Chancellor asking for advice to aid young people

Chancellor asking for advice to aid young people

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JagLover

Original Poster:

42,265 posts

234 months

Monday 16th October 2017
quotequote all
https://www.theguardian.com/politics/2017/sep/06/a...

What would you tell him? (that is within his power as chancellor)

I would suggest reducing the rate of withdrawal of universal credit to 50% (down from 65%) and accelerating the increase in the NLW to bring it up to £10 an hour by 2020.

He needs boldness to both capture the imagination and accelerate a programme of making work pay.

kiethton

13,883 posts

179 months

Monday 16th October 2017
quotequote all
I'd say that he should change capital gains tax, incorporating capital gains into the income tax system at the same rates. Beyond this I'd also advocate lowering income tax rates across the board to help all that are still earning.

Given it's mainly older people that make capital gains and anybody that's not retired that would benefit from income tax lowering it should help.

Murph7355

37,648 posts

255 months

Monday 16th October 2017
quotequote all
Stop being divisive between "young" and "old".

Drill in to every demographic that unless we balance our books everyone is screwed.

Start explaining the realities of university "debt".

Start being more focussed on which courses will require self-funding and require none for other courses.

Simplify the tax system.


Eric Mc

121,775 posts

264 months

Monday 16th October 2017
quotequote all
Murph7355 said:
Stop being divisive between "young" and "old".

Drill in to every demographic that unless we balance our books everyone is screwed.

Start explaining the realities of university "debt".

Start being more focussed on which courses will require self-funding and require none for other courses.

Simplify the tax system.

The latter won't be happening anytime soon. Hammond himself has actually made the Income Tax calculations for 2016/17 so complicated that the HMRC computer system can't cope.

They've been trying to fix it since April when the problem suddenly appeared.

Murph7355

37,648 posts

255 months

Monday 16th October 2017
quotequote all
Eric Mc said:
The latter won't be happening anytime soon. Hammond himself has actually made the Income Tax calculations for 2016/17 so complicated that the HMRC computer system can't cope.

They've been trying to fix it since April when the problem suddenly appeared.
If he genuinely wants ideas on what will help young people, in fact all people, that's an area I'd be starting. That and getting us into surplus territory.

Not what anyone wanting free stuff will want to hear. So none of it is likely to happen. But what needs to be said.

Eric Mc

121,775 posts

264 months

Monday 16th October 2017
quotequote all
Rebalancing the "tax breaks" to suit a younger generation is not a bad idea. Don't expect it to make tax any simpler though.

Murph7355

37,648 posts

255 months

Monday 16th October 2017
quotequote all
Eric Mc said:
Rebalancing the "tax breaks" to suit a younger generation is not a bad idea. Don't expect it to make tax any simpler though.
Are there that many that aren't equally applicable to a younger generation though?

ISAs and other saving/investment schemes? Encouragement to save seems a universally good thing. Pensions? Younger people should be encouraged, like everyone else, to shovel in there too (I was encouraged to do so. Spent it on beer instead...but the incentives were still there smile). Marriage allowances? I think that probably needs looking at generally anyway tbh. But the younger people I know seem to be getting married earlier regardless (earlier than me at least!).

There's been pretty constant chatter about millennials etc for a good 2-3yrs now. I don't think they're fundamentally any different to anyone else except for the fact that they're 20yrs younger. Their wants and desires don't seem markedly different to those of my peer group back in the day.

The biggest difference seems to be further education fees. And maybe the cost of housing (though personally I think that's a very localised issue).

Jonesy23

4,650 posts

135 months

Monday 16th October 2017
quotequote all
If he wants to help a lot of young people he should change the idea that so many should go to university, thereby stopping so many loading themselves with huge debt for a useless degree.

Possibly helped by removing any funding support that may exist for the most worthless courses.

Hayek

8,969 posts

207 months

Monday 16th October 2017
quotequote all
Scrap help to debt and raise interest rates.

Sylvaforever

2,212 posts

97 months

Monday 16th October 2017
quotequote all
National Service.

getmecoat

JagLover

Original Poster:

42,265 posts

234 months

Monday 16th October 2017
quotequote all
kiethton said:
I'd say that he should change capital gains tax, incorporating capital gains into the income tax system at the same rates. Beyond this I'd also advocate lowering income tax rates across the board to help all that are still earning.

