PowerSwitch

Thoughts?

I am not even interested enough to watch it. Somehow Labour need to do a major tax hike and also claim they are focusing on Growth, Growth, Growth, Growth, Growth! I already can't stand Rachel Reeves, in a very similar way to how I couldn't stand Gordon Brown. Might have something to do with the fake rictus grin.

The bottom line is a tax and spend budget, tax primarily on employers national insurance, which is income tax by another name, and spending is primarily on the NHS.

The markets are not spooked. In it's current form the NHS is a bottomless pit, and I have been making good use of it in recent years. It will need major reforms or this will fail in the medium term anyway

Ralphw2 wrote: ↑30 Oct 2024, 14:10 In it's current form the NHS is a bottomless pit, and I have been making good use of it in recent years. It will need major reforms or this will fail in the medium term anyway

I believe we need to distinguish between (1) making the NHS work for most of the people most of the time and (2) the potentially limitless costs of very high tech specialist treatments and (3) the potentially limitless cost of caring for the elderly.

(1) can be made to work even in the long term, I believe. (2) and (3) both need a fundamental and controversial rethink.

My views are as follows

Increase in employers national insurance contributions===========BAD as it is in effect a tax on jobs.
Increase in minimum wage==========NEUTRAL, most welcome by those who receive it, but an increased burden on business.

HS2 rail link to go to Euston======GOOD I am in general pro public transport. And who wanted to go to old oak common?

Cut in petrol and diesel duty extended for ANOTHER year====BAD it is already too cheap.
air passenger duty on private aircraft increased substantially===GOOD but wish it applied to all air transport.

Cut in duty on draught alcoholic drink==============GOOD much greener than bottles or cans.
Increased duty on other alcohol=========NEUTRAL, it is too expensive already, but "drinking is the new smoking"

Increased duty on cigs===========Good, filthy habit.
Greatly increased duty on hand rolling tobacco=====GOOD filthy habit.

New duty on vaping liquids=======GOOD, not a habit to encourage, who knows what long term health problems will result.

The 20% inheritance tax on agricultural land is interesting, could have significant long term impacts.

clv101 wrote: ↑30 Oct 2024, 18:17 The 20% inheritance tax on agricultural land is interesting, could have significant long term impacts.

Such as what? A trend towards reduction in average farm sizes?

It's a further kick in the teeth for the 'small family farm', just when the parents/grandparents die, not only do you have to navigate succession, possible buy out of other siblings - but now also have to find maybe a couple hundred grand inheritance tax!

But, if it makes agricultural land less attractive of wealthy folk to buy up as a tax dodge, it could lower the price of land. However, I expect 20% isn't enough of a disincentive (a lot better than 40%) but big enough to pose a real problem for small farm succession.

The 'trick' is to pass the farm on to the next generation a decade+ before you die. This has several benefits, but goes against established culture.

Disappointing to see the £20k ISA allowance remaining. I was expecting that to be cut back to £10k. Only a small number of very high earners can afford to fill the £20k ISA each year - those folk can afford to pay 40/45% tax on their interest!

clv101 wrote: ↑30 Oct 2024, 18:51 Disappointing to see the £20k ISA allowance remaining. I was expecting that to be cut back to £10k. Only a small number of very high earners can afford to fill the £20k ISA each year - those folk can afford to pay 40/45% tax on their interest!

It should be around £26000 after accounting for inflation. Lots of hard working people fill their ISA allowances every year (I do), and I'm not a particularly high earner.

If anything, I'd cut the cash ISA allowance to 10k and put the stocks and shares ISA allowance to about 40k. That could funnel more investment into productive assets.

Another would be to allow you to invest in (say) green energy and guarantee your return to something like 1-2% above inflation through some sort of bond into an ISA.

Throughout the budget delivery the great leader was looking as though he had recently received some terribly bad news in stark contrast to his fairly upbeat looking front bench colleagues.

I don't think the budget was too bad from my point of view. Bad for the farmers though....

Also no tax on private equity carried interest.....hmm

Potemkin Villager wrote: ↑31 Oct 2024, 11:27 Throughout the budget delivery the great leader was looking as though he had recently received some terribly bad news in stark contrast to his fairly upbeat looking front bench colleagues.

He has to square the circle of a really bad budget for a lot of middle class voters. No wonder he was ashen faced. I give this Labour government 2 years max before a new election is called. Too many unforced errors...