The Labour Manifesto ruled out increasing taxes on working people,specifying VAT, Income Tax and National Insurance. There is now a gloss being placed on this. Apparently that meant in the case of National Insurance there would be no increase in employee NI but there could be in Employers NI. Labour say that is a fair interpretation of the promise. Their critics think it would be breaking the promise.
Clearly employer NI is a tax on jobs. To pay it a company would need to put prices up and hope to pass on the increase, or employ fewer people or put up wages less to offset some of cost. All that sounds a bit like an NI tax on working people. What do you think?
There are rumours that the Chancellor may put up motor fuel duty. Working people tend to burn more fuel than the retired or those staying at home. There is the journey to and from work. For many self employed there are the visits to customers. From painters to carpenters, from plumbers to electricians there will be fuel for the vans they need to take tools and equipment. That’s another tax on working people, though not covered by a specific Manifesto exemption. It is inflationary, is an unwise tax on working but not a broken promise.
There are rumours of adverse tax changes for saving to a pension fund, or taking money out of one on retirement. These must be Income tax rises affecting working people. It is a worker doing the saving and a worker sorting out transition to retirement. That must be ruled out on any reasonable interpretation of the Manifesto.
There are rumours of changes to CGT. Many people incurring CGT bills on homes, businesses or shares they are selling will be working people. They are clearly not covered by the Manifesto exemption. If however a working person was made to pay Income tax rates on gains that arguably is an Income tax rise for a working person.
October 18, 2024
Good morning.
Would this be the same critics that were very silent when the Tory’s failed to keep their promises to reduce MASS IMMIGRATION ?
Not having a go at you, Sir John but we all know that manifesto promises might as well be written on toilet paper.
Which as we all know, is inflationary and, as I read elsewhere, 50 % of government expenditure is on salaries. So the cost of the State will increase plus, interest rates.
Fine ! I ride a bike and lease a hybrid.
Whatever this government is rumoured to do is can do. People are will problably find ways around it, reduce use of it or just go elsewhere.
Ratchel Reeves can budget all she wants. In the end it all comes down to our own individual budgets which the majority of people can manage and balance need against the ability to pay. Something I might add past governments of all hues have never really managed.
October 18, 2024
It’s a Liebour government, they lie like the previous administration of 14 years. No matter what taxes they put up they will affect working people
They are the ones that generate the wealth.
I would bet the rules on pensions won’t affect the public sector or two tier no idea Kiers special pension arrangement.
I hope the bond market collapses so the government is forced into making some real cuts in public spending.
October 18, 2024
Let’s be sensible government job is to balance the books and if they can’t then they have to make up the deficit by either increasing taxes borrowing or by cutting back on spending – election promises aside everyone running a household budget will understand this. Next thing is that Labour is probably going to be in government for at least another ten years or so so no point in complaining – in a way they speak the same language as the Conservatives – “inflation, interest rates, productivity and growth, unemployment statistics benefits” etc – we hear it all the time – so much to do so let’s get on with it
I don’t think too many working people will be concerned with having to pay CGT on shares? – maybe selling the odd property OK but not shares
October 18, 2024
Halfway, in many ways CGT is a voluntary tax.
I won’t be selling anything if Thieves increases it. She doesn’t understand the Laffer curve despite doing the cleaning at the BoE.
Our habits change to mitigate the stupidity of our rulers. BTW if you think this excrement show will get a second term, I’ll have some of what you’re drinking.
October 18, 2024
First define working people. For me it includes everyone who works and at whatever level of reward. However by definition it cannot include those who have worked but are now retired. For Labour I suspect they think in much narrower ways, confining it to the unionised strata of those who work. Excluding those who create work for others through enterprises large and small.
Labour have first created themselves an escape clause, by finding themselves a get out “Black Hole” , which naturally they cannot define. They have proved themselves self serving, in rewarding their union masters. Additionally they are still riddled with class envy and use education as a tool. Penalise the very best with more tax, and where they have total responsibility, in Wales for instance, achieve a 20% illiteracy rate in primary education.
Labour have had 14 years in opposition. They came to power on 20% of those who voted, as a result of the other 80% voting to show their disgust or not voting at all to show their disgust. They arrived with no grand plan to fix anything, so have ad hoc’ed their way through their first 100 days. All we know is where Starmer and wife get their clothes. I feel more than certain that their delayed budget will not address the country’s problems, but just create more. Tgw only positive is that it might hasten their departure.
October 18, 2024
Surely workers transitioning to pension and retirement will be offset by the shiny new AD bill?