Given it's mainly older people that make capital gains and anybody that's not retired that would benefit from income tax lowering it should help.
A fair point, capital gains are taxed more lightly than income.

A small annual exemption to avoid pointless administration, an indexation allowance and then tax on the same basis as income.

GIYess

1,311 posts

100 months

Monday 16th October 2017
quotequote all
Definitely reduce reliance on stupid degrees and focus more on apprenticeship/ in work training. That way young people are,
- Earning small amounts when young and by the time the are into their 20s they have the knowledge and experience to have higher paid jobs,
- Could have saved instead of being loaded with debt,
- Increased productivity country wide
- Experts in subjects having seen/worked on real life examples of problems etc that have cropped up.
- greater work ethic instead of having 3+ yrs of sitting about doing nothing.

Seriously, the university system is severely flawed. And I came through it.

ReallyReallyGood

1,620 posts

129 months

Monday 16th October 2017
quotequote all
Scrap "Help To Buy", use the money saved to build more houses for key workers and young families.

Eric Mc

121,775 posts

264 months

Monday 16th October 2017
quotequote all
Murph7355 said:
Are there that many that aren't equally applicable to a younger generation though?

ISAs and other saving/investment schemes? Encouragement to save seems a universally good thing. Pensions? Younger people should be encouraged, like everyone else, to shovel in there too (I was encouraged to do so. Spent it on beer instead...but the incentives were still there smile). Marriage allowances? I think that probably needs looking at generally anyway tbh. But the younger people I know seem to be getting married earlier regardless (earlier than me at least!).

There's been pretty constant chatter about millennials etc for a good 2-3yrs now. I don't think they're fundamentally any different to anyone else except for the fact that they're 20yrs younger. Their wants and desires don't seem markedly different to those of my peer group back in the day.

The biggest difference seems to be further education fees. And maybe the cost of housing (though personally I think that's a very localised issue).
Older pensioners still get the "Married Allowance". That should either be abolished or re-introduced as a universal allowance (as it was once upon a time).

Perhaps the complete abolition of tax breaks for property investors - including home owners? That would be radical and would create huge upset, so not likely.

JB!

5,254 posts

179 months

Monday 16th October 2017
quotequote all
Build a metric fktonne of houses to a high standard in terms of build quality and size, and build them where people actually want to live.

Build quality council housing.

Build spacious estates.

It's the single biggest expense in the UK, home ownership.


Continue to spend on infrastructure.

Murph7355

37,648 posts

255 months

Monday 16th October 2017
quotequote all
Eric Mc said:
Older pensioners still get the "Married Allowance". That should either be abolished or re-introduced as a universal allowance (as it was once upon a time).

Perhaps the complete abolition of tax breaks for property investors - including home owners? That would be radical and would create huge upset, so not likely.
What tax breaks do home owners get?

(Agree on the married allowance. I'd get rid...fits more with trying to balance the books).

Edited to add, I tend to agree on property investors. Though haven't there already been measures to nobble that to an extent?

PurpleMoonlight

22,362 posts

156 months

Monday 16th October 2017
quotequote all
Murph7355 said:
What tax breaks do home owners get?
Don't you consider CGT free growth for your PPR a tax break?

austinsmirk

5,597 posts

122 months

Monday 16th October 2017
quotequote all
tell them to pay attention at school.

go to school

turn off moron book.

stop drawing dreadful tattoo's all over themselves in a bid to be unique

try and have a job/career instead of wanting to be "rich"/ "famous", eg famous because you are famous.

do a worthwhile degree or learn a decent trade.

or back on track: try saving up for things and working for them, instead of living your life on credit instead of a "have now" culture.

Fittster

20,120 posts

212 months

Monday 16th October 2017
quotequote all
Murph7355 said:
Drill in to every demographic that unless we balance our books everyone is screwed.

http://blogs.reuters.com/great-debate/2013/01/14/why-public-debt-is-not-like-credit-card-debt/

http://stumblingandmumbling.typepad.com/stumbling_...

Being the Chancellor looking after the economy and being a housewife in charge of a household budget is fundamentally different.

98elise

26,371 posts

160 months

Monday 16th October 2017
quotequote all
PurpleMoonlight said:
Murph7355 said:
What tax breaks do home owners get?
Don't you consider CGT free growth for your PPR a tax break?
And tax free income if you rent a room out.