Rachel Reeves To Be The New George Osborne?

Liam Byrne certainly doesnt reflect LP policy as a whole!

*I’m afraid there is no money.’ The letter I will regret for ever
Liam Byrne*

www.theguardian.com/commentisfree/2015/may/09/liam-byrne-apology-letter-there-is-no-money-labour-general-election

he explains why he did it at the time in the article and adds

"People’s anger – and my party’s anger – at me, will never ever match my anger with myself or my remorse at such a crass mistake".
"I’ve asked myself that question every day for five years and believe me, every day I have burnt with the shame of it"

Spot on Calendar Girl, when people work and save all their lives, why should it go to the government,

Let’s discuss this AFTER the budget please.

pably15

Spot on Calendar Girl, when people work and save all their lives, why should it go to the government,

Well the answer I'm writing to make is general not relating to this specific budget:

Our money is not going to the government, it's going to fund vital services that we all use. It goes to fund the next generation who will grow up to pay the taxes that fund our pensions.
It goes to fund the infrastructures of the country necessary for business and growth.

Its fair enough to question"fair levels" of tax for different groups of people and ask, "why me", but in principle we live in a society that tries to provide health care and education and myriad of other services for all.

Wyllow3 taxation doesn’t fund spending.

We have no control or idea of where our tax £’s are spent other than what the Government of the day tells us.

At the moment the F of I request regarding the alleged £22 billion black hole has been declined, why?

Could it be because it is a figment of their imagination fed to the electorate in order for us to be compliant when they take even more of our hard earned money away from us?

And just for clarity I would be saying the same if it was a Conservative Government.

pably15

Spot on Calendar Girl, when people work and save all their lives, why should it go to the government,

Perhaps because it came from the government in the first place?

???

MaizieD

pably15

Spot on Calendar Girl, when people work and save all their lives, why should it go to the government,

Perhaps because it came from the government in the first place?

It does not go to 'the Government'. It goes to support the State, the NHS, social services, transport, and so so much more.

And education- which for many came from the State.

For the second time tonight, I shall be sharing this. True patriotism from John Caudwell about paying tax in UK:

Billionaire Caudwell says he is a ‘patriot’, and took a swipe at the wealthy individuals who are threatening to leave the country should they be asked to put more into the national pot. The Labour government is set to deliver its first budget at the end of the month.

It’s rumoured that specific windfall taxes and a potential hike to the capital gains tax could be implemented by Chancellor Rachel Reeves. The party has already confirmed that they will be charging VAT on private school fees, which has caused some discontent among the upper classes.
Patriotic billionaire ‘staying right here’

But those with the money are being urged to cough-up what they owe by Mr. Caudwell. On Sunday, he made an impassioned defence of the UK, lauding our education level, cultural significance, and sites of historical value. Why aren’t more billionaires saying this?'

Unlike people like Dyson, who went on about Brexit and patriotism, and then as soon as, closed his production in the UK and moved it to a country far away with cheap labour and low costs. What sort of patriotism is that?

Aveline

???

Where do you think money comes from, then?

I know you think that money is only produced by government printing presses but I'd have thought you might have seen beyond that.

Aveline

I know you think that money is only produced by government printing presses but I'd have thought you might have seen beyond that.

There aren't any printing presses involved, just computer keyboards.
But please tell me what there is 'beyond that...'

GrannyGravy13

Aveline

So the interest on my savings is 'unearned income'. Why bother saving?

As far as I am aware.

If you pay basic rate tax any interest earned over £1,000 is taxable

The next tax band is allowed £500 earned interest tax free.

The highest rate tax payers have to pay tax on all interest earned.

People have always paid tax on savings, only up until 2016 banks paid it directly, for us. After that it became an individual’s responsibility to pay the tax on interest earned.
Tax is only paid on the interest an individual has earned over the year, as pointed out in the above quote. It’s up to the individual to decide whether to put money into an ISA that pays no tax or into another type of savings account paying a variety of interest rates.
At the end of they day, all interest adds money to the basic amount invested.

At the end of they day, all interest adds money to the basic amount invested.

Only if the interest rate is greater than the rate of inflation.

Cossy

Wyllow3

Thank you so much for the summary, WWM. What a near impossible situation to be in.

A problem in the UK is that we grumble at how difficult it is with services as they are, but mostly don't want to actually pay for them.

Inheriting a situation where promises were made on spending raising expectations - but not how it would be financed is a particularly difficult situation to step into. Sunak saying, alongside this, that he would cut 17 million on taxes - it never could add up?

I agree.

