Budget day, time to take our medicine

[cat123]

Lets face it, real interest rates have nothing to do with what the government decides, it's the banks that make the key decisions. Interest rates are at 0.5% set by the BoE but banks only offer that rate to savers whilst borrowers pay 5% over. Osborne can say what he likes as the banks will offer rates that suit them and not the chancellor of the BoE.

Hell even Northern Rock are offering around 1% and they are owned by us.

The fact is if the BOE raises interest rates we will all be paying more for our mortgages and at a time when people can't get into work and more are going to lose their job it doesn't look good. If base rate goes up then everyone who has a mortgage that is not fixed rate will get hammered.

The last time there was a recession under the Tories interest rates were in double figures, so with the amount house prices have risen and if there was a interest rate jump so many people could not afford their mortgage payments.

Also I don't beleive for a minute the chancellor doesn't have a say on interest rates, despite what they tell the public.

 

[edcase]

If base rate goes up then everyone who has a mortgage that is not fixed rate will get hammered.

Only idiots could be in this position: IE taking a mortgage at the lowest mortgage rate ever seen, then expecting it to go even LOWER.

From the bottom, the only way it is going to go is up! Even people who go fixed deals a few years back would have been tied in at about 6-7%. People riding the base rate now are on easy street. If theyre worried they can still tie into deals at 4-5% - still cheaper than its ever been!

 

[meanie]

May be controversial to say but my opinion on this one:

:: Tax credits to be reduced to families earning over £40,000 next year

Personally I think that is still way too high,it should have been capped at £30,000

Anyone who earns £40,000 a year shouldn't be needing Government tax credits in the 1st place.

have to agree with you 100%

The problem is currently if you earn or have a combined income of over £34k per year you are classed as rich, which in todays times is not rich.

depends if there is just 2 of you or a family of 4

Why is it that the people that pay taxes into the sytem, then have to pay again for healthcare ie. prescriptions, yet people that don't work and put in to the system are able to take things for FREE?

I pay my income tax into the system but others on the street pay nothing in yet get given everything by the government. I hope this changes.

You should have a fund set aside for healthcare that you pay into and use it as and when required, but if you don't contribute into the pot you can't take any out.

agree with that too
imo i dont think the welfare has been hit at all i reckon the benifits should be cut
more a lot more and the savings given to the pensioners if you dont contribute
you shouldnt get anything (much anyway) ok some people cant find a job but
there is jobs out there most people say it dont pay enough well if there wasnt
not welfare it would be enough wouldnt it again imo its just greed " i want
enough money to pay for my sly, virmin, broadband, tv, car, etc all luxuries
not necessities.
juts my little rant roud:

 

[hoppy]

The problem is currently if you earn or have a combined income of over £34k per year you are classed as rich, which in todays times is not rich.

Why is it that the people that pay taxes into the sytem, then have to pay again for healthcare ie. prescriptions, yet people that don't work and put in to the system are able to take things for FREE?

I pay my income tax into the system but others on the street pay nothing in yet get given everything by the government. I hope this changes.

You should have a fund set aside for healthcare that you pay into and use it as and when required, but if you don't contribute into the pot you can't take any out.

No one is stopping you from taking private health care.

I'm all for hammering the clowns that rip the arse out of the system but it seems Meanie and yourself would like to include the people who are trying their best to get on their feet.
If someone is unemployed through no fault of their own and trying to get work then why should they be refused free health care?

@Meanie--as ive posted before the unemployment in my area is drastic,,i accept there are people out there that don't want to work but because the country is in recession don't brand everyone the same.
It really grates ma fookin nipples when people who have a good job and haven't experienced hard times get on their little Hitler costumes and want to exterminate the poor.
Ma best mate is one of the hardest grafters a know and has burst his balls finally getting a job that is just above min wage and involves 4hrs traveling time each day..

 

[Bracket]

No one is stopping you from taking private health care.

