Emergency Budget

[dholdi]

I'm surprised there hasn't been a post about this already.
So what do you think, hows it effect you, with hindsight ( foresight ? ) of this would you have voted differently ?

http://news.bbc.co.uk/1/hi/business/10335476.stm

Discuss......

[Isitme]

I think it may be a bit early to tell. Jobs, especially in the public sector, will go. Cuts of up to 25% on most government departments will mean heavy losses in parts of the country which depend heavily them. A rise of £1000 in the Tax allowance means little if you do not have a job.

One thing I am glad to see is a limit put on housing allowance. Some of the sums being paid out are obscene. I would have liked to have seen the winter fuel allowance stopped for those who don't need it. It is ridiculous that a millionaire who qualifies with age, gets the allowance paid the same as a pensioner on basic state pension.

Although there is no rise in duties the increase in VAT and vendors extra profit, will put up the price of beer, wines, spirits, tobacco and road fuel.

One thing is sure, if the coalitions budget plans backfire, we are all going to be in a real mess.

I did not see anything about the +65 tax allowance being raised, which means I will still be paying tax on my meagre pensions. Maybe it was just an over-site and we will get the extra £1000, which would help a bit

[DesertRaven]

Ultimately it needs to be done to stop us heading the same way as Greece and Iceland.

VAT @ 20% - feels worse because we were at 15% this time last year, but then again 20% it's in-line with most of Europe BBC News - Budget: How the rise in VAT will work

The tax rises on insurance don't make headlines but every car driver, home owner and holiday maker will be impacted

If you visit public/private sector organisations the contrast is stark at the moment:
Nice offices with reasonably facilities
Busy but relaxed environment
Work life balance
Then:
Buy your own coffee, canteen doubled in price in last year
Run ragged because colleagues made redundant and expected to deliver each quarter
Life, what's that?

The banking system that caused all this, why are we all paying?
I’d feel happier gritting and baring if I saw a banker being made to suffer.

[Undecided Adrian]

The banking system that caused all this, why are we all paying?
I’d feel happier gritting and baring if I saw a banker being made to suffer.

Given that 6 US merchant banks are now being investigated on crimminal charges of fraud, including Goldman Sachs, I can see some serious Jail time for some big time bankers.

It is alledged that Goldman sold all those sub-prime mortgages (which were worthless) in big bundles and sold those bundles to US investors and said that they were a definate winner.

At the same time a hedge fund that they were in with knew that they were worthless and short sold on them making a killing.

As for the budget I'll have to wait and see, my DLA is being cut apparently but I have no details on how much or when, although I do agree on everybody having to be assessed by a doctor, I have already undergone a couple of benefit medicals and I can't see why everybody else shouldn't have to go through them.

I didn't notice the VAT drop last year and I doubt I'l notice the increase.

[Old_nick]

I think it was a fair budget, well-presented. Since most essentials (food, books, children's clothes) are zero-rated, the VAT increase will impact on those who spend a lot. We were being warned 5 years ago that the bubble would eventually burst, and now it's here, and it's pay-back time.

[paulcarrm9mx]

It means a loaf of hovis brown costs £1.19 in sainsburys yesturday. with the increase in VAT it will cost 1.42 that is a huge increase for a low income person.

[dtr44]

pretty sure bread is vat free as is most food [think ice cream crisps etc have vat on them] however i was more surprised with the libdems agreement to these increases in vat [ Fair taxes that put money back in your pocket was in their manifesto] a cut in child allowance and a removal in 2012 [A fair chance for every child again in their manifesto] getting britain back to work [by cutting public expenditure seems like they'll be putting britain in the grubber]
if they want to save money then pull back on afghanistan and every other policing policy abroad ,stop flinging money at bigger and better bombs ,planes,tanks etc and put it into frontline services such as schools ,hospitals ,infrastructure of towns and cities.
maybe instead of flinging money at banks we should make them accountable for this mess that we as the people of the country have had to sort ,and when i say sort, i mean pay for.
IF people ran their houses the way the government runs this country then we would all be living in tents in a field after about 2 months

[SatDish]

I think only hot food is subject to VAT BUT dont quote me on that.

[dholdi]

It means a loaf of hovis brown costs £1.19 in sainsburys yesturday. with the increase in VAT it will cost 1.42 that is a huge increase for a low income person.

Maths wasnt your best subject then
Its an additional 2.5% on the vat, not 20% on the cost including vat.
And as others have said food isnt applicable.

[Isitme]

Only items classed as luxury food are subject to VAT eg a packet of digestive biscuits is VAT free, a packet of chocolate digestive is subject to 20% VAT.

The matter of 'take away food is a bit blurred. Take away shops have to charge VAT while Supermarkets with a 'deli' counter selling cooked chicken, ribs etc generally don't.