If you were Chancellor, what changes would you make?

[Macman]

As the title says?

And not on all policies, just curious what is other peoples take is on economy?

[ik9000]

More tax on the uber wealthy
Tax buy to let to the point it is no longer viable - end ability to get domestic mortgages and offset interest only deals, make it business rate loans and mandatory % of all landlords' rental income to go to council house building funds. The % increases on a sliding scale to prevent landlord simply jacking up rent.
Tax overseas property purchases of UK property 300% of sale price.
Property sales in UK must be sold to UK tax-paying residents who must personally live in the property and pay full income taxes etc for the next 3 years. False declarations punishable by heavy fines. New build developments must be offered for sale to UK market for at least a year prior to offering overseas.
Increase council tax to stop this BS about privatising parks, public toilets and the like
Abolish speed cameras, raise speed limits on motorway
Increase tax to fund NHS
Wealth exit tax on corporations and individuals trying to move their money offshore.
Build nuclear power stations, have state generated power surplus, supply the north of Europe and subsidise our economy (the French model)

"You're a moron" fines on idiots who cost the public purse through recklessness and deliberate nefarious misdeeds. Burglars who try to sue for injuries sustained breaking and entering, drunk drivers who smash down lampposts/worse, etc.
Increase VAT for X-factor singles, merchandise and similar to encourage better lifestyle choices.
5000% VAT increase on any apple product shipped with nasty cheapo headphones. To be reduced once they start taking their responsibility seriously and supply noise-isolation in-ear phones that don't affect fellow commuters.
Remove VAT on feminine hygeine products and birth control goods (seriously - this day and age they are not luxuries!)
100% VAT on 4x4s, SUVs and other twatty wagons to any non-farmers living south of the Penines.
Tourist party levy of £10 per person per day for groups over 5 people to compensate for the pavement blocking shear incovenience they cause people trying to get to/from work
150p tax rate on underground staff for the time they're on strike.

[Zak33]

I wouldn't have increased IPT

I would continue to slowly increase the tax bandings so peoples allowances grew for pre tax earnings

and I'd somehow... somehow....I'd increase the amount of swimming pools so it was possible to swim for sensible money (£3 max) without sharing each lane with 40 other people.

[Gerrard]

The only thing I know about economics on a national scale is that I don't have a clue about it! However...

Tax buy to let to the point it is no longer viable - end ability to get domestic mortgages and offset interest only deals, make it business rate loans and mandatory % of all landlords' rental income to go to council house building funds.

I agree with the general idea of this. Maybe make it sliding scale so having one property isn't too bad, but more than, say 3, would be pointless.

Abolish speed cameras

Disagree with this in principle, as annoying as they are. I would focus more on sensible speed limits for roads. For example, a lot of national speed A-roads are becoming 50mph now in Oxfordshire.

Build nuclear power stations, have state generated power surplus, supply the north of Europe and subsidise our economy (the French model)

Definately. Green power is all well and good, but nuclear is the best way forward for now. I had heard of an outlandish idea of getting geothermal power from Iceland!

Remove VAT on feminine hygeine products and birth control goods (seriously - this day and age they are not luxuries!)

Has been mentioned here before, but redefining what gets VAT and maybe increasing it 25% sounded like a good idea. In theory, it shouldn't affect the poorest and as we saw when they were fiddling with the rates a few years ago, it made little difference to the average person.
In addition to this, raise the VAT on fuel (at a sepearate rate to "normal" VAT) and reduce the duty by the same amount. I think this wouldn't affect the average motorist (the duty seems to go up each year anyway, so stopping that would offset the higher percentage of VAT as the price went up) but helps transport costs? Not sure if that is how it would work...

[Jowsey]

More tax on the uber wealthy

You need to be careful with tax the very rich, as by virtue of their wealth they are the most financially mobile. You raise the top level of tax to 60%, 65% etc. then you can just wave buy buy to those people. This would also have a knock on effect of there spending not being done in the UK.

Tax buy to let to the point it is no longer viable - end ability to get domestic mortgages and offset interest only deals, make it business rate loans and mandatory % of all landlords' rental income to go to council house building funds. The % increases on a sliding scale to prevent landlord simply jacking up rent.

...? You seem to have a very skewed opinion of who owns properties on the notion that they will be let as their primary purpose. (I can only comment on my time spent preparing tax returns, so pinch of salt with everything I say). The VAST majority (more than 90%) are people with 1-2 extra properties and these properties fundamentally the corner stones of their pensions. You wish to tax these properties till they aren't viable then you are just crashing through a lot of peoples future lives. Additionally, if you make this more expensive the immediate knock on effect is it becomes more expensive to rent these properties. Then people are locked even tighter into renting a property.

Regarding mortgages, buy-to-let mortgages are a thing and if you know anyone who is renting a property out under the funding of a 'normal' mortgage you should probably inform them they could be potential breaking the mortgage agreement they signed.

