Why UK Taxes are Set to Keep Rising
Vložit
- čas přidán 18. 05. 2024
- Why UK taxes as a share of GDP are set to keep rising. Are there any alternatives to increasing tax?
► Please SUBSCRIBE!
► UK Economy - czcams.com/users/economicshe...
► Global Economy - www.youtube.com/@EconomicsHel...
ABOUT
-----------
► www.economicshelp.org was founded in 2006 by Tejvan Pettinger, who studied PPE at Oxford University and teaches economics. He has published several economics books, including:
► Economic Short Cuts amzn.to/3IgxupC
► 50 Essential Economic Ideas amzn.to/3IgxndG
► Cracking Economics. www.economicshelp.org/shop/cr...
► What Would Keynes Do? Amazon amzn.to/2xShqq4
► Economics Without the Boring Bits amzn.to/48T1hA9
![tattoo printer tutorial[제품단순선물]](http://i.ytimg.com/vi/g40_GwEJak0/mqdefault.jpg)
Imagine being young and living in the UK, not being able to afford a home, living paycheck to paycheck, and funding boomer pensions by ever increasing tax, and if you they live long enough to see their own pension it certainly won't be as generous. This country is a disgrace.
Very good point that isn't thought about much directly.
That’s why those who can will leave. Especially when more people realise they aren’t going to get the pension whilst paying for all the boomer pensions most of their working life.
Blame the government. The boomers just worked and survived their own awful governments.....to get to one of the worst pensions in Europe.
(I'm in my 30s).
It is surprising that the young are not protesting enough about this. It is an well known issue for at least 2 decades. There are some simple solutions though, but that needs sufficient political backing that is currently still absent because the power of the older demographic. Think of major increases in wealth tax and inheritance taxes. @@invtrk1046
and then you finally buy one and the ceiling is collapsing because of the poor build quality and/or age 🤪
They have announced today a £4000+ per year payrise for MP's - totally disgusting in the current climate.
If you thinkk that's bad, you should see how much money they make with their insider trading. The only reason they even give themselves regular pay rises is so people talk about a measly 4k pay rise, while they pocket 100's of thousands with their insider trading.
Smoke screen that 91k a year, show me a MP that isn’t a millionaire without a few houses . Over covid most of that money was stolen
A drop in the ocean compared to the real theft.
A 5.5% increase, Tories are the worst political party ever!
I wonder if the Labour MP's will reject the rise? - with them being for the people and all that...
Gotta be honest as soon as my elderly mother passes i think I’m gonna be out of the uk..don’t recognise the place anymore..
Am an immigrant who arrived in 2014 and now is a British citizen . I too do not recognise the uk I came to . Considering going back and figuring out how to take pension etc. once done am out of here . I have been lucky that my hard work facilitated me to earn well but the situation is very bad so much so that this income is not better than the life I can get back at home
May I ask where "home" is?
@@bullionjohnson9626U.K. certainly is not feeling like so the stance of government and cost of living crisis is too high to call it a home . We are still looking for the right place . Originally from India and considering options still
Same here, all my life I have been hugely proud of my country but now I think it's a disgrace. I have zero emotional attachment to this country. As soon as my Dad passes I am off.
@@bullionjohnson9626 his videos have him appear SE Asian. Pakistan likely.
It's not just tax on your wages its all the other taxes. Tax on every thing you buy. Sometimes tax upon taxes.
If the UK government can afford to spend 29 billion pounds on an app, they can easily afford to pay for pensions.
and for wars
You can forget about getting a state pension in 25 years
Disgraceful isn’t it? Whilst the wealthy laugh.
@@josephj6521and the lazy on uc
It's more tax efficient to have a personal pension (SIPP) anyway. Everyone should have this
@ronjones8696 it has to as only 100 billion is spent on pensions where as 209 is spent on the lazy who won’t work.
@@kevinsyd2012 do you think the lazy will invest in a pension they want something for free
It's just not worth working or starting a business in the UK...once increasing numbers of people leave, give up, and stop spending the government will end up with less tax.
@@lewishamilton9577 yes, they seem to think having access at will to pensioners' and the disabled bank accounts is perfectly OK. Digital banking is yet another threat, and a move to a cashless society.
See ‘San Francisco.’ Neo-Libs at their best.
I don't see how you can have high taxes and economic growth. Speak to any start up or small business about taxes and administration and you soon realise why so few people do it successfully.
If the taxes were used invest in infrastructure, that would be positive. But it seems like entitlements will suck up any increases. Our politicians are too spineless to make tough decisions
Restore taxes on the wealthy and it’ll make a big difference.
The elephant in the room is there's simply too much unproductive population who require to be funded by the state
@zuzanazuscinova5209 Yes, you can't have 20% of the population sat at home doing nothing.
@@basilmagnanimous7011 You sound like you belong in the German Workers Party circa 1933
@@basilmagnanimous7011ah yes, Thatcher, Howe and Lawson, with their well known Pakistani ancestors. Gordon Brown had Jamaican grandma as well.
If the US growth was helped by "rather ambitious government spending and government borrowing", we'd be seeing high growth in Italy and Zimbabwe.
The only factor which matters is the quality of human talent, which is attracted to ease of doing business, something that the UK and Germany are lacking in.
Thus top talent flees to the US, and the UK and Germany have higher proportion of welfare seekers and low skilled migration.
US government does borrow like there's no tomorrow, how can you afford to be in denial of that? It's not something that the UK can afford though, it can't use demand for its currency to do deficit spending like the US does with the USD.
As for the quality of manpower, no surprises here really. Countries with high income taxes and more generous welfare will attract people who can earn more through welfare and avoid crippling income taxes - i.e. unproductive workers - and repel those who aim to succeed through work. The whole notion of taxing work income at punitive levels in the UK and Europe needs to be re thought entirely.
No, the point is well made.
