Budget 2010: What it means for you

[super jumbe]

George Osborne has announced his plans for the nation's finances.
In his first budget, the Chancellor laid-out his ideas for cutting the UK's budget deficit - the gap between the money coming in to the government from things like taxes and the cash going out as public spending, stuff like benefits, the NHS and schools.
Here are some of the main points:
(1) VAT rises to 20% up in early January.
(2) Interest rate to go up by 5% in the next few months.
(3) Child benefit - will be frozen for the next three years.
(4) Pregnancy - Health in Pregnancy payments of ?190
to be scrapped.
(5) Student?s fee going up.
(6) Pay freeze - public sector workers will have their pay frozen for the next two years.
George Osborne says we will all have to pay a very high prise to put this country back on track is he talking rubbish?

[chroma]

Nah we're very much ****ed in terms of the GDP


The problem is that the UK government runs at a loss, it spends more than it taxes. it offsets these by selling off bonds to investors both foreign and domestic called "gilts."

The problem is that it needs to repay these in full and with the debt currently hovering around 1.1 trillion and the GDP in a downturn we're not even making enough to cover the interest on the loans... We're borrowing even more though, this year alone we got another 180 odd billion from selling gilts.

Back in 76 the uk went bust when its GDP ran at a deficit of 6% right now we're heading for a deficit of 11% (enough to be considered a Depression instead of a mere Recession)
The interest for the debts alone is somewhere in the region of ?45 billion a year... This only grows as time goes by and we continue to borrow instead of pay.

The cycles happened before, we elect a labour government who spend exuberant amounts of money on shit. we wind up heavily into the red, we wind up electing the tories who rob us blind and begin to pay it off, we get sick of getting the shitty end of the stick and elect labour who go back into spending mode...

To make matters worse the government thought that "Quantitative Easing" sounds like a good idea...
"Quantitative Easing" or QE is simply another term for printing more money, i dont mean rigging up a press and spewing out ??? apparently the government oposes this but has no problem with simply adding 0000's to the ends of things electronicaly. we've been buying back these gilts with imaginary money, the banks pay for them with a billion simply by adding a billion into the system electronically.
This means that although there's no additional currency on the streets there's a whole shitload floating around digitally that's devaluing our money.
How happy would you be if you bought a bond for a million and then had it paid off with a million that's now worth ?750,000? that's what's been happening and investors have decided to quit buying uk bonds.

Meaning that we don't get money comming in to pad our budget deficit, the only thing the UK can do to prevent total and complete collapse is to stop printing fake money and quit spending what it doesn't have.
This means massive cuts and massive tax hikes, and turds roll downhill to the guy standing at the bottom... in this case us. Fortunately if your a Banker you'll lkely still see your massive bonus :/

[cablefreejunkie]

,in 97 japan done exactly the same as what osbourne is doing right now,and this was at a time when japan were just coming out of recession,same as the uk now,and the japanesse were sent right back into it by raising vat
he shouldnt be cutting back spending but should re-direct it
cut back spending on illegal wars,,iraq,afghanistan,,military industrial complex spending is insane,and is completely out of control,,cut oil subsidies,theres loads more,,and in cutting back on that redirect the money into the something that you get a return on,,like education,apprenticeships,,infrastructure,,,these are areas where we would deffinetly see a return on an investment,,not wasteful spending on wars etc where the only one to see a return are the shareholders of private equity funds etc
and why instead of pumping millions of pounds of taxpayers money into bailing out the banks who in turn are still milking profits and bonuses and on the other side are not lending a bean to joe bloggs and small buisness dont the goverment set up there own banks and start lending and getting the country and the economy back on track,its absolutely insane
osbournes rhetoric that we hear day in day out about were in this together
we have to be tough but fair is complete shite
look up any recent study on the effects of this budgert and you will see that the lower earners in society will be 2.5% worse off while the higher earner will be 1.0% worse off,,so again we have a dissproportionate attack on low earners
tory politics in full swing,,,,were ~~~~ed really because as said above labour go on a spend spend spend,,,two party politics is a complete and utter stitch up,,its not a democracy that we live in but a communist regime wrapped up in a fluffy jacket
like a wolf in sheeps clothes

[super jumbe]

Totally agree but we have to keep fighting the war even if we ended up getting into penniless because if we lose this war there will not be an Israel state that?s the bottom line. Israel the only state in the world with over 60 sanctioned imposed by the UN and the course of action has not been valid in the UN to take its course.

