Budget 2024

[dreamwaverider]

Make of it what you will, but I am CFO of a business employing 1,700 people which is already struggling to survive, largely because of government policy and inappropriate regulatory changes (one or two may guess the sector !). Our response to the budget will necessarily be:
1 further reduce headcount and minimise recruitment where possible;
2 almost no pay rises other than where mandated by government, but minimise numbers of low-skilled / low-3 paid colleagues because they are becoming disproportionately expensive;
3 increase prices to end customer;
4 minimise capital investment.

I am not sure this budget is a recipe for economic growth ! In fact the scale of lies and hypocrisy from this government, which claimed to be pro-business and said it wouldn't be aggressively tax-raising, is already on a par with the previous conservative one. Long live the victims' society !

Healthcare?

 

[JRW2]

I don't think anyone uses a pension as a way to pass wealth down the line, that's just a nice to have IMHO and of course wouldn't be possible if the DC pot was converted into an annuity at retirement which is often the case. In fact this was the only option until c10 years ago when Osborne updated the pension rules.

Well, I have done precisely that. I've been retired for 22 years and we have so far lived on our two state pensions, some investment income and by running down our savings. As of now, my private pension pot has been left untouched - for the benefit of the children. As it happens, that state of affairs is now about to change, as the savings have almost run out, but I won't regret that so much now that anything left on death will be taxed at 40%.

 

[cryrst]

If the budget had been accompanied by an interest rate cut of, say 2%, still above the inflation rate of 1.75%, that would have provided the stimulus for ending stagnation.

There is actually hardly any in the budget, it is far easier to park the money in a high interest bank account than risk it in the economy.

'Many of Britain’s problems can be explained by the fact that 1% of the population owns more wealth than 70% combined. Despite its break with failed Tory economics, the budget did little to tackle this obscene inequality'.​

Accumulated wealth is generally saved and does not get into the economy, a 2% tax on over £10 millions would yield 24 billions and only affect 20,000 people hardly at all.

Capital gains tax not equalised with income tax, the BOE uses our money to subsidise commercial banks for no apparent reason , there is another 20 billons or so.

The logic of Ms Reeves NI hike can only be explained by the fact that they are an easy target.

It's many times better than Truss though, and we must repair our public services. a big chunk for rhe NHS went down well.


😎

Don’t the top 10% pay 30% of the tax take.
They don’t use more of our services so waiting for the circle square answer.

 

[Rudi Hedman]

It would have been better to reverse the Tory government’s employees NI cut rather than raise employers NI. Now you’ll have fewer new people employed, more made redundant and some businesses go out of business because of it. But labour can still lie that they haven’t raised taxes for working people. At least she’s admitted it’s going to mean wages don’t rise as much (fall in real terms). No admission of fiscal drag yet.

Reeves accepts tax-raising Budget likely to hit wage growth for workers

The chancellor tells the BBC businesses will have to absorb the costs of paying more National Insurance or give out smaller pay rises.

www.bbc.co.uk

 

[cryrst]

It would have been better to reverse the Tory government’s employees NI cut rather than raise employers NI. Now you’ll have fewer new people employed, more made redundant and some businesses go out of business because of it. But labour can still lie that they haven’t raised taxes for working people. At least she’s admitted it’s going to mean wages don’t rise as much (fall in real terms). No admission of fiscal drag yet.

Reeves accepts tax-raising Budget likely to hit wage growth for workers

The chancellor tells the BBC businesses will have to absorb the costs of paying more National Insurance or give out smaller pay rises.

www.bbc.co.uk

She is defo the ugly one for the mate at the end of a night at studios.

 

[Palace Old Geezer]

These days everyone talks in terms of billions like it's a few quid.

The fact is that Reeves increased taxes by four thousand, million pounds. WTF. I had to see it written down in numbers, so, £4,000,000,000. I find it hard to grapple with these numbers.

I am convinced this government will wreak havoc with our economy.

 

[Willo]

These days everyone talks in terms of billions like it's a few quid.

The fact is that Reeves increased taxes by four thousand, million pounds. WTF. I had to see it written down in numbers, so, £4,000,000,000. I find it hard to grapple with these numbers.

I am convinced this government will wreak havoc with our economy.

Labour have betrayed the employed, they have betrayed business owners, they have betrayed pensioners and they have betrayed farmers.

 

[Jacey]

Labour have betrayed the employed, they have betrayed business owners, they have betrayed pensioners and they have betrayed farmers.

Agree and broken their manifesto promises.

