The party of taxation - Here we go hitting pensioners again!

rowyn

Ironically, I've paid into a private health scheme for most of my life, but never made use of it. I've now had to cancel it because, being on my own, with higher energy bills looming, plus the possibility of no Council Tax discount for those living on their own , amongst other things, I cannot afford the payments, thanks to the Labour government.
So all the money that went into the health insurance pot has been wasted, and would have done much better in a savings account.

You said it yourself!

Some of our friends save the money that they would have spent on pet insurance, rather than pay the premiums. You could have done the same and would have had a decent sized pot to fall back upon now.

I have a client who has a property company which is used for a commercial property. He pays himself a small salary so that he can claim the child benefit.

His wife is self employed and they both have a large investment portfolio which is what he spends most of his time on, I suspect.

I don't prepare is tax return so don't know the amount of his income but I don''t consider what he does to be work in the normal sense.

Sorry, missed the last part of the information

Annual average regular earnings growth in October to December 2023

The private sector's annual average regular earnings growth was 6.2%, while the public sector's was 5.8%.

May to July 2024's public sector above unusual figures were the pay settlement of that period only.

TerriBull

We know about pay increases for those in the public sector, I suspect much of the private sector depending on the nature of their business cannot match those rises or pensions for that matter. Whilst zero hour contracts are to go, unless the employee wants them. We still have a gig economy to an extent very aware of Deliveroo cyclists going about their deliveries in all weathers which would seem a shit an exploitative way of earning a living. I wonder how many businesses operate under a radar, sweat shops for example, who are not being investigated.

From the Office of National Statistics:

Yes, wages have gone up more in the private sector than in the public sector in the UK

Annual average regular earnings growth
In May to July 2024, the private sector's annual average regular earnings growth was 4.9%, while the public sector's was 5.7%.

Weekly wage growth
In August 2024, the private sector's weekly wage growth was 4.7%, while the public sector's was 0.1%.

Many pensioners may be drawn into the tax system or a higher tax bracket because of so-called "fiscal drag" (freezing the tax fee allowances). In the current climate this is a mean and sleazy way of increasing taxation. It more or less invites people to find a cash in hand side hustle to make up the deficit.

Short term pain for long term gain??? Well I wont live long enough to see the long term gain so no thanks mate. Youve already had enough of my taxes for things I do not want and cannot use.

We know about pay increases for those in the public sector, I suspect much of the private sector depending on the nature of their business cannot match those rises or pensions for that matter. Whilst zero hour contracts are to go, unless the employee wants them. We still have a gig economy to an extent very aware of Deliveroo cyclists going about their deliveries in all weathers which would seem a shit an exploitative way of earning a living. I wonder how many businesses operate under a radar, sweat shops for example, who are not being investigated.

rowyn

Ironically, I've paid into a private health scheme for most of my life, but never made use of it. I've now had to cancel it because, being on my own, with higher energy bills looming, plus the possibility of no Council Tax discount for those living on their own , amongst other things, I cannot afford the payments, thanks to the Labour government.
So all the money that went into the health insurance pot has been wasted, and would have done much better in a savings account.

Seriously? You have cancelled a health scheme because of rumours and the 'possibility' of no CT discount, when the budget is a week away, and you will find out then what is actually going to happen?

That's your choice, obviously, but I can't see how your decision is 'thanks to the Labour government'.

rowyn

Ironically, I've paid into a private health scheme for most of my life, but never made use of it. I've now had to cancel it because, being on my own, with higher energy bills looming, plus the possibility of no Council Tax discount for those living on their own , amongst other things, I cannot afford the payments, thanks to the Labour government.
So all the money that went into the health insurance pot has been wasted, and would have done much better in a savings account.

The rumour about council tax discount was quashed following a report in the Telegraph in late September.

There have been so many rumours this summer that this or that would be hit and the government wouldn't de facto announce the whole budget in advance, however it was felt people needed reassurance

"Reeves won’t scrap single person council tax discount
Treasury confirms Chancellor will not end scheme, claimed by four million pensioners, that gives 25 per cent off for those living alone"

Telegraph 22nd September
www.telegraph.co.uk/politics/2024/09/22/rachel-reeves-budget-single-person-council-tax-discount/

paddyann54

fartooold How about the folk who caused the mess and their mates who all benefited along the way making retribution.? I didn.t cause it I didn.t hand over billions to friends or indeed take a decent wage and ramp it up with expenses and "donations " I didn,t allow energy companies to make excessive profits and some CEO.s to "earn " £30,000 A DAY so why am I and people I know who have lived by the rules all our lives become the scapegoats for bad management ,greed and crooked behaviour by our ELECTED representatives? And WHY aren,t the people who voted for these eegits all out on the streets protesting?