Raise speed limits on motorway

Please, the current speed limits were made in time of drum brakes and the mention of crumple zone would be confused as funny kind of crumpet.

"You're a moron" fines on idiots who cost the public purse through recklessness and deliberate nefarious misdeeds. Burglars who try to sue for injuries sustained breaking and entering, drunk drivers who smash down lampposts/worse, etc.

I
In addition to this, at any point the police/ambulance/fire service think there time is being wasted by someone (prank call, drunk people causing bother etc.) the time and materials expended should be billed to the person. Plus vat.

100% VAT on 4x4s, SUVs and other twatty wagons to any non-farmers living south of the Penines.

...Yeah...No. The tax should be on replacement exhausts for motorpeds and subaru imprezza's

150p tax rate on underground staff for the time they're on strike.

Please ! XD

I'll have a think about my policies and update this late, my rush to work!

[ik9000]

You need to be careful with tax the very rich, as by virtue of their wealth they are the most financially mobile. You raise the top level of tax to 60%, 65% etc. then you can just wave buy buy to those people. This would also have a knock on effect of there spending not being done in the UK.

you missed my comment on imposing exit taxes. Frankly we'd have a bit of upset then things would find equilibirum. Let's watch Paris. It's not collapsed into a black-hole since they raised taxes. We've had a few folk come over here gobble up more of the London property market to avoid them, but hardly the mass exodus of Moses time. And no-one left when it was 50p tax rate.

...? You seem to have a very skewed opinion of who owns properties on the notion that they will be let as their primary purpose. (I can only comment on my time spent preparing tax returns, so pinch of salt with everything I say). The VAST majority (more than 90%) are people with 1-2 extra properties and these properties fundamentally the corner stones of their pensions. You wish to tax these properties till they aren't viable then you are just crashing through a lot of peoples future lives. Additionally, if you make this more expensive the immediate knock on effect is it becomes more expensive to rent these properties. Then people are locked even tighter into renting a property.

In times of housing shortage people should not be allowed to own multiple properties. Invest your pension elsewhere. It's quite simple. One man's greed should not impoverish another. Buy to let mortgages should not be allowed IMO. You either live in a house or give another person the chance to be there. If you inherit a fully paid-off house then go ahead and rent it out. But you're limited to 1 extra house. So if you already have a holiday home tough luck. One goes on the market.

...Yeah...No. The tax should be on replacement exhausts for motorpeds and subaru imprezza's

Ooh good one. But they would then just not buy them making them even louder and anti-social. Tax on dB emitted per minute. Mandatory noice sensors on all vehicles. Anything hitting 50dB racks up £10 per minute auto-linked to the bank account. That would stop these nob-heads taking silencers off and driving round with music blasting out.

[opel80uk]

More tax on the uber wealthy
Tax buy to let to the point it is no longer viable - end ability to get domestic mortgages and offset interest only deals, make it business rate loans and mandatory % of all landlords' rental income to go to council house building funds. The % increases on a sliding scale to prevent landlord simply jacking up rent.
Tax overseas property purchases of UK property 300% of sale price.
Property sales in UK must be sold to UK tax-paying residents who must personally live in the property and pay full income taxes etc for the next 3 years. False declarations punishable by heavy fines. New build developments must be offered for sale to UK market for at least a year prior to offering overseas.
Increase council tax to stop this BS about privatising parks, public toilets and the like
Abolish speed cameras, raise speed limits on motorway
Increase tax to fund NHS
Wealth exit tax on corporations and individuals trying to move their money offshore.
Build nuclear power stations, have state generated power surplus, supply the north of Europe and subsidise our economy (the French model)

"You're a moron" fines on idiots who cost the public purse through recklessness and deliberate nefarious misdeeds. Burglars who try to sue for injuries sustained breaking and entering, drunk drivers who smash down lampposts/worse, etc.
Increase VAT for X-factor singles, merchandise and similar to encourage better lifestyle choices.
5000% VAT increase on any apple product shipped with nasty cheapo headphones. To be reduced once they start taking their responsibility seriously and supply noise-isolation in-ear phones that don't affect fellow commuters.
Remove VAT on feminine hygeine products and birth control goods (seriously - this day and age they are not luxuries!)
100% VAT on 4x4s, SUVs and other twatty wagons to any non-farmers living south of the Penines.
Tourist party levy of £10 per person per day for groups over 5 people to compensate for the pavement blocking shear incovenience they cause people trying to get to/from work
150p tax rate on underground staff for the time they're on strike.

I would seriously consider voting for you if you stood on that platform. Not something I ever thought I'd say! (Well the first part anyway)

[Jowsey]

you missed my comment on imposing exit taxes. Frankly we'd have a bit of upset then things would find equilibirum. Let's watch Paris. It's not collapsed into a black-hole since they raised taxes. We've had a few folk come over here gobble up more of the London property market to avoid them, but hardly the mass exodus of Moses time. And no-one left when it was 50p tax rate.

