Reply to: Official Spring Budget 2024 thread

[Fraidycat]

All fart and no tulip from a party

You give them too much credit.

[SueEllen]

I don't think I've ever been so enraged at politics before, but it seems like the Tories have lost the plot, and the available alternatives don't do much to whet the appetite.

Budgets are bread and circles.

1. Opening with a Muslim War Memorial - really?! The most important economic announcement of the year, discussing how billions of pounds in tax will be collected and how billions of pounds will be spent, and he chooses to open with a £1m installation?! Whatever you think about the value of such an installation, it had no place in a Budget announcement, definitely not at the start - a blatant virtue signal and desperate attempt to appease.

Attempt to counter claims that the Tories are Islamophobic.

Nice to see who has crawled out of the woodwork to complain about this but not in the way you are doing.

2. Tax bandings still frozen - ridiculous given subsequent inflation since the decision to freeze was announced (and the one that hurts a lot of people in real terms).

3. NI cut - it'll make little different to PAYE household incomes versus the costs they've had to shoulder. In real terms, it's only the people in the middle (c. £30-50k) who'll keep more of their pay (and only just) when you consider #2.

The economy is screwed so to look like they are cutting tax they cut NI even though no-one wants it cut.

4. British ISA - won't happen. The Tories won't get in and this plan will be scrapped, but it's a silly one. Those lucky enough to max out ISAs (about 14% of people who have ISAs) will simply reduce their exposure to UK companies in their main ISA to compensate for their new British ISA. Not sure this will have the desired impact...

5. Child Benefit - A welcome change, but paper over the cracks. Inflation-adjusted, it should be higher (£67k). The move to looking at household v individual income is sensible, but again I suspect the Tories won't be in power long enough to see it through.

Responding to Martin Lewis so populism.

All fart and no tulip from a party that knows it's on it's way out. I've voted for all three parties before and am not particularly interested in politics, however I've never been so disgusted with how the country is being run. Bah humbug, I'll get off my soap box now...

Everyone is fed up. No-one wanted an NI cut. People want public services to work properly.

[fiisch]

I don't think I've ever been so enraged at politics before, but it seems like the Tories have lost the plot, and the available alternatives don't do much to whet the appetite.

1. Opening with a Muslim War Memorial - really?! The most important economic announcement of the year, discussing how billions of pounds in tax will be collected and how billions of pounds will be spent, and he chooses to open with a £1m installation?! Whatever you think about the value of such an installation, it had no place in a Budget announcement, definitely not at the start - a blatant virtue signal and desperate attempt to appease.

2. Tax bandings still frozen - ridiculous given subsequent inflation since the decision to freeze was announced (and the one that hurts a lot of people in real terms).

3. NI cut - it'll make little different to PAYE household incomes versus the costs they've had to shoulder. In real terms, it's only the people in the middle (c. £30-50k) who'll keep more of their pay (and only just) when you consider #2.

4. British ISA - won't happen. The Tories won't get in and this plan will be scrapped, but it's a silly one. Those lucky enough to max out ISAs (about 14% of people who have ISAs) will simply reduce their exposure to UK companies in their main ISA to compensate for their new British ISA. Not sure this will have the desired impact...

5. Child Benefit - A welcome change, but paper over the cracks. Inflation-adjusted, it should be higher (£67k). The move to looking at household v individual income is sensible, but again I suspect the Tories won't be in power long enough to see it through.

All fart and no tulip from a party that knows it's on it's way out. I've voted for all three parties before and am not particularly interested in politics, however I've never been so disgusted with how the country is being run. Bah humbug, I'll get off my soap box now...

[sreed]

Didn’t see a Daily Mail headline celebrating it but the budget small print assumptions assumes net migration to continue at 400-500k annually and the associated uptick in tax revenue.

Quite astonishing really coming from a party that until recently promised to bring down net immigration to the “tens of thousands” and touted control over immigration to hoodwink millions (including me) into voting for Brexit.

And do keep in mind that the new set of immigrants are very different to the previous ones. Much less likely to ever leave, much less diverse, coming from much poorer countries and with cultures & values that have much less overlap with ours. It’s a cheap way to buy growth for Sunak but stores up terrible problems for the future.

