dunroving

I thought this part of the site would be fuller than most of comments on today's budget, but maybe most returning expats won't be affected by the changes.

For me, despite the "typical tories" comments I have heard lately (well, I do live in Scotland), I am glad to at least hear strong words and a realistic take-charge attitude. I dare say my financial situation will be worse off, but I figure that's what it will take to make up for the last few years' fake economy built on a house of straw.

Talk of "cuts" seems to be associatted with "job losses", but I think there is room for personal sacrifice in order to save jobs. In the States, many state (public sector) workers, and private sector workers are working reduced hours so that everyone gets to keep their job. My own union has been sreaming for months about the "derisory" 0.5% pay offer we got, but I think they sound like hysterical whingers living on a different planet.

So, what does everyone who is MBTTUK, or who has MBTTUK, think?

manamama

I´m glad you´ve brought up the subject!! It´s going to be an "interesting" and difficult time for many..

I personally am glad there is a new government there and it does seem as though it´s making some tough decisions for the sake of the whole country´s future.

If the Labour government were still in..I think I would be reluctant to return. The country did seem to spiralling out of control.

Here in Spain, the government is making cuts..to public sector so we have had strikes by the town hall workers, teachers etc. They are going to have a 5% cut. One of their argument was that the private sector will not be cut !! But the private sector has actually lost jobs..

I suppose some are going to welcome the changes. I worry about the very vunerable and hope that they are left unaffected. ie pensioners

To me in my personal situation and for many really, is that it hopefully will be a short term pain for a long term gain.

These past years have been a total wake up call for people who overspend what they haven´t got.

Mummy in the foothills

I just read that that UK has raised the VAT to 20% I was there while it had been reduced last year and wow things were cheap, but this might be too much.

reeni

Yes this was a big one for me too.. it was 17% right?

dunroving

17.5%.

I don't quite get the importance of this - is there VAT on everything?

I mean, if a £500 telly (+17.5% VAT) costs £587.50 one day, but £600 the next day, so what? Buy a cheaper telly! Make do with the Samsung instead of the Sony!

That's the whole point of cutting back during difficult times.

Was just chatting with my carpet guy who said a couple of his customers have been made redundant and are spending their redundancy money on doing up the house (including new carpet, obviously). To me, that shows a complete lack of understanding of economics and personal finance, borne of 10 years of irrational growth and fake "prosperity".

reeni

We live pretty frugally. I was more thinking of the day to day stuff, like food, clothing, ect. We are a family of 5 with 3 growing boys. Food and clothes seem to be a big part of our budget. VAT on groceries and clothing, right? I guess all in all 3% won't be a killer.

rebs

There's no VAT on food, books, newspapers & magazines or children's clothes.

Wub

Its refreshing to see the degree of transparency in the budget. We were warned of the 'No gain without the pain', prospects of the economy well in advance and on a first glance, all appears fairly predictable and reasonable.

Raising tax thresholds for those on low pay is sensible. Raising VAT preferable too as its essentially an indirect rather than a direct tax....apart from fuel? hmmm, maybe that's not so good if it impacts utility bills though...have to check on that. Although, there's still no VAT on food, children's clothing and books...is that correct?

Community Charge is frozen - good! Public sector in for a downsizing...some good points there...if the downsize is at the so called managerial/leadership level and not at the service delivery one of course.

I am impressed with the 'no drama', aspect of it all I have to say - reminds me of a clear sighted, totally grounded transition team taking stock, taking action and explaining what has to be done directly and sensibly.

Overall....think I'm impressed!

reeni

lol thanks! I should have looked it up, but i had not got that far

dunroving

For the first time in a while, we seem to have a government that tells people what they need to hear, not what they want to hear.

I was listening to the radio yesterday, news that the unions were "threatening" action if jobs were cut, and Cameron was saying he doesn't know what planet they are living on. Besides, cuts don't have to mean job losses (although I'm sure there will be some), it may mean that those of us in jobs might need to take a pay cut, pay freeze, unpaid days off, whatever it takes to get us through the current situation while minimizing job losses.

Just as long as the *ssholes who got us into the situation in the first place are made to pay their fair share, I won't mind. That's where I hope the "typical tories" comments are proved wrong.

reeni

the NHS Agenda for Change actually made alot of different back in 2005-2007. It re-assessed everyones pay for the job they did. Both my Hubby and I went thru the process and although we faired well alot of the upper management did not. Turns out most of them were over paid! (shocking lol)

This led to alot of career changes for some and retirement for others. Our asst Director eventually had to take a 12% pay cut.

Wub

I really do hope that this is the beginning of a new era for all of us - what's that saying..

'A country gets the government it deserves'.

Just maybe this new government will turn back the tide of over consumerism and financial mismanagement that's blighted the lives of so many people these past few years.

Just maybe....

Easterndawn

On television they had a programme called "The Scheme" which was filmed on a housing scheme in Kilmarnock, one of the husband had been made redundant and his money was running out, he was taking his whole family to Spain for a holiday since it might be a long time before he could do that again. Sorry, can't understand that mentality. I am used to paying up to 17% extra on goods when you get to the till in Canada, so this will not make a lot of difference to me, except as you say I would buy a less expensive item, guess for me keeping up with the Joneses doesn't really matter

dunroving

I think it could be called the "We deserve it" mentality, but like you I just don't understand it. I suppose it's a bit like an addiction - short-term gratification without recognising the long-term consequences.

Now, where'd I put me Daily Mail?

sallysimmons

I worry that now is exactly the wrong time to be cutting spending and raising taxes.

My concern is that the Tories will plunge the country back into a fully fledged recession and that as a result, tax revenues will continue to fall, thereby having the opposite effect of what was intended. (I believe the Lib-Dems also used to feel this way but I guess things change when you get a chance at power).

My own preference would have been to wait another 12-18 months until the economy was truly moving again and could handle the shock of such drastic action. I am hopeful that President Obama will resist the Republican push to cut government spending over here - the stimulus program might have been politically unpopular but I believe it saved the US economy.

I'm sure I will now be flamed so bring it on!