I'm all for hammering the clowns that rip the arse out of the system but it seems Meanie and yourself would like to include the people who are trying their best to get on their feet.
If someone is unemployed through no fault of their own and trying to get work then why should they be refused free health care?

@Meanie--as ive posted before the unemployment in my area is drastic,,i accept there are people out there that don't want to work but because the country is in recession don't brand everyone the same.
It really grates ma fookin nipples when people who have a good job and haven't experienced hard times get on their little Hitler costumes and want to exterminate the poor.
Ma best mate is one of the hardest grafters a know and has burst his balls finally getting a job that is just above min wage and involves 4hrs traveling time each day..

Same with the johnny-foreigners who jump off the banana boat and start demanding free this and that all the time. I want a house,I want free NHS care...its fookin wrong. The bastards even come here for a NHS holiday and then go back home.

There are too many people in this country scrounging a living without being made to do anything. Its the kids of these kind of people who will suffer as well. Its a vicious circle...the kids will see their parents have never done a days work in their life and they will grow up with the same attitude. It needs to stop somewhere.

BUT I also agree with what Hoppy is saying. There ARE genuine people in this country who are desperate for work to provide for their families.

Its not fair to tar everyone with the same brush! You can't have a them-and-us society when people are in that situation.

 

[cat123]

Only idiots could be in this position: IE taking a mortgage at the lowest mortgage rate ever seen, then expecting it to go even LOWER.

From the bottom, the only way it is going to go is up! Even people who go fixed deals a few years back would have been tied in at about 6-7%. People riding the base rate now are on easy street. If theyre worried they can still tie into deals at 4-5% - still cheaper than its ever been!

You are missing my point, I'm talking about people who may be casualties of the recession who are struggling at the moment to hold on to their home, if interest rates start going up quickly and sharply these people will no doubt be in trouble. Also it's not like the 80's when house prices were lower, if the interest rates rose to 15% as it did in 1990 under the Tories monthly mortgage costs would rocket as the loans are much higher now, I’m not saying it will go that high but I think there will be increases coming.

Mervyn King pledges to raise interest rates as growth returns | Business | The Guardian

 

[Bracket]

So we'll be going back to the days of the 'southern softies' crying negative equity again will we?

 

[Munkey]

You're forever talking about interest rates and stuff like that.

It's these real negative interest rates that we have to worry about witchy, our money is evaporating before our very own eyes and people aren't taking notice.

So let's say interest rates are 1% and inflation is at 4%
4% minus 1% = negative 3%
Any money in the bank is becoming more and more worthless by the day as it's purchasing power is diminished. Scary stuff as having low interest rates with moderately high inflation means that even though we are saving money, we are getting poorer by the day.

You are missing my point, I'm talking about people who may be casualties of the recession who are struggling at the moment to hold on to their home, if interest rates start going up quickly and sharply these people will no doubt be in trouble.

If people can't afford to keep up repayments if interest rates rise, they probably shouldn't have bought a house in the first place. When I bought my house I factored all of this in, including the chances of becoming unemployed and still holding onto my home without any assistance.

 

[Penners]

Personally I wouldn't worry about interest rates rising atm. Infact I can't see boe going above 2% in the next 3 years. The government needs to repay all this debt and to do that people need to ""think"" they have spare cash.

Hence why interest rates will stay low and tax will go up. Only after 3 years when the debt has been reduced to a sustainable standard will they then look at moving interest rates above the 2 percentile.

That’s my 2 pence worth

3 more years of reckless lending should bolster the banks fictitious books

10k plus savers will wish this not to be true but face facts the government is not worried about you losing your home as its unlikely. Its the low to middle earners who need to boost equity / reduce mortgage payments

Hence no BOE change.

 

[Firemouth]

No one is stopping you from taking private health care.

I'm all for hammering the clowns that rip the arse out of the system but it seems Meanie and yourself would like to include the people who are trying their best to get on their feet.
If someone is unemployed through no fault of their own and trying to get work then why should they be refused free health care?

