dilemma!

[uvjunkie]

I was so going to vote lib-dem this time, partly because they are the only party with an environmental policy as part of their manifesto and partly because they totally oposed the war in Iraq without a UN resolution, however I have just checked out on how my vote might affect my finances:

The Lib-Dems local income tax calculator would suggest We'

Comments

[wolfiegoth]

So next question is who will implement there cash sucking changes the slowest :)

[uvjunkie]

Hmmmnnn. Not sure. I think the Libs will still get my vote simply because I prefer most of their policies. I think with an aging population and rising crime tax rises are inevitable. At least the Lib-Dems are being upfront about it.

[aeia]

I was thinking of voting Lib Dem but not so sure now. Their policies are very "idealistic" the idea of taxing the rich more sounds great to me because I'm never likely to earn that much. On the other hand if the UK has high taxation on high earners they're the ones who run businesses and are likely to take their business elswehere.. :-/

[uvjunkie]

I think it will be a long time before we los all that much business. The IR35 tax law came in 4 years ago and everyone was saying all our contract staff would move elsewhere but that simply didn't happen. Our economy is really doing well and that means a deal of propserity here that isn't necessarily available in other places. Besides most of the supre rich will have ways of avoiding tax altogether, most of them already do. Maybe this will help redress the ballance.

[prelati]

That's the trouble. People like to talk about ideals, but when it comes to actions, most folk think with their pocketbooks. Nothing personal incidentally - it's pretty much universal and perfectly natural. The only personal contact many of us experience with the 'powers that be' is their hands sneaking into our wallets. When Thatcher was at her worst, people were happy to scrawl anti-Thatcher graffiti (Clifton village was still 'Rocking Against Thatcher' for years after she was deposed), but when it came to actually doing something, only the Poll Tax got anybody onto the streets. Bread and circuses - plus ce change...

[uvjunkie]

Too true. Sad though it is, it is almost always the pocket that makes people take action including myself. However I do feel strongly enough about other things to take the £500 a year as payment for a hopefully better future.

And just to show it isn't totally selfless it will mean that my poor old gran won't have to pay anything and now that my father has taken ill, my parents are also likely benefit from this proposed scheme. As to whether it is fairer, I leave that open for discussion, there are many people who 'choose' not to work who will benefit from this scheme which I find something of an injustice but hey no scheme is perfect, and it will make life easier for Millions of people on low incomes and pensions.

[uvjunkie]

yeah. On balance. I'm still going to vote Lib-Dem but the local tax thing when just about to buy a house is a real thorn in the decision making process. I think their policies however idealist are the best for the future so am willing to take that plunge.

[psyf]

Local income tax to finance local councils is a fairer way than the existing Council Tax that takes no account of ability to pay. Being £500 per year worse off means you're getting off lightly at the moment!

As for re-banding, I don't understand why that will result in you paying more unless the total take goes up. What ought to happen is that properties will move up bands but the tax in each band should be reduced. Overall it should average out except some properties, currently undervalued compared with other properties (have been enlarged, for example) will pay more and vice versa

[uvjunkie]

Except house prices in certain areas have gone up far more than in others. On a national scale Bristol house prices have rocketed. The house we are buying was around £60K last time they were banded. My friend bought a 3 bed house not far from Newcastle for just over that. He may stay in band B or even drop a band but it is highly unlikely the house we are buying will.

I agree the local income tax is a far fairer system, it is just not a good time to be paying out more for us.

[psyf]

Understood -- but that should not affect what you have to pay. Bristol local councils will need whatever they need via the Council Tax. All that re-banding will do is fine tune what they demand from each household. So, AFAIK, it is irrelevant how Bristol house prices have moved relative to Newcastle (or anywhere else). The only significant change will be how houses within Bristol have moved relative to each other. End result should be that you will only pay more if Bedminster houses have gone up relative to other houses in the Bristol area. I think.

[uvjunkie]

I know the system is slightly different but it didn't work out that way in Wales where they were re-banded this year. 64% of houses in Cardiff went up with only 2% of them going down. Some houses went up as many as 6 bands. This Guardian report details what changed there, and this Government chart details the new banding. Our new home will fall into band E according to this, though I don't expect the tax bands to be set at the same rates in England. It is clear though that the rebanding is set at a national level and not just by local councils, though the rate for each band may be set locally.

House prices haven't risen as quickly in the north of england, at least not compared to the south. Parts of Bedminster have rapidly been becoming hot property in recent years with house prices soaring well above the national average. I think it is highly likely the house we are buying, with the loft conversion adding to its value, will be pushed into band D after the re-banding.