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Budget

(121 Posts)
varian Mon 29-Oct-18 19:12:55

Philip Hammond tried to strike an upbeat note today, declaring “austerity is over”. Cossetted inside Westminster for the afternoon, he hid away from the storm clouds gathering over our economy. Brexit is making the situation worse. Liberal Democrat leader Vince Cable responds by pointing to a better way-

"In truth, austerity cannot be brought to an end without difficult decisions involving an increase in taxation. Excluding the Government’s promises on the NHS, maintaining real spending on public services will require an additional £19bn in extra tax and borrowing. And Brexit itself is making the situation worse.

The Office for Budget Responsibility estimates that uncertainty caused by Brexit has already weakened the public finances to the tune of £15bn annually. The ‘no-deal’ Brexit with which Ministers are flirting would be far worse still.

By contrast, if we succeed in stopping Brexit, the public finances could be lifted by £15bn annually through increased wages, growth and business investment. Meanwhile, money set aside for “Brexit contingencies” - £3 billion so far – could be redirected into public services.

Whatever the Brexit outcome, Britain’s tax system is in urgent need of reform. It penalises business investment, hurts our struggling high streets, is easily avoided by the largest companies and has failed to keep up with massive increases in personal wealth. And public services need a substantial injection of cash.

In a Liberal Democrat “People’s Budget” for the 21st Century, we would:-

Secure the future of our NHS, focusing on social care and mental health with an extra £6bn per year, funded through a penny in the pound on income tax.

Improve living standards for 9.6m parents and children, by reversing George Osborne’s cuts to the “work allowance” under Universal Credit, costing £3bn.

Invest an extra £2.8bn in to the schools budget, by reversing the Government’s proposed cuts to school funding. Scrap business rates – replacing them with a tax on land values known as the Commercial Landowner Levy. The reformed system would increase incentives to invest in new equipment and renovations, and cut taxes for businesses in nine out of ten English local authorities.
Reverse Conservative cuts to Corporations Tax – still leaving the UK with the lowest rate of corporation tax in the G7.

Work with the EU to crack down on tax avoidance by the tech titans, and working to secure agreement on taxing multi-nationals’ profits.

Reform wealth taxation – bringing capital gains and dividend taxes into line with income taxes, removing the most generous pension tax reliefs from the highest earners, and replacing the inheritance tax system with a fairer lifetime transfer tax."

www.libdems.org.uk/britain-needs-our-liberal-democrat-alternative?utm_campaign=budget_29_10_2018v&utm_medium=email&utm_source=libdems

MarthaBeck Mon 29-Oct-18 19:19:28

Schools, the NHS and the police are all struggling. Meanwhile, the botched introduction of Universal Credit with deep cuts in funding is also causing great hardship. Little came out of the budget to tackle poverty. A tax relieve of £2pw for those earning just over £1,000 pm compared with £10 pw for those on £1,000 per week hardly seems fair. Pensioners missed out. No not a good budget for those in low income trap.

lemongrove Mon 29-Oct-18 20:52:32

It was an excellent budget IMHO smile in fact Hammond went much further than I thought he would with spending plans.
He took the wind out of Corbyn’s sails alright. grin
No new PFI’s, plans at last( from any government )for mental health, help for small and medium business, frozen fuel duty, money for the NHS, money next April in loads of people’s pockets from tax ( the amount you are allowed to earn before tax is taken is going up.) much more too, just google it all.
McDonnell looked like a broken man, and all Corbyn could manage in reply was the usual stuttering rant.

lemongrove Mon 29-Oct-18 20:55:06

Varian the Lib Dems can promise the earth and everything upon it in a budget, they will never be in a position to deliver on any of it.
There will never be a Lib Dem government.

Anniebach Mon 29-Oct-18 21:25:33

Regardless of what Hammond said today Corbyn had his speech written out .

McDonald was asked last week where was Corbyn, he is never seen. McDonald said ‘he is at PMQ every week’

Most odd, a Labour Party leader who doesn’t speak of Brexit, doesn’t give interviews, just turns up once a week to read his notes

paddyann Mon 29-Oct-18 23:22:21

Its all pie in the sky and most people recognise that.Its meant to give that warm feeling towards the tories so that wen they HAVE to call a snap election everyone will say what a good job they're doing.Its all smoke and mirrors with absolutely no substance.No admitting to the vast debts they;ve grown since they took office..now where HAS all that money gone? Certainly not to the people who need it.Of course the DUP will need more to back them up but Wales seems to have lost out according to Leanne Woods and certainly Scotland is 1.9 BILLION worse off .Our budget is less in real terms than it was when the Tories came into power .Well done Hammond for pulling the wool over the party faithfull 's eyes ..again

crystaltipps Tue 30-Oct-18 07:52:41

It’s like rearranging the deckchairs on the Titanic.

