Tonight:
5°c
City alarmed by 50% tax rate
Joe Murphy, Political Editor22 Apr 2009
- The Budget at a glance
- John Kampfner: Darling’s all boxed in
- Shares plummet as cynics struggle to digest Budget
- Anthony Hilton: The trouble with taxing rich: there aren’t many of them...
- Tightening belts and finding new careers: Londoners face up to harder times
- Treasury challenges IMF over bail-out bill
- Sarah swaps gloom for Hollywood glitz at first wives summit
- Labour promises
- ISA limit increased to £10,200
- Chris Blackhurst: Squeals of horror from the stalls
- Blog: The soak the rich election
TOP earners on £150,000 and above were today stung with a 50 per cent tax rate as the economy plunged into record debt.
Alistair Darling stunned the City by borrowing eye-watering sums to make ends meet as he tore up his growth forecasts in his speech to the Commons.
But he fought back with a Budget that battered the better off — anyone earning more than £100,000 will suffer — to help pay for the credit crunch caused by blundering bankers. Some critics called it the end of New Labour.
The new top rate of tax was the sting in the tail of a speech dominated by dreadful economic figures, the worst seen in peacetime.
Most jaw-dropping of all was the record borrowing needed to make ends meet over the next five years — an astonishing £703 billion. The Treasury will borrow £175 billion this year alone, equivalent to 12.4 per cent of GDP and making a nonsense of the forecast of just £38 billion in last year's Budget. That trounced the last record set under the Tories in 1993, of £110 billion or 7.8 per cent of GDP. Another £173 billion will be borrowed next year, then £140 billion, £118 billion and £97 billion.
The need for such desperate deficits was exposed by data on the scale of the recession, confirmed as likely to be the longest since the Second World War.
Instead of the 2.5 per cent growth that Mr Darling predicted a year ago, the economy will shrink by some 3.5 per cent this year.
The Treasury expects an extra one million unemployed by the end of next year. That means surging jobless queues throughout the general election year. The Chancellor said he was confident the economy would bounce back. “Britain can, and will be, a world leader and this Budget will help make sure we seize this opportunity,” he told MPs.
He presented the tax rises as “fairness” and, presenting himself as a champion of the poor, found money for modest giveaways — cash for disabled children to build nest eggs for their futures using Child Trust Funds and a measure to let grandmothers providing free family childcare earn points towards a full state pension.
But David Cameron called it an “utter mess” and said Labour could never again pose as the party of economic competence.
“Any claim they have ever made to economic competence is dead, over, finished,” said the Tory leader. “This is the worst boom and bust ever.”
The historic Budget was preceded by the announcement of another surge in unemployment to 2.1 million, higher than Labour inherited, prompting a £1 billion package of Budget measures to protect or create jobs. There were also well-trailed measures to boost construction, help the car trade, and boost green energy.
Criticism of the Budget measures was led by the respected Institute for Fiscal Studies, which doubted that the 50 tax rate would raise much more than half a billion pounds but the Treasury insisted the figure would be nearer £1.8 billion.
And the International Monetary Fund questioned the future growth predicted by the Treasury. It forecast the economy to shrink four per cent this year, and another 0.4 per cent next year. If the IMF is correct, there is a £23 billion black hole in Mr Darling's plans.
Mr Darling's tax raid on the better off was a surprise that drew distressed “oohs” from across the chamber — and was perhaps the first time that a Chancellor has had so much bad news to announce that a tax rise was deemed to make more attractive headlines.
The new 50p tax band starts on earnings over £150,000 a year and comes in next April. It replaces the 45p rate announced in the pre-Budget report and comes in a year earlier than its planned start date of 2011. A nakedly political move, it was clearly designed to wrongfoot Mr Cameron, some of whose MPs were unhappy that he backed the 45p tax and will be pressing him to oppose the rise. Labour believes it will please voters angry at seeing wealthy bankers bailed out for their catastrophic mistakes.
In another move targeting higher earners, people in the £150,000-plus earnings bracket will lose tax relief on pension contributions. Relief will taper down from the current 40 per cent level to a bottom rate of 20 per cent level for those on £180,000 or more.
Mr Darling said it was all about fairness, saying it was “an anomaly” and a loophole that the richest received so much tax relief.
And completing a triple whammy attack on the wealthy, people in the £100,000-plus bracket will see their personal allowances gradually withdrawn.
Many MPs felt Labour had turned its back on New Labour's nostrum that hitting high earners was bad politics because everyone aspired to be rich one day.
“These measures are necessary to build our recovery and secure our country's economic future,” said the Chancellor.
The 20p and 40p tax rates do not change and duties on alcohol were held down from previously planned rises to aid struggling pubs. Drinkers pay a penny more for a pint of beer from midnight, 4p more for a bottle of wine and 13p more for spirits, rises of two per cent.
Drivers will pay an extra 2p per litre on fuel from September, although Mr Darling said he would keep an eye on oil price rises before going ahead. Fuel duty will thereafter rise 1p each year in addition to inflation. Smokers pay 11p more for a packet of 20 cigarettes from 6pm.
Overall, the Budget measures give the economy a £5 billion boost in the next year while the recession is at its worst. Efficiency savings totalling £35 billion will be yielded from Whitehall over the medium term as part of a map to balance the books by 2017/18, two years later than the date in the pre-Budget report plans.
