Thoughts on the UK Emergency Budget?

Discussion in 'Politics, Religion, Social Issues' started by flopticalcube, Jun 22, 2010.

  1. flopticalcube macrumors G4

    flopticalcube

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    #1
    So the UK has an emergency budget. Any thoughts?

    http://news.bbc.co.uk/2/hi/politics/10385052.stm
    Disclosure: As a LibDem supporter for the 10 years I lived in the UK, I think its harsh but fair. Just like the Piranha Brothers.
     
  2. djellison macrumors 68020

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    #2
    This is payback for all the idiots who believed the Labour party crap for three re-elections, who for some reason thought all the increased spending and massive increase in government came for free.

    It's pay-up time.

    I emigrated out of the UK 2 months ago. I'm glad to be out.
     
  3. Zombie Acorn macrumors 65816

    Zombie Acorn

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    #3
    * VAT increase (shrink the economy even more)
    * Public sector pay freeze
    * Child benefit frozen (The UK hates children)
    * Housing benefit cuts
    * Disability Living Allowance cuts (The UK hates the elderly/disabled)
    * Tax cut for lowest paid (at least they make them pay taxes over there)
    * Two year council tax freeze
    * Capital Gains Tax increased (further shrink the economy)
    * Bank levy
    * NI tax holiday for job creation outside South-East of England
     
  4. BoxerGT2.5 macrumors 68000

    BoxerGT2.5

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    #4

    This^

    Take a good look at it America cause we're next.
     
  5. flopticalcube thread starter macrumors G4

    flopticalcube

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    #5
    Well, the Child Benefit was too big to begin with (but they do hate children! ;)) and the Disability Allowance has little to do with the elderly. Its a long running issue in the UK that has been abused for years by the workshy so I see reform there as a good thing. Interestingly, I don't see the BBC advertising the cut in corporation tax in their little list. That is what the VAT rises and CGT increases (only for those in the upper tax brackets) will be paying for (along with taking the bottom earners out of the tax system).

    http://news.bbc.co.uk/2/hi/politics/10374475.stm

    So everybody pays except the poorest and companies. This cut puts the UK at one of the lowest corporate tax rates of the developed world.
     
  6. Queso macrumors G4

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    #6
    It's as good as we could have expected given the circumstances. Even with the growth projections lowered to something more realistic they're hoping to balance the books by 2015-16. That's a much better target than Labour's stupid "lots of pain just to halve the deficit" crap.

    The delay in bringing in the VAT increase is a clever move too. It should see people increase their spending as the introduction date gets closer, which will provide a nice bump in service sector economic growth on the run up to Christmas to offset the falls in other areas and hopefully create extra jobs to dyson up all those former benefit scroungers.

    Now if they can just follow through on their promise to start simplifying the tangle of business red tape Labour left behind I'd be reasonably happy. I'd also like more details on how they're going to replace the utterly ridiculous IR35 guidance which attempted to class every business with less than four employees as being employed by their clients :rolleyes:
     
  7. BoyBach macrumors 68040

    BoyBach

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    #7
    Harsh but fair, a step in the right direction, and other clichés!

    (No tax relief for the videogame industry did surprise me though.)
     
  8. barkomatic macrumors 68040

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    #8
    Umm, your location says you're in California right now--I think that state (and the U.S. in general) is worse off. We can put things off for a little while longer but eventually there will be massive cuts in our side as well. I hope you still have a police department in Pasadena in the next 5 years. :)

    At least the U.K. is ready to tighten their belt but there's no way that will ever happen in the U.S. until we are staring disaster in the face. Everyone here wants everyone *else's* programs to be cut--but not theirs.
     
  9. robbieduncan Moderator emeritus

    robbieduncan

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    #9
    I view it rather as I did before the event: this is the gentle rimming before the real arse ***** we'll be forced to endure over the next couple of years.

