Rachel Reeves To Be The New George Osborne?

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!!!

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.

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.

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...'

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

???

Where do you think money comes from, then?

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?

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.

???

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?

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

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?

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.

Let’s discuss this AFTER the budget please.

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

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"

eazybee

*Keeping Quiet*, my remark, intentionally facile.

There is no comparison between Osborne's failed ill thought- out austerity and Reeves' plan for growth.
Obviously not: Reeves ' plan has not yet been implemented,
The reason for the Austerity Programme:

'I am afraid there is no money'.
Liam Byrne 2015. Labour Ex-Chief secretary to the Treasury.

Reggie Maudling outgoing Tory Chancellor to Jim Callaghan. 1964
"Good luck, old cock, sorry to leave it in such a mess.”

Keeping Quiet, my remark, intentionally facile.

There is no comparison between Osborne's failed ill thought- out austerity and Reeves' plan for growth.
Obviously not: Reeves ' plan has not yet been implemented,
The reason for the Austerity Programme:

'I am afraid there is no money'.
Liam Byrne 2015. Labour Ex-Chief secretary to the Treasury.

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.

Oreo

It’s been a rocky start to RR and her Chancellorship hasn’t it? Just have to hope that things will really get better.IMV she should never have ruled out any rises to any taxes in the first place, now she’s painted herself into a corner.

But she didn’t rule out ALL tax increases, neither did the Labour Party, she specifically ruled out increasing certain taxes, certainly not all

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.

Reeves has restricted taxation changes but there are plenty of other ways revenue can be gained, spending restricted and benefits reduced for those that don’t need them.

IMV she should never have ruled out any rises to any taxes in the first place, now she’s painted herself into a corner

I agree Oreo.

I wish Labour had said that some tax rises would be necessary, and had fought their election campaign on that premise. I understand why they didn’t.

However, we have to accept that public services need to be paid for.

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

Three quarters of all tax revenues, that speaks for itself dunnit?
Employers will now have to pay more NI and there’s a few other taxes that could go up, but the majority of money comes from all the things that RR has ruled out!