Reader views (97)
Hardworker; I am in exactly the same position as you and I totally "ditto" your post.
- Ian, Bristol, 23/04/2009 14:25
Report abuse
To jane of geneva, you are welcome to Switzerland where you will pay sky high national insurance, shy high property rent and who in their right mind wants to pay 10 quid for a cup of coffee
- Trevn, Abu Dhabi, 23/04/2009 12:16
Report abuse
To little to late.Labour have to decide if they want to stay in goverment or not.Working class are a bit better of untill council tax comes into play.Brown has the chance to back 70% of the voting population by ending council tax on pensioners,taxing bonuses at 90%,increase tax on earnings over 180 000 to 75%.Any person working should have a life,rather than just survive,the rich have raped this country and every other country for far to long.Let justice prevail,bring in a maximum wage and increase the minimum wage so people can live.
- David, london, 23/04/2009 11:50
Report abuse
Our beloved country has been bankrupted by the incompetence of this Labour government.
It may be surprising to some but not everyone who earns over 150K pa is rich or has any ill gotten gains. Yes I have a fantastic salary but its taken years and years of working well beyond the norm to get here. I totally deserve to spend my hard earned money before the theft of 50%. A 25% tax hike in 1 go is inexcusable!
I too bought a house in the peak and I now significantly owe more on it than its worth. My cars are worth staggergly less than last year too. I feel like I'm working to pay for the huge swell negative equity caused by this bungling government's stupidity!
This budget just adds insult to the injury. This tax insanity will result in significant brain drain out of the UK and into other countries so yet again the UK will loose out even more. The budget deficit is eye watering and will definately lead to an even more severe round of de-valuing of the already battered pound.
- Hardworker, Cheshire, 23/04/2009 10:24
Report abuse
We were looking to return to the U.K. from Switzerland next year. No Way. Instead we will stay and relocate an office of 35 well-educated executives here. The consequences:
1) All support staff will lose their jobs
2) Another empty London office to fill
3) No money paid in U.K. taxes.
What a result Gordon!!!
- Jane, geneva, switzerland, 23/04/2009 10:02
Report abuse
There are a lot more people earning more than £150k pa than the "City bright things". Many jobs in the public sector now pay those sort of salaries. Football and media related businesses will be seriously affected. Goody good you pseudo lefties might cry, but think about the consequences of driving business off shore. It happened in the late 1970s and eventually brought the Country and the then Labout Government to its knees.
- Bj, London, 23/04/2009 09:17
Report abuse
So, who'll be the last to turn out the lights? Probably Val, Keith and Wayne who are still in denial about the utter misfits running this government ... 700 billion borrowing? Dear God !!!
And as for all those who say what would the Tories do? Well, you know what? I don't care. But I am certainly not voting for a bunch of cretins who have driven UK to ruin. Remember Gordon saying "Failute should not be rewardes"? Well, thats one thing I agree on. The Tories will get my vote.
What happend to a proud nation that once ruled half the world? If you want to see the good Britain once did and the legacy its left behind come and see HK. Even the Chinese government did not touch HK. They know that killing the goose that lays the golden eggs does not make sense. Sadly, that's a concept that Labour will never get ...
Guess what, I and many other expats will not ever be moving back to UK. Yes we are all high earners paying 16% tax. We pay for the services we want not those that are foisted on us or for an NHS that's sick and abused by every Tom, Dick and Harry. It's simple, get people to pay a % of their treatment and pretty soon they'll start looking after themselves, getting into fights and overloading A&E. The freeloaders will disappear too. People here work for their money. No benefits system to abuse.
And the muppets will still keep on voting Labour ...
Game Over.
- Sarit Shah, Hong Kong, 23/04/2009 09:12
Report abuse
How many will be caught in the new increased 50% tax bracket anyway. Let's hope there are billions of them, because Alistair needs the tax-take income. In reality this raising of the top tax band is a poorly disguised sop to New-Labour's rank and file, who foolishly think they will be spared tax increases, well, there's nowt so gullible as a New-Labour supporter.
- J R J, Glen Vine, 23/04/2009 09:06
Report abuse
Increasing the top rate of tax by 25% (40% - 50%) on paper brings in the same amount of extra money that Darling has pledge to give his local (Scotland) parliament over and above their expectations.
Logic says it was never to do anything, not to pay back debts, not to pay for excesses, just to ensure his own local area received additional funds. As that someone wishing to get re-elected?
Brown and Darling are not interested in this country, their sole purpose is to bait traps and leave bitter pills for anyone that wishes to succeed them. Thatcher got the blame for having to redress the bitter pills left when the earlier Labour administration spent money the country never had.
The Labour trait is that they spend what we haven’t got and the Tories then get the blame when they are left to sort it out.
- Ian, Reading, England, 23/04/2009 08:51
Report abuse
I won’t be affected by 50% tax rate. But this budget is so scary figures for the future it’s not true. The countries interest debt repayment bill will be more than the entire education department budget. If I ran a hedge fund or something I would look at getting offices in Switzerland or Jersey as this is crazy. Sadly I can’t move and I like all of us will be paying interest for 30 years to get back to pre-recession debt levels. How much GB has stuffed us is beyond belief. Question is will Britain go to IMF for bailout before the next election?
