Summer Budget 2015

Discussion in 'Politics & The Economy' started by EarthRod, Jul 7, 2015.

  1. EarthRod

    EarthRod
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    I wonder what Osborne has in mind on the 8th July besides a shake-up of the Sunday trading laws and capping benefits?
     
  2. Member 581642

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    IHT reform
     
  3. tapzilla2k

    tapzilla2k
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    Increasing social housings rents by up to £70 to make them closer to market prices in the private rental sector. I'm sure that will work out splendidly well.
     
  4. EarthRod

    EarthRod
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    Well, this is the first Tory budget since... er... 199-something.

    The IHT threshold will increase to £1 million for couples from 2017. The 'family home allowance' is £175,000 per person on top of £325,000 tax-free allowance. So assets worth up to £500,000 (including a house) will not be liable to IHT.

    About 340,000 people who live in housing association and local authority properties (subsidised) on incomes of more than £40,000 in London and £30,000 in the rest of England will start paying market-price rents from 2017.

    It's on the cards the main sickness benefit (Employment and Support Allowance) could be scrapped.

    The public sector will get it in the neck again - about £30 billion will be cut from government departments.
     
  5. tapzilla2k

    tapzilla2k
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    I think they want to scrap the work related activity group, which means a reduction of £30 and closer to JSA. So they might scrap it entirely I guess. If they do, they are a bunch of....
     
  6. fluxo

    fluxo
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    Is that tapered in? I mean, wouldn't it strongly disincentivize earning more if you are near the threshold? Could be viewed as thwarting the ambition of those in social housing who wish to better themselves.
     
  7. EarthRod

    EarthRod
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    Those over the threshold will have their subsidy cut completely.

    That's what the news websites say, but Osborne might say something different tomorrow.
     
  8. fluxo

    fluxo
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    Is "subsidy" the correct word?

    I have no idea what the amounts involved are, but hypothetically you could be thousands of pounds worse off if you earn an extra penny.
     
  9. EarthRod

    EarthRod
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    1. Might not be. I thought it is 'Subsidised Housing', that's why I used the word 'subsidy'.

    2. That is true - just like income tax.
     
  10. Cliff

    Cliff
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    I might be wrong but what I understood from the news reports was that the house component will be treated separately, and you will be allowed up to £1m (joint). Idea being that the house does not have to be sold, which could have devastating consequences for those who have not flown the nest.

    So if you only have savings of a million then that will be taxed. And there has got to be some small print because, its unfortunate reality that many have to sell their house to pay for care. If you pop off 10 minutes after selling the chancellor has got you!
     
  11. fluxo

    fluxo
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    I don't know much about this. If the rent money flows back to the state, then any subsidy might be construed as the state paying itself. The amount it is paying itself would be only notional.

    By way of comparison: you could say that low earners get an income tax subsidy. That is, they are charged at the 45% rate the same as everyone else, but get some of the money back to make the effective rate lower than that. Of course, this is nonsense. But all sorts of fictional flows of money could be created and then called subsidies.

    I don't think it's quite the same. If you cross an income tax threshold, you lose a proportion of the extra money you earn. You don't lose any of your existing net income, as far as I am aware. But I'm not very knowledgeable about taxes.

    If the suggestion is that you go from earning £29,999.99 to £30,000.00 (1p increase) and then have to fork out an extra, say, £4k in rent, well that would be silly. I can't imagine that is what is about to happen. I'm not a great a fan of the chancellor, but he must realise that is not a sensible proposal.
     
  12. EarthRod

    EarthRod
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    ^^^ Yes. We shall have to wait and see what the Chancellor has to say.
     
  13. domtheone

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    Was absolutely staggered to here that so many, on decent wages, have their housing costs subsidised.

    Scandalous.:eek:
     
  14. fluxo

    fluxo
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    The costs are only subsidized if you magic up some imaginary costs that have to be paid. Most of the building costs of this housing were paid for years ago. So the only ongoing costs in a lot of cases are maintenance costs.
     
  15. Member 581642

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    Not quite the case but get the sentiment. Housing association need to make a "profit" so they can purchase more properties.
     
  16. Sve

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    No they do not have to make a profit, all they have to do is break even.
     
  17. Member 581642

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    Ok what happens if a roof needs repairing ?
     