Yup! Same the whole world over, sadly.

Ironically, I've paid into a private health scheme for most of my life, but never made use of it. I've now had to cancel it because, being on my own, with higher energy bills looming, plus the possibility of no Council Tax discount for those living on their own , amongst other things, I cannot afford the payments, thanks to the Labour government.
So all the money that went into the health insurance pot has been wasted, and would have done much better in a savings account.

Shropshirelass, why do you say that Labour is hitting pensioners again?
It looks as if most people of all ages are going to be paying more tax to fund the public services on which we rely.
I'm 79, but I'm well aware that the Conservatives pandered to pensioners, partly because they are more likely to be conservative and Conservative, partly because a high proportion actually vote.

I agree paddyann

The "little people" are easy to target, though.

fartooold How about the folk who caused the mess and their mates who all benefited along the way making retribution.? I didn.t cause it I didn.t hand over billions to friends or indeed take a decent wage and ramp it up with expenses and "donations " I didn,t allow energy companies to make excessive profits and some CEO.s to "earn " £30,000 A DAY so why am I and people I know who have lived by the rules all our lives become the scapegoats for bad management ,greed and crooked behaviour by our ELECTED representatives? And WHY aren,t the people who voted for these eegits all out on the streets protesting?

What point is Lee A trying to make? John Lewis employees technically are a type of shareholder.

ronib

I don’t think for one minute this country is in a financial crisis …yet. It’s a very inefficiently run country and I see no signs of any improvement. If this country is at rock bottom then why is Rachel Reeves rewriting the borrowing rules? It’s all a gamble?

Moving the goalposts, we will see what she decides to spend the extra borrowing on, if it’s sustainable growth that we can see the benefits in the medium term - 5-10yrs that will be good. If it’s seen as chasing long term goals that might return sometime never sterling will fall?

Squeeze more productivity out of junior doctors? Just how many more hours do you expect them to work? Thank goodness the claims were settled and the strikes over going into winter.

Changing the way our institutions work is a worthy aim, the trouble is how to change them in crisis - schools, prisons, hospitals.
Major reforms have to be thought through very carefully under crisis circumstances as disrupting work for example in the health service for "yet another re-organisation" inevitably hits those receiving care.

road workers with calloused hands??
Good grief!

Lee Anderson (not a fan btw) said that road workers with calloused hands had bought shares in the company they worked for. By the latest definition they are not classed as “working people “.

Like the train drivers, the junior doctors and the tube drivers?
More productivity such as longer hours would be more beneficial.
The point about not touching pensioners is that they have no opportunity of earning money to supplement or replace their income.
I don't grumble about the NHS. I do criticise the performance of some of its employees.

I don’t think for one minute this country is in a financial crisis …yet. It’s a very inefficiently run country and I see no signs of any improvement. If this country is at rock bottom then why is Rachel Reeves rewriting the borrowing rules? It’s all a gamble?

I agree with Wyllow3. The country is in a financial crisis we all will need to make contributions!

ferry23

As any income and savings of pensioners are eroded, we shall soon all be eligible to claim Pension Credit, and then we'll get the winter fuel allowance as well.

Is this an economic cycle?

No, it's an overdramatised representation.

We need the details to debate as to whats sensible/fair.

problem is, it seems to me, we seem to be a country where we come down heavily on governments who fail to provide an adequate health/care services day after day: so many GN posts on difficulties getting help

but when it comes to paying for them, grumble again.

ferry23

As any income and savings of pensioners are eroded, we shall soon all be eligible to claim Pension Credit, and then we'll get the winter fuel allowance as well.

Is this an economic cycle?

😁

It could be a shot in the foot then, if it happens!

Nothing especially new, we knew that extra regulations were on the way and that CGT is likely to increase, that will cause the sale value of rental properties to fall. If values fall then there will be less CGT, BUT many rentals will be refurbished for sale to residential buyers, there won’t be enough it impact the residential market.

We can also expect taxation of those with wealth - including pensioners will be taxed more, it will be done in various ways and will be significant.

I have just remembered Jas Athwal, Labour MP for Ilford South since 2024, described by Wikipedia as the largest Landlord in the House of Commons, owning 15 flats:
Athwal is a professional slum landlord. He has described himself as a "renter's champion", and says he will not rent to tenants in receipt of housing benefit "to avoid conflicts of interest with his (former )role as the local council leader.
In August 2024 the BBC reported that Athwal "rents out flats with black mould and ant infestations.
Coincidentally Athwal replaced the former deselected MP, Sam Tarry, also Angela Rayner's erstwhile lover who spent a cosy week with her in the American apartment provided courtesy of Lord Alli. Another landlord who doesn't work?