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Budget March 2020

Posted: Wed Mar 11, 2020 2:16 pm
by adam2
This thread is for discussions about the budget.
Please confine budget related remarks to this thread.

Posted: Wed Mar 11, 2020 2:27 pm
by adam2
My views are summarised as,

Freezing of duty on road fuel-----------------bad.
Massive road building -------------------------bad.
Freeze in alcohol duties------------------------good.
Freeze in tobacco duty-------------------------neutral.
Business rates holiday for small shops--------good.
Increased NI threshold-------------------------good

Various measures to reduce the impact of the coronavirus, generally good.

Posted: Wed Mar 11, 2020 8:22 pm
by cubes
Magic money tree: found!

Posted: Wed Mar 11, 2020 9:24 pm
by fuzzy
The NI threshold could mean various things. It could mean that you have to earn more before you get NI credits towards the state pension. Osborne used to play that trick.

Posted: Wed Mar 11, 2020 10:00 pm
by clv101
Economy predicted to grow by 1.1% this year, revised down from 1.4% a year ago. The figure, which does not take into account the impact of coronavirus, would be the slowest growth since 2009.
Fuel duty to be frozen for the 10th consecutive year
Madness. Year on year, we have been reducing fuel duty by 1-2% in real terms for a decade.
VAT on digital publications, including newspapers, e-books and academic journals to be scrapped from December
Probably a good thing, but disappointing that audiobooks are excluded.
Subsidies for fuel used in off-road vehicles - known as red diesel - will be scrapped "for most sectors" in two years' time. Red diesel subsidies will remain for farmers and rail operators.
Who does this mainly affect? Who are the big red diesel users outside farming and rail? Boats? Does this represent a huge tax hike on fishing? Forestry? Construction (diggers, bulldozers, etc?). Seems odd to freeze (cut) duty on regular road use, but hike it on lots of small sectors where there is very little alternative?
There will be £27bn for motorways and other arterial roads, including new tunnel for the A303 near Stonehenge
Madness. We need to be figuring out ways to drive less not more!

Posted: Thu Mar 12, 2020 2:22 pm
by kenneal - lagger
The problem is that economic advisors to the government and the economic system that they serve are still addicted to growth

Posted: Thu Mar 12, 2020 3:32 pm
by careful_eugene
clv101 wrote:
Subsidies for fuel used in off-road vehicles - known as red diesel - will be scrapped "for most sectors" in two years' time. Red diesel subsidies will remain for farmers and rail operators.
Who does this mainly affect? Who are the big red diesel users outside farming and rail? Boats? Does this represent a huge tax hike on fishing? Forestry? Construction (diggers, bulldozers, etc?). Seems odd to freeze (cut) duty on regular road use, but hike it on lots of small sectors where there is very little alternative?
I'm guessing the biggest red diesel user outside of those 2 would be the construction industry.

Posted: Thu Mar 12, 2020 5:25 pm
by adam2
Yes, construction equipment, including generators and air compressors can use red diesel at present, but wont be allowed to in the future.
Also boats.
And presumably heating in non domestic premises.

Posted: Thu Mar 12, 2020 8:45 pm
by vtsnowedin
adam2 wrote:Yes, construction equipment, including generators and air compressors can use red diesel at present, but wont be allowed to in the future.
Also boats.
And presumably heating in non domestic premises.
The usual line here is that the excavators and cranes etc. can use untaxed off road diesel but the dump trucks cannot but often the construction zone limits are set out far enough so that trucks can cycle between job and quarry or asphalt plant while using dyed untaxed so that the contractor does not have to have two different fuel trucks come each day and top off all the tanks. As all bidders can take the same advantage from this it as looked at as lowering the bid price of the job and a wash in the long run.