Six ways to fill Labour’s fiscal “black hole”
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- Опубліковано 15 вер 2024
- Labour claims it has a “black hole” of £22 billion to fill in the government’s finances. They should stop making a fuss. Doing so would be easy. There are at least six - and maybe more - ways to do it.
#uk #money #economic #politics #bank #government #tax #investment #share #business #blogger #labourparty #kierstarmer
Editors note: I apologise for the lack of captions between 7:38 and 8:03, there was an issue with my software that despite many attempts couldn't be resolved - Tom
ABOUT RICHARD MURPHY
Richard Murphy is Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog. His best known book is ‘The Joy of Tax’.
This video was edited by Thomas Murphy.
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This guy has more common sense than all the clowns governing this country. He should be Prime Minister
Wish he would have an interview with Rachel reeves so the general public can see the truth
That would be awesome.
I fear the risk of embarrassment (to Reeves) would be too great.
I wish he had explained better what Reeves position is. I don’t think she just pulled an idea out of her ar* without having numbers to base her allegations on. It’s always good practice to steelman the opponent’s position before making a case for dismantling it.
Saying that “technically” there can be no black hole seems to me a bit of a sophistry. It’s like saying technically there can be no holes in the finances of a business because if they are short of money they can always borrow from the bank or raise the price of their products. Not as easy as that irl.
Obviously “black hole” is a non-technical term used so the public could understand the concept. I was under a impression that Reeves meant that the Tories had cooked the books and claimed publicly a debt lower than the real one they had created.
Is that the case? If not why does Richard list six ways to fill a hole he claims doesn’t exist? There’s a on its face contradiction there.
To be clear, I am against further austerity and in full favor of higher taxation for high earners but it seems to me that the criticism has been very badly formulated, especially when all the blame is placed on the new hire and zero on those who created the mess she has to clean.
They have said billions per year will go to fund a war. Funny how they have no money.
There are much better people too talk to Rachel reeves Alister mcloud would be 1 person this guy has no idea what is coming hyperinflationary depression by design or he's not going to tell you what the real truth is did you know that the bank of England has no equity and has a negative cash flow the blackhole could be filled by the capital gains road only 1 in 22 people pay this
At last, someone who understands the economy. Thanks for explaining it so brilliantly 👏 .
We are being gaslit by main stream media
Thanks
If he understands the economy why is he calling it Labour's black hole when in truth it's the Tories black hole !!!
@@william_marshalbecause it’s labour’s problem to solve.
I understand if you’re finding it hard to keep up, it can be quite confusing but facts are facts.
@@william_marshalbecause it's a fictional black hole as explained clearly in the video.
A Government run by Corbyn, Milliband, Brown, Harman, Beckett, Smith, Kinnock, Foot, Callaghan or any of their predecessors would have taken one or more of the suggestions in the video & just dealt with it. Without Austerity (& the resulting AusterityDeaths).
The Green's or LibDems too wouldn't be pratting about like Stoma/Reeves, they have a country to run, it would be best if they just ran it.
Possibly one more suggestion would be the one stated by Pres Trump yesterday, that the Gov will sponsor the insurance to cover the IVF treatment. I think that's beneficial since the industry also has ramped up its productivity technology. One of the fiscal bottlenecks is obviously the lack of population growth for babies. This IVF treatment could help solve and reduce the multi-faceted problems assuming the adults will have consents to raise them here. Not for other dark activities.
It's not about a hole. It's about control.
Poor people have to rely on the government.
You've got it, Convid, climate chsnge ,black hole ,all about control,and the banking con.
The poor people are the f..king idiots, who could have voted for the independents, Workers Party of Britain, etc. But instead, they voted for the jailer of Julian Assange with a proven record of changing his mind, the moment his financial backers disapprove!
A bugs life
I bet this country could of had a GDP that is doubled what it is now in money value, if they had of done their jobs and cared about peoples wealth and not just them being on a free ride taking peoples taxes and turning that in to their income working in the Labour or Tory party, we could of had new factorys built and the investment would of then been why we are over 2 Trillion in debt but it would of paid for its self in making the whole country more wealthy.
