So, Gideon is laying out his plans… couple of things that have caught my eye in the build up, the so called ‘google tax’ and the potential for a big stamp duty change for properties above £250k.
@Pies, the government’s confirmed £750m of the “new NHS funding” is old NHS funding moved to a new column in the spreadsheet but I don’t know about the rest.
By some accounts, the new funds just close the budget gap created by the government’s ongoing NHS funding freeze- NHS costs naturally increase year on year due to demographic and treatment changes but there’s been no funding to match that. So if that’s the case it’s essentially a trumpeted fix, for a hole they’ve created themselves.
Finally, the Stamp Duty reform seems a perfectly sensible idea. Saying that, in my circumstances, my last house move would have cost an additional £340 under the new rules (£392k house) and given that the average house price is now something like £280,000 (according to Zoopla – England only) I do question how 98% of the population will be better off.
and given that the average house price is now something like £280,000 (according to Zoopla – England only) I do question how 98% of the population will be better off.
I just did some quick sums and a 275k purchase would be ~4k less under the new scheme.
I think the other point of interest is there seems to have been “one in the eye” for Scotland. Northern Ireland will get control of corporation tax (and he hinted perhaps Wales to be announced shortly). However the Scots DO NOT get control of corporation tax just personal tax bands.
The World War 1 debt is a bond (famous in the financial markets and known as “The Warrior”) with no maturity (ie it never pays you back principal only interest) which had a historically low interest rate which actually looks high today as interest rates are so low. So it makes sense to redeem it. I am sure there will be many government bond dealers who will be nostalgic for the loss.
I think the other point of interest is there seems to have been “one in the eye” for Scotland. Northern Ireland will get control of corporation tax (and he hinted perhaps Wales to be announced shortly). However the Scots DO NOT get control of corporation tax just personal tax bands.
But of course, after all we are better together. And remember, it’d be completely impossible for different parts of the sterling currency union to diverge on fiscal matters 😉
The stamp duty thing of 98% better off comes from the Treasury. Does this affect Scotland with immediate effect as they were planning to introduce something similar in April? So presumably this a sop to English voter while sticking it to the SNP at the same time. If you are a Tory win, win.
@dragin – yes I think so, I posted that on another thread, I admit I am guilty of a bit of a Scottish wind up ! It is interesting and quite material though, lets see what the SNP has to say