@Meanie--as ive posted before the unemployment in my area is drastic,,i accept there are people out there that don't want to work but because the country is in recession don't brand everyone the same.
It really grates ma fookin nipples when people who have a good job and haven't experienced hard times get on their little Hitler costumes and want to exterminate the poor.
Ma best mate is one of the hardest grafters a know and has burst his balls finally getting a job that is just above min wage and involves 4hrs traveling time each day..

I'm with you here.
me for instance. I've worked solidly till the last 18 months. 35 years, 15 paying higher tax rate. I'm i not entitled, when the world goes tit's up, through no fault of mine, to support?
strange, to me, how the self employed seem to be at the forefront of the "get the scroungers" group. yet, from my own experience, they fiddle the most.
the cult of, I or ME, still exists. and its what's rotten about this country.

 

[janobi]

The benefit system is a complete joke, and needs a massive overhaul. I have friends who earn more than £1000 a month on benefits, and tax credits and such. Most of them have never worked a day in their lives. And get everything from the government because of their situation. I have worked from 16 and paid tax and national insurance, yet I am only entitled to 6 months support from the government, and no council tax relief or housing support.

Where is the fairness in that? How can I pay into the system for 15 years, and be entitled to 6 months support. This is something that needs to change immediately. People should only be entitled to 1 years support, before they are forced into work. The UK has one of the laziest societies around, people would rather take benefits than get a job. The program on C4 proved this, with work shy Brits unwilling to work on farms picking vegtables, yet immigrants from Poland are happy to do this, all day everyday. This is something that needs to change immediately.

A friend of mine is a freelance horticultarist lets call him. lol. He went to Thailand for 2 months at christmas time. Missed several of his signing on days, upon return he simply lied saying he had gotten stuck in North England during the snowy period and was unable to sign. No other questions were asked, and he signed back on, got his £500 in benefits, and also his housing benefit all paid immediately. He also made several thousand off other projects. Where is the fairness in that?

 

[Firemouth]

The benefit system is a complete joke, and needs a massive overhaul. I have friends who earn more than £1000 a month on benefits, and tax credits and such. Most of them have never worked a day in their lives. And get everything from the government because of their situation. I have worked from 16 and paid tax and national insurance, yet I am only entitled to 6 months support from the government, and no council tax relief or housing support.

Where is the fairness in that? How can I pay into the system for 15 years, and be entitled to 6 months support. This is something that needs to change immediately. People should only be entitled to 1 years support, before they are forced into work. The UK has one of the laziest societies around, people would rather take benefits than get a job. The program on C4 proved this, with work shy Brits unwilling to work on farms picking vegtables, yet immigrants from Poland are happy to do this, all day everyday. This is something that needs to change immediately.

A friend of mine is a freelance horticultarist lets call him. lol. He went to Thailand for 2 months at christmas time. Missed several of his signing on days, upon return he simply lied saying he had gotten stuck in North England during the snowy period and was unable to sign. No other questions were asked, and he signed back on, got his £500 in benefits, and also his housing benefit all paid immediately. He also made several thousand off other projects. Where is the fairness in that?

oh, my god! somebody is getting something you don't! ~LETS MAKE IT ILLEGAL.

Pathetic, jealousy, even envy, only cowards pick on those unable to defend themselves. this government and the budget prove that.

VAT is a regressive, hitting the poorest harder than wealthier people. all indirect taxes move the burden to lower income people. which is what the lib/cons want.

I have no love of the, so called, fiddlers. but the amount the "fiddle" is a fraction of the tax evasion, of wealthy people and company's. yet those crims got a tax reduction! go figure.

 

[oneman]

Its not about picking on those that genuinely need the help, its about minor but not insignificant portion who find it easier to work 'the system' but who could off their backsides and work instead. I know jobs are scarce but their are voluntary and other work that they could do to improve their long term chances.