  18. Sve

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    Its all built in to a yearly budget, with money put to one said for emergency repairs etc.
     
  19. Member 581642

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    and if not a money is put aside
     
  20. Member 581642

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    as on other threads im not disagreeing but so many practicalities to overcome, and that's whats the economy is like
     
  21. HRF1T2007

    HRF1T2007
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    I would add if a family in social housing started of needing the house and as social housing is there to help over time people get jobs etc and slowly better themselves and say earn a figure £32000 jointly

    They pay the rent never claim benefits paid into the system and the general opinion is right out you go into the world again
    They would struggle again, I have no issue with families earning money and saving to be able to get a mortgage etc but as already paying rent it is harder to do in all sectors
    Then they will also now be hit with a market value rent,all this will do is not empty houses it will keep people in them and either make it harder to better themselves or will force people to buy the house as the mortgage will be cheaper than the rent which is the whole plan of this I think.

    It could also drive wages down as if somebody was £2000 over the cut they could request a wage cut and save money
    Again none of this helps people who want to improve, there is a bad vibe that very small % makes everybody in social housing a sponger and work shy
    You won't see TV programmes on people working and trying that are the majority of social housing tenants that care and improve their surroundings themselves
     
    Last edited: Jul 8, 2015
  22. Sve

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    It is put to one side, like when you build a new house, you always have 10-20% extra for those unforeseen circumstances.
     
  23. domtheone

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    So who'll be listening in then:D

    No headphones on the PC so i'll make to with the BBC update feed.

    Personal allowance is set to rise substantially slower over the next 2 years than it has done of late.

    Would be nice to see GO change this and push this on rapidly towards the 12K mark and take any min wage earners out of income tax range.

    Some monster changes/hints at future changes on NI would be welcome too.
     
  24. tapzilla2k

    tapzilla2k
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    My initial reaction -
    Osborne's budget speech is akin to a greatest hits of his budgets from 2010-15. But with new spin and harsher measures.
     
  25. domtheone

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    Harsh?

    Deficit reduction kicked down the road again.

    New car duty rates. Will see what the detail is there. Crap on the motorist again i'm sure.

    Clearly, motorists are switching to low emission cars en mass and the treasury is losing income hand over fist so he has to plug that gap given that spending is still astronomical.

    Good moves on welfare though, half measures.

    Something negative re BTL investors? Clearly a half measure again. BTL needs stamping down on. Way too much of it, imo. Just fuels the rocket even more.
     
  26. domtheone

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    So he has changed this.:clap:

    Not as rapid as i would have liked but every little helps.
     
  27. Cliff

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    Have to say, Osborne has to be congratulated on this budget.
    And the National Living Wage--
    Well pulling that one out the hat was a surprise. Just put the icing on the cake.
     
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  28. domtheone

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    Big rise in the minimum wage.

    That means those on said wage (full time) will still be paying tax for years to come.

    Pity the personal allowance cannot be increased a lot more but that may happen when spending is under control.

    The distinction between going out and getting a minimum wage job or sitting at home doing nothing, is moving in the right direction.

    Overall, most things progressing to plan.
     
  29. EarthRod

    EarthRod
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    I am reluctant to say it, but I agree - very pleasantly surprised at how well balanced the budget is. Here's a BBC article on the summer budget:

    Budget 2015: Osborne commits to national living wage - BBC News

    "Chancellor George Osborne has vowed to introduce a 'national living wage' of £9 an hour by 2020 in the first Tory budget since 1996.

    The chancellor scrapped student grants, froze benefits and cut billions from tax credits and other welfare payments.

    But he said he would spread the £12bn in welfare cuts promised in the Conservative election manifesto over three instead of two years.

    He also cut housing benefit for most people aged under 21."


    I'm pleased about this, was expecting a fierce and hard cutting budget. :smashin:
     
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  30. tapzilla2k

    tapzilla2k
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    It's just an increase in the minimum wage, the actual Living Wage is around £7.85. Osborne has rebranded the minimum wage. Tough luck if you are under 25 on the wage front.

    -----

    Once again the sick, mentally ill and disabled have been hammered. Not that a lot of you will care about that one though.

    Overall it's a masterstroke budget from Osborne in purely political terms. He reversed his tactics from the election campaign and set new traps for Labour.
     

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