Where has all the money (taxes) gone?
Discussion
It's been reported quite frequently that the UK's tax burden is currently the highest it's every been, and this is backed up by figures from the OBR.
It's also the case that funding for many (most?) public services has been cut, so that raises the question of where is the money actually going?
Is it that GDP has fallen so the total amount raised is still lower, or that we're just spending more on servicing the national debt, or that some parts of the system are draining money from others?
It's also the case that funding for many (most?) public services has been cut, so that raises the question of where is the money actually going?
Is it that GDP has fallen so the total amount raised is still lower, or that we're just spending more on servicing the national debt, or that some parts of the system are draining money from others?
As other have said, Covid for the most part.
The UK spent £4bn in the first year of Covid on useless PPE we ended up burning, largely I think to pad the pockets of Tory mates and so they could tell us they were doing a good job. That was only 1% of the total cost of Covid at about £400bn
Brexit Costs £40bn a year in lost tax revenue.
It's not that we were flush before either, we were far from recovered from the Credit Crunch / Bank Bailouts that cost £50bn or more.
A billion here, a billion there and pretty soon you're talking real money!
The UK spent £4bn in the first year of Covid on useless PPE we ended up burning, largely I think to pad the pockets of Tory mates and so they could tell us they were doing a good job. That was only 1% of the total cost of Covid at about £400bn
Brexit Costs £40bn a year in lost tax revenue.
It's not that we were flush before either, we were far from recovered from the Credit Crunch / Bank Bailouts that cost £50bn or more.
A billion here, a billion there and pretty soon you're talking real money!
P-Jay said:
As other have said, Covid for the most part.
The UK spent £4bn in the first year of Covid on useless PPE we ended up burning, largely I think to pad the pockets of Tory mates and so they could tell us they were doing a good job. That was only 1% of the total cost of Covid at about £400bn
!
The NHS has spent £900m trying to improve/implement new systems - https://www.bbc.co.uk/news/articles/c4nn0vl2e78oThe UK spent £4bn in the first year of Covid on useless PPE we ended up burning, largely I think to pad the pockets of Tory mates and so they could tell us they were doing a good job. That was only 1% of the total cost of Covid at about £400bn
!
Then you find which company is in there - https://tpp-uk.com/
And then of course the CEO of that company has this on his Wiki -
Francis Xavier James Hester OBE (born April 1966) is a British businessman, and the founder, owner and CEO of software company The Phoenix Partnership. He is the largest ever donor to the Conservative Party having given £10 million in the year up to March 2024.
So even when we see how much is spent on Healthcare its still being gnawed away at by this lot!
With an ever expanding population there are not cuts just a greater demand. NHS budget for example has gone up and up almost without control. Welfare spending similar.
This country's demands far outstrip the money to pay for it and no government of any colour will change this unless they stop treating the NHS and welfare like a religion and redesign what we offer as public services. Stop giving individuals reasons to become a demand on the state purse.
Productivity is the other route and a lot of this can be resolved by removing the non job, those that contribute nothing other than being there.
No one will do any of this hence we have this gloomy outlook of no point voting as no one will change any of this.
This country's demands far outstrip the money to pay for it and no government of any colour will change this unless they stop treating the NHS and welfare like a religion and redesign what we offer as public services. Stop giving individuals reasons to become a demand on the state purse.
Productivity is the other route and a lot of this can be resolved by removing the non job, those that contribute nothing other than being there.
No one will do any of this hence we have this gloomy outlook of no point voting as no one will change any of this.
The money went into the hands of those who own assets, or those who lend money for people to buy assets.
People buy a house, taking out a massive mortgage to do so. Every month, the bank charges interest. The bigger the mortgage, the higher the interest rate, the more interest they charge.
Furlough scheme enabled a lot of people to continue paying their mortgages and their rent (which often pays a BTL mortgage). So a good proportion of that of that public debt went to the banks.
Inflation has meant a good amount has gone to energy companies who produce the fossil fuels. And the rest has filtered its way into the profits of various businesses, boosting their share prices and dividends.
Some of it is in the pension funds, but the vast majority of it has ended up in under the control of the super wealthy.
In a nutshell, much of the public debt has simply been a complicated transfer of wealth from the working and middle classes to the super wealthy.
People buy a house, taking out a massive mortgage to do so. Every month, the bank charges interest. The bigger the mortgage, the higher the interest rate, the more interest they charge.
Furlough scheme enabled a lot of people to continue paying their mortgages and their rent (which often pays a BTL mortgage). So a good proportion of that of that public debt went to the banks.
Inflation has meant a good amount has gone to energy companies who produce the fossil fuels. And the rest has filtered its way into the profits of various businesses, boosting their share prices and dividends.
Some of it is in the pension funds, but the vast majority of it has ended up in under the control of the super wealthy.
In a nutshell, much of the public debt has simply been a complicated transfer of wealth from the working and middle classes to the super wealthy.
Alex Z said:
It's been reported quite frequently that the UK's tax burden is currently the highest it's every been, and this is backed up by figures from the OBR.
It's also the case that funding for many (most?) public services has been cut, so that raises the question of where is the money actually going?
Is it that GDP has fallen so the total amount raised is still lower, or that we're just spending more on servicing the national debt, or that some parts of the system are draining money from others?
I think in a lot of cases funding hasn't necessarily been cut but demand has increased. Social care costs have increased and whilst pensioners are living longer they're also claiming more in disability benefits. Also the number of children being taken into care is shocking and the cost per child is IRO £5k a week.It's also the case that funding for many (most?) public services has been cut, so that raises the question of where is the money actually going?
Is it that GDP has fallen so the total amount raised is still lower, or that we're just spending more on servicing the national debt, or that some parts of the system are draining money from others?
borcy said:
blueg33 said:
Stupid question - What is Social Protection?
Pensions, universal credit etc. Benefits of one kind or another. Council Tax keeps rising even though the population of your borough keeps rising. Surely the more people that move into your area should mean that the council generates more in tax revenue that should pay for the services that the growing population requires - they should, in theory, rise in line with each other.
So why does CT rise year on year?
Is it because migration allows in people that are generally less skilled and therefore require rent allowance/benefits?
So why does CT rise year on year?
Is it because migration allows in people that are generally less skilled and therefore require rent allowance/benefits?
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