- Tim, London, 23/04/2009 08:48
Report abuse
it is time for the rich people to pay back all the ill gotten gains they made during the hay days of the BUSH/BLAIR/BROWN era. the rich sucked all the wealth out of the poor people. it is payback time, baby. pay or get out.
- Kanan Krishnan, mountain view, 23/04/2009 08:30
Report abuse
The number of people in the UK earning £150k or more amounts to just 300,000 people or 1% of the population.
Of course, some of them are newspaper editors.
- Morgan, London, 23/04/2009 07:44
Report abuse
Mmm how is that going to balance books?? These taxpayers will not be incentivised to keep on paying all that tax to see it continue to be squandered by the Brady Brown bunch!
- Makka, London, 23/04/2009 07:36
Report abuse
No that's incredible ! Here in France our Labour (Socialists) are howling against our UMP (Conservatives) because they have just lowered income tax to 50%.
No this is not a story from Alice in Wonderland just a story from France !
Just shows how eclectic a Labour or Socialiste brain can be...so eclectric that's they are a joke ! Like your Gordon, who, as someone says, has never run anything !
How right that person is : not even a country...just plundering it !
- Terry. B, Toulouse, France, 23/04/2009 07:06
Report abuse
So, who'll be the last to turn out the lights?
What happened to a proud nation that once ruled half the world? If you want to see the good Britain once did and the legacy its left behind come and see HK. Even the Chinese government did not touch HK. They know that killing the goose that lays the golden eggs does not make sense. Sadly, that's a concept that Labour will never get ...
Guess what, I and many other expats will not ever be moving back to UK. Yes we are all high earners paying 16% tax. We pay for the services we want not those that are foisted on us or for an NHS that's sick and abused by every Tom, Dick and Harry. It's simple, get people to pay a % of their treatment and pretty soon they'll start looking after themselves, getting into fights and overloading A&E. The freeloaders will disappear too. People here work for their money. No benefits system to abuse.
And the muppets will still keep on voting Labour ...
Game Over.
- Sarit Shah, Hong Kong, 23/04/2009 04:43
Report abuse
I take it that top earners is code for City traders. But it was those avaricious, arrogant, incompetent parasites that precipitated this economic crisis and hurt so many honest working people. We now know that the supposed super-brains in banks and hedge-funds were in fact super-idiots all along. They represent much that is bad in our society - who cares what they feel. The sooner they leave this country the better.
- Richard Kennard, Welling, 22/04/2009 23:42
Report abuse
The government has sacrificed pensioner savers with bank deposit accounts in order to help mortgage payers who have overextended themselves. The chancellor said that these people were now, on average, £240 per month better off as a result of the reduction of interest rates to 0.5%. I am getting a much lower income because of this. The Conservatives have promised to help with tax relief.
- Peter, Watford UK, 22/04/2009 22:58
Report abuse
It's a bit worrying that so many people think that the new high rate tax bracket is a good thing. What it actually is, is window dressing to appeal to traditional Labour voters. These high earners are called "rich" which is new age Labour-speak for the filth that caused all the problems. It is a shallow and pathetic gesture.
- John, Arezzo, Italy, 22/04/2009 22:45
Report abuse
Top talent going abroad with this 50% tax rate causing a brain drain? Is this the same top talent that lent all that money to those who had no hope of paying it back? Is this the same top talent who recklessly gambled our future generations lives away and are now being felt sorry for? Did these 'wide' boys ever have any brains to start with? I think not. They had tremendous greed and avarice and were allowed to get away with it as the regulators were both incompetent as well as impotent. They are now reaping what they sowed!
- Annoyed Of Croydon, London, 22/04/2009 22:38
Report abuse
If the rich suddenly don't have enough spare cash to buy a luxury yacht or a new Bentley or they can't afford to send their kids to boarding school any more, I won't be shedding a tear. The disgustingly well off aren't the only intelligent and hard working people in Britain, even though they mostly think they are, and it's about time they paid their fair share of tax.
- Working Class And Proud, London UK, 22/04/2009 21:54
Report abuse
Where will they go and who would have them?
- Superhooper, Isleworth, Middlesex, England, 22/04/2009 21:42
Report abuse
This headline grabber is crass politicking by this crass Labour government. It is an intended distraction from the real story here.. Labours complete failure over ten years... and the left wing media in this country are falling for Labour's ploy to distract attention from their failure hook line and sinker.
- Tangomike, Kensington, London, 22/04/2009 21:24
Report abuse
When Blair got elected I warned my friends that it would end in a disaster. I had seen the socialists in Denmark destroy the my country and left for Brussels. Came to the UK in 1997 and saw the mess Lobour had done to the UK. Left after 29 happy years in Wimbledon for France as I could not stand Blair and his Governemnt. My heart is still beating for the UK, but what Blair/Brown has done makes me sick.
Get rid of Labour tomoorow, please.
NB: Sarcozy is as mentally deranged a Brown if that is a
help for the poor English who have to suffer under Brown!
- Claus B. Clausen, guisy, france, 22/04/2009 21:09
Report abuse
Dear David, New York USA
I am not confused, you are from New York and I feel sorry for you and all those fab taxes your Dem Governor is going to put on you .....oh yeah that will be Bush's fault too. Each and every time Dems have to blame
George Bush for everything, even when we have had a Democratic congress for over two years. It's time you asked Mr Frank and Mr Dodd how they got rich by encouraging clueless Americans to buy homes they could not afford. That's just one of the things go us into this mess.
