Budget Day

Depressing analysis on Sky News this morning.
news.sky.com/story/this-budget-has-done-nothing-to-bring-back-the-feel-good-factor-12834686

I have a confession to make.

My partner, who is over state pension age, still works full-time, but is intending to retire in the next year.

He has exceeded his lifetime allowance and would have been affected by the cap. He will be one of the few people in the country to benefit - and we still think it's wrong.

I've made him go to see a financial adviser, so we know for sure what's going on. It's all a bit complicated because he's also negotiating a divorce settlement.

MaizieD

Grantanow

I don't understand why Labour are saying they would reverse the pension cap measure. Do they want senior doctors to leave the NHS for early retirement as they were doing?

There seems to be some doubt as to whether this measure would induce senior doctors to return. Though it might help in retaining those still in post.

The question has been asked why, if the intention was to retain this specific group why wasn't an exception made for them, such as enabling them to stop the obligatory pension contributions once the cap level had been reached?

Exactly! They could opt out of paying pension contributions once the cap has been reached and invest their spare money somewhere else.

Grantanow

I don't understand why Labour are saying they would reverse the pension cap measure. Do they want senior doctors to leave the NHS for early retirement as they were doing?

Because doctors make up a minority of people affected by the cap.

The people who are most affected are high earners approaching retirement who can effectively avoid paying income tax on a high percentage of their earnings.

There are other ways of targeting doctors.

kittylester

^The pensions cap was put in place by the Tories^

Actually, it was introduced by Tony Blair's government in 2006. The limit was reduced in 2012, by the Tory/Lib coalition, I think.

Thanks kittylester. I couldn't remember the exact details and was too tired/lazy to check. I knew the limit on the cap was reduced at the beginning of the coalition and successive Tory governments have kept it. Inflation has meant it "catches" more people than previously.

Allsorts

Wish they had raised the tax allowance to 20k for those people working full time on low wages. That would be money in their pockets, they are the ones that need help. Can’t see anything that would benefit me though.

The trouble with that is that the lowest paid benefit less than is thought because they don't pay tax on most of their income anyway. The people who benefit most are the middle (and some higher) earners.

Reducing income tax isn't the best way to put money in the pockets of low earners.

Grantanow

I don't understand why Labour are saying they would reverse the pension cap measure. Do they want senior doctors to leave the NHS for early retirement as they were doing?

There seems to be some doubt as to whether this measure would induce senior doctors to return. Though it might help in retaining those still in post.

The question has been asked why, if the intention was to retain this specific group why wasn't an exception made for them, such as enabling them to stop the obligatory pension contributions once the cap level had been reached?

The pension cap is different to the allowance being raised p.a. to £60000.

That is what is headline says it is hoping to attract doctors back to work.

I don't understand why Labour are saying they would reverse the pension cap measure. Do they want senior doctors to leave the NHS for early retirement as they were doing?

So those of you not yet retired can now save up to £60k a year on your pension pot.

The tax free cap of £1 million has been abolished so all the very wealthy amongst us can now squirrel loads away without it being subject to any tax.

Scrapping the lifetime savings limit for pensions and increasing the contributions limit will cost £1bn a year but will get only 15,000 boomers and gen exers into work, says OBR. That's an annual cost to the taxpayer per high-earning boomer of £66,000. Bonkers?

Peston.

All this and nothing for public services, which saw the biggest strike action ever on the streets if the capital yesterday.

Wish they had raised the tax allowance to 20k for those people working full time on low wages. That would be money in their pockets, they are the ones that need help. Can’t see anything that would benefit me though.

The pensions cap was put in place by the Tories

Actually, it was introduced by Tony Blair's government in 2006. The limit was reduced in 2012, by the Tory/Lib coalition, I think.

Katie59

Whitewavemark2

PS has anyone noticed that there is a small matter of what looks like a banking crises developing?

When Ukraine intensifies again the banking issues will be forgotten

?

I also wonder about the promised funding for swimming pools and leisure centres.

Most are run by the LAs , who because of government cuts in their funding have had to find savings on those areas that they are not legally obliged to fund in order to try to continue with social care etc.

I suspect any funding heading the LAs way will be put into social care etc and the legally obliged stuff, rather than leisure centres.

Whitewavemark2

PS has anyone noticed that there is a small matter of what looks like a banking crises developing?

When Ukraine intensifies again the banking issues will be forgotten

“There is a commitment to make tax more simple for SMEs.”

Believe that when it happens

PS has anyone noticed that there is a small matter of what looks like a banking crises developing?

Inflation is also set to fall, but this has got nothing to do with either the budget or government policies.

Oh yes! Energy subsidy extended by 3 months to July.

It is then hoped that prices will begin to drop and if we ever get to the position again of prices being below the price set by OFGEM fixed deals may well be reintroduced.

But given the uncertainty in the world market nothing is guaranteed.

Capital allowances on identified plant and machinery. Fixed assets. Change in accounting.

Businesses will be able to deduct the full cost of these assets immediately from the bottom line rather than over their lifetime, as has traditionally been the case.

The 50% allowance on other plant and machinery, including insulation and solar panels is to be extended beyond 2023

R&D for loss making companies - the claim from HMRC has been extended and raised. This will particularly benefit SMEs

There is a commitment to make tax more simple for SMEs.

The extension of free childcare is welcome but and the big but is on the supply side.

With the introduction of free childcare, the government has failed to properly fund the nursery sector, which has resulted in many liquidations. It is thought that the budget will not reverse this trend, thus leaving parents struggling to find nursery places.

Tax will be the highest since WW11.

Fiscal drag alone means that the government will be better off by £30bn a year.

What on earth are they doing with it all?

It certainly is not producing any discernible benefit for the average person.

All this information gleaned from the newspapers

Alternative views are welcome😄😄

Hunts bizarre “Brexit pubs guarantee” of a freeze on duty on beer, failed to mention that the OBR has reported that Brexit has has a substantial negative impact on growth, productivity, trade and investment

Productivity reduced by 4%

Trade reduced by 15%

Investment stagnated since 2016