The relatively high level of US government borrowing, which supports government consumption expenditures and public gross investment, compensates for deficient private domestic investment in USA, and sustains a higher level of growth than would otherwise occur (other things being equal).
@@bullionjohnson9626 I'm always surprised how few understand how USD works in particular and the US in general. It's like most work very hard to avoid making an effort and learn.
@@pritapp788 the difference is that the US can easily borrow that much because it's still an acceptable percentage of annual GDP. And when you consider that the US economy always grows at very good rate year after year, it's not an issue to borrow large amounts of money if it's going to be used to stimulate the economy. If the US economy started to stagnate or shrink like the UK's in recent years, the US would not be allowed to borrow nearly as much - and if they did anyway, the interest rates would be extremely high.
The UK seems to be choosing the worst of both options, austerity AND increase in taxes. So the government is trying to save money AND taking even more of their citizen's disposable income. How is the economy supposed to grow if you don't spend on things to stimulate growth while also taking all of your citizens' money, so they can't even stimulate the economy by purchasing products to help small businesses either.
The UK needs to deregulate almost entirely to make investment attractive to foreign investors. There simply isn't enough cash lying around in British pockets, due to extended failure of the government's policies, to truly facilitate an economic growth rate that can actually improve people's lives. You guys need to attract foreign companies to set up shop in the UK, creating high paying jobs and new industries.
The issue is the UK is in a spiral and isn't really known for anything in the world apart from a place to funnel dodgy money through the city. USA = big tech and pharma, Germany = Engineering, France = luxury, Switzerland = wealth + engineering, Japan = quality, South Korea = industrials. Some small bright spots though - at least AstraZeneca (half swedish) and rolls royce engines are probably looking good for the future and BP and Shell (half dutch) aren't going anywhere. Always strange to me who works in engineering to note that the Brits are amongst the best in the world (and I would say actually the best at high end problem solving engineering) but the best paid jobs (and where all the money is made) for that are in USA, Canada, Germany, Scandinavia.
The brits are smart and creative. Many inventions have come out of an English garden workshop or shed...
the population are thick and the politicians are corrupt. its a hellscape !!
The only solution that I envisage to this tax solution, is to kick this waist of space Government out. Because they will continue to destroy this country, don't work barter and use cash stay away from mainstream businesses
Thank you for this. I think it would be a good idea at the beginning of the video to invite the viewers to use the pause button in order to be able to peruse the graphs properly. I find the graph at 2:02 most confusing. Could you use a simpler layout. ? Keep up the good work.
Well done Tejvan and thank you,
This is a brilliant piece of work. You have dugout some really informative figures, tables and graphs.
The only problem is that I prefer happy endings 🤣
I cannot imagine anything being significantly better in 5 years time whoever gets elected.
All my life I have had strong views about what the government should be doing, but now I don't see any solutions.
I think to use the immortal words rom Dad's Army, "Don't panic", BUT "We're doomed"
Cracking analysis as always btw, please keep them coming 😬
Thanks for doing this video, I wish everyone is the UK could see this as it shows the rounded picture and not just a squabble over a single data point. Some days I feel truly fearful for the future of this country, other days optimistic when you see what is possible. But it’s going to take some fantastic leadership from the government and councils to guide us through this and in a world where politicians seem more polarized than ever I just don’t see where those leaders are going to come from.
Awesome. Brilliant. Excellent content. Well said. Spot on.
tax breaks for businesses but no tax breaks for working people
CZcams Kieran Kaur “ACCOUNTANT EXPOSES: The UK Tax Regime Isn't Set Up For You To Get Rich” 5:49 Multimillionaire Rishi Sunak paid an overall tax rate of only 23%! The system is designed to tax workers not the wealthy who get most of their income from living off their assets. Tax wealth.
The system is designed to prevent real economic growth because artificially low interest rates mean efficient resource allocation cannot happen... Back in the day businesses got a loan, paid it off then reinvested their revenue to expand, but artificially low rates creates an ever growing gap between asset prices and output price( what workers are also paid with) preventing businesses from being able to expand by reinvesting. All the government talks about is "investment has increased" but they don't ever talk about the actual effectiveness of that investment, because that keeps falling.
@@bengardener8928
Very good observation.
It's the immoral inflationary system of fiduciary money which is causing this trouble, robbing ordinary people from savings, not allowing to accumulate capital, incentivasing only short term investments, rent seeking and speculation. What you describe on the other hand was the regular capitalism which was deflationary so the ordinary people benefited from the economic growth, while also allowing hard working people to accumulate capital and become rich at some point. Those times were unfortunately gone when the debt driven, inflationary economy was put in place.
Reg NHS; The problem is not the funding. It is the system. UK doesn't focus on preventative care. It is more like emergency care which costs us more at the end. Simple cases end up being chronic or more hard to cure due to the system-in-place.
The Tories have a history of using tax cuts before general elections to appeal to voters and improve their electoral prospects.
The government's total lack of public investment combined with prolonged tax cuts and cutting public spending has led to a slowdown in overall economic activity, increasing job losses, decreased consumer confidence, and a strain on public services.
All these factors have weakened the UK economy's ability to innovate, compete globally, and sustain long-term growth.
The only way to grow manufacturing in Britain is to make it cheaper to make things here.
Not going to happen when minimum wage is £11.44 p/h.
Housing costs have caused all this.
We have high labour costs, high energy costs, low productivity and poor infrastructure. Good luck with that...
Literally impossible to compete without causing a complete economic meltdown. Only niche UK manufacturers with a strong USP can and will ever be able to survive. Far better to focus on our strengths than flogging a dead horse.
Manufacturing requires cheap energy. We want the opposite of that. We should be fracking.
@@ridethelakes "Far better to focus on our strengths."
List them.
Very clear, straightforward and unbiased explanation, as usual. Great work!
Unbiased, same old, same old.