 

[hoppy]

The benefit system is a complete joke, and needs a massive overhaul. I have friends who earn more than £1000 a month on benefits, and tax credits and such. Most of them have never worked a day in their lives. And get everything from the government because of their situation. I have worked from 16 and paid tax and national insurance, yet I am only entitled to 6 months support from the government, and no council tax relief or housing support.

Where is the fairness in that? How can I pay into the system for 15 years, and be entitled to 6 months support. This is something that needs to change immediately. People should only be entitled to 1 years support, before they are forced into work. The UK has one of the laziest societies around, people would rather take benefits than get a job. The program on C4 proved this, with work shy Brits unwilling to work on farms picking vegtables, yet immigrants from Poland are happy to do this, all day everyday. This is something that needs to change immediately.

A friend of mine is a freelance horticultarist lets call him. lol. He went to Thailand for 2 months at christmas time. Missed several of his signing on days, upon return he simply lied saying he had gotten stuck in North England during the snowy period and was unable to sign. No other questions were asked, and he signed back on, got his £500 in benefits, and also his housing benefit all paid immediately. He also made several thousand off other projects. Where is the fairness in that?

A was unemployed a few years back Janobi and a missed one signing on day through sickness and a had to claim from scratch as my claim was no longer live.
A think your mate is winding you up as the social are brutal if you miss one date without contacting them.
Stuck in the snow for two months??
Cmon mate,,a would have laughed him out the building.lol

 

[Firemouth]

Its not about picking on those that genuinely need the help, its about minor but not insignificant portion who find it easier to work 'the system' but who could off their backsides and work instead. I know jobs are scarce but their are voluntary and other work that they could do to improve their long term chances.

why is it ok for the wealthy, and firms to work the system, and not those on the benefits or worse? what works for one, works for all. only envy makes benefit receivers, a target.

if we stopped it all (benefit fraud) it would make one jot of difference to the Balance of payments. however, collecting, avoided, tax. would fill a massive hole.

 

[Munkey]

I have no love of the, so called, fiddlers. but the amount the "fiddle" is a fraction of the tax evasion, of wealthy people and company's. yet those crims got a tax reduction! go figure.

FM, are you speculating or do you have figures to support your tax evasion argument? I'm just curious.

Currently we spend appx £200B/year on our welfare state system, that's an obscene amount of money considering that the national debt is lower than that figure.

 

[Paul-K]

FM, are you speculating or do you have figures to support your tax evasion argument? I'm just curious.

Currently we spend appx £200B/year on our welfare state system, that's an obscene amount of money considering that the national debt is lower than that figure.

Is that just on benefits?

 

[cat123]

If people can't afford to keep up repayments if interest rates rise, they probably shouldn't have bought a house in the first place. When I bought my house I factored all of this in, including the chances of becoming unemployed and still holding onto my home without any assistance.

Well maybe some people didn't factor in a worldwide financial crisis which would make them unemployed. A lot of people would have held on to their homes simply because the interest rate went so low while they were unemployed, but with the new coalition government putting the squeeze on, unemployment will rise and so will interest rates leaving these people at risk.

 

[Munkey]

Well maybe some people didn't factor in a worldwide financial crisis which would make them unemployed. A lot of people would have held on to their homes simply because the interest rate went so low while they were unemployed, but with the new coalition government putting the squeeze on, unemployment will rise and so will interest rates leaving these people at risk.

When I plan for the unexpected it's a worst case scenario that I consider. Anything less would be rose tinted.

-

Paul-K, the welfare budget is £192B/year which is the umbrella that everything comes under including state pensions. The proposed cuts are a measly £11B which is appx 5%, so therefore we could assume that this is just the initial incision with the scalpel and the power tools to cut through the bone will be next.

 

[drewb]

Expect income tax rises to pay for increase in personal allowance at next budget in 2011. This is only phase 1, more pain to come.