The Budget - It Didn't Take Them Long, Did It?

[DTS]

Personally I thought it was more than fair.

The country is in a right state and everyone needs to do their bit. The TV has being doing the usual lets blame the city earlier which as always is an easy scape goat.

As far as I am concerned Labour created a Welfare state and were all left to pick up the peices. The stats on people of workable age not working is shocking.

The thing I like most about the Torys is there support of free enterprise which I fully support so I must say I thought it was good.

 

[BrettieAngell]

I really do not see what striking would achieve. As the former Chief Sec to the Treasury put it (jokingly or otherwise), there's no money, it's all spent. The country hasn't got a pot to **** in, the Public sector will finally have to draw their horns in and take the medicine those of us in the hard pressed Private sectors have been taking these past two years.

I understand that VAT does not rise until January 2010, and FWIW remains an "indirect" tax, if you buy something that's Vat-able you pay it. And VAT remains zero rated on food and children's clothes.

The Civil Servive were threatening to strike even before today, bunch of ****wits.

 

[Hotman]

As far as I am aware food is zero rated, unless you eat in a restaurant when VAT is applicable.

food and drink is a minefield

If served over ambient room temperature (unless as a result of being freshly cooked but not intended to be eaten above ambient room temperature) then it is standard rated,, regardless of eat-in or takeaway

If below, it depends on where you sit when you eat! (eat-in taxable, takeaway potentially zero rated)

Confectionary and other luxuries are taxable, as is bottled water (but not milkshakes!!)

 

[osymandus]

Well we just all need to drink Soya, fruit shakes , everyone gets health pay's little tax removes processed fats and sugars et voila :D .

 

[Yorkshire Blue]

Before I start, I'd just like to point out i'm not claiming to know better ways of doing anything, I have little economic knowledge so welcome any views etc. I'm just pulling out 3 poiunts from the budget that are of particular concern to me.

VAT Rise
Ok so the government needs more cash, I get that. However surely a VAT rise will reduce what people spend, I work for a small business and can see this affecting their custom. Things have been tight and whilst we've been thankfully free of redundancies (touch wood) when people have left they've not been replaced and there's been no pay increases for nearly 2 years now. Meanwhile for the big boys who've continued to rake it in corporations tax is being cut.

Student Loans Company To Be Sold Off.
My worry is whoever buys the SLC will change the rules and start demanding more money at a time when I can't afford it.

Medical Assesments for DLA (Disability Living Allowance).
This affects me as someone who has a loved one who rely's on DLA. I agree that fraudulent claimants should be stopped, however it does concern me how these tests will be carried out and by whom. Will the criteria change? Will the person deciding be qualified to understand all forms of disability besides the obvious physical disabilities ie. mental health issues that prevent a person from living a normal life?
As a side issue here, I would think the assesments themselves will cost us alot, for example will regular GP's be expected to carry them out, thus increasing the need for more doctors or will there be a special department set up. Both ways will cost money.

Is it the Student Loans Company to be sold off or it's loan book?

Either way, if you've already got a loan out they can't change the terms of your contract*


The VAT rise is not until April, IIRC. Is this to encourage a temporary boost, similar to the one Labour sought by lowering VAT? The theory would be that people would bring forward their purchases to take advantage of the lower rate. This way you get that same boost, but without lowering revenue.

I'm a little surprised they went for 20%. I thought they'd have briefed for something worse than we were going to get.

*Not without an Act of Parliament at least.

food and drink is a minefield

If served over ambient room temperature (unless as a result of being freshly cooked but not intended to be eaten above ambient room temperature) then it is standard rated,, regardless of eat-in or takeaway

If below, it depends on where you sit when you eat! (eat-in taxable, takeaway potentially zero rated)

Confectionary and other luxuries are taxable, as is bottled water (but not milkshakes!!)

There are a few discrepancies (ie Jaffa Cakes), but basically all the ones that are taxable (or is it non-zero rated?) are luxuries.

Bottled water is certainly a luxury.

 

[Hotman]

There are a few discrepancies (ie Jaffa Cakes), but basically all the ones that are taxable (or is it non-zero rated?) are luxuries.

Bottled water is certainly a luxury.