    It is needed, a lot of the reforms (especially benefits) are long overdue but it's going to hurt. And if anyone thinks that VAT will go down once the deficit is under control then think again. Don't forget VAT (like the 70mph national speed limit) was brought in as a temporary measure!
     
  10. Dagless macrumors Core

    Dagless

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    #10
    Needs must. It also doesn't really affect me so I'll remain calm and I will indeed carry on.
     
  11. obeygiant macrumors 68040

    obeygiant

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    totally cool
  12. flopticalcube thread starter macrumors G4

    flopticalcube

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    #12
    That partially contributed to me leaving. Its too late for me to return now as the City has been clobbered but it would be nice to see that little piece of Stalinistic nastiness reformed.
     
  13. Queso macrumors G4

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    #13
    They've already said it's going, but until there are details on exactly what they're going to replace it with I'm not popping open any Champagne. HMRC seem to have this idea that freelancers are all just tax-dodging chancers. I can't see how the new government will shift that thinking quickly.
     
  14. Eraserhead macrumors G4

    Eraserhead

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    #14
    It seems pretty good to be honest. The Con-Dems have done a good job.
     
  15. Shivetya macrumors 65816

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    #15
    They still need to bring government sector pay back in line with private pay and benefits. Currently some estimates place it 30% over private.

    Still it is the future for America, but I doubt we will see it under Obama. Whomever gets in 2012 is going to have to do similar. Simply put, all the entitlements have to be paid for and justification of many needs to be made. Simply having them because they sound good or make some people feel good isn't enough.
     
  16. flopticalcube thread starter macrumors G4

    flopticalcube

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    #16
    As I watched people get promoted well above their level of competence, I kept my mouth shut because I was being compensated. As I was given 2 hours notice to gather my belongings and leave, I kept my mouth shut because I was being compensated. As I watched people collect their bonuses (guaranteed, of course), I kept my mouth shut because I was being compensated. As I paid both personal and corporate NI, I kept my mouth shut because I was being compensated. But HMRC looks at my compensation and said, "Thank you very much!", I left.
     
  17. mkrishnan Moderator emeritus

    mkrishnan

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    #17
    As an outsider, it seems that way to me, too. Of course, it's less surprising that Germany, the UK, and (reluctantly) France are implementing reasonable austerity measures. Hopefully the South will follow suit. The US and Japan need balanced plans that get their debt and deficit spending under control too; it's sounding provisionally like the new government in Japan is serious about this. That would, erm, leave us.
     
  18. Queso macrumors G4

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    #18
    America doesn't have the same ills to cure. The next leader of the USA needs to start by stripping the military budget down to something sustainable, then work to cut the waste that members of Congress and the Senate nab for their own states.
     
  19. flopticalcube thread starter macrumors G4

    flopticalcube

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    #19
    Many of the problems in the US are also at the state level rather than the federal level. While the states still feel they will get bailed out by the feds, no reform of any substance will happen.
     
  20. mkrishnan Moderator emeritus

    mkrishnan

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    #20
    I think you both have valid points... US military and paramilitary (cough, the absurdity that is this CIA covert operation in Pakistan that is so poorly kept a secret that there are boys riding camels in Sudan who know about it) operations do cost a lot of money and aren't delivering strategically for us at this time. However, even when we can Afghanistan and Iraq completely, that still won't close our budget deficit.

    The US problem is that we spend money on the wrong things. The historical evidence (e.g., "bikini" graph) is pretty clear in that, if we just cut the programs that the Right doesn't like, in the name of "small government," then the Right will find plenty of ways to spend us into poverty on all the expensive things they somehow don't consider to be inconsistent with small government.

    So, I think we need to make some hard decisions about things like the way we spend money on healthcare and the reasons we're against managed care and against nationalization plans. And we also need to think carefully about the consequences on American business in the long term if we reduce our infrastructural spending to underdeveloped-nation territory in the name of small government.

    But I don't think we can spend our way out of this problem, and I don't think that we can afford to ignore our deficit.
     

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