If all this is available, then it looks like labour is punishing the pensioners for not voting for them. But remember there will be more of us who won’t be voting for them next election.
Professor Murphy, Sir you are a legend. It was great to see you on Joe politics, your honesty and knowledge should be everywhere. The more people that have access to the truth the quicker we as a nation can get out of this madness. Thank you for your commitment Sir. 🙏
All of these alternative suggestions are IMHO much better than Pensioners unable to afford heating their homes, lack of Police on the streets,hungry children,increasing NHS waiting lists, pot holed roads etc...etc...
Pensioners who cannot afford to heat their home still get the allowance it's been removed from those who could afford it.
Do you thinking pensioners with second homes need the allowance? Under the previous scheme they got it
@@jameshutton3960 Fine, stop the WFA for those with second homes and keep paying it to the remainder; the fact is those on a state pension can't afford the energy bills.
@@jameshutton3960You fall so easily for divide and rule, created through the politics of envy.
@@jameshutton3960Winter fuel allowance is being removed from 90% of pensioners. How many of these 10 million pensioners have a second home ?
@@jameshutton3960 Full New State Pension is the lowest (or maybe 2nd lowest) in Europe and, at £221.20 per week, 7:09 is less than half the National Living Wage. Anyone with the full amount of New State Pension is now ineligible for the winter heating allowance. Believe me, that does not buy you much, let alone a second home, but I suspect you already knew that.
It's strange that they talk about this £22 billion black hole when half a trillion £'s was spent in two years over COVID. It wasn't a problem then.
I know why. They won't do it for 2 reasons:
1. Their neoliberal donors would not support it.
2. Their neoliberal ideology would not sanction it.
We must get this message out. Unless we do, all govts now and in the future are going to continue to cut and cut. 💚
Create a petition to get these issues debated (i.e. aired) in Parliament? How to encourage the Media to ask Reeves and Starmer the right questions about this stuff? Is it even possible to get them to engage?
@@garyb455 and the media will never ask the questions because of who they are controlled by
Monetary policy was debated around 10 years ago. A historic debate on a topic which had not been raised in parliament for many, many decades. This was during that very brief period following the financial crash when an extremely small percentage of the UK public struggled to understand the concepts and draw attention to their importance. The maximum number of MPs in the chamber at any point was around 20, usually many less. Several of those attending openly admitted to being surprised and perplexed by what they were hearing.
The media have even less idea about any of this, because at least MPs have some civil servants who understand the issues to advise them.
or get the media to just tell the truth, generally? they are playing the tory game, in tory land!
Dream on
Give this guy 5 years in power and inflation would easily get back to 10%.
🤣
This goverment keeps treating the country like household bills
Cameron started off that .He lied .
and seems to be determined to pretend that even in housholds, you can take out loans
If you need a car for work, but can only afford it on credit, you take out a loan and buy the car rather than quit work!
@garyh1572 no Thatcher started it and Bliar carried on with the lie.
@@therealrobertbirchall The Tories have been in power for 70% of the past 45 years - i'd blame them.
@@garyh1572no, Torys have been in power for 100% of that time, Blair & Starmer only wear the rosette, they're not really Labour.
Oh thank God a man with brains!
Read the title and think again, the Black hole was the Tories, not Labour !!!
@@william_marshalno, watch the video, the "Black Hole" is a fiction of Labour's creation. Yes, the Torys made a mess but a competent Government would clear it up immediately.
Your content is great Richard thank you for sharing this
Thank you Richard
drain all the offshore bank accounts of unpaid tax
Yes, Brexit evaded that EU Directive 😢
The government doesn’t have the power to remove cash from offshore bank accounts.
Off course if they know there is paid tax they can take the relevant taxpayer to court which I am sure HMRC already do.
@@rodneyfungus8249 HMRC don't have the staff to chase tax avoiders, The Conservatives reduced their numbers by half in 14 years ... I wonder why they did that?
@@rodneyfungus8249HMRC staffing was severely reduced to halt that, they now only go after poor people because it's easier 😢
Never going to happen. The powerful people will never allow it.