Correct, although I'd say Frijj is more of a luxury than Evian! :)

 

[BrettieAngell]

The VAT rise kicks is in January YB.

 

[Yorkshire Blue]

Ah cheers BA

 

[Cricko]

I understand that VAT does not rise until January 2010, and FWIW remains an "indirect" tax, if you buy something that's Vat-able you pay it. And VAT remains zero rated on food and children's clothes.

Damn are they backdating it now H :dim:

 

[canveyshrimper]

Damn are they backdating it now H :dim:

:doh: More than likely mate if they could get the chance.

 

[Tangled up in Blue]

Nobody(on the Tory/Lib-Dem benches) has seen fit to explain how the massive cuts in public services spending will necessarily be picked up by the private sector in terms of increased investment and export led growth.It MIGHT happen as it did under Thatcher's Chancellors, Howe and then Lawson, back in the late 70's and 80's.
However, it's a huge gamble which nobody will be able to fully determine the success of until we're three or four years down the line.
It should also be remembered that the price of such "success" was a huge increase in unemployment and social unrest.Public sector strikes will be shortly coming your way.
It would be a brave man(or woman) who categorically ruled out the sort of riots we had last time round in Brixton,Toxteth etc, also returning.
There is also now the very real risk of a double dip recession with this bout of savage cuts further weaking an already fragile recovery.
One of the most revealing aspects of yesterday's Budget Report was the Government revising its own published projected growth figures downwards.
Fasten your seatbelts-you're in for a bumpy ride.

 

[Napster]

The budget is brilliant. It's predictable the same old commentators moan about cuts but offer no alternative.

I wish there were a bit more innovative though re enterprise, but hopefully we can look forward to new ideas- this is after all a emergency budget

 

[canveyshrimper]

Nobody(on the Tory/Lib-Dem benches) has seen fit to explain how the massive cuts in public services spending will necessarily be picked up by the private sector in terms of increased investment and export led growth.It MIGHT happen as it did under Thatcher's Chancellors, Howe and then Lawson, back in the late 70's and 80's.
However, it's a huge gamble which nobody will be able to fully determine the success of until we're three or four years down the line.
It should also be remembered that the price of such "success" was a huge increase in unemployment and social unrest.Public sector strikes will be shortly coming your way.
It would be a brave man(or woman) who categorically ruled out the sort of riots we had last time round in Brixton,Toxteth etc, also returning.

...and we haven't had a huge increase in unemployment under New Labour?

It seems to me that unemployment is only an issue when Labour are in opposition. It's worth remembering that when the Tories left office in 1997 unemployment was around 1.5million, under New Labour it rose to the best part of 3 million. The usual double standards from Labour I think.

 

[Bob Cratchitt]

And that is not including the fudging of the figures by moving long term unemployed onto Sickness Benefit, that seems to be another area that Georgie is looking to attack.

 

[canveyshrimper]

And that is not including the fudging of the figures by moving long term unemployed onto Sickness Benefit, that seems to be another area that Georgie is looking to attack.

Indeed, or for that matter under 18's into spurious training programmes.

 

[Tangled up in Blue]

The budget is brilliant. It's predictable the same old commentators moan about cuts but offer no alternative.

I wish there were a bit more innovative though re enterprise, but hopefully we can look forward to new ideas- this is after all a emergency budget

My alternative would have been the much more measured (but still substantial)cuts proposed by Labour which the Tories(and their new friends)exceeded by half as much again.

 

[Tangled up in Blue]

And that is not including the fudging of the figures by moving long term unemployed onto Sickness Benefit, that seems to be another area that Georgie is looking to attack.

I await details of Mr Osborne's massive job creation programme with real interest.
I doubt that it will be possible to move many long term unemployed off sickness benefit either.We shall see.

 

[Hotman]

Public sector are now under a formal embargo from engaging external consultants.

 

[Hotman]

I doubt that it will be possible to move many long term unemployed off sickness benefit either.We shall see.

I think that the suggestions from Gareth in "The Office" are worth trying.

[video=youtube;ESp01zCOf7o]http://www.youtube.com/watch?v=ESp01zCOf7o[/video]

 

[osymandus]

The IT industry won;t like that ;)