Emergency Budget 2010
 

Emergency Budget 2010: the key points - Emergency Budget 2010 - MSN Money UK


this bit amused me endlessly

Child grants: restrict the sure start maternity grant to the first child only, abolish the health in pregnancy grant. Expect lone parents to look for work when their youngest child goes to school.



this might actually STOP people popping kids out just to stay on benefits

Re: Emergency Budget 2010
 

No increase on fuel, alcohol or tobacco and no kick in the slats for the lower paid as the tax threshold has been raised - even Senior Citizens can look forward to pensions being in line with wage rises and a minimum increase of 2.5% p.a.

Does this all seem to be contrary to what the doom and gloom forecasters have been predicting?

Re: Emergency Budget 2010
 

Just over a couple of months ago George Osborne said that he had no plans to raise VAT.

The richest 10% spend £1 in every £25 of their income on VAT, while the poorest 10% spend £1 in £7.

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but do teh richest still spend more on VAt than the poorest? you bet they do.

teh 2.5% rise means its going to cost me an extra £80 in diesel alone just to get to work each year. add in VAT on all the other costs and we am significantly worse off. Thing is I understand why its needed and would rather have this Budget that will sort things than to carry on in cloud cuckoo land that teh previosu lot lived in.

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Won't this encourage them to 'pop' another just to make sure that there is always one under five.:confused:

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the fact that they won't get a maternity grant might (BIG might) stop that i think Margaret, i think they get £500 per pregnancy at the moment

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I think It will mean peace and quite down the research center and a dramatic fall in WKD sales.:hidewall::hidewall::D:D

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I think like Flashy on this one, without all the added extra grants for things already bought they just might think again about having more children. Then again the people who have worked and saved (if you ever can budget for the cost of raising a child) will maybe lose out as well.

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Lets not forget that the Great Labour party have presided over this problem.
it seemed quite fair to me, We will be paying a bit more than our neigbours, but then we do earn more money anyway.

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gotta agree with you on that one Boeing, we all expected it to be really bad, when in actual fact its not that bad at all

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yer all forgetting, thats only the start, the worst is yet to come, wait while autumn.:rolleyes:

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ya maybe right Cashy, I hope not, unfortunately we are in this mess and short of blowing up Parliament or robbing Fort Knox we all have to suffer a bit. It maybe wrong and not fair, but what can we do.
Now where did I leave my Bowler hat, the one with the metal rim.....

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You Less and mick taking the pledge Beni:D

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To be quite honest I can't for the life in me think why Child Benefit isn't means tested I've always that that A millionaire being able to claim child benefit is wrong, or for that matter why should an household with an income of say £100,000 get CB it should be for poorer families who could receive a little more instead

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Absoloutly right. VAT is a regressive tax which hits the poorest hardest.

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It speeks:rolleyes:

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Certainly going to hit me Bernard. I know they are going to increase the personal allowance for income tax to £7,475 to soften the blow to the lower income earners. Saves them £170 .. but is overtaken by increase in VAT.

For me, as a pensioner over 65 .. the personal allowance is set at £9,450 anyway; this already covers no income tax being deducted from my state pension, however, now have small income and the 2.5% increase in VAT will certainly hit me and put lots of goods beyond my reach.:(

At least no rise on me fags, alcohol and fuel. :D

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I don't understand why that is the case, please could you explain it?

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It bemused me Flashy rather than amused me ... I thought the idea was to encourage people to have more children in order that they contribute to the system and help support the longer living pensioners ?

Also, the bit about lone parents is a little amiguous ... hmmm .. is this a warning that there is more to come on this ?

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As you say Kate, not everyone will benefit from the shift in personal allowances. But almost everyone will pay VAT.

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Wait while Autumn kate it'll come.:rolleyes:

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i know what you're saying Kate but people do keep having children to stay on benefits, there is no getting away from that fact, yes i am a single parent, yes i am on benefits for now but i didnt have a kid every other year just so i could stay on benefits longer

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Kate - our tax allowance for over 65s is currently £9490, not £9450.
I gather that it will go up by £1000 too - I hope I have understood correctly.
I currently pay about £600 a year in income tax on my civil service pension, so I will only pay about £400, which is £16.66 less tax in a month to me.

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PS - It seems I was wrong.
I have found this -
Budget: 700,000 more taxpayers in highest tax band | UK news | The Guardian
There was no word on personal allowances for pensioners. Currently, those aged 65-74 enjoy a personal allowance of £9,490, while those above 75 have an allowance of £9,640. Sources suggest that pensioners will have to wait until the autumn for an official announcement on allowances.

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Well, Kate, all these things will go up as a result of the increase in VAT......cigarettes by about 13pence a pack(or that is what the newspaper says).It would have been easy to cut the benefits bill by bringing in a rule which says that if a child isn't born and/or resident in this country, then child benefit is not payable. I am sure this would have met with the approval of most people....it would take very little to administer it either.

The VAT increase will hit everyone.......but that way no-one escapes.
I know that it will make a very little dent in those who earn lots of money, but there may be other things that will appear in the autumn budget that will sting the folk who have pots of money.

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You're right about £9,490 .. was a typing error.

What I was saying was that there is no cushion for me on a low income, and the rise Barry talked about happens anyway. The new rise linked to earnings may be very little more as pays are frozen which will depress earnings inflation. So, buying essential expensive goods and services, which I find difficult these days, will take them out of my pocket. The gap widens between rich and poor. The new rise will help the big earners too don't forget who can afford essential services without effort, even with the VAT increase.

I don't like freezing wages either for public sector workers over £21,000 for two years. Doesn't help with any incentives to work well.

Mind you, this is happening too in the private sectors as government budgets are being cut.