It's QE and ZIRP that's helped cause the massive increase in wealth inequality we have seen since 2008. When you print "money" and lower interest rates you increase the value of high yielding assets such as shares and property. Now who owns the shares and property?
Innovate taxation to recover that spending.
I would like to see an expert dispute this point, I don't believe it.
Inflation means the inflating of the money supply. If there's more money in the system prices go up. Why? It's very simple. You have more money chasing after few things.
Tax those assets.
I think Richard is using a particular definition of "black hole" to make his points, and Rachel Reeves is using a different definition namely that based on the long term budget plans left by the last govt. there was no clear "funding" for up to £22b of spending - "funding" being in quotes because, as Richard correctly points out govt. spending is always by borrowing and taxation is merely a way of cancelling some or all of that borrowing.
The problem I have with the way Rachel uses the concept of the black hole is that whether or not the hole exists depends on what assumptions you make about the medium/long term economy. Increase the assumption about growth and the black hole disappears, increase the assumptions on public sector pay and the black hole grows - and there will be 100s of such assumptions in the modelling.
Dealing with Richard's 6 ways of dealing with the black hole:
1. 2. & 3 are all just variants of more borrowing. The only potential issue with that is that overtime that can lead to more inflation as we saw with QE in covid. An extra borrowing of £22b is unlikely to result in significant inflation
4. Easing of quantitative tightening has the same effect as more borrowing, but is probably less likely to lead to inflation
5. The Govt. does not have the power to tell the BoE to reduce interest rates, or to be strictly accurate it has the power but is legally obliged only to use it in exceptional circumstances and a small hole in the Govt budget does not count. IMO it is likely that interest rates will fall soon, but that may not impact on the "black hole" if the assumptions on which this hole was calculated included a fall in rates - to be clear I have no idea whether there is an assumption but as Richard failed to consider it, I guess he has no idea either
6. Raising taxes is the old standby but it is also the case that high taxes change behaviour. Raising CGT rates might end up reducing revenue raised for a couple of reasons - CGT is a voluntary tax because it only becomes due when you sell a qualifying asset, so people may defer selling and of course higher rates than our competitor countries (and 40% would be higher) will discourage foreign investors from investing in UK assets. The idea of reducing pension tax relief is an old idea that resurfaces every few years but it fails to consider that pension tax relief is simply a deferral of tax, you do not pay tax on the contributions but you do when you draw on your pension. So reducing relief on the way in reduces income tax from pension drawings (because the pension pots will be smaller) in the future. Reducing pension tax relief will also change behaviour for those approaching retirement who are higher rate tax payers - we will see less pension contributions and more ISA investments. But I do like the idea of adding VAT to at least some financial services but of course Richard is completely wrong when he says this is only taking from the rich, it would also apply to mortgage fees which anyone who buys a home using a mortgage pays. As for removing certain IHT exemptions, that needs to be looked at but only as part of a wholesale review of IHT which is currently a mess of contradictions and raises little revenue, in its current state it is arguable that simple scrapping it and redirecting HMRC resources elsewhere would result in a net increase in revenue - and I am someone who favours IHT!
These a re fantastic points, he is essentially advocating for removing the independence of BOE which I think is not a clever move. The long term loss of confidence could lead to many downstream negative consequences
Labour could do all this as part of their going for Growth.
Labour is afraid of the press.
Labour is afraid of Nuttyahoo 😢
I agree that Labour are extremely aware of how EVERY action they take is going to painted an economically irresponsible, unpatriotic and dangerous by the right wingers in Parliament. This narrative will be echoed and amplified by media companies whose interests aare better served by Conservative government.
I hope Rachelle Reeves gets a copy of this video and takes this good advice.
It’s in everybody’s interest to pass this video around the media as much as possible and their friends and family and they should do the same. The community at large would appreciate it. Thank you take care of your friends and family and bye for now.
There's the priceless cost of lost opportunity and a needlessly difficult years that no money can buy back. Without investment in social infrastructure and creating a genuine trickle down reversing current trends and even if that reversed capital was all into social infrastructure and not personal expenditure it would be a vision of things getting better .
Thank you again, Richard, for explaining the truth of the matter. Also, let the public know they are lying every time they open their mouths.
