but that's it and that will be covered by a slight increase in coffee /tea prices
The big one was the bringing in pension funds to IHT. Massive.
This will not affect public sector workers with DB schemes.
So the balance once more from private sector to public.
Details to come but thoughts include:
What about inheritance by spouse?
At what rate - 40%?!
Death below age 75 too?
What about tax on withdrawals*?
* people think that unexhausted pension funds can pass down tax free. This is not true - IHT free yes but withdrawals are taxed at withdrawer's marginal rate of income tax as earned income (assuming deceased was over 75 on death). If these unexhausted funds are to be brought into the estate for IHT calculation, does this mean no further tax on withdrawals by the beneficiaries. Or will the fund be taxed twice?
The logical thing is that the pension wrapper ends on transfer out of the estate. So no further income tax on withdrawals but also no further tax shelter from dividends or CGT.
Not sure if that is what they will do but think that is fairer than the current system. Pension tax shelters should be for individuals retirements not passing inter generational wealth.
Indeed, and those of us on DB pensions can not bequeath the pension at all, with or without tax.
Yeah but that is apples and oranges. Private sector annuities would be the comparison there, which are treated identically aiui.
Yes, it's people who use drawdown as an inheritance dodge that are brought into line with the rest of us.
Worth mentioning that sole director companies do not get access to Employment Allowance, so this will massively impact on small businesses.
Hope RR factored that in.
It seems small businesses have been relatively hammered the most. Which a bit like bashing the bus wankers versus drivers seem wrong way up.
Lots of media people love a good sole director company....they often very angry when people mess with those e.g. Hammond trying to increase NI on them by a few £100, was like end of the world stuff.
Worth mentioning that sole director companies do not get access to Employment Allowance, so this will massively impact on small businesses.
Hope RR factored that in.
It seems small businesses have been relatively hammered the most. Which a bit like bashing the bus wankers versus drivers seem wrong way up.
Lots of media people love a good sole director company....they often very angry when people mess with those e.g. Hammond trying to increase NI on them by a few £100, was like end of the world stuff.
What have they done with sole director companies?
£600 extra in employer NI (if only the director is on staff you can't claim the allowance) and I think that's it...
Those on the political right will be slightly relieved at the budget. Those on the political left will be slightly disappointed in the budget. Those in the political centre probably can't decide.
Worth mentioning that sole director companies do not get access to Employment Allowance, so this will massively impact on small businesses.
Hope RR factored that in.
It seems small businesses have been relatively hammered the most. Which a bit like bashing the bus wankers versus drivers seem wrong way up.
Lots of media people love a good sole director company....they often very angry when people mess with those e.g. Hammond trying to increase NI on them.
Over 1m small businesses are going to pay less or no employers NI. So not true.
Lots of other costs up. The new workers rights will most effect the small businesses, significant minimum wage increases, business rates doubled....
I suspect an awful lot of the businesses you are talking about don't pay a penny in business rates and won't do when things change...
Interesting,
Looks like chancellor has confirmed Business rates reform from 2026 with a permanent lower tax rate for hospitality paid for by higher tax rate on online business premises.
Working through the detail of the Budget tax changes on NICs but the increase in rate and cut in threshold looks as though this will cost hospitality £1bn additional jobs tax. Employment Allowance helps smallest employers with total NI liability of £100k (fewer than 40 staff)
Very impressed with Rachel Reeves even disregarding the content
Yep. It was a sound performance, but the devil is always in the detail. Not too much sounding awful to me.
The cut in employees NI followed by the rise in Employers NI is like a compulsory payrise for everyone at their employers expense when looked at overall.
Foxy, you might want to spare a thought for those who don't have DB pension scheme's. For us it's awful believe me.
What was said on pensions or ISAs that bothers you?
DC pensions coming into estate for IHT purposes. Goodness knows if this is doable given pensions are in trust.
