{"id":164754,"date":"2024-10-30T16:01:26","date_gmt":"2024-10-30T16:01:26","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/10\/30\/chancellor-rachel-reeves-promised-short-term-pain-for-long-term-gain-and-we-look-set-for-a-bumpy-ride\/"},"modified":"2024-10-30T16:01:26","modified_gmt":"2024-10-30T16:01:26","slug":"chancellor-rachel-reeves-promised-short-term-pain-for-long-term-gain-and-we-look-set-for-a-bumpy-ride","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/10\/30\/chancellor-rachel-reeves-promised-short-term-pain-for-long-term-gain-and-we-look-set-for-a-bumpy-ride\/","title":{"rendered":"Chancellor Rachel Reeves promised short-term pain for long-term gain – and we look set for a bumpy ride"},"content":{"rendered":"
\"Chancellor<\/div>


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The chancellor has finished a statement she’s waited a long 16 weeks to deliver – which she claims will start to deliver the change people voted for. But at quite a price.<\/p>\n

The headline is tax rises on a historic scale – \u00a340bn raised. Of which \u00a325bn will come from businesses paying more per employee they hire.<\/p>\n

The way she’s done it, via a big cut to the salary threshold at which employers’ national insurance kicks in – from \u00a39,100 to \u00a35,000 will hit those companies employing the lowest-paid workers. Small businesses will get more significant allowances.<\/p>\n

The chancellor conceded this huge measure would have an impact well beyond business, and the budget watchdog bears this out – forecasting that 60% of the costs of the policy will be passed on to workers and consumers via lower wages and higher prices.<\/p>\n

Those working people the chancellor and prime minister have promised will feel better off in five years.<\/p>\n

Follow latest: Biggest tax-raising budget since 1993<\/a><\/strong><\/p>\n

This was a budget<\/strong><\/a> of clear political choices – a bumper rise in spending for the NHS of \u00a322bn this year in day to day spending – the government will want to make sure it’s spent well and waiting lists fall as a result.<\/p>\n

And up – capital gains tax, inheritance tax, private school fees, and a cut to right to buy discounts.<\/p>\n

Tories will see much of this as class war, the chancellor says it is about a government making the “right choices” and challenged her opponents to say what they would cut instead.<\/p>\n

Rachel Reeves<\/strong><\/a> spent a good chunk of the start of the statement accusing the Tories of covering up a spending “black hole” and then calling an election to avoid the difficult political choices required to fill it.<\/p>\n

The Office for Budget Responsibility confirms that they do not believe they had the full picture and their March spending outlook was “too optimistic”.<\/p>\n

Read more from the budget:
The key announcements<\/a>
Chancellor looks to raise \u00a340bn in taxes<\/a>
Minimum wages to go up by almost 7%<\/a><\/strong><\/p>\n

Vindication, the government will say, for the chancellor in saying that these tax rises were not trailed in the election campaign was because she didn’t know how bad things were.<\/p>\n

But, clearly, a big departure in the scale of tax rises, from what Labour set out, which can’t all be pinned on the forecasts.<\/p>\n

Among the tax rises which were predicted but didn’t materialise were no further freeze on income tax bands beyond 2028 and a surprise continued reprieve in fuel duty and cut for draught beer duty – with perhaps a thought for the tabloid headlines about pints and van drivers.<\/p>\n

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Fuel duty freeze to last into 2025
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The constant refrain was of tough decisions but “no return to austerity”.<\/p>\n

The chancellor has been determined to show anxious Labour MPs and swing voters that her painful tax cuts would mean tangible, visible improvements in public services, not a repeat of the 2010 coalition government’s cutbacks.<\/p>\n

With the exception of the NHS, and a boost this year for schools, day to day spending is growing but still tight. Next year it will increase by 1.5%, which means difficult settlements for unprotected departments like local government, justice, and welfare.<\/p>\n

All this is funded by not just tax rises, some of which voters will feel were not set out in the manifesto; but also higher borrowing under her rewritten debt rules.<\/p>\n

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\n \"Budget:\n <\/div>
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\n Chancellor Rachel Reeves announced tax rises
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Labour have hailed economic growth as the saviour of jobs and public services; but the outlook for that looks anaemic – with growth downgraded for three of the next five years.<\/p>\n

The chancellor has promised pain in the short term, for long-term gain, but with these forecasts the next few years could still be a bumpy ride.<\/p>\n<\/p><\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The chancellor has finished a statement she’s waited a long 16 weeks to deliver – which she claims will start to deliver the change people voted for. But at quite a price. The headline is tax rises on a historic scale – \u00a340bn raised. Of which \u00a325bn will come from businesses paying more per employee […]<\/p>\n","protected":false},"author":2,"featured_media":164755,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/e3.365dm.com\/24\/09\/768x432\/skynews-petrol-diesel-pump_6696315.jpg?20240925121606","fifu_image_alt":"","footnotes":""},"categories":[603],"tags":[29045,4949,4793,17010,612,13712,4947,4948,22536,320,37744],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/164754"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=164754"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/164754\/revisions"}],"predecessor-version":[{"id":164756,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/164754\/revisions\/164756"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/164755"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=164754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=164754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=164754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}