Autumn Statement

[DustyBin]

I thought it may be useful to have a dedicated thread for this, as I suspect there will be plenty to discuss!

 

[BananaRepublic]

Well, he’s announced no cuts to the HS2 budget and committed to building the line in full, to Manchester.

 

[59CosG95]

Well, he’s announced no cuts to the HS2 budget and committed to building the line in full, to Manchester.

EWR still going ahead too.

 

[Bletchleyite]

Thus far it seems like it was being overtalked so people would say "is that all?"

 

[59CosG95]

Thus far it seems like it was being overtalked so people would say "is that all?"

Indeed - one hopes that a RPoD&E (Rolling Programme of Decarbonisation & Electrification) would be in the offing. However, I'm pleasantly surprised there hasn't been a complete bonfire of the major rail projects.

 

[BananaRepublic]

The state pension Triple Lock has been protected, most benefits and the National Living Wage increasing in line with inflation.

 

[341o2]

VED for EV's as from April 2025, which removes the argument that VED is based on emissions

 

[Kite159]

A 92p rise in minimum wage which will give a little boost to those in work on the many jobs paying minimum wage (or just above it). Although it's a double edged sword for some places (ie a locally run pub)as it might be enough to push them over the edge to decide enough is enough and to close up shop.

No doubt labour will moan that it's not enough and they demand it to be £15 an hour.

One trick he missed is an increase of the personal allowance. Paid for by dropping the 45% tax bracket further.

 

[Bletchleyite]

VED for EV's as from April 2025, which removes the argument that VED is based on emissions

Was always going to happen. Zero VED (other than for things like bicycles) is a pump primer, like it was when low emission small engined petrols and diesels were zero rated.

Obviously it's likely to be a lower rate than for ICE vehicles.

 

[LSWR Cavalier]

I usually read the Guardian but I just had a look at the Telegraph: "biggest rise in state pension"! Not sure what to think.

 

[Bletchleyite]

I usually read the Guardian but I just had a look at the Telegraph: "biggest rise in state pension"! Not sure what to think.

The Torygraph is always going to put positive spin on Tory policy. It's a right wing, strongly Tory-supporting paper.

OTOH, the Graun will find fault in all of it.

 

[Broucek]

So, he's dropped the upper rate threshold to £125k thus spreading a fixed nominal misery rather than adding 1p and taxing the highest paid more....

 

[MikeWM]

So, he's dropped the upper rate threshold to £125k thus spreading a fixed nominal misery rather than adding 1p and taxing the highest paid more....

Which also appears to create a 67% tax rate between £125,000 and £125,140 (!) due to the personal allowance tapering. You'd think they could have gone to the trouble of aligning those two things.

 

[Bletchleyite]

Which also appears to create a 67% tax rate between £125,000 and £125,140 (!) due to the personal allowance tapering. You'd think they could have gone to the trouble of aligning those two things.

They really need to drop the personal allowance tapering, it's silly as it applies a super tax to a narrow income band. Just either increase the 45% rate a bit or move the threshold down slightly further to get the same income.

 

[Broucek]

Which also appears to create a 67% tax rate between £125,000 and £125,140 (!) due to the personal allowance tapering. You'd think they could have gone to the trouble of aligning those two things.

#facepalm

 

[507020]

So, he's dropped the upper rate threshold to £125k thus spreading a fixed nominal misery rather than adding 1p and taxing the highest paid more....

It has dropped to £125,140 not to £125,000 so that isn’t as stupid as it could have been.

 

[DelayRepay]

I usually read the Guardian but I just had a look at the Telegraph: "biggest rise in state pension"! Not sure what to think.

The Telegraph were hardly going to go with "biggest rise in Universal Credit", were they?

 

[GS250]

Was always going to happen. Zero VED (other than for things like bicycles) is a pump primer, like it was when low emission small engined petrols and diesels were zero rated.

Obviously it's likely to be a lower rate than for ICE vehicles.

