The Budget 2025 thread.

So the OBR leaked.

  • The freeze in income tax thresholds "were extended for another three years until April 2031 in this Budget", the report says. That's a year longer than was expected. It means more people will pay higher rates of income tax as their pay rises
  • There will be a new mileage tax for electric vehicles from April 2028. "In 2028-29, the charge will equal £0.03 per mile for battery electric cars and £0.015 per mile for plug-in hybrid cars, with the rate per mile increasing annually with CPI," the report says
  • The two-child benefit cap "within universal credit" is being lifted from April 2026. "Its removal costs £2.3 billion in 2026- 27 and £3.0 billion in 2029-30," the OBR says
  • "Salary sacrifice" pension contributions above £2,000 will face National Insurance from April 2029. "This means that salary-sacrificed pension contributions above £2,000 will be treated as ordinary employee pension contributions in the tax system," the report says
  • There will be a new tax on houses worth more than £2m. The report calls it a "a high value council tax surcharge on properties worth over £2 million, raising £0.4 billion"
  • Lower growth is forecast. "Real GDP is forecast to grow by 1.5 per cent on average over the forecast, 0.3 percentage points slower than we projected in March, due to lower underlying productivity growth," it says
 
Halifax71 said:
"Salary sacrifice" pension contributions above £2,000 will face National Insurance from April 2029. "This means that salary-sacrificed pension contributions above £2,000 will be treated as ordinary employee pension contributions in the tax system," the report says
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Not sure how that's supposed to work, how does one distinguish between "salary sacrifice", and lower salary rises but higher pension contributions?
 
Wizzerboy said:
There you go lads no need to act responsibility. The hardworking public can fund your lifestyle.
And all the Waynetta slobs of Britain, keep popping em out like gerbils, you've just been given a ready made cash machine.
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Could you survive on the extra £17.25 an additional child would give you? I know Lee Anderson thinks you can survive on 30p a meal, but really?
 
Wizzerboy said:
There you go lads no need to act responsibility. The hardworking public can fund your lifestyle.
And all the Waynetta slobs of Britain, keep popping em out like gerbils, you've just been given a ready made cash machine.
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The problem arises 20 years from now, when Wayne and Waynetta discover that the "hardworking public" couldn't afford to have children of their own, so the taxpayers they were expecting to fund their lifestyle no longer exist.
 
What a ridiculously poor budget.

We speculated all week that it'll be only good if you're on the benefits. Her 'entrepreneurial' budget increases corporation tax, dividends and freezes tax thresholds.

It dramatically removes any benefit to saving in your private pension. Also if you've got savings you really now need to put them into a higher risk saving vehicle ISA rather than a safe option cash ISA.

On the back of the last one that raised employer NI costs. She put Labour back into the 1970s. unelectable
 
Lost Seasider said:
The problem arises 20 years from now, when Wayne and Waynetta discover that the "hardworking public" couldn't afford to have children of their own, so the taxpayers they were expecting to fund their lifestyle no longer exist.
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Hang on. There’s a number of posters on this board, and on this thread, that suggest that the decisions of previous governments don’t have any bearing on the future. Any mention of 14 years of Tory failure is quickly shut down so I assume those same people won’t be blaming the current government in the years to come 🤔
 
I r
Chunkylad said:
What a ridiculously poor budget.

We speculated all week that it'll be only good if you're on the benefits. Her 'entrepreneurial' budget increases corporation tax, dividends and freezes tax thresholds.

It dramatically removes any benefit to saving in your private pension. Also if you've got savings you really now need to put them into a higher risk saving vehicle ISA rather than a safe option cash ISA.

On the back of the last one that raised employer NI costs. She put Labour back into the 1970s. unelectable
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I thought that about pensions. The state pension isn't sustainable so they say but doesn't seem to be any incentive to invest in a private pension?
 
EdgeleyTangerine said:
Hang on. There’s a number of posters on this board, and on this thread, that suggest that the decisions of previous governments don’t have any bearing on the future. Any mention of 14 years of Tory failure is quickly shut down so I assume those same people won’t be blaming the current government in the years to come
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That's one of the most incoherent posts I've read on here in quite some time.
 
Chunkylad said:
What a ridiculously poor budget.

We speculated all week that it'll be only good if you're on the benefits. Her 'entrepreneurial' budget increases corporation tax, dividends and freezes tax thresholds.

It dramatically removes any benefit to saving in your private pension. Also if you've got savings you really now need to put them into a higher risk saving vehicle ISA rather than a safe option cash ISA.