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Perhaps those public sector works need another incentive?

Like keep coming to work accepting this pay freeze & you may get to keep your job.

The alternative is to cut jobs.

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Yes, you have a good point there Mattylad and sure our nurses, paramedics and police will carry on as normal.

Just hope it doesn't persuade them to take their talents into the private sector or abroad.

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Big job losses in the public sector are inevitable. The Government are talking about 25% cuts across some departments.

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I personally think it's the best option from a bad lot, at least with VAT everyone, without exception gets taken from, working, non working, those living on handouts, even tourists & people working illegally. It's take that or would you rather specific groups get hammered to carry thousands of sick lame & lazy ?

As to Katex's point, according to demographics & politicians the Country needs Children, to cover the costs of a longer living older generation, how ? Until the kids are of working age they also take up the countries resources. Still having said that even when they reach working age 18-20 years down the line there is no guarantee they will get work. Take a look round at some of the youngsters now or even their parents in some cases, unemployed /unemployable immaterial of it's through choice or lack of opportunities. where shall the money come from ? The reduced workforce with more obligations ?

No the VAT includes everyone, as to it being fair or not well the individual decides how much they pay by their spending habits, chuck it round like a sailor on shore leave & the Government creams it in, stay frugal, do you really need a 9ft telly, all the latest gadgets & fashions ? Choice is yours.

As to chuntering on about the increase wrecking the Economy I don't see how, People adapt, always have done always will do. Germany hiked its VAT in 2007 from 17% to 19% Guess what Germany is still functioning, admittedly there were the doom & gloom mongers inferring Economic collapse & Germany being pushed back to the dark ages etc,etc, well how about that it didn't come to pass ! For the first 6 month or so people griped & spent a little less, then Summer came & things picked up, no big deal.

I say give it time & you'll probably find things will work out.

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All I was saying Dave is that it won't have much effect on the bigger earners .. they have more than enough to pay all their bills, etc., and probably won't have any need to tighten their belts.

Some people will now have to do without any type of luxury or being able to afford new necessary white goods for instance.

Not saying it's a bad thing ... just will hit the poorer in this country.

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....and when you think about it....
all this world financial mess has provided a few with flash cars, yachts and ranches in South America.....:rolleyes:

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Aye I know Katex, but really we're stuck with it. There will always be casualties in any situation. I don't know, I believe there was something in place in UK for low earners & the like to be able to get necessaries, all state funded, might not be the model you wanted but adequate for purpose. (I don't know as I haven't lived in UK for 26 years, but I was led to believe that to be the case.)

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Again you are not incorrect Dave. I am not really grumbling too much .. just pointing out a fact. Pensioners for instance get a winter fuel allowance, free transport, concessions, etc. Will be worse for the pensioners who only have their state pension to rely on. I am still having to do some part time work to buy any extras.. at 67 years, believe me, I do not want to. Ok .. I was stupid .. was a very high earner, but spent on giving my kids a good lift in life .. so not resenting it.

Poorer families get benefits of some sort (sorry not ofay with all these). I don't think any of us are going to starve, but why should the lower income families be deprived of a few luxuries in life ? "Oh yes, darling .. don't think we will cruise the Med this year, just go to South of France instead" Pah! To say to these people tighten your belt, does not go down very well, when it is already cutting them in half. The freeze on child benefit will affect them but suppose, nowadays, is some call for it to be means tested... just may cost more to do this. I dunno' not an economist.

Shakermaker: Interested in the figure you quoted.. where did that come from please ?

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Whether this budget works as planned or not, only time and external circumstances will tell. I do not think there is anything really radical about it – it’s simply a case going towards balancing the beans and I doubt if the overall impact will be that substantial. How better it would have been to shut down the Department for Overseas Development and slashed the salaries of any bureaucrat in the public sector to the level of an MP – aprox. £65K a year. These two measures would alone have saved about £12bn. The problems we now have in the UK run far, far deeper, and as such fiscal and monetary measures should have been addressed to the following:

Within the so-called EU, we have the highest rate of teenage pregnancy, the lowest rate of active sport participation, the highest rate of binge drinking, the lowest rate of social mobility, the highest rate of teenage obesity, the lowest rate of life expectancy, the highest rate of violent crime, the lowest rate of literacy/ numeric ability for under 16’s, the highest government borrowing requirement, the lowest rate of oncology survival, the highest rate of employables choosing welfare, the lowest rate of manufacturing apprenticeships, the highest rate of asylum seekers, the lowest rate of local fresh food available in the shops, the highest rate of legal negligence claims, the lowest rate of voting turn-out, the highest rate of Niqab and Burka wearers, the lowest rate of international football success, the highest rate of rotten MP’s, the lowest rate of electrified railways, the highest unfunded public sector pension liability, the lowest rubbish recycling record, the highest house costs psf, the lowest average-size house build, the highest number of net immigration, the lowest number of criminal repatriation, the highest number of skilled emigration, the lowest satisfaction for financial services, the highest per capita public funding for bank bailouts.....I could write another 10 pages of this but I can’t be bothered.

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Can't remember you having very much to say when Dumb and Dumber did away with the 10p tax bracket, which lets face it didn't effect any toff lining up down Savile Row waiting to be measured for a new suit behind Brown and Darling, it just effect the most vulnerable in our society, VAT increases are a far fairer way;)

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I don't think anybody realises that this country is pay £80,000 per minute in interest on its debts, drastic actions have to be taken now, especially seeing the last government were very economical with the truth about the state of our finances prior to the election, things are far worse than anybody realised

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In my opinion it would seem to suggest that the International Finance Market likes the budget and expect the UK to pull out of recession quicker that originally thought because of the actions taken - look at the rise in the exchange rate against the Euro.