Oh yes....suckered in with the promise of not having to pay duty...then ramp it up once people start buying them! It's fair though. If you can afford a hybrid or EV, you can damn well afford a bit of tax too.

 

[dk1]

A good news day on the rail & nuclear energy fronts

 

[Thirteen]

TBH it was inevitable that zero VED for electric vehicles would end in the future as soon as they became more widely available. I am surprised they were exempt in the first place though.

 

[87015]

£2bn cut to DfT budget reported which presumably confirms the May timetable cuts will go ahead.

 

[Magdalia]

£2bn cut to DfT budget reported which presumably confirms the May timetable cuts will go ahead.

What is your source for that please?

I watched the statement. Apart from defence, education and health it was very light on the implications for departmental budgets.

 

[BananaRepublic]

TBH it was inevitable that zero VED for electric vehicles would end in the future as soon as they became more widely available. I am surprised they were exempt in the first place though.

As already said, they were exempt as an incentive to get the market for EV’s moving. A pump timer.
Hardly anyone who’s bought an EV expected it to last more than a few years, until demand had reached a particular level.

EV’s will still be cheaper to tax than ICE vehicles, which will see larger rises in VED and fuel duties, as soon as it’s politically expedient to do so.
I’m pretty sure ICE cars with inevitably be incentivised off the roads in due course.

There’s nothing in today’s announcement that should disincentive anyone from buying or leasing an EV, if they can afford it and it’s a practical proposition for them personally.

 

[Bletchleyite]

I’m pretty sure ICE cars with inevitably be incentivised off the roads in due course.

Most likely this will be by way of some other road-use charging mechanism for EVs, such as road pricing, congestion charging, motorway tolling, parking taxation etc (there are a number of options and decisions don't appear to have been made yet), but both these *and* fuel taxation applying to ICE vehicles.

That tax income can't simply be forgotten about. It has to be obtained from EVs somehow, well, that or you'd be looking at base rate income tax or VAT much higher than it is now.

 

[najaB]

If you can afford a hybrid or EV, you can damn well afford a bit of tax too.

While the sticker price for an EV is higher, the lower VED and running costs more than make up for the difference.

 

[Bletchleyite]

While the sticker price for an EV is higher, the lower VED and running costs more than make up for the difference.

There'll be usage charges along for EVs soon enough. However, it's likely both those AND fuel tax will apply to remaining ICE vehicles, so the EV user will still be in pocket.

 

[najaB]

There'll be usage charges along for EVs soon enough. However, it's likely both those AND fuel tax will apply to remaining ICE vehicles, so the EV user will still be in pocket.

True. Though the main costs I was thinking about are servicing costs - there's less to go wrong with an EV and they don't need oil/coolant changes, etc.

 

[brad465]

TBH it was inevitable that zero VED for electric vehicles would end in the future as soon as they became more widely available. I am surprised they were exempt in the first place though.

I think they need to look instead at taxing vehicles by weight, not power source, too many big guzzlers driving around for the sake of showing off, when we need to incentivise smaller vehicles for better fuel consumption.

 

[Bletchleyite]

True. Though the main costs I was thinking about are servicing costs - there's less to go wrong with an EV and they don't need oil/coolant changes, etc.

Yes, true, though unless you go to a main dealer (stealer? ) that isn't overly expensive, maybe two hundred quid a year or so.

As to what can go wrong we can wait and see there. You'd think EMUs were simple and reliable, how are those 701s going again?

== Doublepost prevention - post automatically merged: 17 Nov 2022 ==

I think they need to look instead at taxing vehicles by weight, not power source, too many big guzzlers driving around for the sake of showing off, when we need to incentivise smaller vehicles for better fuel consumption.

This doesn't work as EV batteries are heavy.

 

[geoffk]

£2bn cut to DfT budget reported which presumably confirms the May timetable cuts will go ahead.

Are these cuts listed anywhere? The December timetable looks like an improvement on many lines.