Can you or Foxy enlighten me - What happens if someone with a DB pension drops dead the day after they turn 68 ?
most DB schemes have a guarantee period of 5 years from start of payment - also most will have spouse entitlement
Those on the political right will be slightly relieved at the budget. Those on the political left will be slightly disappointed in the budget. Those in the political centre probably can't decide.
Certainly not relieved, it was awful. Worse than any New Labour budget
I don't know what she means by unlocking the potential of Cambridge. The whole of greater Cambridge is a bloody building site already.
I hope she's referring to things like East-West Rail. Although that's usually promoted as being 'unlocking the potential of the Oxford to Cambridge corridor."
I was selfishly hoping that East-West rail would be dumped as it's going to result in another half decade of building noise outside my flat and the proposed station for St Neots is actually out in the middle of nowhere so won't be very convenient for me anyway.
But Cambourne station will be very convenient for me.
I wonder where your flat is... Central Cambridge shouldn't be too affected by EWR AIUI (though I might be wrong, and the plans are still flexible). The first impact further south will be where the four tracks from Shepreth Junction become two, I *think* south of the new Cambridge South station?
I live in St Neots near the current railway bridge which I believe will need to be upgraded because EWR. It's been a while since I looked at the plans though. Despite my own personal annoyance it's a good idea really.
Oooh, my turf. I'll have run past your place, potentially many times. Not that I'm trying to be stalkerish or anything...
I've not been keeping up to date with the latest EWR proposals as I've been expecing the Bedford to Cam section (BedCam? (*)), but I thought it was going to go slightly further east, skirting to the east of Wintringham and the hideously-named 'Monksfield' development (**).
(*) Bedford to St Pancras electrified services were known as 'BedPan'. I quite like the idea of this being BedCam... (**) Hideously-named as there's a 'Monkfield' area in Cambourne, just eight miles away, including a Monkfield Medical Practice, Monkfield School etc. Having a 'Monkfield' area and a 'Monksfield' in such close proximity is utterly stupid.
Agree with you on the naming. I live on the equally hideously named Love's Farm development. There's a street in that development called 'The Runnels' which sounds like a horrible digestive disorder.
Very impressed with Rachel Reeves even disregarding the content
Yep. It was a sound performance, but the devil is always in the detail. Not too much sounding awful to me.
The cut in employees NI followed by the rise in Employers NI is like a compulsory payrise for everyone at their employers expense when looked at overall.
Foxy, you might want to spare a thought for those who don't have DB pension scheme's. For us it's awful believe me.
How so? The only change to DC pensions seems to be bringing the pension fund into IHT. Could be an issue if you and your haven't balanced your pensions and one dies, but otherwise it's supposed to be a pension but not an IHT avoidance tool.
Those on the political right will be slightly relieved at the budget. Those on the political left will be slightly disappointed in the budget. Those in the political centre probably can't decide.
Works for me. Think I'm broadly content with the tax rises, but less confident it is being spent efficiently.
Worth mentioning that sole director companies do not get access to Employment Allowance, so this will massively impact on small businesses.
Hope RR factored that in.
She did also talk about Umbrella companies, so targeting IR and other Contractor type setups, perhaps.
The agency worker sector has an awful lot of fraud for multiple reasons - that is what the crackdown will be.
On the other hand the most awkward to identify and fix problem in that sector is abuse of the Employer NI allowance and that's just been doubled so given how convoluted the old mini umbrella fraud schemes where I would love to see how HMRC are going to police things
It's an area I know an awful lot about (tis a sideline of mine) and everyone I trust in that area literally went - oh at long last followed by WTF that's going to make things way worse...
Those on the political right will be slightly relieved at the budget. Those on the political left will be slightly disappointed in the budget. Those in the political centre probably can't decide.
Certainly not relieved, it was awful. Worse than any New Labour budget
Yes, but the Telegraph has been telling us how much worse it was going to be over the last month! So I thought you might be a tad relieved that Rachel hasn't levied a huge surcharge on your Tory Party membership subscription, for example.