Love Dee x
- Dee, Chesapeake USA formerly London, 22/04/2009 21:07
Report abuse
I'm always amazed on how those that are supposed to be the educated ones, that have 10 degrees in finance/ economics and social/political strategy, are in fact the most brain damaged... Those rule the country and the world in my name and I have no say in it. Most of it has been said already here but... Does the Queen give half of "her earnings"? Oh, sorry, not hers... MY earnings I suppose.
- Edgar Allen, London, 22/04/2009 21:05
Report abuse
Watch the rich leave and take their income tax and jobs with them.
Unemployment will go through the roof.
- Dashingprince, UK, 22/04/2009 19:10
Report abuse
£150,000 is not a lot of money to be taxed at the rate of 50%. The strivers and creative British business people are being ripped off, while the slothful and lazy are rewarded in this godless tax. My adice is to get advice like all footballers and the very wealthy. What with employment laws laws that can destroy businesses and your wealth with 10,000 cases going through the court, health and safety, Maternity leave for men and women, flexi hours and much else who wants to run a business in this country. I wrote books and lectured and many have no desire when the government now takes 50% plus 15% VAT plus other levies and taxes. No wonder no one wants to manufacture. Brown has never run anything so how would he know.
- Peter, Camberley UK, 22/04/2009 19:02
Report abuse
Brain Drain MK 2
- Wills, Soton, 22/04/2009 18:59
Report abuse
Andy, sorry to correct you. The nil rate band is being withdrawn when earnings are over £100k - £1 for every £2 above it. Amounts to a tax rate of 60% between £100k and £113k.
- Martyn, London, 22/04/2009 18:40
Report abuse
It's unlikely that this tax hike will make any difference to the tax paid by the 'rich', or where they live.
Odds on there'll be a sudden increase in 'non-doms' taking lots of money out of the economy and paying little or no tax - an extension of what's happening right now !
- Cap, london, 22/04/2009 18:30
Report abuse
"Watch those super-bright city workers leave this country for another where working hard is rewarded, not punished."
Super bright? You must be joking. These brain boxes thought thet had discovered alchemy but were found out in the end, and we are all bailing them out.
If you earn £150,000 a year you CAN afford to pay a bit more tax. If you really are that divorced from the society you live in, don't ever use the health service, schools, didn't go to university and don't drive on public roads, then please, please go away and live in one of the remaining tax havens. You really will not be missed.
Higher taxes for the very wealthy (I believe that less than 1% of people earn this much) are long overdue. Its a great shame that Labour was too cowardly to introduce such rises when they were needed, back in 1997.
And the Tories, what will they propose? Annul the higher rates? "Vote for us to make the rich richer and the poor poorer"? Not really a good slogan is it?
- Rob, London, UK, 22/04/2009 18:25
Report abuse
This is more of a Bodge-it than a Budget. Labour are clutching at straws. Lets think of another excuse to pull the wool over everyone's eyes. We are rapidly sinking down the plughole and all we get is empty promises and tax the rich! We will not see recovery for at least five years despite what Captain Darling says. We are once again the sick man of Europe. We already pay twice as much council tax to only have our bins emptied every fortnight and when we go in hospital we get MRSA. An election could not come sooner.
- Andre, sidcup, 22/04/2009 18:22
Report abuse
The IMF won't be fooled and standard rate tax payers will only be fooled until the next budget!
- R Jones, Bristol UK, 22/04/2009 18:20
Report abuse
It just means that top talent in this country will look to work abroad as 50% is just ludicrous.
Will the MP's create legislation so they are exempt? I presume so.
Darling is a complete fool. He can stick his taxes as I will not be paying them when I am living in sunny Australia doing the same job for more money!
- William Jenkins, london, 22/04/2009 17:59
Report abuse
Bea
Where do you think these super bright city workers are going to go? There are very few jobs for them overseas.
If they are earning £150,000 they will probably be no worse off because there will be the nil rate band of ~£6500. If their nil rate band is £6500 and they earn £157,000 per annum then they will only pay £50 a year more than they would have done under the old rates. Which given that they are earning this level of income it is hardly earth shattering or worth leaving the country for!
- Andy, london, 22/04/2009 17:53
Report abuse
Nice gimmic, but why penalise those who are going to get the country out of this mess. It will just lead to a migration to better tax regimes! Surprised they didn't try legalising prostitution or cannabis, although that would have added more to the coffers than the 50% hike! Surely its time for an election and get in an elected Prime Minister, as this one's clearly not qualified for the job!
- Carl, London, 22/04/2009 17:52
Report abuse
I feel sick that I have to live in a country where there are so many people so easily fooled by Labour that they are prepared to vote for them even now.
- J Bell, Nottm, UK, 22/04/2009 17:38
Report abuse
How is this going to balance the books?! Should they not stop wasting money first? The taxpayers will just move, to another country and then you wind up with no income and lots of expenses...
- Steveo, London NW1, 22/04/2009 17:36
Report abuse
There is an old saying that my Grandfather always used, even though he was classed as a 'professional' but was never rich. '.. taxing and making a rich man poor, will never make a poor man rich...'. The Labour party has never understood this.
- Pete, South of England, 22/04/2009 17:35
Report abuse
I sssume that the Royal Family will be expected to pay up their share!