But what is so VERY striking is that neither of the main political parties (nor indeed, most of the others, certainly not Reform 🤡), are capable of being so honest and blunt with the electorate, laying out in this fairly broad and comprehensive way the strategic and longer term economic and fiscal problems facing the UK, and "levelling" with the voters.
Until leading politicians and the main political parties are prepared to start educating the UK population and explaining about the main political, social and economic challenges facing the country - currently, they do the precise opposite, and "jump through hoops" to avoid discussing these matters and the uncomfortable trade-offs that will need to be made - there's not much hope of any real change or improvement.
Yes, there is and has been for decades insufficient dialogue, and little understanding of the potential benefits of embracing taxation.
What I hear in this vid about the cost of healthcare reminds me of what was stated already some years ago about the cost of healthcare in the USA…..
Heading towards 30% obesity and around 20% diabetes in the US’ population it was estimated these ‘luxury-diseases’ would in costs surpass all the wars the USA has fought since WWII….
Obesity can be a disease of poverty, as can be diabetes, rickets, blindness and T.B.
@@rosalindchrister Eeeehhm yeah…. possibly…
But you’ld have a hard time convincing me there is no money to prepare a decent meal if there is money enough to buy a ‘meal’ for several people at the Mc Donalds….
I do snack occaisionally…. if I am in hurry…. and I don’t mind, mosttimes even like it!!!
But pretty much standard I eat a decent breakfast, something nice for lunch (sometimes cold, many times warm..) and when I prepare my dinner at night; vegetables are ALWAYS there!!!
I work 60 odd hrs/week, and I’m 61 yrs of age…. most of my work is physically very intense and I found out by experience it keeps me happy, fit and healthy!!
Btw I don’t give a toss about the amount of calories I eat*, but I do avoid sugar, and I never drink soda….
I never leave the house without a bottle of water I easily drink a few litres/24hrs….
I am 1.86m tall and always around 85kg of bodyweight**…. for over 40 years by now… and pretty fit for my age….
* Most of the calories I eat come from Vegetable oil, I don’t eat all that much meat….. I DO love mayonaisse!!
** 6’1”/190LBS
My advise???
BE ACTIVE!! (office jobs S*CK!!!) …. eat healthy, drink water instead of soda, cook your own healthy meal using ‘old-fashioned’ ingredients!!
If necessary ask your grandparents: they’ll know!!!
Greetings,kind regards, Henk…
(From the Netherlands…)
@@rosalindchristerObesity is not a disease...it is a lifestyle.
Very much so in many though not all instances.
I'm earning way above average, yet I'm planning to leave this sinking ship. I'm being bombarded with new taxes, non stop rising costs, I can't secure a house for myself, because if something decent pops up, it's gone after 24h. Yet the government wants even more from me, to cover hotels and social houses for illegals. Good luck UK, you are going to need it. I'm signing out.
TLDR; the UK is finished, it was fun while it lasted lads. Cheers 🍻
@@lewishamilton9577 yep. I have lived my life being a truth seeker with rationality above all else. The writing has been on the wall since the early 2000s
UK taxes are ridiculously higher and unbearable while cost of living extremely high. Our taxes go to unwanted wars which aren’t ours
AND HOUSING DODGY MIGRANTS
I don’t mind paying taxes if I see where the money goes. Where has all the tax revenue gone in the last 14 years. Not on schools, roads, NHS, or local communities. Follow the money and you’ll find the problem.
It's gone to Sunak laughing all the way to the bank and california
It's gone to Sunak laughing all the to the bank and california
It's gone to Sunak laughing all the to the bank and california
According to the calculations of the European Bank, taxes in the UK will have to increase by sixty-five to seventy percent if it is to cover the blow of the withdrawal of the Euro clearing, which will cost the English state around ninety billion in revenue and this will only cover part of the costs of the current loans
The system is designed to prevent real economic growth because artificially low interest rates mean efficient resource allocation cannot happen... Back in the day businesses got a loan, paid it off then reinvested their revenue to expand, but artificially low rates creates an ever growing gap between asset prices and output price( what workers are also paid with) preventing businesses from being able to expand by reinvesting. All the government talks about is "investment has increased" but they don't ever talk about the actual effectiveness of that investment, because that keeps falling.
What's the point in more and more investment if it leads to less and less growth/ makes businesses unable to expand by reinvesting their actual output?
If interest rates are low, doesn't it make it cheaper for businesses to boroow for capital investment? Why didn't they do so when interest rates were low? Why aren't banks lending to business any more?
If interest rates are low, doesn't it make it cheaper for businesses to borrow for capital investment? Why didn't they do so when interest rates were low? Why aren't banks lending to business any more?
@@CuriousCrow-mp4cx Yes it does make it cheaper to borrow, it "increases investment" but at the same time it reduces the effectiveness of the investments by inflating asset prices away from the value of their output, meaning businesses cannot expand by reinvesting their actual revenues to meet demand. When interest rates are 5% it means that no business can borrow more than 20 years profit, this keeps asset prices in a range of 1-20 relative to output, when they drop to near 0% as they did for many years, asset prices will rise infinite relative to output (1-100 gap), known as the theory of fruitification. This all leads to a shrinking real economy with falling productivity and falling living standards. CZcams algorithm will probably hide this comment.
@@CuriousCrow-mp4cx That leads to supply shortages. Due to businesses not being able to expand by reinvesting the revenues from actual consumer spending as their growth is displaced by borrowing at lower and lower rates, buying the assets for things that are only given the illusion of being profitable due to the artificially low interest rates Eventually the supply chain breakdown and shortages will force rates up. If you have a growing population you need interest rates to go up overtime so that borrowing is done for ideas that produce a return above the rate of interest to meet the needs of the population, because as the population grows you need to produce more from the same resources.That is what interest rates do, ensure assets are being used productively enough to meet the needs of the people.
The UK has sovereign control over its money supply and based on MMT has ample scope to create money for investment. We certainly need it to improve productivity.
sure, because paying with a freshly printed 1.000 pound note for a leaf of bread and no change back is so helping the economy. Ask "sovereign money control" Zimbabwe and Argentina how much it helped them..