 

[HKOwen]

Rubbish. Taxes would have to go up regardless as they have been doing under the Tories for years. The NI reduction offered by the Tories in the election was unfunded so clearly unaffordable.
Things like IHT and income tax thresholds haven't risen in years so that's a tax increase and CGT and dividend thresholds have been reduced drastically over the last few years.

The Tories called an early election because they knew things weren't going to get better in the short term and they deliberately didn't sort out doctors, train driver strikes etc so didn't have to make an allowance for it. Similar with the blood scandal and the Post Office payments.
Ultimately let someone else sort it out.

The NHS isn't working, schools are crumbling and the SEND provision is woeful.

No one wants to pay more tax but ultimately of we want a health service and decent schools, a fair welfare system etc there is a pay off.

Incidentally, Brexit supposedly cost us 4% GDP which is £100bn and the current interest charge on our debt (c100% of annual GDP) is £100 bn.

That's why whoever was in govt would have had few options to improve things in the short term

Or cut spending in areas like overseas aid as an example as a way to soften the tax burden.

The impact of Brexit economically cannot be calculated but you still put a supposedly number which is meaningless.

Improving NHS outcomes and productivity would save money, Streeting is not afraid to point out that the NHS needs to be funded for effect not effort, good for him.

 

[Runningman]

I haven't had time yet to read the whole of this thread but I am an Employer and this budget only makes things worse for us and our employees.
At the moment we can't raise prices because competition for work means having to keep prices down and all the while costs keep rising.
When you look at the budget as a whole it is a disaster for now and the future.
This budget has been all about the Public Sector - pure and simple - chuck more money at it with no changes in outcomes needed.
The best way they could have dealt with the Public Sector would be to give them nothing but ensure they saved a percentage of their costs.
That would mean redundancies but they are needed in a sector which is bloated and which prevents it working properly and providing the taxpayers with the services that they pay for.
Labour simply expect private business to pay for their feckless and irresponsible policies.
As a Political commentator said yesterday commenting on what he said pre-election - the Tories are no good but if the Country vote Labour then they will really see what a poor party they are.
We are now about to see serious damage to our once great Country.
Surely it is as easy to do the right thing as the wrong thing and yet this lot cannot be bothered.

In theory a good idea. But we know that the ‘managers’ would simply cut services at the front line (I.e delivering what the Dept was set up for), whilst preserving their own highly paid roles. Basically we are fecked

 

[Badger11]

In theory a good idea. But we know that the ‘managers’ would simply cut services at the front line (I.e delivering what the Dept was set up for), whilst preserving their own highly paid roles. Basically we are fecked

Agreed.

The issue I have is that Labour will pump billions into the NHS in the hope that it will reform and become more efficient, there are no strings attached or incentives for the NHS to co-operate, they've got the money .

Gordon Brown did the same in 1997 "investing in public services" and very little improved.

If Labour are serious about fixing public services then the money should have come with hard targets.

I fully expect to see reports in 5 years time saying the money went on staff pay and efficiency had barely improved.

 

[steeleye20]

Agreed.

The issue I have is that Labour will pump billions into the NHS in the hope that it will reform and become more efficient, there are no strings attached or incentives for the NHS to co-operate, they've got the money .

Gordon Brown did the same in 1997 "investing in public services" and very little improved.

If Labour are serious about fixing public services then the money should have come with hard targets.

I fully expect to see reports in 5 years time saying the money went on staff pay and efficiency had barely improved.

Definitely not!

In 2010, the public's satisfaction with the NHS in the United Kingdom was 70%, which was a record high. However, public satisfaction with the NHS has since declined, with a 2023 survey finding that only 24% of people were satisfied with the NHS.

'You can't trust the tories with the NHS'.

😎

 

[Badger11]

Definitely not!

In 2010, the public's satisfaction with the NHS in the United Kingdom was 70%, which was a record high. However, public satisfaction with the NHS has since declined, with a 2023 survey finding that only 24% of people were satisfied with the NHS.

'You can't trust the tories with the NHS'.

😎

Public satisfaction is just one factor, efficiency is another one. Most people hate to criticise the NHS so for a long time people said they were happy with the NHS even though the delays in treatment and appointments did not justify that. In others words there was a lag.

I don't doubt that the situation under the Tories has got worse but throwing money at it before you have secured guaranteed improvements is a big risk.

 

[Midlands Eagle]

Public satisfaction is just one factor, efficiency is another one. Most people hate to criticise the NHS so for a long time people said they were happy with the NHS even though the delays in treatment and appointments did not justify that. In others words there was a lag.

One can only speak as one finds and I have found the NHS to be brilliant. As a Non Hodgkins Lymphoma sufferer the consultant told me that I needed chemo and had me start the treatment the following week.

On one of my follow up visits I told him that I had a lot of fluid on my leg and it was causing me pain. He arranged a bloodtest and scan to take place within the hour to rule out DVT. The bloodtest proved inconclusive so he arranged another scan the following week.

Earlier in the year on a Friday he told me that I needed a kidney scan which he would arrange asap. I had a phone call that afternoon asking me if I could go in on the Sunday.

Twice in the past few months I have needed to see my GP so I filled in their online form and on the first occasion received an appointment the same afternoon and on the second occasion the appointment was two days later.

I have nothing but good things to say about my own treatment by the NHS

 

[Badger11]

One can only speak as one finds and I have found the NHS to be brilliant. As a Non Hodgkins Lymphoma sufferer the consultant told me that I needed chemo and had me start the treatment the following week.

On one of my follow up visits I told him that I had a lot of fluid on my leg and it was causing me pain. He arranged a bloodtest and scan to take place within the hour to rule out DVT. The bloodtest proved inconclusive so he arranged another scan the following week.

Earlier in the year on a Friday he told me that I needed a kidney scan which he would arrange asap. I had a phone call that afternoon asking me if I could go in on the Sunday.

Twice in the past few months I have needed to see my GP so I filled in their online form and on the first occasion received an appointment the same afternoon and on the second occasion the appointment was two days later.

I have nothing but good things to say about my own treatment by the NHS

I'm glad to hear that I wish you all the best.

However Labour have been saying for years that the NHS is broken. The Japanese have a saying fix the problem don't fix the blame. We can spend all day blaming past decisions let's just agree that the NHS has major problems.

As I said the other day my personal view is that Labour will be judged at the next election on the NHS. If they can show that the NHS is slowly improving than I think they will get back in. However I still think it is not good negotiations to offer the other side a load and money with no strings and then say any chance you can do better?

 

[Living In Hope]

I and I'm sure others here hope your business survives the new business environment.

We haven't had a government that actually backs up their warm words on helping small businesses for such a long time.

Thanks Stirling, and I agree with what you say about small businesses.

 

[Midlands Eagle]

However Labour have been saying for years that the NHS is broken. We can spend all day blaming past decisions let's just agree that the NHS has major problems.

No amount of money will fix the problems as the major problem areas are the doctors and nurses the former of which will turn down any and every proposal.

I have rabbited on a few times that the shortage of nurses is primarily due to the RCN insisting that entry to the profession is via university degree and this has resulted in a lot of highly qualified but unsuitable nurses whilst those that have the desire and willingness to work can't get in as they don't have a degree.

The removal of the bursary for student nurses hasn't helped either

 

[Badger11]

No amount of money will fix the problems as the major problem areas are the doctors and nurses the former of which will turn down any and every proposal.

I have rabbited on a few times that the shortage of nurses is primarily due to the RCN insisting that entry to the profession is via university degree and this has resulted in a lot of highly qualified but unsuitable nurses whilst those that have the desire and willingness to work can't get in as they don't have a degree.

The removal of the bursary for student nurses hasn't helped either

This is exactly the type of thing I am referring to. Anyway back to the footie COYP

 

[Wisbech Eagle]

Labour have betrayed the employed, they have betrayed business owners, they have betrayed pensioners and they have betrayed farmers.

Anyone with more than half a brain knew taxes had to rise, no matter who won the election.

However I don’t recall the Tories saying they would either.

That’s just an unfortunate political fact. Be honest and you lose.

So betrayal isn’t accurate, unless you are one of the brainless. Everyone will ultimately bear the costs. The only real question was how and by how much. Putting up the basic rate of income tax by 2p or even 3p would have been fairer and more effective but would have been so politically costly as to be unthinkable.

So now we have employers facing significant extra costs, causing both inflationary price pressures and wage suppression. Along with significantly higher borrowing.

It’s not what I would have done.

 

[thegreatlardino]

No amount of money will fix the problems as the major problem areas are the doctors and nurses the former of which will turn down any and every proposal.

I have rabbited on a few times that the shortage of nurses is primarily due to the RCN insisting that entry to the profession is via university degree and this has resulted in a lot of highly qualified but unsuitable nurses whilst those that have the desire and willingness to work can't get in as they don't have a degree.

The removal of the bursary for student nurses hasn't helped either

My daughter wants to be a nurse, really isn't interested in doing a degree even if she could find a course to go on, its cheaper to import trained nurses from Africa then train our own, thats assuming we have enough trainers. So she works at Spoons at Gatwick on more money than a nurse would be on. Doesnt make any sense to me.