Hi Richard, really nice clear thinking from your videos as always. The only problem is that I feel that if I quote your arguments I am unprepared for the likely rejoinders. The impacts on inflation, the pound etc? Could you do a video that answers the possible counterattacks to your arguments on this?
I am imagining a university lecture hall full of students presenting both witty & daft questions & all of them being logged then answered 😊
Yes, we do need clarity on what the FX consequences for the £ would be if spending increases but taxes stay the same.
Thank you so much Richard, your videos are brilliant.
It’s because Keir and Rachel are terrified of being the next Liz Truss.
Make all the Royals eligible for taxes, all of them
The Institute of Fiscal Studies recently did a video covering the possible tax changes Labour could roll out. Their conclusion is that simply equalising GCT rates with income tax will actually achieve lower tax receipts than at the current rate, because asset owners have control over the timing of when they sell assets. They do however say that GCT reform would be needed alongside any changes in rates.
We need more people like him in public discourse and less far right and left wing thugs shouting over everyone
Common sense, More Job's. More Tax. Correct.
Good to see Venezuela's top economist giving such sound advice to the UK
Another thing they could do is follow the advice of Gary Stevenson and recoup some of the 800 billion that has been divided out to very wealthy people since the pandemic. Even if they were to only claw back ten percent, this ‘black hole’ would go away with plenty left to spare. But they won’t because it’s too difficult, or it might upset some of their mates who benefitted.
To please the rich and penalise the poor!
What is the Labour Party thinking!🤷♀️
We need new government , we need someone with common sense like Richard ,being the chancellor
We had that option just a few weeks ago, the internet was flooded with warnings about Sir Keith Stoma & his party while the Green Party's offering went totally unchallenged.
So what did people do? They went with what they knew beyond doubt was going to be bad & ignored the good yet again 😢
Richard tells us we have no national debt, does that sound like a common sense person?
I would disagree with saying this is common-sense, given that it reflects a deeper understanding about the financial markets and government finances really work. Richard has done a great job of explaining those environments using good, clear language - and should be applauded.
It has been the "common-sense" analogies that are used (most often by the right wing since Thatcher) to have people think the government is subject to the same constraints as a normal household.
@@william_marshal It's not that the "national debt" doesnt exist .... I would explain Richard suggests that no "holes" are ever truly "black".
THis is because the UK government has many tools available to ensure it is always able - in normal times and even most extreme cases (think First and Second World Wars) - to afford the programmes of work that it deems are necessary.
Richard I do pay tax on my pension because I rang them up and they told me you do pay tax on your pension so I have got a little bit of money put aside but that was inheritance money what I got last April now Starmer is telling us it’s going to be hard for a few years so they need to tax this even more. I don’t understand Sunak said the same thing when he came into power it’s going to be the hard for the next couple of years and now we’ve got stoma saying exactly the same thing. I think it’s a disgrace what they’re doing in this country I’m a pensioner and I’m coming up to 72 mine inheritance money, won’t last long at the rate we are going thank you Richard it’s good to know somebody knows a bit about this. Thank you very much.
"Stoma" - an uncontrolled poo hole - what an appropriate renaming of Starmer. Thank you, you actually made me laugh out loud for the first time in far too long, thank you.
😂😂😂😂😂😂😂😂
Your State Pension is simply deferred income from source.
When you receive income from employment, your National Insurance Contributions, called Statutory Deductions, are simply taken from your GROSS Pay before the GP is calculated for tax & other deductions to arrive at Net Pay.
Your NIC's included a portion that funds your State Pension, because it is not taxed at source when NIC's are deducted, it therefore, becomes taxable as income when it is received as a pension from your former employer.
It is a form of tax relief, in the same way that any additional occupational pension contributions receive relief until it is paid out as income in the form of a pension.
@alanhat5252 I call him Stool Starmer because it perfectly describes the quality of his fathers tool making capabilities
@@Michael00172 Except we are now told that the state pension is actually a 'benefit' and we have no absolute entitlement to receive it on the basis of our NI contribution record.
