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What did you think of the Budget?

April 22, 2009

Chancellor Alistair Darling has made his second annual Budget speech to parliament. Among the measures announced to the House were an increase in petrol duty of 2p per litre in September and a 2 percent increase in alcohol and tobacco duties from tonight.

Darling also announced a scrappage scheme offering £2,000 to people trading in cars older than 10 years for a newer vehicle. From next April there will be a new top tax rate of 50 percent for those earning more than 150,000 pounds a year.

Meanwhile, the annual limit on individual savings accounts has been raised to 10,200 pounds and the Stamp Duty holiday on properties sold for less than 175,000 was extended until the end of the year. There was also money for wind farms and an extra 1 billion pounds to help homeowners and the construction industry.

Darling also forecast that the UK economy will shrink by 3.5 percent in 2009, saying “No country could insulate itself from the world downturn.”

David Cameron, leader of the opposition Conservative party, said: “He is planning to borrow 348 billion pounds over the next two years, that is more — over just two years — than every previous government put together, not just every government since World War Two … but since the Bank of England was first founded more than 300 years ago. This budget does not do enough to bring the public finances under control.”

What did you make of the Chancellor’s Budget speech? Will you benefit from any of the measures? What are your thoughts on the increase in fuel, alcohol and tobacco duties? Do you think the scrappage scheme and new tax rate are a good idea? Finally, do you think it will have a positive effect on the UK economy?

Comments

I earn no where near 150k P/A but still feel that taxing hard working people 50% of their salary is an absolute disgrace. Lets start taxing people who refuse to return to work due to personal choice and prefering to be idle and ensure extra funds by insisting those that enter this country ..regardless from which country, have a certain level of financial security…then perhaps we wouldnt be in such a mess.

 

What difference does it make? The Budget is a moveable feast these days: if a measure becomes unpopular enough they do a u-turn on it anyway.

The whole process – and government which is based on a system of divisive political parties – only serves the interests of politicians, not the people.

It’s about time we rid ourselves of politicians and their nonsense once and for all, and have a means of managing the country which is efficient, accountable and not bound up in party dogma.

 

“Will the last one leaving the country turn out the lights”

Posted by jonesy | Report as abusive
 

Interesting Budget and no suprises. We all know that had the governement not stepped in today most of the high street banks would have collapsed. Hence we are burdened with the cost of financing them. If you ask who is responsbile? The blame is on the FSA and other regulatory bodies world wide. A good lesson to all.

Regards to Higher rate Tax. I think it fair and those who will pay that extra 10% (above 40%) also have to see the benefit of earning those large sums and the benefit in the long run when as always economy improves Tax will be cut and during the process of growth they prosper more. Comeon lets not be too greedy. If you earn more its because you have the ability or cunningness. Either way you will always benefit as well as those in the lower income bracket.

The credit crunch has nothing to do with this government or opp. party. They will ofcourse blame each other. As oppose to getting our country back on sure footing. But hey that is democracy.

Overall Budget was good and sooner we pay our debt off via various taxes and good compliance is in place (good but logical) the sooner we will enjoy the high standard most are enjoying compared to 100 years ago.

Posted by Ajay Kumar | Report as abusive
 

Looking at it in the round, the budget did nothing. All the announcements are minor and/or re-announcements of things from last year, most of which have not yet been implemented. Maybe never will be.

The real news is that Government is counting on growth starting by end of 2009, a boom by 2011, and on that basis is borrowing 220-260 Billion pounds this year- about £3,500 for every man, woman and child in UK. Then about same again next year…

Basically whoever wins next election will have to dramatically cut spending AND raise taxes- if we don’t end up at the IMF before that.

The 50% tax on over 150k is a complete red herring meant to try to embarass the Conservatives, not raise money.It is the worst of cynical politics. Actually it probably will raise no money at all (IFS published a report on this last week). On the Government’s own numbers, the move from 45% to 50% raises only a few hundred million pounds. Loose change, and almost certainly wrong anyway. For those stupid enough to say “squeeze the rich until it hurts” ( about 60% in today’s Guardian poll at last count) just remember 1970s rates of 80% on salaries and 95% on unearned income- basically everyone who could left the country, which is why tax take went UP when tax rates were cut from 80/95 to 40%.

Posted by Joe F | Report as abusive
 

As with the VAT cut, the so-called “benefits” of the budget are too small to be meaningful to individuals.

As for the economy, the budget simply creates more scorched earth for the Tories while Badger scuttles off into early retirement with his gold-plated pension paid for by the people he and his boss have screwed.

Roll on next May, when we will get the opportunity to send them on their way. Tarred and feathered would be appropiate.

Posted by Jason | Report as abusive
 

Once again, it’s those of us who actually work hard for a living that are getting beaten with the big stick. All we do is work to pay the taxman! You pay your fuel duty on the way to work, along with your VAT on the petrol (and the duty!), pay your income tax, which is going to go up if you’ve worked hard nough to reach a £150k salary, then you fancy a pint at the weekend so you pay a bucket load of tax on that, another 6p more now and then some MORE when the fuel duty rise comes in.

There comes a time when this is too much. I am seriously thinking about jacking in my job as a Bank Manager (private one, not gov’t funded I may add), having a few kids and just kicking back and watching the benefits roll in as the others that have made this decision fight each other on the morning TV chat shows. I do feel sorry for those of you left who’ll be on the 95% income tax bracket in 2011 but hey, I’ll be voting for Brown & Darling to keep my welfare going :-)

Posted by Adam | Report as abusive
 

As usual hard working people pay for every one else, including the criminals which caused this fiasco, i.e. the financial sector.
The so called government has ploughed OUR money into this financial BLACK HOLE and yet again we have to pay for it.

IT SUCKS

Posted by Terry Wilkinson | Report as abusive
 

A disastrous Budget for many reasons.The principal one
being that the over optimistic forecast for growth next year and 2011 will DECREASE foreign investor confidence
in the UK increase the cost of funding the deficit beyond forecasts which in turn increases future deficits further thereby creating the significant risk of a vicious circle developing.This would then cause a major funding crisis

Posted by James M | Report as abusive
 

As we all suspected – the UK is essentially bankrupt. My kids will be paying for the mess – and they’re still in school!

Posted by William Fletcher | Report as abusive
 

Three points: the Chancellor reminds me of a baby sparrow that has just fallen out of the nest – not a clue; if you think £150K makes you rich, try buying a flat and living in Battersea, and paying into a personal pension at the same time; and finally, I’m leaving asap, will the last person to leave please put the cat out.

Posted by Matthew | Report as abusive
 

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