Sterling rising, this is quite an inflationary budget so I expect interest rates will stay higher for longer.
Great news for savers.
Double whammy for risk takers though. Government protecting old people who keep their money in the bank over risk takers who put their money into businesses and equities.
But if people keep their money in banks, then the banks have more funds to invest in businesses. Of course banks wil make the most sensible investments, won't they?
Very impressed with Rachel Reeves even disregarding the content
Yep. It was a sound performance, but the devil is always in the detail. Not too much sounding awful to me.
The cut in employees NI followed by the rise in Employers NI is like a compulsory payrise for everyone at their employers expense when looked at overall.
Foxy, you might want to spare a thought for those who don't have DB pension scheme's. For us it's awful believe me.
How so? The only change to DC pensions seems to be bringing the pension fund into IHT. Could be an issue if you and your haven't balanced your pensions and one dies, but otherwise it's supposed to be a pension but not an IHT avoidance tool.
Director of Policy and External Affairs at the PMI, Tim Middleton, said:
“There had been extensive speculation in the national press that Rachel Reeves would make a series of drastic reforms, such as changes to the tax-exempt status of the Pension Commencement Lump Sum (PCLS). It was also expected that Employer National Insurance Contributions (NICs) were to be charged on employer contributions to registered pension schemes. We are both relieved and delighted that even in such difficult economic circumstances the importance of our workplace pension system has been recognised and respected.”
“The only significant change announced today was to make inherited pensions subject to Inheritance Tax (IHT). Middleton added: “This change will only affect a small number of people. In all honesty, the tax-exempt status of inherited pensions was always politically difficult to defend.”
Those on the political right will be slightly relieved at the budget. Those on the political left will be slightly disappointed in the budget. Those in the political centre probably can't decide.
Certainly not relieved, it was awful. Worse than any New Labour budget
Certainly, something in between a New Labour budget and a German. SPD, budget, but still somewhat centrist by European standards.
I'm interested in these Green Hydrogen planned hubs in England, Scotland, and Wales, and what they might be able to turn into, in the future , given enough resources..
Very impressed with Rachel Reeves even disregarding the content
Yep. It was a sound performance, but the devil is always in the detail. Not too much sounding awful to me.
The cut in employees NI followed by the rise in Employers NI is like a compulsory payrise for everyone at their employers expense when looked at overall.
Foxy, you might want to spare a thought for those who don't have DB pension scheme's. For us it's awful believe me.
What was said on pensions or ISAs that bothers you?
DC pensions coming into estate for IHT purposes. Goodness knows if this is doable given pensions are in trust.
Can you or Foxy enlighten me - What happens if someone with a DB pension drops dead the day after they turn 68 ?
The estate gets nothing.
The widow/er of an NHS pensioner gets a half pension. There's no other death benefit.
That’s a pretty nice benefit, to be fair.
Its a tricky one, probably essential when the widow typically stayed at home or worked part time. But not sure it should last forever in an "equal" economy. Can't think of a sensible way to selectively offer it where appropriate.
Worth mentioning that sole director companies do not get access to Employment Allowance, so this will massively impact on small businesses.
Hope RR factored that in.
It seems small businesses have been relatively hammered the most. Which a bit like bashing the bus wankers versus drivers seem wrong way up.
Lots of media people love a good sole director company....they often very angry when people mess with those e.g. Hammond trying to increase NI on them.
Over 1m small businesses are going to pay less or no employers NI. So not true.
Lots of other costs up. The new workers rights will most effect the small businesses, significant minimum wage increases, business rates doubled....
I suspect an awful lot of the businesses you are talking about don't pay a penny in business rates and won't do when things change...
Interesting,
Looks like chancellor has confirmed Business rates reform from 2026 with a permanent lower tax rate for hospitality paid for by higher tax rate on online business premises.