The implicit assumption that Starmer et al are failing, obscures their motivation; IF they want to maintain the status quo of exponential funnelling of wealth from the poor to the rich, THEN they aren’t failing, and we shouldn’t assume this isn’t the case, as it evidently is.
Its also a technical impossibility to fill a black hole, since all energy is drawn into it, including light.
Well, yes, that is a good point. Attempts to fill merely makes it grow larger.
the hole (pun intended) slagging them off for using the same term 'black hole' used by economist and the IFS is frankly boring. its a £22billion overspend as stated by Racheal reeves. but the press like the term and its understood by the public?
Also, if the colour conventions of accounting were followed, it would be a red hole.
@@shaun906 That is EXACTLY the point .... the explanation of the problem using "common sense" language simply does not help!
@@fburton8 Do we have a lot of accountants here?
I'm so happy I made productive decisions about my finances that changed my life forever,hoping to retire next year.. Investment should always be on any creative man's heart for success in life .
You're correct!! I make a lot of money without relying on the government. Investing in stocks and digital currencies is beneficial at this moment.
Thanks for the advice! I'm new to financial planning and wasn't sure where to start. Any tips on finding a reliable financial adviser or resource to guide beginners?
As a beginner, it's essential for you to have a mentor that is verified by finra and SEC to keep you accountable. I'm guided by a widely known financial consultant Stacey Macken
Honestly, I'm surprised that this mrs Stacey Macken is mentioned here, came across a testimony about her from one of the beneficiaries on the CNBC news, she seems to be doing extremely well
Stacey Macken is a retirement manager and investment/savings expert, in ranks with Cathie woods and Warren, has demonstrated expertise in investment strategies and has been involved in managing and providing financial guidance globally
Team up with Martin Lewis and Gary economics.....
The slugs in my garden understand Finance better than any recent Chancellor. We obviously dont need them, a smart-contract would do a better job.
As Richard illustrates, it is virtually impossible for the economy to be in a 'Black Hole' situation.
I am pretty sure that under the Tories, when they were borrowing like there was no tomorrow(because of the stupidty of their policies), that the borrowed money was simply added to the GDP each year, minus the cost of that borrowing,but adding on the charge from the Bank of England to the High Street Banks that were lending it out to consumers & businesses.
That policy of pumping money into a stagnant economy, in turn, increased the housing market inflation, the then fulfilled demand caused by that easy money(to borrow, but, not so cheap to pay back by mortagees), though inflation reduces the real long term cost due to real income increase over the lifetime of mortages.
One simple, but stealthy way to increase V.A.T revenues, would be to ZERO RATE that tax on energy cost.
The government would lose the existing V.A.T of 5% on the total amount of money spent on energy, BUT, it would gain 20% on each Pound spent elsewhere in the economy, that is FOUR TIMES as much revenue & it could argue that it hasn't 'increased' the tax.
Great idea. One which removes some of the burden from the poorest in society who spend every penny they get back into the economy. No tax loopholes or offshore havens for them.
Parliamentary and journalistic scrutiny of government policies and fiscal strategies is woeful. All of these points (and more) should be put to the Chancellor and her team in an extended format, one where considered exchanges can take place, with accessible reference to appropriate evidence and illustrative aids. Instead we have theatre and slogans and gesture politics as cover for pernicious vested interests and dishonest decision making. And we wonder why we're in the state we're in...
Great vid, very informative
This is one of your most 'eye-opening' videos to date, I was quite unaware of all those types of tax relief, probably because they don't get talked about much when they benefit wealthy people.
Keep up the great work Richard, educating people on how the economy really works is our best defence against being screwed.
You have sooo many fascinating things to learn, enjoy your journey 😊
2 that stand out for me are Speenhamland & the fact that Income Tax, Corporation Tax & Capital Gains Tax were till fairly recently all one tax with the same rates for all. (Income Tax is now highest by a large margin)
Everyone on here should share this video. Put pressure on the liars.
It has never been a question of "can", it has always been a question of "will" or "want".
Personally I've always seen cash as being like electrons in a circuit, it has to move to keep the system going.
We should tax the wealthy. using national savings etc sounds like it would compound the problem.
