What they DIDN'T tell you - Autumn Statement Review

[@outdoorsman1140]

By reducing NI, the Chancellor avoided reducing income tax, meaning that he still gets to harvest 20 or 40% of all interest earned over the £1K tax free threshold, during this period of higher interest rates!

[@PrinciplesPersonalFinance]

That's interesting, I hadn't thought of that angle. An increase to the personal savings allowance would have made sense in this environment. Appreciate you watching 👍

[@MarKeMu125]

@@PrinciplesPersonalFinance It also unevenly distributed the tax burden to favour those earning more. If they increased the NI thresholds in line with pensions (+8.5%) people earning over £50k would pay £1k/year more (in real terms, not inflation adjusted) than what they decided on, those earning less have to pick up the tab for this.

[@knowledgeseeker5499]

It seems they gave 2p back and took 98p out of our pockets. Why VAT is 20% for many years? It was temporary for recovery since 2008

[@mikeroyce8926]

Income tax was temporary to raise funds for the wars against Napoleon. These wars ended with the battle of Waterloo in 1815.

[@zeytelaloi]

Nothing more permanent than a temporary solution!

[@gregbaily7971]

The fiscal drag is what is hurting everyone in real terms, these tax cuts do not compensate by a long shot. All smoke and mirrors again..

[@PrinciplesPersonalFinance]

Yep...agreed. Thanks for watching.

[@thegrannyringmtb1818]

No change to 40% bracket. For many this means they’re now poorer - especially if they have tripped over the threshold and get child benefit or marriage tax allowance. Why child benefit isn’t based on household income baffles me. Kids in a 60k single income house get nothing. Kids in a 99,999k house with two equally earning parents get it all.

[@simonnewman4240]

Thanks for the video George Yes the fiscal drag works out at approx 6% increase in the personal rate of income tax, which is huge!

[@PrinciplesPersonalFinance]

Thanks for watching Simon. Ouch, 6%!

[@Potatoman7]

The mansion house reforms are outrageous, and minimum wage is paid for by employers and so the Tax income increases for the treasury.. with the lowest paid getting very little but prices rising to pay for it… As usual, nothing to spread wealth fairly yet again..

[@nicobass1966]

Spot on and thank you

[@BillCarrIpswich]

750k new drains on the exchequer too. Wasn't Truss excoriated for taking a penny of the basic rate? Yet taking 2p off NI, a tax with practically the same boundaries as income tax, is a welcome giveaway?

[@anthonybrown4874]

Still waiting for annual allowance to be raised to take some part time workers out of the trap and of course a rIse in the 40% band yet whatever they twiddle with my effective rate of tax is higher than Rishi as most of his is in the form of capiral gains.

[@anthonybrown4874]

Itsxwirth noting that while Mr Hunt us happy to propose raiding default pension funds for his pet venture capital investment scheme that the MPs well funded scheme by the taxpayer is divesting itself of UK investments in the best interests of its members now that's a double standard if ever there was one.

[@footballfumb5495]

Not an exciting mini budget. I suspect a March sweetener budget & May Election.

[@petermorris3665]

Don't ever forget that although only 4% of estates pay IHT there are huge numbers of older people who spend their latter years worrying about IHT and planning for it!

[@stevo728822]

Why would they worry about if they aren't going to pay it. Your comment makes no sense.

[@petermorris3665]

@@stevo728822 Oh dear....

[@timg1246]

​@stevo728822 Because some people care about their children and grand children. Just a thought.

[@GailPlatt]

@@stevo728822 Of course it makes sense. In 2020-21 27,000 estates paid inheritance tax, an increase of 4000 (17%) on the previous year, and the number will continue to increase annually as more estates are dragged in through inflation. I would say that that DOES amount to a huge number of older people spending their latter years worrying about IHT.

[@Mikey_NoCap]

You could argue that the benefits of fiscal drag for tax revenues could make a government less keen on a lower inflationary environment, more pay rises = more tax income boosted even more by frozen tax bandings. As you said, the devil is in the detail they do not fanfare or jazz hands. Not seen a view from Labour on fiscal drag, have you?

[@georgefarrington895]

Good solid advice.

[@PeterSmall-fr3wk]

I am a carer who looks after my wife if I have to find a job that's ok but will the jobcentre look after my wife from 9 am to 5 PM from Monday to Friday 5 pm and I hope are doctors who nose now to look after my wife so every one must take your love ones to the jobcentre to be look after so you can find a job

[@johnmcmullan2673]

At this rate , kids pocket money will exceed personal allowances soon ....

[@martinyoung3049]

Will be interesting to see what the Scottish Government do at their budget before Christmas. Currently a Scottish tax payer pays 42% + 12% NI between the Scottish higher rate tax threshold of £43,663 and the rUK higher rate threshold of £50,271. The 2% reduction in NI below £50,271 will help reduce the over figure to 52% but it still hurts when normal working people are paying more than 50% in tax on this income. My guess is that the Scottish Government may look to again increase income tax rates for the higher bands.

[@laughing_gnome]

It's not such a win for pensioners as your numbers were for those who got their pensions before 2016 for the rest of use it's not good news as I opted out of serps and delayed my first year I get more pension so I will go over the 12570 personal allowance so I will be paying. Income tax from my state pension unless sunak increases PA in the spring

[@The_Unintelligent_Speculator]

Fiscal drags on.

[@stevo728822]

Scrap child benefit. Parents should pay for their own kids.

[@timg1246]

They should when they are on £50,000.

[@andrewkingdon2000]

​@@timg1246isn't that the group that should be encouraged to have kids. Why pay council estate people to breed?

[@timg1246]

​@@andrewkingdon2000Benefits are not a sop to the middle classes.

[@kennztube]

​@@andrewkingdon2000are you for real, housing estate people, are they less than you? Wow what arrogance. The poor should not procreate. Ok Adolf.

[@mrlover4310]

For the average Joe it's still complicated.

[@pjakep]

Squeezing the working class and working middle class to high heaven as usual. Only those at the bottom or the very top win in this country. If you work full time without that silver spoon your screwed...

[@kevinsyd2012]

Why all the complaints in the video and in the comments that Hunt should have done this and he didn't do that and he missed an opportunity here etc etc. Ffs, this was NOT a Budget, but an Autumn Statement. Wait for the Budget next year to see all the pre-election hand-outs and reforms.

[@LucaPhotographyLondon]

Finally I can have fish and chips with my girlfriend once a month . £62/month more! Thank you sooo sooo much! A big relief