Will be welcome for most, however the fiscal drag (freeze on income tax bands) will mean more people paying tax regardless.
From my viewing, the biggest cuts by far seemed to be for businesses. And it is unfortunate that despite the extra fiscal headroom, department budgets are still due to be squeezed in the coming years.
Despite the tax cuts, I personally do not think this will help the Conservatives electorally, they are just so far behind.
That’s quite a decent boost for for a lot of people.
Alongside the unexpectedly large increase to the minimum wage (and expansion to include 21+), a cynic might think they’re desperately trying to avoid destruction at the next election.
I’ll happily take the money for now, but hopefully it’s not enough for people to forget all they’ve done to date.
Don’t let them buy your vote.
General Election coming sooner than you thought?
🚨🚨ELECTION KLAXON🚨🚨
They ought to rebalance how NI is calculated in the first place. Higher earners somehow pay less? What the fuck is the point in that?
Aye but my freezing the rate it comes in at 4 Million more are paying it and the gain is completely wiped out by income tax due to the frozen tax bands. Complete scam.
Aye but my freezing the rate it comes in at 4 Million more are paying it and the gain is completely wiped out by income tax due to the frozen tax bands. Total scam.
So we’ll be slightly better off via NI decrease, until the Scottish budget where they will take even more via Income tax and just say that because of the NI change, we’re no worse of than before but they’re creaming more money off us!
Fiscal drag means there are still millions of people now paying higher rate tax band.
50k (or 43k in Scotland) is not the kind of salary that should be subject to the taxes we’re seeing after years of high inflation.
It’ll be a late night at Bute House trying to spin how putting more money in the pockets of the poorest is such a terrible, dreadful thing.
11 comments
Will be welcome for most, however the fiscal drag (freeze on income tax bands) will mean more people paying tax regardless.
From my viewing, the biggest cuts by far seemed to be for businesses. And it is unfortunate that despite the extra fiscal headroom, department budgets are still due to be squeezed in the coming years.
Despite the tax cuts, I personally do not think this will help the Conservatives electorally, they are just so far behind.
That’s quite a decent boost for for a lot of people.
Alongside the unexpectedly large increase to the minimum wage (and expansion to include 21+), a cynic might think they’re desperately trying to avoid destruction at the next election.
I’ll happily take the money for now, but hopefully it’s not enough for people to forget all they’ve done to date.
Don’t let them buy your vote.
General Election coming sooner than you thought?
🚨🚨ELECTION KLAXON🚨🚨
They ought to rebalance how NI is calculated in the first place. Higher earners somehow pay less? What the fuck is the point in that?
[NI was supposed to be related to stuff like pension and health benefits](https://en.wikipedia.org/wiki/National_Insurance)
However over time, with other benefits (e.g. pension credit) being rolled out, it has effectively become a straight tax
The effective of this is that (combined with reductions in personal allowances) [the highest marginal rate of tax in the rUK was 66.6% and Scotland 67.9%](https://ifs.org.uk/taxlab/taxlab-data-item/combined-marginal-rates-income-tax-and-national-insurance-contributions) with another peak at 58.7% @£50K
The whole system is ripe for reform
Aye but my freezing the rate it comes in at 4 Million more are paying it and the gain is completely wiped out by income tax due to the frozen tax bands. Complete scam.
Aye but my freezing the rate it comes in at 4 Million more are paying it and the gain is completely wiped out by income tax due to the frozen tax bands. Total scam.
So we’ll be slightly better off via NI decrease, until the Scottish budget where they will take even more via Income tax and just say that because of the NI change, we’re no worse of than before but they’re creaming more money off us!
Fiscal drag means there are still millions of people now paying higher rate tax band.
50k (or 43k in Scotland) is not the kind of salary that should be subject to the taxes we’re seeing after years of high inflation.
It’ll be a late night at Bute House trying to spin how putting more money in the pockets of the poorest is such a terrible, dreadful thing.
[Meanwhile, middle class PAYE at the next Holyrood budget be like](https://www.youtube.com/shorts/PchTRViYrAo)