I (as a wealthy person) make a lot of money (I sell stuff, say, food/energy). I then buy saving certificates and get interest on that money. The government then spends that cash (I gave) and from that, I actually make money (as people are buying what I sell). I take this money and buy more savings certificates.
It allows me to just collect more cash. It may take longer for problems to appear as some money is circulating, but in the end, I am still making more and more money.
At times (and over the years) I've thought governments have used unemployment and rich people to control inflation.
Unemployment stops people spending and rich people just hoard cash - so there isn't as much going through the system.
The downsides are that being unemployed can have serious effects on people and rich people with lots of cash buy stuff like houses etc. All eventually leads to inequality and poverty for people (one example being property, rich people buy property and prices go up).
The need for pain is to appease a certain amount of people that have quite a sway in our society - mostly rich people that own various media outlets. If we start taxing the people with the money, they will use their sway to turn the public against Labour, given the current feelings towards the Conservatives, this will mean people voting reform. Reform can say what they want at the moment with almost zero chance of getting elected. Their leaders have lived this situation before via brexit and should they ever get elected we will get a conservative (reform are conservative) government with zero experience of government who will do what they can do appease their backers and have huge amounts of experience blaming others for what they failed to deliver.
Given that at that at the time would happen Farage's main goal Trump will either be leaving his second term or never got one (and will be too old to run) it leaves us again where we were in the years since left the EU.
Fun times. Until the working people in the UK realise that the rich don't really care about them (maybe there are a few exceptions to that) and stop listening to them (unless it makes sense for the working class person listening) this will just carry on.
Richard Murphy for pm! We would have no problems and no lies we know the truths now!
I wonder if they’re looking into pensioners bank accounts to see if they can do a grab.
Socialism the politics of envy and tax
What labour needs to do is listen. They are totally unqualified to carry out the job of office and are usung junior school tactics to resolve University level problems.
Bollocks, Labour have been in power for 5 minutes. Their fiscal problems were inherited from corruption of the Tories i.e. reducing NI contributions by 4% just before the election which caused the £22 Billion black hole.
Brilliant Richard. I wish people with your knowledge, foresight and humanity were listened too instead of the neoliberal sociopaths in charge now.
Excellent points however one flaw is you mention Rachel Reeves having a 'quiet word' with BOE. Brown set up BOE to be independent of Government when setting interest rates.If she did this she would be setting dangerous precedent for undermining independence of BOE.Mind you she should sack the chairman for incompetence.
I have no doubt there are senior Treasury staff who drink in the same Gentleman's Club as senior staff at the Bank of England, messages could be passed...
The reason the black hole "exists" is so that Labour have an excuse for the destructive measures on our lives that they had planned all along. It's also handy to use in Parliament to deflect questions and criticism.
But why implement these “destructive measures on our lives” ?
It can’t be just cuz they are Control Freaks … can it ?
The best thing for the country and finances..... is for the Labour government to resign and get a good party in power
The problem with that is an absence of a good party to take their place. If you mention the R word I shall sneer.
@@annphillips1086look again, the Green's offering is excellent
I agree - we need a rightwing dictatorship.
@@annphillips1086 Its ok to mention Reform..... they had 42% of the number of votes that Labour got but only 1% of the seats.... thats even worse than Diane Abbotts calculator results!!
Richard. Love your videos. You should be chancellor 👍
Wouldn’t that be nice,
They need to sue the tories and empty their bank accounts,that’s where the 22 billion is
Thank you for your videos they are so full of information and truth. Love watching them
No way Labour is going to win the next election under Kier. I am voting Reform in May 25 and i will keep voting for it. If it sticks to what they say and enforce it. 🙏
To fill black hole RESIGN RESIGN !!! RESIGN!!!
Some terrific ideas there. I would throw out a little caution about inheritance tax though, more and more people who aren't really rich, but whose parents bought houses generations ago are finding themselves caught up in inheritance tax because of the constant increase in house values - they find they have to sell the family home to pay it, but they aren't actually rich. The threshold for inheritance tax hasn't moved in over a decade, even though property prices have continued to rise, catching more and more people who aren't upper-class, or even upper-middle class, in a tax trap. I think the whole system could use an overhaul.