Perhaps, but previous higher tax rates did see people leave. You'd also have a very hard job of imposing a exit tax due to the free movement of bodies and goods provided for by the European Union.

In times of housing shortage people should not be allowed to own multiple properties. Invest your pension elsewhere. It's quite simple. One man's greed should not impoverish another. Buy to let mortgages should not be allowed IMO. You either live in a house or give another person the chance to be there. If you inherit a fully paid-off house then go ahead and rent it out. But you're limited to 1 extra house. So if you already have a holiday home tough luck. One goes on the market.

How is it greed to wish to generate an easy retirement for yourself? I'd also like to point out that investment in pension funds will inevitably end up splitting your investment into many 'pools'. One of the pools will be property. And if you have an issue with an individual owning more than one house I assume you also have an issue with a company owning more than one property, right? An entity purchases the house with the intention to rent it out. A person will own the deed. A company will own the deed, and the shares of that company will be owned by a person. I don't really see a difference.

I don't even pretend I know the kind of effects fiscal policy can have on the economy but I'd imagine banning buying to let would go something like this.

1) People stop buying the properties on a buy to let basis.
2) As there is less people now buying houses the cost of houses fall, I'd imagine 5% or so, excluding London! That place is just bonkers!
3) The deflation of the housing market impacts the (very shaky) economy in some way.
4) (Additional point) Income tax revenue falls as people would move pension funds into capital appreciating funds (Sort of balance out by capital gains tax)

I think we'll have to agree to disagree on this one. It probably doesn't help that I live in a house rented under these circumstances and I have a very fluid and beneficial relationship with the house owner.


I've had a thought and one of my policies would be additional levying of banks and the contractual obligation for the banks to be re-privatised at at least cost investment (taking into account inflation), it is not acceptable for the people to make a loss on the banks as they already owes there souls and the first born for the next 100 generations...

[ik9000]

I think we'll have to agree to disagree on this one.

But, but... it's the internet... I mean, shouldn't we exchange numerous heated posts gradually building in contempt until one of us likens the other to a Nazi/Jimmy Saville/village idiot?

[peterb]

I think we have discovered why ik9000 won't be Chancellor of the Exchequor anytime soon (probably ever!)

[ik9000]

I think we have discovered why ik9000 won't be Chancellor of the Exchequor anytime soon (probably ever!)

2000% tax on peterb's savings.

edit: but he did help me sort out my broadband... I'll let him off with a one-off fine.

[The Hand]

-Make building your own house VAT free for materials and labour.
-Make foreign property investors (uber rich - Russian oligarchs -Saudi Princes etc) pay capital gains tax, since they are blowing up the UK property bubble almost by themselves with some help from immigration.
-Make workers earnings up to £15000 exempt from income tax.

[Jowsey]

I think we have discovered why ik9000 won't be Chancellor of the Exchequor anytime soon (probably ever!)

What? He appears to be a reasonable person and is willing to accept that opinions differ? I know, I wouldn't vote for him either, I want to know my politicians are slimy, otherwise they must be hiding something!

Or were you referring to the 5000% VAT on Apple goods ?

[ik9000]

Or were you referring to the 5000% VAT on Apple goods ?

Only so long as they ship with crappy noise-leaking headphones-cum-speakers. They'll quickly sort it out and tax will return to normal levels. It's a really sensible policy, and far more effective than that "ban" on public transport that got announced a few years ago and came to nothing.

[HalloweenJack]

landlords are saying rents might increase by 100% or more to compensate for the reduction in tax relief....

[Galant]

I know very little about economics so I can't and won't offer any detailed suggestions. However, generally speaking, I believe that increasing individual (individual, then local, then regional, and lastly, national) independence (freedoms + responsibility) is the right direction. With regards the economy and taxation I've often wondered what would happen if an attempt was made to make the connection between taxes and public spending more direct/visible. That is, we know that public monies go on all sorts of things from the roads to education to health care etc. What if, where possible, as many of those as possible were listed, along with their budgets, and then tax paying entities were able to contribute payments into those funds, perhaps on a first come first served basis? There would still have to be a general fund but the idea is to make that 'black hole' as small as possible.

This would likely have to happen at the different levels of society, and there would have to be some cross over with entities in richer regions contributing to funds/budgets in poorer areas, perhaps. Also, there would certainly be some funds that were more popular than others and some people might not wish to contribute to certain funds (military, for example), however, the fact it, we all contribute to all of those already, so making the payment of taxes required is where we are already.

I think it would be an interesting exercise in getting people to engage more directly in their society, to see the cost of things, as well as increasing transparency of spending, and identify where wastage may be happening along with where budget declarations are wholly unrealistic.

It would likely be a lot more work for someone in admin-land, but overall, I like the idea (pipe-dream).

As mentioned, I generally tend to the approach of maximum freedom, maximum rights and with it maximum responsibility. That's where this came from.