Pre-Budget Report - Predictions please

[anonymous-user]

[redacted]

[EdJ]

I just heard on the Today programme that if a bank pays a bonus of anything over - say - GBP 30k, then the bank will have to pay a 50% windfall tax on the collective sum of all those bonuses over that amount.

Given that no such tax exists in any of our closest competitor countries by geography (Germany and France for example), it doesn't look good for the City... But that's politics for you...

[Eric Mc]

anonymous said:

[redacted]

VAT will increase to 17.5% on 1 January - as already decided.
However, I expect it to increase to at least 20% after the General election - by whoever is in power. The UK is under pressure from Brussels to increase VAT as the UK has one of the lowest headline VAT rates in the EU.
Not sure he'll make any statement about VAT today.

I think today will be more about cuts.

Watch for Typhoon procurement to be cut.

[BOR]

I think it's obvious, that those of us fortunate enough to benefit from a high income will have to step up and contribute more to maintain that infrastructure, so:

1. Employer taxed on bonus payments across all sectors. Sliding scale ie additional 10% for amounts over GBP100k, additional 20% on amounts over 200k etc.

2. Income tax for employees to be increased on sliding scale, ie additional 10% for amounts over GBP100k, additional 20% on amounts over 200k etc.

3. Income tax threshold increased to GBP 20k

4. Additional 1p on every pint of beer.

[JagLover]

This pre-budget report will be all about politics. The one after the elction will be the real one.

Expect populist measures. Particularly the bashing of bonuses. I wouldn't be surprised, even given the dire state of public finances, to see a few handouts as well.

[Bing o]

EdJ said:

I just heard on the Today programme that if a bank pays a bonus of anything over - say - GBP 30k, then the bank will have to pay a 50% windfall tax on the collective sum of all those bonuses over that amount.

Given that no such tax exists in any of our closest competitor countries by geography (Germany and France for example), it doesn't look good for the City... But that's politics for you...

I'll be gone for starters (probably no shame for most).

[Martial Arts Man]

JagLover said:

This pre-budget report will be all about politics. The one after the elction will be the real one.

I wouldn't be surprised, even given the dire state of public finances, to see a few handouts as well.

I reckon it will make PH overload and explode with angry comments.

I don't think the average man on the street really comprehends just how much trouble we're in!

"Markets Tell Darling: It's Time to Stop the Spending"

http://business.timesonline.co.uk/tol/business/eco...

[JRM]

Bing o said:

EdJ said:

I just heard on the Today programme that if a bank pays a bonus of anything over - say - GBP 30k, then the bank will have to pay a 50% windfall tax on the collective sum of all those bonuses over that amount.

Given that no such tax exists in any of our closest competitor countries by geography (Germany and France for example), it doesn't look good for the City... But that's politics for you...

I'll be gone for starters (probably no shame for most).

Hopefully I will too by the time it actually comes in - I reckon most people will follow and it'll end up having quite an impact on the City earnings, which is only going to hurt the government in the long run.

Can't believe they are so short sighted - oh wait, yes I can, because they won't be here to pick up the pieces.

Edited by JRM on Wednesday 9th December 09:07

[NoelWatson]

EdJ said:

I just heard on the Today programme that if a bank pays a bonus of anything over - say - GBP 30k, then the bank will have to pay a 50% windfall tax on the collective sum of all those bonuses over that amount.

Given that no such tax exists in any of our closest competitor countries by geography (Germany and France for example), it doesn't look good for the City... But that's politics for you...

http://news.bbc.co.uk/1/hi/uk_politics/8402769.stm

[Bing o]

JRM said:

Hopefully I will to by the time it actually comes in

Where you thinking of - it will be HK or Singapore, with FFT and NY as a back up for me.

[Mclovin]

i guess nothing in there to punish the real culprits that have been recklessly running the country since they came to power...

[JagLover]

anonymous said:

[redacted]

Indeed

The tax burden has been rising for years, the problem is spending not tax levels.

[RichardD]

anonymous said:

[redacted]

The country does seem at quite a pivotal point in its modern history.

Either a slow obscure slide into socialism and nothingness or to knuckle down and come out leaner and fitter on the world stage!

[EdJ]

NoelWatson said:

EdJ said:

I just heard on the Today programme that if a bank pays a bonus of anything over - say - GBP 30k, then the bank will have to pay a 50% windfall tax on the collective sum of all those bonuses over that amount.

Given that no such tax exists in any of our closest competitor countries by geography (Germany and France for example), it doesn't look good for the City... But that's politics for you...

http://news.bbc.co.uk/1/hi/uk_politics/8402769.stm

So I guess the first reaction of banks will be to increase salaries (which I know they're doing already). So if someone was on a basic of 100k and a bonus of 300k, they will just get a basic of maybe 250-300k and a token bonus? But that's really going to screw things up because there's no conditionality.

I hope Cameron has the balls to say the Tories would scrap this tax.

[EdJ]

What's their definition of a "bank"? Are we talking about just the RBS, Goldmans, Morgan Stanley, Barclays? Or does this stretch to other areas such as hedge funds?

[Zod]

anonymous said:

[redacted]

High income earners pay a huge proportion of tax receipts. Anyone would think from Labour rhetoric and the rants of socialists like BOR that tax rates reduced as income increases.

[NoelWatson]

anonymous said:

[redacted]

I hear rumours that they may try and backdate the 50% tax to those paying themselves lots of dividends this year.

[SJobson]

Going to be a strong recovery in the field of tax planning shortly...

[theaxe]

EdJ said:

What's their definition of a "bank"? Are we talking about just the RBS, Goldmans, Morgan Stanley, Barclays? Or does this stretch to other areas such as hedge funds?

I guess anything that's regulated by the FSA.

[Don]

I predict a budget solely aimed at reducing the Conservative majority in the next Government.

I also predict, that if CMDs mob gets in, the first job of the new government will be to redraw the constituency lines such that the higher than average constituency populations in England are reduced to, let me guess, lower than average ones...