Tax changes
http://news.bbc.co.uk/1/hi/uk_politics/7397705.stm
The government has acted surprisingly quickly in announcing a change to address the issues resulting from the 10p tax rate being dropped. I note, however, that the proposal is for this year, and just hopes that it will continue to be possible in later years. This obviously raises the question of where (eventually, since it's borrowed money currently) the £2.7B will come from, in this year and subsequent ones, and how big the backlash will be in later years if they try to reduce or freeze the allowance thresholds.
I'm obviously happy to see a solution implemented quickly, and also to see that it is of benefit to me as well as low earners. I had said to some friends that raising the thresholds was the simplest approach, and it seems the government agrees.
Given that there has been a clear tendency towards higher taxation under Labour (in terms of slowly increasing thresholds, increases to the likes of fuel duty and National Insurance, etc), it's refreshing to see a policy which doesn't appear to be yet another disguised or ill-justified increase. Not enough of a change to make me consider voting Labour any time soon, but welcome none the less.
The government has acted surprisingly quickly in announcing a change to address the issues resulting from the 10p tax rate being dropped. I note, however, that the proposal is for this year, and just hopes that it will continue to be possible in later years. This obviously raises the question of where (eventually, since it's borrowed money currently) the £2.7B will come from, in this year and subsequent ones, and how big the backlash will be in later years if they try to reduce or freeze the allowance thresholds.
I'm obviously happy to see a solution implemented quickly, and also to see that it is of benefit to me as well as low earners. I had said to some friends that raising the thresholds was the simplest approach, and it seems the government agrees.
Given that there has been a clear tendency towards higher taxation under Labour (in terms of slowly increasing thresholds, increases to the likes of fuel duty and National Insurance, etc), it's refreshing to see a policy which doesn't appear to be yet another disguised or ill-justified increase. Not enough of a change to make me consider voting Labour any time soon, but welcome none the less.