M0nica Tue 30-Oct-18 08:09:13

I am not a Conservative supporter (or Labour for that matter), but I do try not to do knee jerk negative reactions to every policy they bring up just because I do not like them. This seems as good a budget as any and the debt mountain built up over the crisis has peaked out and is expected to start to come down gradually over the next few years.

Partys can only say what they hope will happen over the next few years, if things continue as they are. All things considered; tax reliefs, extra funding and a falling national debt seems to be as good as it can safely get at present.

It makes me no more likely to vote for them, but I am prepared to give credit where it is due.

Anniebach Tue 30-Oct-18 08:58:09

With only 12 MP’s, the Libs can promise sunshine 365 days of the year

Smileless2012 Tue 30-Oct-18 09:27:38

If only more were prepared "to give credit where it is due" Monica.

I was also pleasantly surprised lemongrove and as you and Annie have said, it's easy to make promises when you know you'll never be in a position to live up to them.

gillybob Tue 30-Oct-18 09:36:32

Unfortunately Only retail business as I understand lemon . Not small businesses as a whole .

gillybob Tue 30-Oct-18 09:38:59

I would have liked to see the tax threshold rise for those on low income . No point in giving tax breaks to those who already have plenty .

Nonnie Tue 30-Oct-18 09:43:44

varian I'm not sure you took in much of what was said yesterday. Going through your list you don't recognise that more money is going into the NHS, including mental health; that the work allowance has been increased; some money is going to schools and large tech companies face a new tax regime. I'm afraid the Lib Dems promise to tax people more to pay for the NHS didn't go down very well at the last election and I doubt will be any more popular at the next. People say they will pay more for the things they want but don't when it comes to a vote, then they vote for what they want.

Whether or not we agree with the budget and I suspect we would all have done something different, there is more money to spend because more people are working and paying taxes. Unfortunately vast amounts are being spent on extra civil servants to work on Brexit and presumably they will still be needed to work on whatever deal is finally agreed. A huge waste of money imo.

Please can we have an abstain column on the voting papers so I can make my point that I don't trust any of them?

gillybob Tue 30-Oct-18 09:45:32

My last post should have said “for ONLY those on a low income”

nigglynellie Tue 30-Oct-18 09:46:41

The only time the libdems were unexpectedly in any position of power ie: the coalition, they found themselves well and truly with their knickers down over student fees!! A promise that they never ever thought for one moment that they would actually have to seriously support!! Even though its easy to promise the earth when there is no possibility of ever having to deliver perhaps, after that experience they should be just a little more wary of pie in the sky promises!!

Blinko Tue 30-Oct-18 09:50:18

I don't think an extra £130 a year from raising the level at which we pay tax to £12,500 'loads of money' lemon

gillybob Tue 30-Oct-18 09:52:09

It’s a pittance to those on the lowest income Blinko but quite a nice boost to those earning considerably more . So unfair .

Nonnie Tue 30-Oct-18 09:54:14

Blinko I think you miss-read Lemon's post, she said "loads of people".

MaizieD Tue 30-Oct-18 09:57:14

Can anyone explain to me how cutting government spending (yes, it's there in the Budget) which puts people out of work, reduces income for businesses that supply state enterprises and puts an intolerable strain on public services, actually makes any sense?

MaizieD Tue 30-Oct-18 10:00:13

I absolutely agree with your comments, gillybob. What's more, it does nothing at all for the people who earn below the tax threshold.

Blinko Tue 30-Oct-18 10:12:30

I stand corrected, Nonnie. I still don't think £130 a year is much even if it does reach loads of people.

Jalima1108 Tue 30-Oct-18 11:15:47

There will never be a Lib Dem government.
Especially after they went into coalition and broke their promises.

I really thought he would be putting just 1p or 2p on income tax though.
I don't think an extra £130 a year from raising the level at which we pay tax to £12,500 'loads of money'
Well, I'm pleased smile

nigglynellie Tue 30-Oct-18 11:46:08

Me too. Every little helps! ?

stree Tue 30-Oct-18 11:56:22

Decent budget

MarthaBeck Tue 30-Oct-18 11:59:51

The budget and comments on these pages rather highlight that some people only read the headlines and not the full story.
The tax cuts will not help over a million assisted by Food banks, it amounts to £2=Pw for most tax payers and double figures for high earners, hardly fair, Little for Wales. No help for females losing their pension rights. Nothing to help millions of pensioners living below tax level, many in poverty. Yes, the more well off will be happy but not the disable, the vulnerable and those on zero contracts etc. Please do consider the plight of those far less fortunate than your self. It is good budget but not those not in need. The help promised to those on the edge of needing benefit support yet working on wages below tax threshold is a sham when you you look at the small print. No this budget does nothing to improve in equality in the UK, so don’t just take a selfish view, please look at the implications for those living in fear and depression of where their next meal is coming from.