Sovereign Uk is just another mini budget away from again being corrected by the financial markets in their perception of its sovereignty.
What is money in the modern era?
3% Physical Money
1% Central Bank credits
97% Bank Credit
Money creation was outsourced to the bank sector decades ago. And now the banks have more money than the government, and most governments are technically bankrupt, with their sovereign debt exceeding both their GDI and GDP. Furthermore, that outstanding debt needs to be serviced and repaid. MMT doesn't take into account the impact of printing more money into creation has on inflation.
@@ab-ym3bf Did you notice that with the massive amounts of QE? Added to this, the Bank of England has control over inflation.
@@CuriousCrow-mp4cx The UK debt could in theory be repaid overnight. It would just have to create enough new money (not print) to repay that debt. In practice of course that would be problematic. Government has created hundreds of billions of pounds of new money for QE.
The trajectory of UK taxes rising underscores the challenges governments face in maintaining essential services amid increasing demands. However, amidst this fiscal landscape, the crypto market stands out as a beacon of opportunity. With its potential for substantial earnings and wealth creation, savvy investors are harnessing its power to navigate economic uncertainties and secure their financial futures.
Certainly! Achieving impressive returns is very possible, especially with the current market conditions. However, executing these transactions requires expertise, so seeking advice from seasoned market professionals is key.
Bitcoin's recent milestone of surpassing the $70k threshold warrants acknowledgment. This surge has significantly elevated my portfolio from five-digit to six-digit territory, with further increases on the horizon.
After jumping on the bullrun last month, l've racked up over 1.7 mil by following the advice of a mentor my spouse suggested. Even though I was kinda unsure at first, talking to the mentor has really paid off.
Could you please tell me who your advisor is that provides guidance for you?
Mayra Femia Hetrick is the licensed advisor I use.
Just Google her name. You'd find necessary details to work with to set up an appointment
The problem with the uk is we have far too many public service jobs.
Too many jobs, yes. That's a serious problem. Is there evidence that the UK has far more public sector jobs than equivalent countries?
@jaju123456 yes there is, it's a known fact shared by many (I believe we have about 5 million which is about 15 - 20% of all jobs) European countries have 10%.
Those public service workers think that is what civilization means... The government employing everyone 🤣
@@Goady1000
Your claim here would warrant significant further investigation (you offer NO SOURCES WHATEVER for your "known fact" 😂)
While you go away and do some research to offer evidence for your claim, Here is (from Wikipedia) "a list of countries by public sector size, calculated as the number of public sector employees as a percentage of the total workforce. Information is based mainly on data from the OECD[1][2][3] and the ILO.[4] If a source has figures for more than one year, only the most recent figure is used (with notes for exceptional circumstances)."
Highlights:
COUNTRY >>> OECD >>> ILO
Australia >>> 20.4% (2012) >>> 28.9% (2020)
Belgium >>> 21.5% (2013) >>> 21.1% (2019)
Canada >>> 22.4% (2013) >>> 21.2% (2022)
China >>> [no data] >>> 28.0% (2012)
Denmark >>> 32.9% (2011) >>> 30.2% (2020)
Germany >>> 15.3% (2012) >>> 12.9% (2013)
France >>> 28.0% (2013) >>> 20.0% (2022)
Italy >>> 18.3% (2013) >>> 16.0% (2013)
Norway >>> 35.6% (2013) >>> 32.2% (2020)
Sweden >>> 29.9% (2013) >>> 29.3% (2020)
UK >>> 21.5% (2013) 22.5% (2020)
USA >>> 17.6% (2013) 13.4% (2022)
Bear in mind also that the UK figure has grown VERY substantially since Brexit, with the number of additional civil service jobs which have had to be created in order to manage functions/activities which were previously managed by EU officials on behalf of the UK together with 27 other Member States. The UK numbers are up by 100,000 new civil service posts since 2016.
Indeed, we learnt just 3 days ago that the UK has managed to create considerably more NEW civil service jobs since 2016 than the total number of ALL the EU employees in ALL of the EU institutions combined (32,000 in the European Commission, 79,000 in all EU institutions combined).
@@jaju123456too many boxcheckers is what OP meant
The government doesn't have to be the messiah of everything. Cut down all non-essential services. Privatise and reduce taxes. Let people keep more of their money and decide what services they want.
What was said to me many years ago is coming true. It was taxes would rise to 110%. so nobody could pay them so would have to borrow. It would just get worse.
£ 15 million a day on fake holiday makers whilst blaming pensioners for rising taxes just does not ring true.
We'll soon be taxed as much as Denmark but without any of the benefits of a homogeneous society with great social programmes.
I buy my partner, I mean my wife a bit of gold every 6 months…by the time we are 65 years old we should have a small treasure chest that the usurious bankers can not devalue. In fact, the more usurious Monopoly money printing they do, the more gold increases in value. Down with the usurious bankers, down with the usurious!
Reduce spending on private sector services in the NHS! £30 an hour for cleaning and £200 to change a lightbulb aren't value for money, this is were the cash is going
Its no surprise to me that three of the most successful Countries in the World show up as low tax on your tax graph, USA, Switzerland and Ireland. Its high taxes and far too much easy welfare that cripple Countries. Just wait until Labour get in then your taxes and wasteful spending will rocket
That's a Tory myth, the economy does better under Labour, but Starmer is just Tory lite and will stick to Tory plans and austerity. The system is broken, and was deliberate.
@@battybibliophile-Clare HaHa, nonsense, we have had 2 long periods of Labour Government in my life time and both times they ran out of other peoples money, be careful what you wish for but if you insist on Labour, enjoy paying much higher taxes and having millions of illegal's
We briefly had a prime minister that wanted to lower taxes - she was forced out by the banking and media elite.
