[Politics] The official Budget thread - kick off 12.30pm

[A1X]

 

[Titanic]

Increases the pensions annual tax-free allowance from £40,000 to £60,000 and will abolish the Lifetime Allowance - previously set at £1.07m.

 

[deletebeepbeepbeep]

Any announcement regarding support on energy prices?

 

[KZNSeagull]

Any announcement regarding support on energy prices?

current level continuing for 3 months, not increasing to 3k pa. Energy prices expected to fall in July.

 

[Pavilionaire]

but....

The hike is only set to affect around 10 per cent of businesses.

Firms with profits of less than £50,000 will continue to be taxed at 19 per cent, while companies with profits between £50,000 and £250,000 will be subjected to a tapered rate, and they will be able to invest in IT, plant or machinery and have the amount taken off their taxable profits in full - essentially a full refund of 100 per cent.

Misleading. Hunt cleverly said only 10% would pay the FULL 25%, BUT the tapered rate is 26.5% on all profit between £50K - £250K - I'd suggest this would apply to 40%+ of limited companies, i.e. a husband a wife limited company earning £80K profit will pay an additional £2,250 in corporation tax. And for the vast majority of small service businesses - and the UK is ostensibly a service-based economy -their scope for tapping into these "generous" Capital Allowances is basically buying a new laptop or iPhone every few years - big deal!

 

[rippleman]

but....

The hike is only set to affect around 10 per cent of businesses.

Firms with profits of less than £50,000 will continue to be taxed at 19 per cent, while companies with profits between £50,000 and £250,000 will be subjected to a tapered rate, and they will be able to invest in IT, plant or machinery and have the amount taken off their taxable profits in full - essentially a full refund of 100 per cent.

You mean get a "refund" of 100% which, if they bought plant and machinery today, they could get a "refund" of 130%?

Cutting tax reliefs has a similar impact as putting up tax rates. It won't encourage investment and it certainly won't grow the economy.

 

[Giraffe]

but....

The hike is only set to affect around 10 per cent of businesses.

Firms with profits of less than £50,000 will continue to be taxed at 19 per cent, while companies with profits between £50,000 and £250,000 will be subjected to a tapered rate, and they will be able to invest in IT, plant or machinery and have the amount taken off their taxable profits in full - essentially a full refund of 100 per cent.

I guess that depends whether they can afford to invest in those things though. A lot of businesses, particularly in the service sector, don't buy much IT, Plant or machinery.

 

[sparkie]

Any announcement regarding support on energy prices?

Nothing ( yet ) to indicate that the very handy £67 per month energy refund is being extended.

 

[Giraffe]

Massive increase on childcare, for all children over 9 months. That's a big help to new parents who still have to work. This was previously only free for 3 year olds.

 

[Algernon]

and will abolish the Lifetime Allowance - previously set at £1.07m.

Thank goodness

 

[mejonaNO12 aka riskit]

I was really excited to hear that the childcare was going to be extended to 2 year olds as my son has just turned two....

And then right at the end he says that'll begin in a years time........

That was annoying

 

[Pavilionaire]

It will be interesting to see where these nurseries are going to source all this labour to look after these extra kids of 9 months + whose parents will now want to send them to nursery because of the offer of free childcare.

A nursery less than a mile away from me recently shut after a bad OFSTED report, resulting largely from lack of staff. A lot of mainly young women can't afford to work for minimum wage with kids full of colds, flu and Covid in the expensive Home Counties.

 

[Wozza]

I was really excited to hear that the childcare was going to be extended to 2 year olds as my son has just turned two....

And then right at the end he says that'll begin in a years time........

That was annoying

In stages until Sept 2025...

 

[timbha]

Starmer with a very shouty response with the MPs sitting behind him looking very bored

 

[KZNSeagull]

Starmer with a very shouty response with the MPs sitting behind him looking very bored

Why is he replying and not the shadow chancellor?

 

[Titanic]

Thank goodness

I think it is mostly aimed at retaining GP's and senior hospital doctors.

 

[Algernon]

When Starmer gets excited he sounds like an angry dalek.

 

[timbha]

Why is he replying and not the shadow chancellor?

He’s getting redder and redder and will explode in a minute

 

[PILTDOWN MAN]

When Starmer gets excited he sounds like an angry dalek.

Wonder if he is on steroids, his face is getting very chubby

 

[KZNSeagull]

He’s getting redder and redder and will explode in a minute

I've turned over to the racing now, I suspect many in the commons will have too.