2007 Budget - key changes

[Julia]

· Basic rate of income tax to be cut from 22p to 20p in April next year but 10p lowest rate to be scrapped
· Highest polluting vehicles to pay £400 vehicle duty next year
· Fuel duty up 2p a litre this year - deferred until October - then up 2p next year and 1.8p in 2009
· 1p rise on pints of beer and cider; 5p increase on wine; 7p on sparkling wine; freeze on duty for spirits
· Packet of 20 cigarettes to increase by 11p
· Threshold for higher rate income tax to increase from £38,000 to £43,000 in April 2009
· Inheritance tax allowance to rise from £285,000 to £350,000 by 2010
· NHS will receive £10bn more - biggest cash increase ever: 7% increase in real terms
· £300 - £4,000 grants for pensioners to install insulation and central heating
· Child benefit to increase in stages to £20 a week by 2010


Hmmmmm!

[Mr P Cannop]

does workers get a pay rise ??

[Tugmistress]

Well I don't know about the rest of you, but i am not happy about the road tax lark.
Yes i drive a 4x4, but before you start hollering at me i don't live on a street with any sort of nice surface. The lane is erroding away with every downpour we get, it's like offroading every day. I did have a 'normal' car, but the maintenance cost because of the lane was prohibitive. I know this is only my personal opinion taking into account my personal situation, but i feel like they are penalising everyone that lives 'in the sticks' for owning and running an essential mode of transport instead of the 'school run yuppies' in the major cities.
ho hum, a second job is required me thinks :confused

[Rheghead]

· Basic rate of income tax to be cut from 22p to 20p in April next year but 10p lowest rate to be scrappedDefinite double whammy there
· Highest polluting vehicles to pay £400 vehicle duty next yearNot sure if it applies to all high polluting vehicles, it will affect rural areas like us, does it apply to vans?
· Fuel duty up 2p a litre this year - deferred until October - then up 2p next year and 1.8p in 2009Definite clobber for us living up here
· 1p rise on pints of beer and cider; 5p increase on wine; 7p on sparkling wine; freeze on duty for spiritsI would have liked to see bigger increases here, Scotland has quite a nasty booze problem, why leave out spirits?
· Packet of 20 cigarettes to increase by 11pDoesn't affect me, and it shouldn't affect anyone else
· Threshold for higher rate income tax to increase from £38,000 to £43,000 in April 2009Very nice!:)
· Inheritance tax allowance to rise from £285,000 to £350,000 by 2010I would have liked to see a broadening of this tax with a three tier tariff in place.
· NHS will receive £10bn more - biggest cash increase ever: 7% increase in real terms. Spending more doesn't mean it is gonna get better, money down the drain probably.
· £300 - £4,000 grants for pensioners to install insulation and central heatingThis is a very good idea in theory, benefitting the old, and the next owners of the property and the environment.
· Child benefit to increase in stages to £20 a week by 2010


Hmmmmm!

The Budget wasn't too bad, shame about the 10p rate going though. It was with us for 8 years.

[Mr P Cannop]

does any one have the full report ??

[Julia]

does any one have the full report ??

You can find it here http://business.guardian.co.uk/budget2007/story/0,,2039286,00.html

[j4bberw0ck]

NHS will receive £10bn more - biggest cash increase ever: 7% increase in real terms

This pure politics bunkum. The rate of cost inflation within the NHS runs at almost 10% a year because it's so inefficient. This monster increase basically allows it to stand still.

[j4bberw0ck]

From t'interweb, a moralistic tale:



A young man named Gordon bought a donkey from an old farmer for £100.00.

The farmer agreed to deliver the donkey the next day, but when the farmer drove up he said, "Sorry son, but I have some bad news... the donkey is on my truck, but unfortunately he's dead."

Gordon replied, "Well then, just give me my money back."

The farmer said, "I can't do that, because I've spent it already."

Gordon said, "OK then, well just unload the donkey anyway."

The farmer asked, "What are you going to do with him?"

Gordon answered, "I'm going to raffle him off."

To which the farmer exclaimed, "Surely you can't raffle off a dead donkey!"

But Gordon, with a wicked smile on his face said, "Of course I can, you watch me. I just won't bother to tell anybody that he's dead."

A month later the farmer met up with Gordon and asked, "What happened with that dead donkey?"

Gordon said, "I raffled him off, sold 500 tickets at two pounds a piece, and made a huge, fat profit!!"

Totally amazed, the farmer asked, "Didn't anyone complain that you had stolen their money because you lied about the donkey being dead?"

To which Gordon replied, "The only guy who found out about the donkey being dead was the raffle winner when he came to claim his prize. So I gave him his £2 raffle ticket money back plus an extra £200, which as you know is double the going rate for a donkey, so he thought I was a great guy!!"

Gordon grew up and eventually became the Chancellor of the Exchequer, and no matter how many times he lied, or how much money he stole from the British voters, as long as he gave them back some of the stolen money, most of them, unfortunately, still thought he was a great guy.

The moral of this story is that, if you think Gordon is about to play fair and do something for the everyday people of the country for once in his miserable, lying life, think again my friend, because you'll be better off flogging a dead donkey.