Working through the detail of the Budget tax changes on NICs but the increase in rate and cut in threshold looks as though this will cost hospitality £1bn additional jobs tax. Employment Allowance helps smallest employers with total NI liability of £100k (fewer than 40 staff)
Love to know how they are going to identify an online business promise - that could be a shop, warehouse, office or very often a tiny room in a storage company..
Worth mentioning that sole director companies do not get access to Employment Allowance, so this will massively impact on small businesses.
Hope RR factored that in.
It seems small businesses have been relatively hammered the most. Which a bit like bashing the bus wankers versus drivers seem wrong way up.
Lots of media people love a good sole director company....they often very angry when people mess with those e.g. Hammond trying to increase NI on them by a few £100, was like end of the world stuff.
What have they done with sole director companies?
£600 extra in employer NI (if only the director is on staff you can't claim the allowance) and I think that's it...
Very impressed with Rachel Reeves even disregarding the content
Yep. It was a sound performance, but the devil is always in the detail. Not too much sounding awful to me.
The cut in employees NI followed by the rise in Employers NI is like a compulsory payrise for everyone at their employers expense when looked at overall.
Foxy, you might want to spare a thought for those who don't have DB pension scheme's. For us it's awful believe me.
How so? The only change to DC pensions seems to be bringing the pension fund into IHT. Could be an issue if you and your haven't balanced your pensions and one dies, but otherwise it's supposed to be a pension but not an IHT avoidance tool.
Will affect most those with dodgy genes or tickers in their late 50s who have large untouched balances in pension pots -
Comments
Even Stephen King thought he went too far with that one...
Looks like more of these austerity budgets at least the next couple of years too.
That’s the accurate summing up of this afternoons statement isn’t it.
Even before we see what’s hidden in small print (she didn’t mention saving schemes, pasty’s or even windows).
Interesting because they admit the inefficiency - but make up for it on the cheapness of solar. Also things like having no storage for power - system runs when sun is up. And no conversion electronics on the solar cells - directly powering the reaction.
And it's being abolished. It is shameless and vindictive sugar rush politics to raise a tax that is so regressive and being abolished long term.
Pure hatefulness from you and sane not to raise a tax that has no long term future and is purely regressive.
https://www.youtube.com/watch?v=sOa-ZDg7uF8
https://assets.publishing.service.gov.uk/media/672232d010b0d582ee8c4905/Autumn_Budget_2024__web_accessible_.pdf
Given that Notts and Derby just flipped 90% Labour, I'm not sure on the swing seats given the bizarre vote numbers and Reform.
Overall, the most anti-growth, short-termist peacetime budget ever. The country's depressing stagnation will continue, and it will be poorer and more divided as a result.
And road tax raises roughly the same amount as road expenditure.
Fuel duty was just a tax grab. There is no need to replace it as its abolished.
Just balance road tax with road expenditure. Done.
Good response from Rishi
Increase inflation
Increase interest rates
Increase gilt rates
Reduce growth
Hope RR factored that in.
Not sure if that is what they will do but think that is fairer than the current system. Pension tax shelters should be for individuals retirements not passing inter generational wealth.
The benefits go well beyond it though.
It's an easier gig- speaking for an hour on a subject of your choosing as opposed to fielding questions on anything at all of your questioner's choosing. But yeah, she done fine. Though as usual, small print.
The lurid speculation probably helped her, too. Compared with that, this looks relatively mild, given that billions had to come from somewhere.
I've mentioned before a comment Bill Hartston made on one of those "chess players narrating their thoughts during the game" shows the BBC used to do. When good players make blunders, they somehow always manage to get compensation for whatever they lost.
That.
Lots of media people love a good sole director company....they often very angry when people mess with those e.g. Hammond trying to increase NI on them by a few £100, was like end of the world stuff.
If he'd been that good when he was PM and if people had found out about Starmer's freebies a couple of months earlier things might have been very different ...
The lowest income quintile do 2.7x as much bus mileage as the highest.
