Terry - Somerset
Established Member
Black hole
The emergence of a black hole was predictable long before the election:
Much of the black hole relates to acceptance of the pay review not available pre-election. The forecast pay increase would be obvious to Reeves who chose to accept the recommendations. I think she was right to do so but dishonest to assert it came as a surprise.
Another large part of the black hole - £6.4bn undisclosed asylum and immigration costs - the figure would have more credibility if the detail was evident rather than leaving us in ignorance.
Changes to non-dom and windfall tax are no surprise, although no detail at present.
Other cost savings could have been drawn from past episodes of Yes Minister - cancel projects which have been announced but not yet started. The illusion of motion whilst standing still!
Winter fuel allowance
Her saving on fuel allowance may be generally fair on the basis that wealthier pensioners are best able to afford its removal. Whilst affected, in truth its loss will make little difference.
Basing eligibility on receipt of pension credit adds complexity to systems which desperately need simplification. The basic state pension should be uprated to cover the heating allowance.
If pension + other income pushes a pensioner into tax it should be paid as normal. This means that the wealthiest pensioners pay the highest tax, most pay 20%, lowest income no tax.
It gets rid of the admin and error associated with the current scheme, and means none lose out through failing to claim pension credit.
That the current allowance is close to the pension can be dealt with separately - eg: age allowance for all over retirement age.
Overall assessment
Predictable, unremarkable, but disappointed that honesty and transparency are taking second place to political expediency. Trust will diminish through being economical and selective with the truth - they don't yet match their Tory predecessors, but are definitely on the same trajectory
The emergence of a black hole was predictable long before the election:
- an inevitability that any incoming government seeks to blame its predecessors
- the huge gap between aspiration (not hard promises) and reality in Labours manifesto.
Much of the black hole relates to acceptance of the pay review not available pre-election. The forecast pay increase would be obvious to Reeves who chose to accept the recommendations. I think she was right to do so but dishonest to assert it came as a surprise.
Another large part of the black hole - £6.4bn undisclosed asylum and immigration costs - the figure would have more credibility if the detail was evident rather than leaving us in ignorance.
Changes to non-dom and windfall tax are no surprise, although no detail at present.
Other cost savings could have been drawn from past episodes of Yes Minister - cancel projects which have been announced but not yet started. The illusion of motion whilst standing still!
Winter fuel allowance
Her saving on fuel allowance may be generally fair on the basis that wealthier pensioners are best able to afford its removal. Whilst affected, in truth its loss will make little difference.
Basing eligibility on receipt of pension credit adds complexity to systems which desperately need simplification. The basic state pension should be uprated to cover the heating allowance.
If pension + other income pushes a pensioner into tax it should be paid as normal. This means that the wealthiest pensioners pay the highest tax, most pay 20%, lowest income no tax.
It gets rid of the admin and error associated with the current scheme, and means none lose out through failing to claim pension credit.
That the current allowance is close to the pension can be dealt with separately - eg: age allowance for all over retirement age.
Overall assessment
Predictable, unremarkable, but disappointed that honesty and transparency are taking second place to political expediency. Trust will diminish through being economical and selective with the truth - they don't yet match their Tory predecessors, but are definitely on the same trajectory