[j4bberw0ck]

And another one, much cleverer:

(Allegedly written by an MP)

Macavity's a Mystery Cat: he's called the Clunking Paw—
For he's the ten-year Chancellor who taxes more and more.
He's the bafflement of Tyneside North, he’s Darlington’s despair:
For when they’re sacked or briefed against—Macavity's not there!

Macavity, Macavity, there's no one like Macavity
He's broken every golden rule—he breaks the law of amity.
His off balance sheet accounting would make Robert Maxwell stare,
But when you open up the books—Macavity's not there!
You may search the whole Smith Institute, or the Cash-for-Honours affair—
But I tell you once and once again, Macavity's not there!

Macavity's a peculiar cat—he's full of tricks and wiles.
He mutters and he mumbles and he hardly ever smiles.
He scarcely talks to colleagues, his head is highly domed
His suit is dusty from neglect, his hair is all uncombed.
He juts his jaw from side to side; he never can relax.
Except when he is planning to impose his hundredth tax.

Macavity, Macavity, there's no one like Macavity,
For he's a grudge in human form, a monster of depravity.
He won’t support tuition fees; he won’t back Tony Blair.
And as for foundation hospitals—well, Macavity's not there!

The Cabinet is stuck with him. (It’s said they live in fear.)
And he gives his Budget to the House exactly once a year.
But when defence is looted, or the pension funds are rifled,
Or the tax credits go missing, or John Hutton is found stifled,
Or a greenhouse gas is rising, and Lord Turnbull in despair—
Ay, there's the wonder of the thing! Macavity's not there!
And if he doesn’t like you, then you know that, without fail
You’ll wake up to nasty briefings printed in the Daily Mail.
There may be a scrap of paper in the hall or on the stair
But it's useless to investigate—Macavity's not there!

And when the loss has been disclosed, the civil service say:
"It must have been Macavity!"—but he's a mile away.
You'll be sure to find him brooding, or a-chewing of his hand
As he works out how exactly to get rid of Miliband.

Macavity, Macavity, there's no one like Macavity,
He’s doesn’t care for social grace; he’s short on charm and suavity.
He always has an alibi, or one or two to spare:
And whatever time the leak took place—MACAVITY WASN'T THERE!
And they say that all his colleagues who hold his name in dread
(I might mention Norwich South; I might mention Birkenhead.)
Are nothing more than ciphers for the Cat who never lacks
An excuse to raise some revenue: the Napoleon of Tax!

[KittyMay]

Personally, I would have much preferred to continue paying the 22p if it meant those on lower incomes keeping the 10p.

[j4bberw0ck]

Personally, I would have much preferred to continue paying the 22p if it meant those on lower incomes keeping the 10p.

According to the man hisself, those affected will get it back via tax credits. If they have children. More votes bought!

[MadPict]

Well I am going to be £34 a year worse off....

http://news.bbc.co.uk/1/shared/bsp/hi/business/budget_calc/html/budget_calculator.stm

[SandTiger]

...
Yes i drive a 4x4, but before you start hollering at me i don't live on a street with any sort of nice surface. The lane is erroding away with every downpour we get, it's like offroading every day. I did have a 'normal' car, but the maintenance cost because of the lane was prohibitive...

As you say, those people with the Chelsea Tractors using their toys for school runs will not bat an eyelid at the increase so it will not stop any concerns over apparent green issues but just increase the government coffers :roll:

[lassieinfife]

As usual I dont see much help for single people especially them on low incomes:(

[MadPict]

Fuel -- 960.43(this year) -- 991.63(next year) -- £-31.2

[Rheghead]

Well I am going to be £34 a year worse off....

http://news.bbc.co.uk/1/shared/bsp/hi/business/budget_calc/html/budget_calculator.stm

£158 better off. Not gloating, it is just that ol' Gordon has clobbered me in the past, payback time is well over due. Nice wee calculator though.:Razz

[Mr P Cannop]

do shops workers get a pay rise ??

[j4bberw0ck]

Effective April 2008 the 10% tax band is removed so people who pay most of their tax out of that band (i.e. the low paid) will be worse off because they'll pay most of their tax at 20%. Higher paid peeps won't notice. Not very Labour-ish, is it? Chancellor reckons those with kids will be able to claim back the difference through tax credits. Other than that, only your employer can answer your question.

[brandy]

does my zafira 1.8 count in that?

[emszxr]

that bbc calculator says i will be £434 better off.

[Julia]

Well I am going to be £34 a year worse off....

http://news.bbc.co.uk/1/shared/bsp/hi/business/budget_calc/html/budget_calculator.stm

We will be £426 better off! I'm in shock :eek:

[j4bberw0ck]

Video: the Chancellor at the Despatch Box. (http://www.mediaplayer.telegraph.co.uk/?item=9E969AF8-262C-4741-A060-6718CACE9FDB%27,%27tcuk_mediaplayer%27,%27width=75 0,height=600,scrollbars=no#)

A summary of the main budget changes, by Rory Bremner. You'll need to click the link which says "Rory Bremner does Gordon's real Budget" - I can't link it direct.

(Sorry, dialup peeps - it's 21MB)

[Alice in Blunderland]

Looks like we will be roughly £152 worse off each year.....thats until I go out and buy my gas guzzling 4x4 :lol: