Wednesday, 24 March 2010

Darling's bribe with your kids' taxes

The budget 2010, a last chance for Labour to auction off the yet to the stolen loot from future taxpayers.

The deficit was predicted to be £178 billion, it looks like ONLY being £167 billion. That's around £2780 of borrowing for every UK resident, or more like over £8000 per household - borrowed on your behalf by the government.

The government predicts 3.5% growth next year, few believe it.

What will it go on?


- Every British citizen will be legally entitled to a "free" bank account, paid for by you;
- A "Green Investment Bank" is to be set up costing £2 billion, because the government doesn't have enough banks and there is nothing like being forced to "invest" in commercially unprofitable ventures;
- New national investment corporation to be called "UK Finance for Growth";
- Support for the mortgage interest scheme, subsiding home ownership and propping up the property market (thereby disadvantage aspiring home owners) will continue, paid for by you;
- Money not needing to be borrowed because of lower than expected welfare claims is STILL to be borrowed to pay to help those under 24 find work and training, because they aren't very good at it themselves;
- £4 billion more to support the military operations in Afghanistan;
- Public sector pay will still increase, but no greater than 1% for two years from 2011, because no doubt they still deserve increases while all others have had real reductions;
- A third of civil service jobs to be relocated outside London to less expensive locations, which wont necessarily mean net savings.
- More money for pensioners, because they haven't benefited from increased Labour spending and because their grandchildren and great grandchildren wont get angry at them for paying for it


- Stamp Duty to rise to 5% on homes over £1 million (expect homes up to £1.1 million being repriced to be sold for just under that);
- Fuel duty is to go up 1% on 1 April, 1% in October and 1% in January, instead of 3% in April. The government profit from the road network will exceed 300% after spending on maintenance and capital;
- National insurance (a form of income tax) is to go up 1% as already announced, but those earning less than £20,000 wont have to pay, the logical reason surely being because they don't impose many demands on the health system (!). Those over £100,000 will have personal allowances reduced, because we know what a burden on the state they are;
- Alcohol duty goes up 5% on Sunday, 10% on Cider. Alcohol duty will go up 2% above inflation for two years beyond 2013.
- Tobacco duty is to go up 1% above inflation over that time.
- Crackdown on evasion and avoidance, with tax information agreements to be signed with more countries
- Freezing inheritance tax threshold for three years, effectively meaning more will pay it.


- End of a small stealth tax, ISA tax free allowances to rise according to inflation;
- First time home buyers (like the sons and daughters of home owners) will be able to buy a home worth up to £250,000 with no stamp duty.
- Business rates cut for one year.


- Changes to housing benefit so that a threshold of property values will be set so more expensive properties occupied will not be eligible for the benefit. Estimated to save £11 billion.
- The Dartford Crossing (toll bridge and tunnels) and Tote (TAB) are to be privatised to raise cash to pay debt.

So the verdict? Dithering. No serious attempt to tackle the deficit, with the main news being around incremental increases in taxation.

This is the first bid in the advance auction of stolen goods called the forthcoming election.

No comments:

Post a Comment