for someone on full time, minimum wage (just over 18k), the tax freeze (assuming their salaries rise by inflation at 3% per year – who knows) equates to tax going from 6% of their salary to 8% – 2% or £580 more

for someone earning 40k, the freeze based on the same figures takes their tax from 13.7% to 14.6% – 0.9% or £1300 more

for someone erning 60k, the same takes them from 19% to 22%, 3% or £3800 more

it seems the ‘richest’ here are paying the most, no?

Establishing ourselves, post-Brexit, as the tax dodging and money laundering capital of the world

Whaddya mean establishing ? 😆 😆 Isn’t that why we’ve got small islands everywhere ?

This budget doesn’t really do anything for me. The Income Tax freeze will make my pay (when I get a job…) worse as inflation goes up, the Stamp Duty Holiday will make the thought of buying my first house even more unattainable (prices will rise until it ends but they will never drop afterwards) and they’re setting it all up to push Austerity on us again to make us pay for all the help they’ve been chucking out for the last year.

Add in the Brexit ‘Bonus’ that is yet to fully materialise and the next few years or decade look very bleak.

for someone on full time, minimum wage (just over 18k), the tax freeze (assuming their salaries rise by inflation at 3% per year – who knows)

Are you serious? Very few, if any, people in the lower pay brackets are going to get a pay increase for the next few years. Companies will use any excuse related to the pandemic or Brexit to keep pay at the current rate, they may even use it to force through pay cuts! 5% drop in pay or redundancies will be the line at most pay negotiation meetings.

it seems the ‘richest’ here are paying the most, no?

There argument is one of proportion of income; someone on £60k will in theory be far better placed to pay £3800 than someone on £18k paying £580 based on the average cost of everyday life.

it seems the ‘richest’ here are paying the most, no?

https://pin.it/Mi09Zcr

Isn’t that why we’ve got small islands everywhere ?

They’ll be on-shoring it all. There will be no need for ‘crown dependencies’ in a few years. It’ll all be based in the city of London

https://en.wikipedia.org/wiki/Personal_allowance

last 4 years have meant a £1000 increase in personal allowance tax….

The free ports thing is also an exercise in deregulation, allowing those regions relaxed rules on tax, hiring/firing, customs duties and environmental controls which are in no way a sinister portent of what may well end up rolled out over post-Brexit England.

Are you serious? Very few, if any, people in the lower pay brackets are going to get a pay increase for the next few years

the average rate of minimum wage increase over the last 9 years (2012 was the earliest figure I can find) is approx 3.5% per annum. So yes, I expect all people on very low pay brackets will continue to get pay rises going forwards.

There argument is one of proportion of income; someone on £60k will in theory be far better placed to pay £3800 than someone on £18k paying £580 based on the average cost of everyday life.

I understand the argument, but its demonstratably a smaller proportion of income for minimum wage earners than it is for someone in the higher tax bracket. That said, £50/month spread over 5 years (so a £10/month increase in costs per year) is unlikely to be a lifestyle-impacting change (and neither is the change to the higher earners).

The 2% change to someone on minimum wage is likely to be an even smaller proportion of income once un-taxed benefits and allowances (of which there are fewer for high earners, and rightly so) are taken into account.

the average rate of minimum wage increase over the last 9 years (2012 was the earliest figure I can find) is approx 3.5% per annum. So yes, I expect all people on very low pay brackets will continue to get pay rises going forwards.

Minimum wage is just that, a minimum. Lots of jobs pay just above it, usually just under £10/hr and those have had very little increase over the last 5 years or so. What actually happens is those jobs get hoovered up into the minimum wage, meaning in real terms they have dropped in relative pay to the people they before earned more than. In my last job we had barely had a pay increase for the last 6 years, averaging 0.2% per year. I got a bigger increase in take-home pay from the Income Tax Threshold increases than my wage increase, the company even used it as an excuse to only award small increases!

In 2008 I started the job on £10/hr, minimum wage was £5.73. By 2020 I was on £12.08 whereas minimum wage is now £8.72. So that’s a 52% increase for minimum wage and only 20% for me. The inflationary impact for that timeframe was 32%. So that’s a real-world increase of minimum wage of 20% whereas I had a decrease of 12%. All of that is before deductions where the difference in actual take-home pay is worse.

A freezing of the Income Tax Threshold hits the lower earners hard, especially if they are not on minimum wage who ‘benefit’* from above inflation pay increases by law.

* minimum wage was meant to be up at £9 by now, it should really be higher as having people having to rely on tax credits/UC top-ups while working a full-time week is just a subsidy for big business but that’s an argument for a different thread and time.

Two very different observations –
1. The corporation tax hike even with a sliding scale will impact SMEs £250k sounds like a huge profit but it depends on how many slices are required from that pie to pay dividends its 16k more tax which means no grad hire that year. Large business have been handed a huge 130% tax dodge.

2. To be blunt if you live in and around Newcastle/Sunderland and all the way to the Scottish Border – it appears as if there is no leveling up? Treasury in Darlington Investment Bank Leeds, Freeport Teeside, high speed rail Manchester to Leeds… and Richmond in North Yorkshire is at level 1 for leveling up funding as its so impoverished. Also **** all for Scotland.

Feels like a line in the geographical sand.

Sky New personal budget calculator

I’ll be £46 better off. Yay.

I’ll be £3 better off!!!!

Looks like yesterday is the start of another round of austerity… and even though some headline austerity measures have been delayed to 2023, it really starts next year… and it will be hitting the NHS and care services hardest. You’ve got to give it to Sunak… he’s an expert turd polisher. Our next PM?

I’ll be £30ish better off.

Apart from the cuts to council budgets will mean that things that were once free will now require paying for, and my coucil tax will go up by more than the saving to try to claw back what central govt isn’t giving them, and that’s before we get started on inflation.

Sigh.

The Budget is broadly neutral for us as a family, but I live in Darlington so will hopefully see the impact of the Treasury campus and the bribe Towns Fund in improvements to local services.

£22 better off. But I’ll get hammered on something else. Bike parts for one.

Well… you’ll only be “better off” if you don’t have to use the NHS or any of the other services facing cuts (that weren’t mentioned in Sunak’s speech, but are in the budget).

And are your calculations adjusting for inflation? Including council tax rises?