Open mike 01/11/2024

2 comments on “Open mike 01/11/2024 ”

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1. SPC 1

   1 November 2024 at 7:18 am

   The UK prepared for Halloween with the first budget by a female Chancellor of the E. Bountiful (like Nigella in the kitchen) for some, but who pays for the extra state spending.

   UK Budget

   National Insurance contributions up 1.2% from April 2025.

   Chancellor Rachel Reeves has set out a Budget that will increase taxes by £40 billion, as she promised to "fix the foundations" of the UK economy.

   She said the government will raise £25bn from increasing employers' National Insurance contributions.

   This was the first Labour Budget since 2010, and the first ever delivered by a woman.

   Reacting to the Budget, Conservative Party leader Rishi Sunak called it "an enormous borrowing spree" which contains "broken promise after broken promise".

   https://www.bbc.com/news/videos/czj734j3pn4o

   Half of the money from increasing NI by 1.2% goes to the NHS. £25bn over 2 years.

   https://www.bbc.com/news/articles/c238njy0vmmo

   VAT on private schools with money transferred to state schools, £460m extra to spend on state schools next year, rising to £1.7bn by 2029/30.

   https://www.bbc.com/news/articles/c98d3xr0290o

   Other Detail

   Capital gains tax (CGT) is charged on the profit made from the sale of assets that have increased in value, such as second homes or investments.

   The chancellor has announced the rate at which CGT is charged will go up, from 10% to 18% for basic rate taxpayers, and 20% to 24% for those who pay at the higher rate. This will match the existing rates for property which will stay the same.

   Stamp duty on the purchases of second homes, buy-to-let residential properties, and companies purchasing residential property in England and Northern Ireland, will rise from 3% to 5% on Thursday.

   Analysts say this could affect landlords' willingness to buy more properties. If the supply of rental properties is squeezed, that could mean rents rise for tenants in the remaining homes.

   Inheritance tax (IHT), which is currently 40%, is usually paid on the value of a deceased person's assets above a threshold of £325,000. That threshold has been prolonged to 2030.

   At present, any money saved in a pension does not count towards this but, from April 2027, inherited pensions will be included.

   This is likely to bring more estates into the inheritance tax net, owing to pension savings that have not been spent before somebody dies. The government 10,500 extra estates will pay inheritance tax as a result in 2027-28.

   Until now, various exemptions have allowed certain types of property, such as farms and family business assets, to be disregarded in terms of inheritance. However, from April 2026, the rules will ensure some tax will be paid on assets of more than £1m.

   https://www.bbc.com/news/articles/cx25w7qpr0yo

   https://www.bbc.com/news/business-36014533

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   • Kay 1.1

     1 November 2024 at 8:12 am

     But at the expense of the worst off…of course. As if a Labour government would have the guts to repeal damaging benefit rules, even when they have a large majority. Sounds somewhat familiar.

     The Foundation highlights that combined, changing the Work Capability Assessment and means-testing Winter Fuel Payments (as well as accelerating the migration of claimants from Employment and Support Allowance onto Universal Credit) will reduce the welfare bill by £4.1 billion by 2029/30, whereas the benefit increases amount to an overall rise of just £0.2 billion.

     Overall, these changes amount to a net welfare cut of £3.9 billion in 2029-30.

     In addition, says the Foundation, the Chancellor chose not to repeal some of the most poverty-producing benefit rules, leaving the pressure on lower-income families to build.

     https://www.disabilityrightsuk.org/news/budget-2024-results-net-welfare-cut-%C2%A339-billion-20292030

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