@@battybibliophile-Clare we will see, they certainly did not do better the last 2 times they were in power
@@garyb455 nor have the Tories. Tell me one thing that has improved in the last 14 years.
Taxes will keep rising because the general public have an expectation of the level of services "they deserve" but are oblivious as to whether the country is generating the income to meet their expectation. UK is in decline. GDP per capita has been falling for a while. As it's not a vote winner to own up we are screwed, no one is going to tell the general public any of this.
Like a lot of people, I pay five figures in income tax alone, but get barely anything in return. In fact, it seems that government (especially local government) take great pleasure in spending the money they took from us by force, on things that actively make our lives more miserable.
The UK is absolutely screwed unless taxes increase massively (ideally via wealth based taxes), we need huge investment in public services. I lived in NL for 13 years, taxes way higher, but boy was it a wonderful place to live, healthcare great, public transport amazing, infrastructure another planet compared to UK
While I agree with what you're saying about increasing taxes.
My fear is the UK government is far more incompetent in comparison to the NL government. The extra taxes will only get squandered.
@@HoeDizzleFoShizzle yeah I’m with you, we are fully dependent on a change of government and massive improvements in management, NL was very impressive, everything seems to work well.
Tgeg should tax business not the people we have nothing left to give
@@michellegore that’s why I said wealth taxes, there are a lot of multimillionaires n the UK that can afford to pay more tax, many other countries in EU have net asset based wealth taxes (FR,ES,PT,NL,CH,BE)
No amount of tax increases will pay for the government because they suppress the interest rate leading to inefficient resource allocation and falling productivity. Had they funded things from taxes all along then they would not need to suppress the interest rates and we would have efficient resource allocation as a result and the economy would therefore grow by more yearly so taxes could fall while the quality of what we receive for it increase. When you don't let efficient resource allocation happen though, the government will end up consuming 100% of taxes and they won't even be enough to pay for the debt, let alone the actual public services.
Great video, thank you. I’m not sure obesity and diabetes are diseases of affluence in developed economies anymore though as they are disproportionally associated with areas of deprivation within these economies.
Privatisation has reduced the money in circulation , profits have gone to the rich who invest in assets or offshore rather than spend it so tax can't be collected . The burden then transfers to working people! Housing benefit is a big growth bill due to not building council houses !
Only people that paid into the system by working should get the state pension. In this country, even if you’re on benefits you get one. It’s absolutely ridiculous.
I always thought the idea is people having more and more rising income, increased savings and increase overall quality of life and not take half of that via taxes.
He's great!
Some people want the government to do everything for them, some people just want the government to leave them alone.
I want the government to be minimal. They’re useless at almost everything.
You also have backroom managers on massive salaries removing money left right and center diverting the money back to government
Weve just had a 2p vote winner reduction in NI. If that doesn't raise the pension age I don't know what will. In Holland, you pay a monthly social insurance tax, but are guaranteed a place in a good care home if you need one, without having to sell your home.
As a bolivian farmer who never left my village, i agree with tax increases in UK.
As we are unable in the U.K. to contemplate a European style hybrid health insurance system, then ring fence a health tax so at least we can know what service we get for what we pay. We can then have an adult debate about whether the amount paid versus service received should be more or less. Secondly introduce a compulsory insurance payment for old age care as they do in Germany.
We used to have that, it was called National Insurance.
So basically, Wage stagnation, low productivity, increased benefits, over populated prisons, nhs unable to meet demand, people living longer, and an increasing population.
What could possibly go wrong!!!!
The lie that people are living longer is the biggest con purported by politicians, especially the Tories. 100-200 years ago, the infant mortality rate was very high compared to now. Anyone then who lived past their teenage years would live into their 70s-80s mostly.
Today, mostly everyone lives into their 70s and 80s. Very few survive past 90.
Due to the fact they use averages it looks like we are living longer, but it’s a lie. Sure, some will benefit with treatments etc, but humans have a limit and no magic can make us all live well into our 90s.
Look around. How many do you know who have passed away in their 60s, 70s and 80s today. I bet there are many. Look at your grandparents and great-grandparents. I noticed mine lived between 75-103! All of them and they were born in the late 1800s and early 1900s.
Yes.
Plus an NHS that is not treating and getting them back to work paying tax’s.
Myself advised to come back to A & E when I’ve had a heart attack and not just all the signs and unstable angina, I’ve had 2 heart attacks and 2 stints fitted.
Oh I’ll be dead, it’s a LDA blockage currently at 35% more drugs is the answer.
Wave good bye to my tax contribution in a few years.
Take care M.
Don't worry, the bank will print more money to lend to the government and suppress the interest rate so it all looks sustainable, while normal people break their backs for nothing.
@@markeh1971 the NHS should be preventing all this 🤨🤔, it's crazy how it has that many people waiting and a lot of people suffering and they're not meeting the demand and government don't seem to really care.
2:33 is this correct? there is an unemployment benefits? Then why work?
Tax wealth not work
I gave up. Fortunately brexit didn’t prevent me from moving out of the uk (as I’m half Swiss). Now living in Madeira and whilst the taxes are higher I can see a doctor THE NEXT DAY. Unfortunately the uk only favour older people hence the obsession with house prices
They don’t favor older people otherwise pensions would be higher. They don’t favor anyone but the wealthy. Never vote Tories again. Taxes on the wealthy need to be restored so you aren’t forced to work until you’re 75! There is no quality of retirement in your late 70s and 80s.
@@josephj6521I’m generalising here but I would say most boomers are wealthy. The government have pulled every trick in the book to keep house prices high it’s sickening
How long is a piece of string?
We have to take stock of what we can actually afford in terms of public services and spend on priority areas. In addition we need to reinforce success and give hope to those who are successful at what they do. Not tax them to death. On the flip side those that do not contribute or contribute little should expect little in return. Finally, the state pension should only be a top up, not a liveable income. Any politician suggesting doing any of these things will not get anywhere in our democracy.
