British sales tax goes up to 20%

[Barnum42]

Well, after helping oversee the collapse of the banking systems and making us bail out all the rich bank executives, the government has come up with a great way to further punish the British public - as of today, Sales tax goes up to 20%.

How making stuff more unaffordable will spark the economy is anyone's guess. Just to add insult to injury, they stuck another penny on fuel duty - on which they then add sales tax.

So I'm expecting to see gas in the region of £1.26 or so a litre, that's nearly $2 a litre, so approaching $8 a US Gallon.

I have a sixty mile round trip to work every day - most of it going straight in the government's pockets.

Happy New Year indeed.

[figmentmom]

:faint :faint

[Christy]

:uh

[figmentmom]

I don't know how your government expects people to survive that heavy a burden. Is that tax on clothing and food, as well as fuel? How about services?

[Barnum42]

The tax is not on children's clothing, but it is on adult clothing. It's not on most food, but food classified as a luxury carries the tax. However, how they classify a luxury is strange. A cake has 20% sales tax. A cookie has none.

Restaurants and take-aways are taxed.

Books and magazines are Not taxed, but that's about it.

Utilities are taxed, but at a lower rate.

As for cars - we still have to pay a tax for owning one in the first place - outside of brand new eco friendly cars, the tax for most cars ranges from around $250 upwards a year. The annual inspection for cars costs from around $75 upwards. Insurance costs rocket way above inflation.

The government want you to take public transport, but that's even more expensive than gas - Helen paid $4 for a two and a half mile journey on a bus the other day.

[ogryn]

There is another penny going on fuel in April too /facepalm

If you're very bored: http://en.wikipedia.org/wiki/Taxation_in_the_United_Kingdom#Sales_taxes_and_dut ies !

[figmentmom]

I can't imagine. :no

[Barnum42]

I can't imagine. :no

They know we have no choice. Which ever party you vote for here, you still end up with "The Government".

[BeeJay]

They know we have no choice. Which ever party you vote for here, you still end up with "The Government".

And this is what happens when you elect the "Conservative" party! :uh

I had been reading that Cameron was serious about instituting austerity measures, like cutting government programs. I wasn't aware he planned on increasing the tax burden on average folks as well.

We have the opposite problem here. No one is willing to raise taxes to pay for anything. On anyone. You can't get elected in America promising to charge people more and give them less in the bargain, even though that's what's eventually going to have to happen here.

[ogryn]

They want to reduce the Budget Deficit by any means necessary (which I kind of agree with. Labour were spending well above their means). Unfortunately I doubt it'll go down again to 17.5 once the purse strings are under control.


The range of cuts and rises will be needed to realise the Coalition’s ambitious plans to pay off the deficit in five years.

Mr Osborne pledged that the structural deficit – the gap between tax revenue and spending that persists even when economic growth is strong – will be effectively wiped out by 2014/15.

That is a more ambitious target than the Conservatives set in opposition, when they promised only to eliminate the “bulk” of the structural deficit.

The deficit will be £149 billion this year, falling to £20 billion – or just 1.1 per cent of GDP – in 2015/16.

http://www.telegraph.co.uk/finance/financetopics/budget/7846749/Budget-2010-VAT-rise-and-benefits-cuts-to-tackle-Britains-deficit.html


The banks and markets like that plan too, which unfortunately, makes it likely as they're a large part of our economy.


The UK budget deficit will outstrip any other country in the EU this year and will be even worse than Greece, according to figures from the European Commission today.

The group's spring forecast puts UK borrowing at 12 per cent of GDP for 2010 - more than that of any of the 27 other EU countries and far worse than Greece's 9.3 per cent.

The gloomy prediction will mean that it is even more important that any incoming government reacts quickly to tackle Britain's mountain of debt.

EU commissioner Olli Rehn said that the 'first and foremost challenge of the new government' would be to tackle the nation's deficit.

The advantage of the government acting hard and fast is that we're likely to keep our AAA credit rating, while the rest of Europe is less lucky.

For comparison:


The budget forecast a $1.56 trillion deficit in 2010, or 10.6 percent of gross domestic product (GDP), up from a 9.9 percent share of GDP in 2009.
http://uk.reuters.com/article/idUSTRE60U00220100201
, although it's not really comparing apples & apples.

[figmentmom]

We have the opposite problem here. No one is willing to raise taxes to pay for anything. On anyone. You can't get elected in America promising to charge people more and give them less in the bargain, even though that's what's eventually going to have to happen here.

Agreed. It's already happening.