- Jon, London, 22/04/2009 17:34
Report abuse
village idiot: not all people who earn 100,000 caused this mess, what about the self made businessman who was worked and strived and now sees his 100k turn into 50k to pay for someone elses blunder?
- Daveb, london, 22/04/2009 17:28
Report abuse
I think Reuben's comments are just a tad childish given the importance of this subject. You cannot be Chancellor of the Exchequer for over 10 years and have no knowledge of Economics. I think we all need to relax a little here. Where did we think the money was going to come from - thin air? You want the government to sort the mess out and when they try to get the revenue you moan at them that they don't know what they are doing. If they didn't tax the highest bracket then you would also moan that they weren't doing anything. You cannot win with these narrow minded views on here.
- Andrew, St. John's Wood, London, 22/04/2009 17:16
Report abuse
Given that the Gini coefficient (which measures inequality between rich and poor in many countries around the world) has shown that under Thatcher and then continued by Bliar the inequality between rich and poor has grown larger and larger. It is about time that those earning a higher income paid a greater proportion of their income. Because of National Insurance rules they currently pay proportionately less NI than the rest of us (the top level of payment is capped) so this should make things fairer. Remember they are only paying a combination of 22% and 40% on the first £150,00 of their income the 50% only kicks in on the income above this figure.
The proportion of the population earning £150,000 is tiny but a reasonable proportion of these high earners are bankers/investment banker/financial services and these are the very people who put us in this mess in the first place - let them pay.
- Andy, London, 22/04/2009 17:15
Report abuse
The really rich won't be affected, by using £150000 as a cutoff. VERY unfair to those earning £150000 exactly. Watch those super-bright city workers leave this country for another where working hard is rewarded, not punished. It is their brains we need right now. Of course, those super-rich businessmen, footballers and 'celebs' will continue to live elsewhere, earn millions and escape all tax. They do not work as hard for each penny as those earning £150 000, yet they will evade tax, get their knighthood from Gordon Brown and donate to Labour, whilst those £150000 sloggers are punished.
- Bea, London, 22/04/2009 17:10
Report abuse
Drastic steps need to be taken to reduce the obscene difference in salaries paid to the haves v the have nots. I was a have when the balance was honestly earned, was very fair and my reward was based on integrity and enduring results. It is time for these principles to return.
- Henri, England, 22/04/2009 17:05
Report abuse
Oh dear! What a mess this 'goverment' have gotten us all into, they just don't know what to do next to ruin the country. They took us out of the black, into the red and now we are neck deep in the Brown stuff. Call themselves New Labour, they should all be sentenced to Hard labour!
- Stephen, London, 22/04/2009 17:02
Report abuse
Eric of Stockholm:
Please replace 'country' by 'province' in your comments. The U.K. and Sweden are de facto E.U. provinces. Besides the hapless budget, we can thank Brown & Co for ratifying the Lisbon Treaty without the people's approval -- thus giving away the sovereignty of the U.K. besides leaving it bankrupt. Most people in the U.K. still do not seem to understand that full ratification of the Lisbon Treaty will result in the U.K. becoming one of 27 provinces in a new federal state (country) and their birthright to self-government being extinguished. The billions of debt that is presently owed can be repayed, but once the British lose their right to govern themselves, that right will never return.
- Phil Jones, London UK, 22/04/2009 16:58
Report abuse
Oh dear, oh dear, oh dear ... so the "poor" top earners will be taxed more and they will go and live elsewhere.
I don't think they will really go, but if they do then JOLLY GOOD is what I say. They caused this mess. Good bye and good riddance!
- Village Idiot, London, 22/04/2009 16:57
Report abuse
After 12 years misrunning the economy the only way the unelected Brown could get through this afternoon's Budget was to go to sleep.What a disgrace Brown is-he just seems to revel in destroying everything and everyone and the sooner he is outside our view the better.Awful man.
- Chris, London,England, 22/04/2009 16:51
Report abuse
Why did the MPs see fit to award themselves a pay rise? Why don't they reduce the public pension pot, cut back on the MPs expenses and not award themselves a pay rise. There you have some savings straight away instead of their pathetic gimmicks. I for one will not vote for them.
- Jk, Kent, 22/04/2009 16:46
Report abuse
All these comments have merit.... the whole situation is a joke ..... I emigrated from the Uk a year ago and its news like that that makes me realise although I miss friends and family the thought of returning to let the most hypocritical, lazy, error prown government of my lifetime take away up to 50% of my earnings for their own failings well it just beggers belief. As the Swedish gentleman said previosuly the Uk is a fantastic country with hard working good humored people, and they will get through this, but this Government (and to take a phrase from a previous comment), particularly the "Scottish Mafia" element of government have a lot to answer for .... it has to happen soon .... General Election ... the public have to vote for change!
- Melly, Cartagena, 22/04/2009 16:44
Report abuse
"You just know that Brown's sticky finger prints will be all over this budget.Talk about rats deserting a sinking ship."
Well said, Reuben. I couldn't agree more.
This is going to kill those hard working families who are trying to provide a future nest egg for their children and survive the relentless Labour tax hikes.
More shocking is ANOTHER 2p rise in fuel duty in September - WHY WHY WHY!
Gormless Clown and Dimwit Darling already snuck a 2p increase through just this month!
