General Chat

VAT will rise from 17.5% to 20% from January 4 next year, Chancellor George Osborne has announced as he promised to to balance Britain's books within five years.
Among other measures announced in the emergency Budget, the Government is asking public sector workers to accept a two-year pay freeze.
Promising to deal decisively with the UK's record debts, Mr Osborne said there would be protection for the 1.7 million public servants earning less than £21,000.
Those low-paid workers will receive a flat pay-rise worth £250 in both years.

Outlining the cuts, Mr Osborne said child benefit would be frozen for three years and tax credits would be cut for families with incomes over £40,000 a year.
He said government departments whose budgets have not been ring-fenced would face spending cuts of 25%.
Armed forcing serving in Afghanistan will also see their operational allowance doubled to £4,800.
The Chancellor said the Government will accelerate the increase in the state pension age to 66.
Mr Osborne added that he would wipe £1.8 billion a year off the housing benefit bill by the end of the Parliament, capping weekly payments at £400. He also said the Government would introduce a medical assessment for Disability Living Allowance from 2013 for new and existing claimants. The total welfare shake-up will save the country £11 billion by 2014/15, he said.
Corporation tax will be cut - in line with the Conservatives' election manifesto - with the headline rate being progressively reduced over the course of the Parliament from 28p to 24p.

Liz................I don't wanna talk about it!!! ;-0(

Just a good job they cannot tax my friendships!
Deanna X

Sounds like good news.

REALLY???
where do you live?
Buck house? ;-0)
Deanna X

The cap on housing benefit is well overdue, but £400 a week is still on the high side, especially outside London.

How do people get that much housing benefit, I get help with my mortgage which is the equivalent to HB but its less than I would pay in rent if I was a council tenant and doesnt cover all my mortgage whereas if I was in rented would get it all paid so if I have to cope paying the shortfall on benefit why doesnt everyone.

Agree the tax credits cuts if only I had £40,000 to live on a year wouldnt want or expect any benefits.

VAT is going to hit people hard and add in no increase in child benefit that will make families a lot worse off.


Hes cutting back on the maternity grants do you reckon that will stop the youngsters getting pregnant (not all of them do it for the money Iknow) and thinking oo what can I get.

d x

We will all find things to disagree with, but would you want the job he is faced with of getting this country out of debt? I The VAT increase means that there will be two and a half pence more on the pound, so for instance, an item costing £1. 171/2 pence will now be £1 20. I dont buy things that cost a lot of money anyway on the pension Its the extravagant with all their spending who might have to think a bit. I am concerned about the disability benefit, because how would my husband prove he was fit for work at 74, and bent in the middle so that walking is painful most days There are people who swing the lead, we all know them, but most are at their wits end how to cope with just living. Petrol will have to go up, but that is almost normal! The low paid have it the worst of all, because in most of the country they need cars to get them to work.

Jean

not looking forward to the DLA assesments not cos I have anythign to hide but when i went to tribunal for mine they told meas I couldnt prove it was a medical condition couldnt get mobility even though I cant walk farand we are talking a few steps without being in pain and have to be driven or pushed in wheelchair everywhere.

Think whoever does the assesments needs to be up on all medical conditions and not just go by tick boxes that most people dont fit into.

I mean who would chose a life of disability I for one wouldnt it affects the whole family not just me and if i had a magic wand i would make it go away and be out there working feeling like a useful human being.

hubby and i agree with most of what he has done , but not with the VAT.he runs a landscape firm,and as he says ,he has got to add 2 1/2% to every job ,and thats before the price of slabs , cement ,plants ect go up(and they will)....the black econery(sp) will bloom..

I just think that, raising the pre-tax allowance for all earners but increasing the VAT means that I can choose how to spend my money. I think the whole idea is getting people to be more responsible for themselves rather than relying on the state, which I agree with.

I don't want to be told how to spend my money, I want to make my own mind up. I work and own my own money.

Personally, I'm pleased with the higher rate before paying tax - and the pay rise for low paid public servants!! Believe it or not, some public sector workers get low pay!!
I'm earning less in the public sector than I was in the private sector doing a similar job 5 years ago! Since being here, I've actually LOST pay (re-organisation of grades) and had a pay freeze for 2 years!! Can't afford the pension either.....
Oh, and I resent having to explain to 'managers' on twice my pay how to do their job!!!
Hopefully fewer 'managers' will now be employed and us 'real' workers will gain a few £'s!

The Vat increases is very bad news for both the North and Republic of Ireland.
Why????
Because with the increase in Vat it will bring alot of prices in line with the Republic, which means that it will not be worth our while going to the border counties to save money on foodstuffs, cigs and drink.
Lily.

Have they factored in the detriment to tourism? I would think very hard before going to UK and having to pay for extra VAT.

Gail

I think it will be a case of suck it and see, some things aren't coming in immediately, but I do think te everything will go up twice, with extra tax and extra vat on petrol deliveries will cost more so goods will be priced more highly before the extra vat, if you understand me.

Lizx

This is going to have major repercussions on your economy. Non of them good. People on low incomes as usual hit the worst.

Gail

"Oh, and I resent having to explain to 'managers' on twice my pay how to do their job!!!
Hopefully fewer 'managers' will now be employed and us 'real' workers will gain a few £'s!"

Maggie is dead right, managers and "non-jobs" have exploded over the last decade. There are more Admirals than ships in the Navy and almost as many pen pushers in the MOD as soldiers in the Army, more managers in the NHS than nurses, and so on.

The public sector payroll needs to be slashed, but in the back room, not the front line, and entire functions which serve no useful purpose pruned out.

The State now spends over half the national income (52 percent as opposed to 40 percent in the mid 1990s)
and that is unsustainable, especially when you add in the future pension costs of the extra personnel.

Brian, it was Maggie who introduced the *manager culture*.

And they couldn't manage a child's birthday party.

Anyway... I said I don't wanna know, and here am I joining in.
As for £400 housing benefits.... We have help with ours and if we need THAT much help, we would soon be told to MOVE HOUSE!

Hi Dawnie? ;-0)

Deanna X

As Jean says, I wouldn't have his job for anything. And, regardless of who has caused any of the problems we are in a financial mess and we all need to suffer a little to get out of it.
I believe the VAT doesn't increase until January so the immediate economy will actually be boosted as people rush out to buy all the TVs and white good etc they think they want before then.

HB of £400 is disgusting in my opinion.

The point is people on low incomes aren't being hit the worst. Apart from the little bit more vat on petrol, most necessities such as food, fuel and childrens clothes are not affected by the VAT increase.

It is the middle and higher earners that will have to bear the brunt

Brian,

I thought it was £400 a month H B not a week !! .correct me if I'm wrong .