Capital Gains are not just made by the wealthy. If you invest £1000 in shares each year, and then sell them all after 10 years - if you chose well you could conceivably double your money and have a capital gain of £10,000. That's a nice tidbit, but hardly enough for a serious down-payment on a halfway ok 2 bedroom flat in East Ham.
VAT is a pox. It is insignificant for the wealthy, but a serious blow to the poor. 20% VAT is a like a big forced tip in the US. VAT on financial services, maybe ok.
If you want to tax the wealthy without slugging the poor, put up the top tax rate to 47%.
The highest rate of tax is already effectively 60% on salaries between £100k and £125k.
@@mikefish8226 _"The highest rate of tax is already effectively 60% on salaries between £100k and £125k."_
Yeah, that sucks a little. It's because the personal allowance is phased out over that income band, but it's also only on income earned in that tax band.
On the other hand, £100k is a pretty good income, enough to remove you from day-to-day making ends meet issues and probably means you're high enough in your organization to take this into account when negotiating your pay or applying for a higher position.
One hopes Rachel or some of her advisers are subscribed to your channel.
Not "advisers".
Dogmatists.
Its the Labour party, of course they're economically illiterate.
This party is an absolute disaster.
No, _real_ Labour are very good with the country's finances, they've dragged us out of every hole the Torys dropped us in since 1945, even Blair did an adequate job though, after his purges, Starmer doesn't have much hope of following the tradition.
Yeah cos the torys are so good at business, just look at how much money they gave to Rwanda before they even took a single immigrant. I mean who does business like that ?
You forgot one important point. Over time the value of gold goes up, and up and up. In 2009, after the bank crash I bought 100 gold sovereigns for £20.000 at a time when the banks reduced their interest for savers to 0.1%. Those 100 gold sovereigns are now worth more than £50.000 bringing me a tax free return of nearly 10% per annum.
So why don't they do this, do they actually want us all to suffer?
That's what happens when your elections are basically a two horse race where the jockeys are Tweedle Dum and Tweedle Dummer.
Same as history has taught us. A new party will come along and shake them up
@@ltmundLabour was that new party a century ago but now we have the Greens
@@alanhat5252 Exactly. Problem with the greens is they aren't going to shake things up significantly. They are basically a more extreme labour
@@ltmundtheir plans look significant to me! 😮
@@alanhat5252 I'm sure they do. But the majority is what counts and they have more problems than the Greens have solutions for.
Scotland needs out of this nonsense of a union . Alba shaor
❤️🏴🏴
sore elbow
I agree, independence now, no referendum, just independence by the year end.
Scotland are in worst financial shape than the rest of the UK Basket case ! lol😮
@@stevenaustin8274 Scottish gas, oil, renewables and taxes keep England from bankruptcy.
Clear and concisely worded.
It makes me think that maybe the sole and real purpose of austerity is to deprive the public from their assets. It is those who have the least who will loose their wealth first. So when you are at the top 10-1% it serves your benefit if someone else is forced to sell their house or stocks at a low price and you can buy it from them.
I suggest Starmer wants to condition us for what is coming. British financial institutions were encouraged to buy Ukrainian bonds which were guaranteed by the BOE. Those bonds are now worthless and the tax payer will have to pick up the tab. Austerity is here to stay.
Why is the bank letting them get away with it? Why don’t they speak up
You should be Chancellor
He would destroy the country.
I think it's past time WM had proper Fiscal advice & proper accountancy at the helm. Most of the MPs in the past have never been near an accountancy degree. It beggars belief the country is being run by MPs with 3 year degrees & mostly silly ones
Bring back Purchase Tax on luxury goods and remove VAT on all essentials.
VAT is a type of Poll Tax.
What is an 'essential'? VAT isn't charged on food.
@@tancreddehauteville764there's quite a mess around what's rated & what isn't, for instance sanitary towels are charged but crocodile meat isn't.
It's needed tidying up for decades.
There are 4 very easy ways to fill the "blackhole".
1) Investigate and recover MP PPE fraud/misselling/scams.
2) Investigate and recover COVID relief funds.
