Wednesday, March 21, 2007

Budget Briefing

I'm still trying to absorb the details of what, in the end, looks like a neutral budget, in the face of the May elections.

The BBC has an analysis here but amid talk of tax "cuts" the true costs..i.e. petrol, beer and much more, will look to creep upwards as one might expect.

Some good news but only modest improvements, particularly around the controversial subject of inheritance tax:

Tax exemption for capital gains will rise from £8,800 to £9,200, and will be £18,400 for married couples.

Inheritance tax will threshold to rise from £285,000 now to £350,000 in 2010.


Anonymous said...

We have become used to 'spin' and sweet goodies in the Budget promised years ahead, in reality, turning out to be sour acid drops when brought in to force. What interested me were the forecasts on tax paid through PAYE. As I see it, what the analysts are saying is that the removal of 10% band and a standard band of 20% has the effect of making an income earner of £14,000 about £90 poorer whilst a person on £24,000 becomes £128 better off. So we have a Labour Chancellor continuing to make the poor, poorer and the wealthier richer? That's not the case say Labour apologists, the benefit system will rescue the poor from poverty. So the policy of turning as many of us as possible into state dependent subservient, malleable 'deserving poor' continues. The Tories need to declare that they intend to reverse this insidious ensnarement by leaving the poor with more of their own money in the first place by raising tax thresholds. Could we please have some clear Tory thinking from David and his boys.

Anonymous said...

I agree entirely with your anonymous correspondent and am surprised that this obvious anomaly wasn't jumped on by the Tories in their response. It is just plain wrong, and if the smug, arrogant chancellor can't see it, what hope have we got when he takes over as PM?