How's about not starting nor prolonging wars around the world.
That'll lower taxes and improve peoples life's by actually being alive!!
Record numbers people are playing the system and effectively retiring early by signing onto disability benefits: over 1 in 5 of working age are disabled! (Half of over fifties are disabled).
And your medical degree is from Smear Anonymous University? I think you were cheated.
You really should try applying for disability benefits when you are of working age in the UK, that has a system where terminally ill patients are found fit for work. And nearly everyone who appeals that decision in a legal tribunal wins their case. That's why the DWP won't publish the figures. And why the governing party is heading for a whitewash at the next election. That's what happen when you become the instrument of sociopaths.
Source?
Please provide proof of this.
@@TheXOtaryX UK labour market statistics house of commons library: 21.8% of working population economically inactive due to disability. The main reason for the increase in disability (or early retirement) is because of government incentive: don't have to work, get free housing, council tax and spending money. Because Brits don't want to work conservatives have brought in 6 million immigrants.
@@calvinsmith1295 www.gov.uk/government/statistics/the-employment-of-disabled-people-2023/employment-of-disabled-people-2023#:~:text=The%20latest%20quarterly%20data%20for,and%20the%20gap%20remains%20unchanged.&text=The%20latest%20data%20shows%20that,population%20are%20classed%20as%20disabled
Public investment, tax cuts for startups and breaks for manufacturing companies are but a few things the U.K. must do to become economically competitive and productive. People need jobs and the ability to create wealth and these are the best targets to do it. As far as I’m concerned, the burden of taxes should fall upon the financial sector in order to subsidise these programmes- a special 0.1% transaction tax could raise £billions and prevent working people from having to bear the burden of tax increases.
And what would prevent the financial sector to push that tax on the consumer? In the end you and I would pay it anyhow.
The basic problem is low productivity. Mend that and everything else improves. All the more reason when the BoE brought in ultra low interest rates by QE that there should have been government involvement in increasing investment in productive assets. As it is a lot of the results of QE were to increase stock prices by non productive share buybacks and non productive house price increases. Also increased the generational wealth divide and decreased the birth rate, storing up trouble in the future, as the young could not afford to get married and have children as they couldn't afford a house.
Work doesn't pay, tax is too high. Lower tax equals higher productivity.
Why are heads of companies getting record pay rises and bonuses when productivity by workers is so low.
@@akhusal They are not all, most UK businesses are underperforming. The FTSE 100 only went up 2.3% in 2023 compared to the US s&p 500 that went up 24%. The pay rises you are seeing are in sectors such as energy where the recent price shocks have given an opportunity for price gouging.
@@ridethelakes compensation of the top CEOs increased 1,322.2% from 1978 to 2020 (adjusting for inflation). Top CEO compensation grew roughly 60% faster than stock market growth during this period and far eclipsed the slow 18.0% growth in a typical worker’s annual compensation.
1. Its not like we are spending small amount for NHS. This institution is poorly managed, and so while people cannot get to GP they end up at A&E where it generates higher costs. While in UK health services are free, we should impose fee for not showing up, as people treat it exactly as cost free, when in fact it not only generates cost but also creates longer waiting times when they don’t show up. Same with people with addictions or diseases associated with their lifestyle choices - they should be charged for treating diseases they are solely responsible for.
2. Instead of rising taxes for ordinary people who are paying more and more due to higher taxes, inflation etc, which makes their real wages lower than years ago, government should focus on taxing the ultra rich and companies like Amazon, which doesn’t pay much of a tax and destroy small companies which are hear of our economy.
3. Government shouldn’t focus on their short term interests and election which normally should be in a 4-5 year circles but lately were hold even more often, and plan for long term. This country haven’t seen a real growth since years which would be more beneficial than tax rises. Additionally they did thing like Brexit etc, which made it even worse…
4. With higher taxes UK will be even less competitive and it’s growth will be lower and lower, so where does this tax rises end up? 🤔
The more automation and AI eliminate working class jobs, the closer to elimination of state pension we get. Without increased contributions the funds will disappear.
I fail to believe the UK isn't the highest taxed country in the world when you factor in the amount of stealth taxes such as NI, council tax, emissions tax, 80% of fuel. I'm paying well over 60% of my salary on tax despite being a millenial and therefore in destitute poverty to allow rich boomers to continue living their lavish lifestyles
Don't forget inflation, that's a tax too, Falling productivity caused by suppressing the interest rate that causes inefficient resource allocation is another way we pay. They try to get a s much inflation in as short time as possible so that they can get back to 2%, but the reality is, that when inflation goes back to 2%, prices have more than doubled. Inflation can go to 0% by the government maintaining it's spending levels, but they are still way more than double what they would be without that government spending.
UK is pretty low in terms of total tax take worldwide. In the USA I pay local tax, State tax and Federal tax on my earnings as well as sales tax (VAT) and multiple other stealth taxes. And then you have to tip min 20% on almost everything you consume...
@@kevinsyd2012 In the US you have more money after tax than we earn prior to paying any tax. We have many additional taxes also that you do not have such as high fuel duty that means we pay more than twice the amount for fuel, the US has no vat, you have sales tax instead ranging from 2.9-8%.. Here we have vat instead at a flat 20% on pretty much everything. You earn more than twice as much, pa less in tax yet costs of living are less than one percent different overall. The US taxes a total of 17% of GDP, in the UK that is closer to 35%.
@@kevinsyd2012 UK GDP per capita (income per capita) is the same as it was in 2006. Since then in the US it has doubled.
Another strong reason for why wealth should be taxed more than it is, to reduce the tax pressure on incomes, especially for those on lower income.
Destruction of public assets from within ( through mismanagement and corruption ) is a time honoured technique for privatisation in capitalist countries. For example, NHS that was built during the period of socialism in the UK
Nice Jumper.