At the risk of being a bore, why don’t we just be a tad more patient, stop speculating, and wait for the actual budget.

Like was done before any Conservative budget, yes right!!!

Fleurpepper

For the second time tonight, I shall be sharing this. True patriotism from John Caudwell about paying tax in UK:

Billionaire Caudwell says he is a ‘patriot’, and took a swipe at the wealthy individuals who are threatening to leave the country should they be asked to put more into the national pot. The Labour government is set to deliver its first budget at the end of the month.

It’s rumoured that specific windfall taxes and a potential hike to the capital gains tax could be implemented by Chancellor Rachel Reeves. The party has already confirmed that they will be charging VAT on private school fees, which has caused some discontent among the upper classes.
Patriotic billionaire ‘staying right here’

But those with the money are being urged to cough-up what they owe by Mr. Caudwell. On Sunday, he made an impassioned defence of the UK, lauding our education level, cultural significance, and sites of historical value. Why aren’t more billionaires saying this?'

Unlike people like Dyson, who went on about Brexit and patriotism, and then as soon as, closed his production in the UK and moved it to a country far away with cheap labour and low costs. What sort of patriotism is that?

James Dyson still lives in the UK,, and he has a research and development centre and family office in the UK. His estate employs people and in 2021 returned his tax residency and corporate tax to the Uk.
Bit of research and the truth of the matter appears,

MaizieD

^At the end of they day, all interest adds money to the basic amount invested.^

Only if the interest rate is greater than the rate of inflation.

In real terms yes, but it does depend on the amount of time the money is invested for and the interest rate of that account. So an account that locks the money away for 5 years pays a higher interest , which should pay an amount above inflation.
It really does rely on an individual to be savvy or take good advice.

Yes you have to be savvy, house price inflation is often high outstripping interest rate you’ll pay on a mortgage. Saving rate usually is lower than inflation and you pay tax on the interest so value depreciates.

2010 National debt = 1 trillion, 2024 national debt = 2.5 trillion, austerity didn’t help or cutting back of all public services. Rachel Reeves is nothing like George Osborne.

Trueloveways

2010 National debt = 1 trillion, 2024 national debt = 2.5 trillion, austerity didn’t help or cutting back of all public services. Rachel Reeves is nothing like George Osborne.

'National debt' is really unimportant. Britain has had a 'national debt' for centuries. It has manged perfectly well. It represents the savings of institutions and individuals, money that has not returned to the government via taxation. Actually, about a third of it is owned by the government as a result of various bouts of quantitative Easing over the past 20 years.

MaizieD

Trueloveways

2010 National debt = 1 trillion, 2024 national debt = 2.5 trillion, austerity didn’t help or cutting back of all public services. Rachel Reeves is nothing like George Osborne.

'National debt' is really unimportant. Britain has had a 'national debt' for centuries. It has manged perfectly well. It represents the savings of institutions and individuals, money that has not returned to the government via taxation. Actually, about a third of it is owned by the government as a result of various bouts of quantitative Easing over the past 20 years.

Yes but that QE has a repayment date when it either expires or has to be replaced by further QE/borrowing. The only advantage of QE is that interest is neutral, it is accounted for in the same way as other borrowing.

Reeves can’t be compare to Osbourne - yet, because we don’t know the results of her policy, we all hope it is a successful policy and the UK actually pays its own bills.

There is nothing wrong with borrowing for growth, it’s what businesses do continually, borrowing to pay for social or political handouts is not justified, except for emergencies like Covid.

Or is someone going to argue that we should borrow to give WFA to those that dont need it.

GrannyGravy13

Aveline

So the interest on my savings is 'unearned income'. Why bother saving?

As far as I am aware.

If you pay basic rate tax any interest earned over £1,000 is taxable

The next tax band is allowed £500 earned interest tax free.

The highest rate tax payers have to pay tax on all interest earned.

Perhaps a reason people are keen on depositing to their ISA.

Yes but that QE has a repayment date when it either expires or has to be replaced by further QE/borrowing. The only advantage of QE is that interest is neutral, it is accounted for in the same way as other borrowing.

The Bank of England, owned by the state, created the money with which to by government bonds. The money went to to the bond holders, or, to the government if they were newly issued bonds.

Can you tell me who is going to pay who back at the expiry date?

I know the BoE is busy selling these bonds and calling it Quantitative Tightening, but there is absolutely no valid reason why they should be doing this, especially as they are selling at a loss. The 'debt' could have stayed on the books for ever at no detriment to the government.

Maybe ISAs will be next in line to be targeted