Income tax and NI distribution

[Will e]

I was looking at it on my tax portal a few months ago, for me the national debt interest percentage is way too high, could this be due to the Tory's? Totally irresponsible for any government to wrack up national debt like that, don't start blaming covid either.

 

[Wild Card]

I was looking at it on my tax portal a few months ago, for me the national debt interest percentage is way too high, could this be due to the Tory's? Totally irresponsible for any government to wrack up national debt like that, don't start blaming covid either.

I think you can blame a significant amount on the tories.

Their wastefulness, their Brexit, their lack of competent governing, implementing austerity and lack of investment when interest rates were historically low. That is on them.

Obviously Russia's illegal invasion of Ukraine and the pandemic was not their fault. Nor was the global financial network that added to inflation.

Although I would also argue that their poor and inconsistent handling of covid meant a bigger bill and Brexit exacerbated inflation.

In a nutshell Tories have been criminally shite but not everything is their fault.

 

[Will e]

I think you can blame a significant amount on the tories.

Their wastefulness, their Brexit, their lack of competent governing, implementing austerity and lack of investment when interest rates were historically low. That is on them.

Obviously Russia's illegal invasion of Ukraine and the pandemic was not their fault. Nor was the global financial network that added to inflation.

Although I would also argue that their handling of covid meant a bigger bill and Brexit exacerbated inflation.

In a nutshell Tories are been criminally shite but not everything is their fault.

Oh I agree with that, also not putting all on the Tory's, I personally think they could have negotiated a smaller percentage to borrow such vast sums, of course I don't know that for sure but if you compare it it seems high to me, then again I'm tighter than two coats of paint.

I'd wouldn't let the Tory's run a raffle like.

 

[DoctorMick]

Oh I agree with that, also not putting all on the Tory's, I personally think they could have negotiated a smaller percentage to borrow such vast sums, of course I don't know that for sure but if you compare it it seems high to me, then again I'm tighter than two coats of paint.

I'd wouldn't let the Tory's run a raffle like.

Debt as a percentage of GDP went up from 30 odd percent to 70 percent between 2007 and 2010 then the Tories managed to take it over 100%! Useless fuckers the lot of them.

Interestingly, a third of UK national debt it owed to the UK government! Not entirely sure how that works.

 

[REDEFinition]

What do you do if you cut welfare? The costs of dealing with the results will be borne elsewhere, probably multiplied. Culture spending is low because of Barbarians. Correlating defence spending and welfare improvements is quite an unusual link up. Defence budget is massive in relation to the day to day issues people face. What budget does Michelle Mobe's money come out of? What budget does Michelle Donelan's libel money come out of?

My link was as follows:

Loads of knackers with no chance of holding a steady job get put through some sort of national service to try and get some routine and sense of worth outside of just sponging a living a being a general pain in the arse for the police.

Hopefully a percentage of said knackers go on to get a trade or learn a life skill and contribute to society.

It won’t solve all of society’s issues. I think we’re going to be paying for years and years of public financial incompetence for a long while yet.

Mone’s money will have come out of the Health budget, the other one will be maybe written off as an admin error cost?

 

[Darlo1973]

I was looking at it on my tax portal a few months ago, for me the national debt interest percentage is way too high, could this be due to the Tory's? Totally irresponsible for any government to wrack up national debt like that, don't start blaming covid either.

COVID is a big part of the reason. The money for the furlough scheme had to come from somewhere. Virtually every country in the world had to increase their borrowing to get through the pandemic. The scheme to cap domestic energy bills was also very expensive. Without turning this into a party political debate, those two big borrowing projects would have been needed regardless of who was in power.

The biggest problem with the economy since the financial crash of 2008 has been lack of growth which means that the money coming in through taxes isn't keeping up with the demands of running the country, which means more has to be borrowed to balance the books. This wasn't too bad when interest rates were low but since they shot up, government interest payments have ballooned.

The high interest rates also mean than the next government will find it hard to increase public spending as they won't be able to borrow as easily.

 

[Jasper]

COVID is a big part of the reason. The money for the furlough scheme had to come from somewhere. Virtually every country in the world had to increase their borrowing to get through the pandemic. The scheme to cap domestic energy bills was also very expensive. Without turning this into a party political debate, those two big borrowing projects would have been needed regardless of who was in power.

The biggest problem with the economy since the financial crash of 2008 has been lack of growth which means that the money coming in through taxes isn't keeping up with the demands of running the country, which means more has to be borrowed to balance the books. This wasn't too bad when interest rates were low but since they shot up, government interest payments have ballooned.

The high interest rates also mean than the next government will find it hard to increase public spending as they won't be able to borrow as easily.

Also, population getting older, more people becoming economically inactive, fewer people working means smaller tax intake but higher outgoings on ageing population.