[cablefreejunkie]

Totally agree but we have to keep fighting the war even if we ended up getting into penniless because if we lose this war there will not be an Israel state that?s the bottom line. Israel the only state in the world with over 60 sanctioned imposed by the UN and the course of action has not been valid in the UN to take its course.

i dont want to take this thread off topic,,,,but are israel immune from the geneva convention super jumbe and also the nuclear proliferation treaty ? as far as i know they have continued without any hindrance to produce wmd while there neighbours (iran) amongst others have been slaughtered by the western world
me thinks theres a slight bit of hypocrisy going on out there
i may be wrong

[Meat-Head]

The problem is that the UK government runs at a loss, it spends more than it taxes. it offsets these by selling off bonds to investors both foreign and domestic called "gilts."

WHOA, HANG ON A MO.

If the country was run my Meat-Head-Motors, this country would be sorted in no time.

The first change, would be everybody HAS to donate to DK, then pay their taxes.

Anybody except Devilfish - with more than $200,000 in savings would be required to invest in one of the xxx millions of companys going bust every month.

Few other changes as well.

[thered]

Country is ~~~~ed too many people work for government all paid for by taxes either directly or indirectly

the only way to lift the country from debt is through private sector unfortunately under labour the public sector is now as big as the private sector

and here lies the problem

The private sector makes the country money in revenue

Every job and pension in the public sector gobbles up the countrys money.

The country will never recover until the private sector becomes far more vast than the public sector.


And to anyone who thinks sacking council and government workers ect is not the way forward and will ruin the recovery are wrong and stupid its simple maths

More government jobs in hospitals or whatever mean more debt

example

Nurse earns ?500 per week

Out of that ?500 she pays bills,mortgage,shopping and fuel she also payes taxes on her income and her goods and fuel ect

Say for arguements sake the goverment receive a very inflated and exagerated ?400 back in taxes with vat fuel the lot

They are still ?100 down so how does that help the economy?

Might as wll of just given her benefit of the same amount which in effect is what they are doing

[nara]

(2) Interest rate to go up by 5% in the next few months.

Could you provide a source for that one?

It seems to have bypassed the financial press.

[thered]

Could you provide a source for that one?

It seems to have bypassed the financial press.

i could too im quite happy with my mortgage interest at the minute

[ruudvandan]

Country is ~~~~ed too many people work for government all paid for by taxes either directly or indirectly

the only way to lift the country from debt is through private sector unfortunately under labour the public sector is now as big as the private sector

and here lies the problem

The private sector makes the country money in revenue

Every job and pension in the public sector gobbles up the countrys money.

The country will never recover until the private sector becomes far more vast than the public sector.


And to anyone who thinks sacking council and government workers ect is not the way forward and will ruin the recovery are wrong and stupid its simple maths

More government jobs in hospitals or whatever mean more debt

example

Nurse earns ?500 per week

Out of that ?500 she pays bills,mortgage,shopping and fuel she also payes taxes on her income and her goods and fuel ect

Say for arguements sake the goverment receive a very inflated and exagerated ?400 back in taxes with vat fuel the lot

They are still ?100 down so how does that help the economy?

Might as wll of just given her benefit of the same amount which in effect is what they are doing

Your argument is complete bullsh!t. I know your figures are made up but just for argument's sake pretend they're correct. You are completely ignoring the benefits of having nurses. Suppose the net cost to the taxpayer of employing a nurse in this country is ?100 a week then I for one think it's a bargain. Nurses look after people and help them get back to health. A healthy person will be able to work and contribute to the economy. OK some people never get back to health but there's plenty who do. However if you really believe that nurses are a waste of money then if your ever unlucky enough to be in hospital then do the honourable thing and refuse their services. I'm sure you'll enjoy not getting vital injections an lying in your own faeces because there are no nurses to look after you.

[super jumbe]

Increase 20% VAT going up from midnight tonight 3-1-11.