On the back of the last one that raised employer NI costs. She put Labour back into the 1970s. unelectable
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It’s shockingly bad, penalising those saving in self-sacrifice pension schemes.
WTF.
Short sighted, penalises the element of community that gets off it’s backsides and support themselves and others.
No wonder we have an ever increasing divisiveness in society.
 
EdgeleyTangerine said:
Hang on. There’s a number of posters on this board, and on this thread, that suggest that the decisions of previous governments don’t have any bearing on the future. Any mention of 14 years of Tory failure is quickly shut down so I assume those same people won’t be blaming the current government in the years to come
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I agree with this too, they inherited a real mess and the waste of projects like HS2 that only benefited anyone selling their land to the project and the companies doing it plus the Covid scam left Labour with an economy worse than the one that George Osborne was gifted in 2010.

However, here today, they have choices based on where they are and this budget ends any future for Labour for a generation.
 
fcblackpool said:
OK.

Can we have some ideas on an alternative budget and give a rough idea of the monies spent/raised?
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Yes income should have been raised along with VAT in her very first budget conveniently cut back a year before the election, should have got the pain out of the way quickly. In the meantime, as a freshly minted dole scrounger, get working for my benefits and put your backs into it you skiving swines, I've done my lot.
 
Lala said:
I may recommend to my youngest daughter, ‘have 6 kids and live off the altruistic left wingers who are desperate to enable you, and pay for you to do this, and obviously the rest of the hard working public will be forced to pay
for you too.
Now you know I won’t do this, but there will be plenty that do.
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No there will not, they'll be hardly any.
 
Ah so it is still a removal of a benefit of saving into your pension if you're a worker then?

So for example, my wife adds to her pension through her salary and work deduct this from her pay packet. That's gone as a benefit of having a job and wanting to contribute to your later life pension.

Glad that's cleared up.
 
It's not a bad budget IMO. She has avoided the main tax raising initiatives, VAT, income tax and NI. It is in main a bit of tinkering around the edges, smallish measures and I am not against the 2 child cap being scrapped. The aim of bringing children out of poverty is a good thing IMO, but maybe the implementation needs to be looked at.
 
Chunkylad said:
I agree with this too, they inherited a real mess and the waste of projects like HS2 that only benefited anyone selling their land to the project and the companies doing it plus the Covid scam left Labour with an economy worse than the one that George Osborne was gifted in 2010.
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None of this should've been a surprise to them, the state of the public finances was well known ahead of the election, they've not had a once a century global pandemic to deal with, this budget reflects their tax and spend choices.

Also, what Covid scam? Are you saying that Covid wasn't a thing? IIRC, Labour's main complaint at the time was that we weren't spending even more on the pandemic.
 
PR3BFC said:
As a working Dad of two with an EV car can someone please explain how this budget is helping the cost of living (that they keep going on about) for me as I am failing to see it?
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Rail fares frozen, minimum wage raises, bus fare cap extended, 2 child benefit cap ended, fuel duty rate cut extended etc. there is plenty there to help working people.
The 0.15p for hybrids and 0.3p for EV charge will be £15.00 or £30.00 for every 1000 miles driven, it's something but not a massive amount. I wonder how much it costs to administer.
 
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ElBurroSinNombre said:
Rail fares frozen, minimum wage raises, bus fare cap extended, 2 child benefit cap, fuel duty rate cut extended etc. there is plenty there to help working people.
The 0.15p EV charge will be £15.00 for every 1000 miles.
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I don't catch the train. I'm above minimum wage but not massively. I rarely catch the bus. We are both working parents so don't get Universal credit and have 2 children so makes no odd. I have an EV so don't buy fuel.

I'm not trying to be argumentative here either I genuinely do not see the benefits and many others will feel the same.
 
PR3BFC said:
I don't catch the train. I'm above minimum wage but not massively. I rarely catch the bus. We are both working parents so don't get Universal credit and have 2 children so makes no odd. I have an EV so don't buy fuel.
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They are the things that I heard.
5 million extra appointments in the NHS is surely a good thing, maybe its not enough.
I am paying extra tax as a result of this budget btw.
 
Lost Seasider said:
None of this should've been a surprise to them, the state of the public finances was well known ahead of the election, they've not had a once a century global pandemic to deal with, this budget reflects their tax and spend choices.

Also, what Covid scam? Are you saying that Covid wasn't a thing? IIRC, Labour's main complaint at the time was that we weren't spending even more on the pandemic.
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Conveniently ignoring Brexit which is costing us 90billion in lost tax revenue each year according to the latest analysis.
 
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