 

[peachy]

...

Or they might do something radical, saying those born after x date won't get a state pension, instead they'll be given a lump sum at birth which is then invested into a pension & allowed to grow for 60 odd years

Has that already been started with that lifetime isa. You have to be under forty. For every £3000 you put in the state puts in £1000. You can only take out the money for a house purchase or your pension. I might have the exact details wrong, but it is along those lines. It is a generous input from the state, but I think it could well mean those under the age of forty won't get a state pension. If this is the case, then shout it from the rooftops, so that they know!

 

[PhilY]

It is mental that 12% is being spent on debt interest. Think what that £112bn/year could do if spent on schools/defence/infrastructure/NHS/policing/business innovation.

(Or an actual tax cut!)

 

[Wild Card]

Has that already been started with that lifetime isa. You have to be under forty. For every £3000 you put in the state puts in £1000. You can only take out the money for a house purchase or your pension. I might have the exact details wrong, but it is along those lines. It is a generous input from the state, but I think it could well mean those under the age of forty won't get a state pension. If this is the case, then shout it from the rooftops, so that they know!

If I was younger and not almost 40, I would be all over the lifetime allowance. Its a great way to save.

Lifetime ISAs are available to individuals aged 18 or over but under 40. Savings of up to £4,000 per tax year can be made before a person's 50th birthday. Contributions are eligible for a 25% tax-free bonus. Some or all of the savings can be used to buy a first home worth up to £450,000, provided the Lifetime ISA has been held for 12 months. Alternatively, funds (or the remaining funds) can be withdrawn tax free after the individual’s 60th birthday. However, if funds are withdrawn before age 60, other than to buy a first home, the bonus will be lost.

 

[Will e]

COVID is a big part of the reason. The money for the furlough scheme had to come from somewhere. Virtually every country in the world had to increase their borrowing to get through the pandemic. The scheme to cap domestic energy bills was also very expensive. Without turning this into a party political debate, those two big borrowing projects would have been needed regardless of who was in power.

The biggest problem with the economy since the financial crash of 2008 has been lack of growth which means that the money coming in through taxes isn't keeping up with the demands of running the country, which means more has to be borrowed to balance the books. This wasn't too bad when interest rates were low but since they shot up, government interest payments have ballooned.

The high interest rates also mean than the next government will find it hard to increase public spending as they won't be able to borrow as easily.

Well aye, covid is a big part but it could have been a lot less of a part, so could many others.
There are policies to mitigate a lot of the things you mention, it's absolute shite governence which could have saved this country billions.

 

[42]

Has that already been started with that lifetime isa. You have to be under forty. For every £3000 you put in the state puts in £1000. You can only take out the money for a house purchase or your pension. I might have the exact details wrong, but it is along those lines. It is a generous input from the state, but I think it could well mean those under the age of forty won't get a state pension. If this is the case, then shout it from the rooftops, so that they know!

The money you get back is the same tax rebate you get for pension & childcare, so it's not really the same or that generous. And it's entirely voluntary & the annual cap is quite low

 

[zinedine]

Isn’t most of the welfare spending on pensions? Not sure how it’s sustainable in the future as our population ages.

No they're separate items. Health and welfare are nearly 40%. Pensions just over 10%.

 

[Darlo1973]

Also, population getting older, more people becoming economically inactive, fewer people working means smaller tax intake but higher outgoings on ageing population.

Lots of socio-economic and demographic factors. Once upon a time most people would start working at 16. Now with college and university many don't get a "proper job" until their mid-20s - and (if they are lucky) then they retire earlier and spend more time retired compared to their grandparents generation who were usually dead within a few years of taking their pension.

The inflation rate for healthcare is much higher than it is for other goods and services. Drugs and medical procedures are getting more advanced but also much more expensive. The longer people live the more medical conditions they pick up which costs more to treat. 50 years ago most people were dead before cancer, dementia or other age-related conditions became a problem.

 

[peachy]

The money you get back is the same tax rebate you get for pension & childcare,

I don't know about 25% rebate for childcare? You don't get a rebate on your state pension.

so it's not really the same or that generous. And it's entirely voluntary & the annual cap is quite low

I bet the Government could make it compulsory, and the annual cap could be removed, if the Government decided there was not to be a state pension any longer for any child born after XXXX date.

 

[42]

I don't know about 25% rebate for childcare? You don't get a rebate on your state pension.

I bet the Government could make it compulsory, and the annual cap could be removed, if the Government decided there was not to be a state pension any longer for any child born after XXXX date.

Private child care there's a tax free scheme where you get the tax rebate on whatever you pay into it.
And I never said state pension, but private pensions the same thing. Pay £80 in, government tops it upto £100

This government did scrap the child trust fund payments, but that's the sort of thing that couldve been extended into a state pension replacement