You didn't mention off-shoring. If these corporations paid the tax they should pay this would surely relieve the tax burden. I guess the response to this would be capital flight. Which is an odd one, because if this is the case, why aren't corporations investing in their host countries? How is it possible to have growth without investment? Leeching off economies is a drift towards economic decline. Which seems to be what's happening.
Advanced technology will require a very different kind of economic model. Experts within the field warn about permanent mass unemployment across all sectors. No-one seems to have a clue!
get rid of the foreign aid budget for starters !
British Roads Are No Longer Fit For Purpose
How does all this compare with EU specifically France, Germany, Italy ?
A couple of years ago the french town where I food shop spent more money developing one carpark than my old district council had to spend on its entire services. They are always undertaking infrastructure projects locally and they spend money as if they're printing themselves.
France, Germany and Italy are on their knees economically. They are each getting emergency funding from the central EU pot.
The more money your throw at the NHS the lower the efficiency ? So where is the improvement in service with all this money ? Could it be the opposite is true ? Defund the NHS and the service will improve ?
well the money is being syphoned off plus the cost of doing business is more so you have to look at rises in real terms vs inflation otherwise a rise is actually a cut if not in line.
Private healthcare is taxed making it unaffordable for many. Remove the tax and private healthcare use will explode and NHS costs will reduce massively.
1$lam don't come cheap
Keep working they are in need
Hope affect onEconomy bring high with increased Tax's
Public transportation and every home is government owned they are doing this around the world .
The problem with the UK is that the country has always wanted good public services whilst paying relatively low taxes.
THE RICHER YOU ARE THE LESS TAX YOU PAY ITS CORRUPTION AT IS VERY BEST .
But the government told me immigration was good for the economy and would make the economy grow lots and lots.
Cheap reliable renewable energy has been with us for 50 years+, it's called nuclear, ask France.
One has to ask, why do we pay tax when 'they' control the money printers, QE! Of course QE simply means everyone pays more stealth tax through inflation, but without increasing production in the UK it's a downward spiral. UK is a cosy target full of benefits for 'incomers' (whilst it's own native population suffers) and so its demise is certain should it continue on the same 'incommer' trajectory, like every other country in Europe bar Poland. Poland has no immigration, let's see your fiscal comparison.
The taxes are not rising to maintain public services, they are rising to pay for ballooning welfare and to service the deficit created by importing millions of people that require state aid to stay housed and fed. Trever Phillips, whist serving as the head of the UK Commission for Racial Equality, wrote an article in 2014 for the Telegraph newspaper berating the UK for the fact that over 50% of Muslim men and 75% of Muslim women rely on state benefits. As there are about 4 million Muslims in the UK, that's an awful lot of housing benefits and welfare payments just so we can be culturally enriched and celebrate the strength of our diversity.
Surprised your post hasn't been deleted but it is very accurate. To confound the problem they have numerous children that also don't work.
@@entropy5431I don't think I'll be deleted as my post is factual and easily checked. I think the Telegraph is behind a paywall but if you have a subscription the article is still available. I'd love to see a break-down of public spending across all sectors. Likewise, I'd love to know how much we are spending on housing foreign born criminals. The fact of the matter is we are being over taxed to pay for resources that would not be needed if we had competent politicians.
I'm a Muslim who works and I get full state benefits to pay for halal food and trips to Saudi Arabia. All my friends get the same. Thank you to tax payers who pay for it
2021 census shows 48% of muslims were not working compared to 29% of all ethnic groups of working age in the UK. With all this racism Muslims have great difficulty getting jobs the same racists then complain they don't work. Some even have to change their name to an English one just to get an interview.
The statistics are not reflective of the most recent available census www.ons.gov.uk/peoplepopulationandcommunity/culturalidentity/religion/articles/religionbyhousinghealthemploymentandeducationenglandandwales/census2021#religion-by-employment-status
Yes Put Taxes on Public more hope your Eeconomy Bring Back keep trying don't give up
Imagine thinking of retirement in this country instead of somewhere in SE Asia
It’s quiet simple ban smoking, drinking and junk food full stop, the vast majority of people’s health will be tip top
Yes I womder why
Retirement at 71? What a joke. One can’t retire on state pension alone anyway. It’s meagre. And those who have a decent private pension accumulated, can retire before state pension age. Again the average Joe on mid to low wage will be the victim of this.
Gotta fill those Cayman Island shadow accounts somehow.
The economy has been almost flat since 2008 and in that time around 10 million immigrants have come into the country, meaning a huge increase in demand for public services without a corresponding increase in tax revenue so the only way to sustain things is an increase in taxes and even then it's still not possible to maintain the level of public services. The more immigrants that come and the higher taxes will have to be and it still won't be enough and eventually the whole thing will collapse.
Some good points, but unfortunately you have a misguided Keynesian understanding of the relationship between growth and government spending.
No state pension for some and will mean you can live your life totally on benefits till 71 years old and if you work you will pay for the rest of the world coming to live here enjoy 😮
Actually, 24% of the budget is "other" - maybe there are some savings opportunities there? I would also drag your attention to 8% of "net debt interest" that is almost twice the defence and it is set to only grow... 10% in social security which is more than the education budget - that's says it all; if somehow we manage to get half of these people back to the economy, we would have 5% less in spending and 5% more in income, that's a 10% budget impact.
I think that the biggest challenge is healthcare; the needs will only grow here, all the optimisation possible will have a huge impact on the budget. There is a lot that could be done to reform the system from negotiating cheaper drugs cost to opening some procedures and GPs to the market, which can do them much cheaper than public healthcare. There are many examples in other countries, putting just more money is clearly not a solution - there's plenty of money there already and the healthcare is collapsing with increasing waiting lists.
They print money,that has the effect of there being more savings than actually exist, suppressing the interest rate and preventing efficient resource allocation that increases real productivity from happening. Yet they print so much money and lend it to themselves so that the only way the debt is affordable is when rates fall to near zero. We pay for the money they create with inflation, increased taxes and lower real productivity and economic stagnation.