At this rate oil prices won't need to rise to cause inflation again.
I despise Brown, Darling and the rest of these piggy rotten stinking Nu-Labour rats.
- Dan H, Monaco, France, 22/04/2009 16:40
Report abuse
Nu Labor go away! How can you tax anyone by half and still charge all those other sneaky Nu Labor taxes?!? Lyz Darling and Crash Gordon bibi!! The end.
- Georgie, Islington, London, 22/04/2009 16:37
Report abuse
Marianne - Krazy Keith had to go back to his Luton school this week.
He reinforces my belief that I made the correct decision to educate my children outside the state sector.
- Dave Davies, Basingstoke, 22/04/2009 16:30
Report abuse
I'm afraid you're confused, Dee, it was the Bush administration, scheming corporations, and thieving investors that have bankrupt our country...Poor President Obama is burdened with trying to repair the damage!
- David, New York City, USA, 22/04/2009 16:28
Report abuse
Blue Baby, London and Matthew, London -you two need to get together. for your inforamtion blue Baby (as Michael points out but totally misunderstands)the problem with increasing tax rates on the "so called" wealthy earning over £150,00, is that there aren't actuallt many of them. So this clearly political move will actually yield VERY LITTLE additional income. It's the old Labour 'politics of envy' that does absolutely nothing to benefit the UK. What he needed to do was change tax bands to lift more of the lower paid out of income tax, NOT "grandstand" with such blatently political tinkering. Trouble is that when the chips are down Labour will always fall back to it's socialist clap-trap of phoney fairness.
- Malcolm, London, 22/04/2009 16:28
Report abuse
Ladies and gentlemen, welcome to the 1970s. Let's also have an incomes policy, a minister for prices, and a 3-day week.
- Neil London, London UK, 22/04/2009 16:22
Report abuse
It is SO typical of Labour that as usual they destroy the economy (look back in history) and then expect US to pay them for their incompetence AND hand the mess over to the Tories to sort out ready for the next time those idiots put liar-bour back in office.
- Vanessa, London, 22/04/2009 16:16
Report abuse
THE 50% RISING TO 61% TAX INCREASE WILL ONLY HIT THOSE WE MUST RELY UPON TO GET US OUT OF THE MESS, THOSE DEDICATED CAREERISTS WORKING ALL HOURS, SO THEY MAY JUST MOVE ELSEWHERE. ITS A HEADLINE CATCHING, VOTE PLEASING MEASURE FOR GORDON'S HINTERLANDS. AFTER ALL AS SOMEONE FAMOUSLY REMARKED , 'SURELY TAXES ARE FOR LITTLE PEOPLE'. IT REMINDS ME OF THAT OTHER FAMOUS LABOUR LEADER, WHO CALLED BUILDING SOCIETY INTEREST UNEARNED INCOME AND TAXED IT AT 50%
WHAT ABOUT THOSE THAT LIVE ABROAD, FLY INTO THE COUNTRY FOR TWO DAYS A WEEK, AND DRAW MILLIONS IN DIVIDENDS OR SALARY WITHOUT PAYING ANY TAX. GOLFERS, FORMULA I DRIVERS, PROPERTY DEVELOPERS, ACTORS.
EVERY MEASURE IS SIMPLY SPIN. HELP TO BUY AN ELECTRIC CAR, SORRY NONE AVAILABLE. HELP FOR PENSIONERS, SORRY NOT IF YOU GOT ANY SAVINGS. £2000 FOR YOUR OLD BANGER, SORRY IF ITS NINE YEARS OLD, YOU MIGHT GET A FEW QUID PART EXCHANGE. EARN £8000 A YEAR, PAY TAX YOU BLOATED CAPITALIST
£150 A DAY FOR TURNING UP FOR WORK, NOW THAT DOES SOUND A BRIGHT IDEA, FOR MPs THAT IS.
- Alan Green, Woodford Green, 22/04/2009 16:11
Report abuse
£150 grand as a top earner?...wake up darling and keep up with inflation,anyone would think you didnt know what to do or say or could have predicted the downturn..oops..didnt Gordy tell you..lets all remember prudent times..stop laughing at the back..
- Jonnie Of Brixton, brixton,london,england, 22/04/2009 16:11
Report abuse
This is good news but does not go far enough.Yet again you will hear people earning 150 000 or more tell you how hard they work,well so do nurses,street sweepers and the rest of the nation.You hear business moan about there being a minimum wage,well that is because it is the bare minimum,prehaps they should try and live on it.I believe we need to introduce a maximum wage,and tax bonuses at 90%.But saying this is good news does in no way mean I shall vote Labour,well not for another 30 years.
- David, london, 22/04/2009 16:06
Report abuse
Sounds like he's taken a leaf out of NObama's book - taxing the so called wealthy to spread the wealth around. The only consolation the Brits have is that it has taken Nu Labour 12 years to bankrupt the country - its only taken NObama 90 days.
- Dee, Chesapeake USA formerly London, 22/04/2009 16:04
Report abuse
Sounds like he's taken a leaf out of NObama's book - taxing the so called wealthy to spread the wealth around. The only consolation the Brits have is that it has taken Nu Labour 12 years to bankrupt the country - its only taken NObama 90 days.
- Dee, Chesapeake USA formerly London, 22/04/2009 16:04
Report abuse
Whatever it takes to protect those government jobs.