3) Investigate and recover funds lost through MP corruption (e.g., selling off land for a point to MP mates).
4) Investigate and recover tax avoidance.
All worthy actions ... and I would support them all. However the sums just wouldn't amount to a hill of beans versus the budget.
So much easier to tax the pensioners.
Labours created it
I’d love to see that interview.This is why they don’t teach economics in our schools and emphasise math as important when basically it’s not
Austerity is here to say. Low trust socieities don''t advocate for welfarism and we're down the bottom of that trust barrel for many reaasons.
I think the real problem is that the general public do not understand the difference between a country's and a household's finances. Some politicians know this and use the ignorance to push their agenda. Other politicians are also lacking in economic understanding.
Richard thanks for such a succinct clear understanding of the ways out of the so called black hole. I cannot for the life of me comprehend why the latest incumberent to the Chancellorship does not know any of these points. Perhaps it is short term political dogma designed to hurt the aspirational workers and the vunerable retirees who worked and saved all their lives. I worry for all of us over the next few years our tolerance will be stretched upto if not beyond breaking point. 😮
Thanks, Richard. Very informative. Sadly the financial literacy of those in Government and those in the media reporting on it appears to be very low.
Red Tories, Richard. Not quite as corrupt or incompetent as the traditional ones, but very intent on re-election, and fearful that heterodoxy will mean loss of votes, hence very conservative.
The Bank of England should never have been given control of Monetary Policy.
They are an unelected body, have different priorities to Central Government and have completely mismanaged interest rates over the past 12 years, or so.
Economic truth as always. And soooo good to see the numbers of "Thumbs Up" increasing on your videos - obviously the message is getting through and the shares are spreading the message. The message being that politicians refuse to learn anything about economics...
this is an excellent presentation by a gentleman who appears to know the subject on which he is speaking in depth .
Borrowing to increase spending on infrastructure can create a path to growth which is great if the market has confidence in the plan, however borrowing to prop up the previous government's promises is Trussanomics. The current government's messsging likening the issue to a familly budgeting issue is used to make the messaging clear for everyone even though the reality of the economic situation is more complex, that doesn't mean they are wrong in what they are doing and saying. I am hoping they will be able to fix this mess using progressive taxations which is not easy.
Just putting this into prospective. 30 million workers and 20 billion black hole works out at £650 a year or £54 a month, less than £2 a day per worker. That seems like an awfully trivial amount to recover to fill the black hole without upsetting to much, or am I missing something, Could labour just be drama queens?
I don't think that she can even tally up a moneybox account 😅😅😅😅😅😅😅
why is this Guy not controlling our BOE, ???
Because he is ignorant.
So relieved and happy about this message. In fact, we don't have to mess about with bonds, we just increase fiscal budget by 4.3% and the "black hole" is gone! Trivial
If we had a decent pension in the first place we wouldn't need pension credit and it's 248 questions before getting it. All about control and data!! Big brother!
Just a note about agricultural relief, it shouldn’t be completely removed but instead be only on farms worth over a certain value because small, family farms wouldn’t be able to afford the tax meaning they have to sell their farms. The people who buy their farms will either be some mega wealthy developer or a mega farm.
She knows all right. She and Starmer have no will to tax the rich BECAUSE THEY ARE THE RICH! It is estimated that Starmer is worth £10 to £15 mill. and she is worth a whopping £380 mill. What incentive do they have to do the right thing?
I was sarcastically going to say...Put Starmer in it....but this guy really knows what he's talking about... very interesting...👍👍👍👍
A black whole created by torys who lie about what they spent
Learn to spell.
Some good points but taxing capital gains as income tax doesn’t reflect that capital is at risk and indexation would need to return in some form. It would also drive behaviours that would reduce the cgt take and the velocity of capital.. targeting wealth sounds great but wealth taxes have not worked in any jurisdiction.
Thanks for your informative stream!
If I understand what he said … the government should simply borrow money from the rich and then pay the rich x % interest …
Can UKGov / Rachel Reid not increase CGT but reduce income tax? Surely that would dramatically boost the economy and taxable domestic spending. Just imagine the positive effect!