1) rebuild Euston to be fit for purpose
2) rebuild Euston Underground to be fit for purpose
3) Add the platforms HS2 needs...
And the top 2 of those have nothing to do with HS2 it's just work that should have been done sometime in the past 20 years..
Which quintile spends a higher percentage of their income on fuel duty? The poorest.
By a long shot. It's not even close.
Doing more miles in a new Tesla doesn't have a penny in fuel duty.
Driving to work in a banger you rely.on does.
I've not been keeping up to date with the latest EWR proposals as I've been expecing the Bedford to Cam section (BedCam? (*)), but I thought it was going to go slightly further east, skirting to the east of Wintringham and the hideously-named 'Monksfield' development (**).
(*) Bedford to St Pancras electrified services were known as 'BedPan'. I quite like the idea of this being BedCam...
(**) Hideously-named as there's a 'Monkfield' area in Cambourne, just eight miles away, including a Monkfield Medical Practice, Monkfield School etc. Having a 'Monkfield' area and a 'Monksfield' in such close proximity is utterly stupid.
Lifetime Cost Of Small Car $689,000; Society Subsidizes This Ownership With $275,000
Interesting.
Its over capacity as it is.
The tunnels were only due to start in 2022 & two tunnel boring machines are already in place to do so.
Measured, forceful, but indignant.
The widow/er of an NHS pensioner gets a half pension. There's no other death benefit.
That's not a cost it's a positive.
The cost is the actual cost. No more, no less. Dodgy fake data to pretend the cost is higher by people with an agenda demonstrates nothing.
She doesn't pay business rates (rateable value is to low)
The allowance covered her employer NI costs as will the new allowance.
Worker rights may be a problem but she's had the same staff almost since the day she opened so I doubt it.
Minimum wage will have gone up but that's it and that will be covered by a slight increase in coffee /tea prices
Those on the political left will be slightly disappointed in the budget.
Those in the political centre probably can't decide.
Looks like chancellor has confirmed Business rates reform from 2026 with a permanent lower tax rate for hospitality paid for by higher tax rate on online business premises.
https://x.com/UKHospKate/status/1851615828493443505
--
Working through the detail of the Budget tax changes on NICs but the increase in rate and cut in threshold looks as though this will cost hospitality £1bn additional jobs tax. Employment Allowance helps smallest employers with total NI liability of £100k (fewer than 40 staff)
https://x.com/UKHospKate/status/1851621929574162544
What's the point of catching criminals if we can't prosecute them in a timely fashion and lock them up?
Getting the justice system fixed is something most on left and right surely can agree on?
Labour only doing its usual politics of envy to expand the state and public sector
https://x.com/EdConwaySky/status/1851627329602113967
On the other hand the most awkward to identify and fix problem in that sector is abuse of the Employer NI allowance and that's just been doubled so given how convoluted the old mini umbrella fraud schemes where I would love to see how HMRC are going to police things
It's an area I know an awful lot about (tis a sideline of mine) and everyone I trust in that area literally went - oh at long last followed by WTF that's going to make things way worse...
Hopefully now the Tories are in a well deserved stint of Opposition they can think through a genuine alternative. As they were doing the same anyway.
Director of Policy and External Affairs at the PMI, Tim Middleton, said:
“There had been extensive speculation in the national press that Rachel Reeves would make a series of drastic reforms, such as changes to the tax-exempt status of the Pension Commencement Lump Sum (PCLS). It was also expected that Employer National Insurance Contributions (NICs) were to be charged on employer contributions to registered pension schemes. We are both relieved and delighted that even in such difficult economic circumstances the importance of our workplace pension system has been recognised and respected.”
“The only significant change announced today was to make inherited pensions subject to Inheritance Tax (IHT). Middleton added: “This change will only affect a small number of people. In all honesty, the tax-exempt status of inherited pensions was always politically difficult to defend.”
I'm interested in these Green Hydrogen planned hubs in England, Scotland, and Wales, and what they might be able to turn into, in the future , given enough resources..