If you’re a young skilled professional with no kids, the world is your oyster and I can’t think of any good reasons (beyond family ties) to cling on to Britain. The UK will always be here and if things ever change, you can always come back.

[willendure]

Standard of living falling 15% over the last 2 years, and the taxman squeezing our balls ever harder. Enough to make you wonder if its time to leave this sinking HMS Brittania.

[Paddy]

British ISA

• Fantastic to have another £5k (£10k if you're (un)fortunately married) to sling in the stock market.
• Sadly, the FTSE / LSE has seriously underperformed over recent years. I'm hoping there's a way to invest creatively here.

Full expensing for leased assets

• Does this apply to leased vehicles i.e. a company car? Not sure of the impact on us here.

Child care threshold £60-80k

• I haven't done the maths. Is there a rationale now for taking salary and dividends up to £60k? Extra dividend tax sure, but you're keeping a chunk of your child benefit now which you would've previously paid back.

National Insurance changes

• These have zero impact on us, I assume?

£3.4bn investment in NHS IT System Modernisation

• Currently polishing up my CV in anticipation ^_^

Full "expensing" for leased assets. So Ltd Co A, sells assets to offshore Inc B at a loss and then Inc B leases back to Ltd Co A at inflated rates. A great opportunity for tax avoidance.

[ladymuck]

Although the duty on gin wasn't cut, at least it wasn't increased.

[jamesbrown]

It might as well not have happened. In fact, it would be better if 99% of budgets hadn't happened. The UK budget process is a weird outlier (not the worst - see the US - but still weird).

[sreed]

The BISA (BrISA?) is planned for 2025-26, and given the sliver of the population that it may apply to - those who exceed their 20k annual ISA allowance and do so in an S&S ISA as opposed to the more popular Cash ISA - so could well end up as one of those plans that never sees the light of day.

[Fraidycat]

Why would anybody invest in British Companies though? Their overall stock market performance has been woeful compared to the likes of America....and this is highly likely to continue.

The FTSE 250 was doing really well, killing the FTSE 100, both were around 6000 points in year 2000, but the FTSE 250 reached 25,000 while the FTSE 100 only reach 7000.

That ended in late 2021 when the BOE raised rates. In the US the markets have recovered to new all time highs while the FTSE 250 is still in a bear market. Because the US government is now borrowing and spending more than $3 Trillion ever year. But that cant last forever.. Its actually insane, they are now adding more to their debt every year than the total uk national debt.

[mogga71]

Love the additional 5k British ISA allowance. But disappointed that they didn’t call it a Great British ISA. That would’ve been so much better!

Why would anybody invest in British Companies though? Their overall stock market performance has been woeful compared to the likes of America....and this is highly likely to continue.

[Paracelsus]

The extra £5k ISA allowance, albeit for British cos only, is welcome - the £20k was already generous compared to many countries i.e. America where they have no tax-sheltered accounts beyond pensions, £25k is even better.

Hunt bigging-up Ben Houchen is a piss-take though - guy has recently been thoroughly exposed by Private Eye for giving away millions worth of public land/contracts to cronies. Business as usual for the party, but at least don't shamelessly mention the guy in a Budget...

[sreed]

If you can deal with the absolute insanity of the governance and bureaucracy, the public sector can be lucrative. It's the dealing with the insanity part the leads to atrocious retention. For permies and contractors.

Last I was in the market (last summer) for a contract, an NHS Digital tech PM contract was offering sub 300pd (!) while the equivalent (at least from the role description and person spec) going rate at DWP digital and MOJ was 500-600pd. All inside paid through umbrella.

As per the agent, they were swamped with apps for the NHS role! It was remote with rare travel to Leeds compared to 2 days per week in the office for DWP/MOJ (any office for MOJ) but that’s still a big difference to bridge!

[Fraidycat]

National Insurance changes These have zero impact on us, I assume?

£750 for those caught inside?

[BigLadFromBeeston666]

You've not worked on NHS IT gigs before I take it?

If you can deal with the absolute insanity of the governance and bureaucracy, the public sector can be lucrative. It's the dealing with the insanity part the leads to atrocious retention. For permies and contractors.