What they are doing with central banks, debt, interest rates and causing economic stagnation is right out of the communist manifesto handbook.
@@bengardener8928
Yes, even putting aside the fiscal policy, the inflationary economy disincentivise saving while at the same time incentivise short term investment, rent seeking and speculation. I think it is detrimental to the economy. In old times you needed capital to fund your economical activity, the capital you saved made you and your company more resilient. Now, as you have to borrow money for almost every economic activity you take far more risk and you need higher returns to make up for the interest you pay. That makes economical activity far too risky for most people.
@@bengardener8928Certainly, the Tories have been absolutely dreadful at managing the economy. To the point we're I suspect it's deliberate.
If they would spend the money on the public, on the country, instead of on their wealthy chums we wouldn't have even a tenth of the problems we do now.
There's no need for austerity and there never was.
@@debbiegilmour6171 It's every government in every western country doing the same thing and every political party wanting to do the same things economically, even the general public want it because none of them educate themselves on the consequences of ZIRP/NIRP and how that screws the real economy for everybody.
Alternative: Get rid of the NHS.
Dragging us down like a boat anchor. Now, try selling that to the British public who mostly firmly believe in “free” cradle to grave healthcare for all. Labour are promising to expand it.
Put very broadly, the young and the healthy are forced topay for it, so that the old and the sick can use it. What if they think that isn't worth it any more? The other factor is they can't retain staff because the pay is too low.
Don't get rid of the NHS but remove taxes for private healthcare. Use of private health services would boom and reduce NHS use and costs massively.
@@maxilopez1596 Healthy, until one day you got an accident and will need it. Once you do, you will treasure it - I bet you wouldn't be able to afford private care, when it comes to it.
We need Reform to get in. There should also be a law regarding WEF puppet’s being excluded from anything to do with government.
The last thing this country needs is populist parties funded opaquely by the richest to do their bidding.
That’s all Reform is, a wolf in sheep’s clothing for some of the most exploitative capitalists out there. We’re in the middle of the biggest class struggle since the 1800s and the rich are trying to make us turn on each other rather than them.
UK: Increasingly 'bloated' and less efficient state sector (non-wealth creating, big pensions). Increasingly 'bloated' and inefficient NHS sector, despite increased year on year funding (too much waste & way too many non-medical, diversity managers!). Increased fiscal de-incentivisation, for both small to medium sized start-up and legacy businesses (reducing potential tax take). Increased tax burden on existing tax payers to make up the shortfall (unsustainable in the longer term).
Anyone could be forgiven for thinking that this country is undergoing orchestrated, managed decline - IF (permitted) continuing 'swelling' immigration levels takes more from than gives to the Public Purse (welfare expenditure!) Britain, and it's swelling National Debt, will be unsustainable...
This is all because the Labour Party socialists sold all our gold at record lows! Do a video on Labour selling the gold please.
oh not that old rubbish again. Tell you what, instead of blaming the past why don't you blame the present. Better still, stop blaming and start making your life better.
Yes it was Labour Gordon Brown sold of our gold !
@@user-mx1gh3mn3w and the Conservatives that took us out of the EU, they sold our future,
Whilst I enjoy his videos and they are good quality and informative, he does have a strong left wing remainer bias so I doubt he would be doing that video anytime soon.
So gold in the value of £2.4BIL was sold, not a great deal indeed. Now, let's compare it with water companies, gas, petrol and so on that was sold(outsourced) to private companies. That will outrage you, seeker of truth.
Rickets!
No more!
Well as the population rises - tax rises
Every Millionaire in our Nation please just look across your workforce, look those people in the eye, they work hard for you each and every day to pay for the food on the family table. They give your company their all, for a multitude of reasons but never the less, those people are, your company and without them you don't have a company. Stand up and vote Reform uk and those very same people will stand up and support your company with all they have. Leadership in industry, requires a contract of mutual agreement on both sides of the spectrum and when you have it,,, You no longer have two sides you have a family, all working for success in one direction, FORWARD. Vote Reform and change a Nation.
Vote Reform and shuffle the deck chairs.
Vote Reform and shuffle the deck chairs.
The uk is £2.5Trillion in debt
And who owns some o that debt. The super rich.
Everything is nationalised for profit. Who owns these institutions. The super rich.
Everything is outsourced for profit, from bin collection too social care.
Again who owns these companies.
The uk has less assets across the board. And who now owns these assets. Super rich.
Taxation favours the super rich
The whole system of unregulated capitalism is broken. As a country if 70% of people haven’t got the spending power like it used to. The economy won’t grow its a simple as that.
A wealth tax of various ways needs to be implemented on the bases of national security in my opinion. Equally the major utilities needs to be nationalised and at a local level we need outsourcing to stop . The profiteering is crippling the economy across the board.
If the status quo continues it will get worse, poverty will
Continue to increase and own home ownership will decrease. I’m curtain of it.
The tories need to be booted out and permanently. Radical change is required.
If my pension was the same as EU levels it would not be crippling being subject to these unprecedented tax levels, but its not and it is crippling. We always vote remember.
Taxes are higher in the EU to pay for the pensions
Penny Peterson spoke of appropriate word.
only low taxes will increase gov revenue, not high taxes
That's correct, because the real economy is us spending our own money and the businesses we spend in using that to grow their business to meet the needs of the consumer. Artificially low interest rates though work by creating a huge gap between output and asset prices, causing businesses that could double every 5-10 years when rates were 10% to have a much longer doubling time. They cannot expand anymore and the market therefore no longer is a reflection of the consumer spending.
This is all by design. Look up the consequences of artificially low interest rates on resource allocation, because artificially low interest rates are now the only way government spending "appear" sustainable. We need to educate eachother on these things and talk about it in the pub instead of spots and other nonsense.
Liz truss agrees with you
Not really.
I mean yeah this is true if you ignore all the other options available