oh dear: Rise in UK income tax receipts not enough to keep Osborne plan on track

[AtW]

"A modest rise in income tax receipts last month was not enough to salvage George Osborne’s plan for a dramatic cut in government borrowing by the end of the financial year.

In the last report on the public finances before next month’s budget, the Office for National Statistics said income tax receipts jumped by 4.7% compared with January last year to help produce an £11.2bn surplus in January, which is traditionally a healthy month for tax receipts.

But the chancellor missed City expectations of a £12.3bn surplus and must now limit his borrowing to £7bn for the rest of the year, less than half the sum he borrowed in the same period in 2015.

Osborne has warned of a “cocktail of threats” facing the UK economy this year and the likelihood that growth forecasts will need to be downgraded. He said that this strengthens his argument that Britain needs to balance its budget by 2020.

Howard Archer, chief UK economist at IHS Global Insight, said Osborne is likely to be in the uncomfortable position of having to admit that he will miss his 2015-16 fiscal targets when he stands up to give his budget speech on 16 March. "

Source: Rise in UK income tax receipts not enough to keep Osborne plan on track | Business | The Guardian

He needs to increase taxes to at least 100% of total take, it's the only way to be sure!

Labour would have done it anyway according to Waldork...

[Troll]

Fuel tax is a certainty to go up
Probate is being messed with to generate more income
Perhaps lower employment will help with less benefits / more employment taxes

It's a certainty that we are doomed™

[AtW]

It's a certainty that we are doomed™

It is certain, but it's not official...

I reckon he'll do some heavy duty damage around Capital Gains Tax - mostly untouched in last 2 attempts, but for how long?

Stamp duty on expensive houses (£2 mln+) might go down as his overall take is reduced.

[DimPrawn]

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[clearedforlanding]

A trust fund kid with a 2:1 in Modern History, who "relied on flawed advice" to change the property designated as his second home to pay less capital gains tax...

With no financial qualification himself, a demonstrated history of depending on "flawed advice", I am completely and utterly surprised he cannot balance a budget.

[AtW]

I am completely and utterly surprised he cannot balance a budget.

He knows what needs to be done in order to balance the budget... CUT SPENDING!!!

He does not want to cut spending because he wants to be elected as PM in 2020.

So, he chooses to screw over small groups of relatively well off people, but that's nowhere near enough money to pay off for all the crazy spending he is in charge of.

Bear one thing in mind - interest payments on UK Gits are super low right now, what would happen with the budget with rates going up?

When they got elected last year two thing should have happened -

1) VAT increased to 25% over period of 5 years - 1% each year
2) 10-15-20% (as necessary to reduce deficit) reduction of ALL spending without any ring fencing - it's only fair way.
3) do whatever it takes to stop residential house price growth - create state company to build 1 mln houses per year to deal with demand
4) cut taxes on employment - people should have more money in their pocket to decide themselves what they will spend it on

[SueEllen]

A trust fund kid with a 2:1 in Modern History, who "relied on flawed advice" to change the property designated as his second home to pay less capital gains tax...

With no financial qualification himself, a demonstrated history of depending on "flawed advice", I am completely and utterly surprised he cannot balance a budget.

The job of the chancellor and in fact any government minister is to guess which advice of their civil servants and special advisors is worth listening to. They are too busy (remember they have a constituency as well) to deal with small print.

[AtW]

The job of the chancellor

If he is too stupid to know what is needed in the first place, then he should not be taking on the job, especially that improtant.

btw, in my plan I forgot 5) no VAT and no duty on vodka...

[clearedforlanding]

The job of the chancellor and in fact any government minister is to guess which advice of their civil servants and special advisors is worth listening to. They are too busy (remember they have a constituency as well) to deal with small print.

Which is pretty similar to the job of a C level executive. The difference is that with the exception of the CEO & CFO it is pretty mandatory to have built up experience in ones domain of expertise and the industry, to offer direction and strategy (avoided the peacock term 'vision') and make informed choices on advice from professionals.

This guy failed as a journalist, heard from a university mate there was an opening at the conservative party central offices. He married the daughter of Lord Howell, wrote speeches for William, Hague - that went well and exchanged god father duties with David Cameron.

An understanding of the field, especially in finance is pretty much a pre-requisite of making informed decisions. It was clearly demonstrated in his 2012 budget, his nadir, that he was a little under qualified. Better not heat up the Cornish pasties.

His own constituents want him to spend more time on the economy and less time working as a Conservative strategist.

The strongest opposition to his austerity plan comes from Conservative MPs.

All he can now do is make deeper cuts, in particular in infrastructure, which puts a damper on his Northern Powerhouse proposals.

He is inept and an example of cronyism at it's worst.

Of interest to the regulars here, his Cardiff speech contained more banging on about borrowing for BTL now that his mates & key supporters have them.

All said, he is a political animal, I'll give him that and the fiscal crisis will be used to his advantage to further his political ambitions.

[AtW]

An understanding of the field, especially in finance is pretty much a pre-requisite of making informed decisions.

His family firm is loss making for years and his recent share of dividends was just £1200.

He is not qualified to arrange a piss up in a brewery.

Enough said ...