- Trunk, US, 22/04/2009 15:57
Report abuse
I'd like to offer my sincerest thanks to New Labour for totally destroying the economy of our country.
- Chris, Woking. UK, 22/04/2009 15:53
Report abuse
These comments are a classic and should be kept in a museum for future generations to read about how the pitiful, desperate, downtrodden, persecuted and abused members of society earning OVER £150,000 were told to pay a little more in tax to help balance the country's books. "OH Poor Me" they cried, "OH POOR POOR ME" they wailed in their err... hundreds.
- Matthew, London, UK, 22/04/2009 15:52
Report abuse
It truly beggars belief that any MP can talk about fairness, given how deeply they have buried their noses in the trough of alowances and personal expenses.
- Paul G., Newbury, Berks, 22/04/2009 15:50
Report abuse
The quicker we see the back of this Government the better
- Colin, Bristol, 22/04/2009 15:46
Report abuse
I’m glad the chancellor is giving a thousand pounds of our taxes as a discount to anyone wanting to buy a new car - I presume this will only apply to small, "eco-friendly" cars and not 4x4`s or gas guzzlers?
After all, if you choose to pay for one of these then you can well afford the extra K, (especially as record low savings rates mean that your now also saving hundreds a month off your mortgage).
Of course, NONE of the cars in the scheme will be manufactured abroad ...
- Darius Midwinter, London UK, 22/04/2009 15:46
Report abuse
This "Labour" government have been licking the backsides of the rich for years (and encouraging those on benefits -OXYMORON ?) They do not realise that most people are not greedy but just want to see fairness (some hope!). Well they have squandered our money and people like me and my children (all working and paying taxes !)will just have to keep on the treadmill for the forseeable future.
- Deb, Surbiton, 22/04/2009 15:43
Report abuse
What?! Labour introducing a progressive tax band on Income Tax rather than abolishing a lower tax band to swipe fist fulls of pennies off of the worst off. Sounds rather socialist doesn't it?
- Ian, London, 22/04/2009 15:37
Report abuse
50% on those earning £150k+? About time. Go further - 60% on those earning £250K plus, like our professional footballers.
This are the kinds of tax hikes that should have been implemented years ago to improve the quality of life of the majority - the little cogs that keep the country going and not protect those who can afford private health care and to send their kids to public schools.
- Blue Baby, London, 22/04/2009 15:37
Report abuse
What is it George Bernard Shaw said again?
A government that robs Peter to pay Paul can always count on the support of Paul.
- Steve, London, 22/04/2009 15:25
Report abuse
You forgot about the National Insurance - so its 51.5% and its 61.5% if you earn between £100,000 and £113,000 and even more when you look at the final destruction of the UK's private pension schemes.
- David In Teddington, London, 22/04/2009 15:21
Report abuse
Well the poor have nothing left to tax; pensioners have already been robbed of their savings; and a living state pension rate.
Disabled children will have nest eggs for their future; even if they don’t have any future at the moment.
And Grandmothers will earn points for their eventual state pension that is not worth a light; remembering that Social Services all over the UK will not allow grandparents to look after their own grandchildren in the first place.
Beer, wine, spirits, fags, and petrol, up this year; most from today.
But tax on the £150.000 bracket earners; will not be introduced till next April?
Efficiency savings in Whitehall; which means an increase in staff to find ways of saving anything at all, without actually losing staff, to add to the unemployment figures etc.
This should help the British Nation; lead the World out of recession once and for all.
Well Done Grace Darling; the Sailors hero.
- Mickyinlondon, london, 22/04/2009 15:19
Report abuse
well there goes the last vestige of "new" labour.
which is significant as the "old" labour they've reverted back to, never was electable.
Cameron must be rubbing his hands with Glee. this is the sort of 2 terms ideology he could only dream of coming his way.
- Scott, london, 22/04/2009 15:15
Report abuse
And how many bankers do you think will end up paying their share ie the 50% tax. That's right, none. They cause the mess, the governmnet let them do it and both sides walk away with healthy pay rises, low taxes and huge pensions. What a nice fair country you guys have created. well done.
- Ag, London Village, 22/04/2009 15:14
Report abuse
The money could be easily saved by making the government more efficient without increasing taxes for the consitituents of this country. But that is too much like hard work. Rather than spend another £20 billion on ID cards and £20 billion on computer systems that don't work and aren't needed, why can't we have a government that can cut costs and spend sensibly. Any company that was managed the way whitehall has been would have gone bust 100 times over in a rising economy never mind the mess we are in now.
- Ag, London Village, 22/04/2009 15:12
Report abuse
So Darling attacks pension tax relief for higher earners in the private sector but does nothing to limit the millionaires final salary schemes provided for Politicians, Judges, Civil Servants the Police and all his other cronies.
The cost of funding final salary public sector pensions is estimated as in excess of £650 billion all of which is currently off the national balance sheet. The public sector has to learn to share the pain abolishing all public sector final salary pensions should be a manifesto commitment for the Conservatives. Pension apartheid must stop.
- Ian, London, 22/04/2009 15:10
Report abuse
£150,000? That will be just above the standard income for MPs. How conveniently 'fortunate' for them.
- Frank, Home Counties, England., 22/04/2009 15:08
Report abuse
What an effing liberty! I have worked very hard to get into this bracket so why should I have to suffer for govt failings? Whilst I appreciate that many will benefit from this, I can't help feeling shafted for doing a good job. Go ahead, take my money but understand this - I will clearly be spending less!
- Gcb, London, UK, 22/04/2009 15:05
Report abuse
Watch the Black Economy grow!
- Dave Davies, Basingstoke, 22/04/2009 14:59
Report abuse
If they wanted "fairness", they should have forced the public sector to retire at the same age as the private sector; ended gold-plated pensions for the public sector, rather than stymie the revenue-generating sector of the economy still further. But of course that would have lost millions of votes.
- Anne, London, England, 22/04/2009 14:59
Report abuse
Move over Darling and for the sake of the country please take your Labour Party with you!!!!!
- C.Cooper, Hayes Middx UK, 22/04/2009 14:59
Report abuse
Where's Krazy Keith from Luton? Does he have nothing positive to say about the government today?
- Marianne, SW France, 22/04/2009 14:58
Report abuse
'champion of the poor ' What hypocrisy - pass me the sick bucket!
- Marianne, SW France, 22/04/2009 14:56
Report abuse
During these exceptional times it is a shame that David Cameron couldn’t have suggested what he will do when he moves into number 10, as he surely will. With our “confrontational style of politics” it will always be the same the party’s have to have a go at each other rather than work for the good of the nation. I have no way of knowing when the "up Turn" will happen however the gloom and doom merchants may like to consider that most people in our nation have a reasonable standard of living.
- Mike Melbourne, Bedford England, 22/04/2009 14:56
Report abuse
Reuben has got it right, cannot agree more.
- Tom, Herts, 22/04/2009 14:51
Report abuse
Basically, all E.U. countries are facing the same grim realities regarding jobs, national budgets etc. My first and basic response is that too many reader comments are very negative and lacking in positive ideas or spirit (offering little suggestion other than opting out to leave the country). I sit in Sweden and feel I must take it upon myself to cheer you guys up! Shame on you Brits! (When a swede has to cheer you up, you´re really in trouble!). What makes your nation truly great?! You yourselves are a fantastic "lot", as you say. You have lost nothing (but empty paper assets) and can redeem yourselves by being true to the spirit of your people and nation - individuals with great talent and good hearts. Have a pint for me tonight (while I´m my eating meatballs) and go get ´em again tomorrow, you´ll be fine. Don´t be so gloomy! You live in a great country!
- Eric, Stockholm, Sweden, 22/04/2009 14:17
Report abuse
Cheer you Steve, We all love you...
- Mark, St Albans, 22/04/2009 13:31
Report abuse
Lies, Lies, Lies, Lies, Lies, Lies, Lies, Lies,Lies, Lies, Lies, Lies, Lies, Lies, Lies, Lies,Lies, Lies, Lies, Lies, Lies, Lies, Lies, Lies,Lies, Lies, Lies, Lies, Lies, Lies, Lies, Lies, Lies, Lies, Lies,Lies,Lies,Lies, Lies, Lies, Lies, Lies, Lies, Lies, Lies,Lies, Lies, Lies, Lies, Lies, Lies, Lies,Lies, Lies,Lies, Lies, Lies, Lies, Lies, Lies, Lies, Lies,Lies, Lies, Lies, Lies, Lies, Lies, Lies, Lies, Lies, Lies . . . . . Ow! I'm fed up with listening . . . . Just go . . . .
- Albert Hall, hove england, 22/04/2009 13:30
Report abuse
And this useless government is the reason, it's that simple. The good people of the UK need to wake up and smell the coffee as they have been misled and lied to for over a decade and here are the results.
- Brandon Thomas, SW7, London UK, 22/04/2009 13:30
Report abuse
Darling's budget is a predictable mixture of spend, spend, spend and unrealistically rosy forecasts. A political budget; not one that addresses the need to heal the economy that he and Brown so debauched.
- Richard Kennard, Welling, 22/04/2009 13:13
Report abuse
I love all this doom and gloom.Reason?I HATE this country and its grim inhabitants now and revel in its demise.All you lot can moan and groan but it won't get you anywhere unless you emigrate.
- Steve, London, 22/04/2009 12:20
Report abuse
You quote David Cameron here as saying "We have got to start to close the deficit. I think the Government is too weak to do the job."
How would the opposition 'close the deficit'?...Close hospitals and schools, cut taxes for top earners, increase taxes on others, cancel spending on environmental improvements...?
Just when are we going to find out what it is that the opposition would do differently?. With a general election just over a year away surely its time for something more than sound-bites?
The only example of conservative policies in practice are the actions taken by Boris in announcing £3 billion in essiential infratructure cuts in London and proposing that cycles are allowed to turn left on red lights!
- Am Redundant, London,UK, 22/04/2009 12:13
Report abuse
You just know that Brown's sticky finger prints will be all over this budget.
Talk about rats deserting a sinking ship.
More spin and waffle. More smoke and mirrors.
What Darling and Gormless Brown know about economics would not equal what I know about being a brain surgeon or an astronaut.
The UK is finished.
ALL THANKS to Brown and the rest of the Scottish Mafia.
- Reuben Camara, Morecambe UK, 22/04/2009 11:28
Report abuse
We're doomed.
- Grumpy As Hell, Wimbledon, 22/04/2009 10:58
Report abuse
