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George Osbourne due to announce emergency budget


BUSINESSES across the Hampshire were today bracing for painful tax hikes as the Chancellor of the Exchequer announces his emergency Budget.

George Osborne will stand up just after midday to deliver his medicine to tackle the national deficit with VAT widely expected to go up from 17.5 to 20 per cent.

Click here for live coverage of the emergency budget.

The Government has already announced plans to increase Capital Gains Tax from 18 per cent to closer to 40 per cent.

However Corporation Tax will be cut and there will be a promised reverse in Labour’s proposed “jobs tax”, scrapping the one per cent rise in employers’ National Insurance.

Mr Osborne has promised “tough action” as part of his four-year plan to bring down borrowing which is set to total £155bn this year.

For every £1 he raises in tax hikes, the Chancellor will cut £4 from Government spending. A freeze on public sector pay and welfare payments is expected. Fewer people will receive benefits and tax credits.

Last night unions warned they will resist any attacks on public sector pay and pensions.

Councils in England will be offered help to bring in a council tax freeze.

Chief executive of the Hampshire Chamber of Commerce Jimmy Chestnutt said the chamber had already written to Mr Osborne pleading for “generous exemptions for entrepreneurial business” and highlighting the need and difficulties in protecting business and employees from any CGT rises.

He added: "The Chamber also hopes that the Chancellor honours his pledge to scrap the 1 per cent rise in national insurance contributions and lower the headline rate of corporation tax; and that tax increases will focus on consumption taxes rather than payroll, income or profits, so as not to jeopardise the prospect of recovery.”



Your Say YourEcho

Lone Ranger, Southampton says...
8:34am Tue 22 Jun 10

I just cant wait to see how many of us are in this together

Hantslad, Ocean Village says...
8:42am Tue 22 Jun 10

"Last night unions warned they will resist any attacks on public sector pay and pensions".

I wish these Unions would go away. So long as they hit the Public sector Management and not the average Jo who works hard then I'm up for this.

Lets look at Poole Council for example, 7 Managers running the Transport Dept reporting to a more senior Manager. A good friend happens to be one of those Managers who also happens to have no staff under him so takes holidays and as when, goes in when he feels like it etc.

Most of the management jobs could be done by regular staff who earn less than half of these so called Managers.

Linesman, Fareham says...
8:45am Tue 22 Jun 10

We are told to expect a tough budget and warned that we will have to tighten our belts.

How nice to know that, in answer to a Parliamentary Question, it was revealed that since the coalition government came into power, they have spent £17,698 on wine to stock their wine cellar, bringing the total value to £864,000.

This was done by politicians that ran their election campaign criticising the previous government's over-spending!

I wonder which minister is going to explain to us how we, the taxpayers, benefit by their investment in wine. Are they going to sell it in a few years when it has increased in value?
No prizes for guessing the answer to that question!

It would be nice to think that when they pour a glass, that there was the same price mark-up on it as there is on a bottle of house wine in a local restaurant!

Of course, there will not be because their policy is, 'don't do as I do, do as I say!'

Oh well! Take the belt in another notch!

Saint Bean, Totton says...
9:33am Tue 22 Jun 10

How much of this cash will banks be made to stump up thats what i want to to know since combined with the last governments broken casio calculator watch the british people will be mugged again no doubt. Whilst i accept most of us have prob lived at least a little beyond our means. I sugest we prepare ouselves to be shafted as normal.

hulla baloo, Turkey says...
9:41am Tue 22 Jun 10

If the banks stump up more cash, where do you think it will come from?
Account holders in the form of more, and higher charges, which they will need to do to also pay the shareholders.
Drastic cost cutting measures need to be made, starting at national and local government levels, followed by an overhaul of the benefits system in the way of who gets what and how much.
I could go on but feel my temperature rising. (-:

Saint Bean, Totton says...
9:56am Tue 22 Jun 10

hulla baloo wrote:
If the banks stump up more cash, where do you think it will come from?
Account holders in the form of more, and higher charges, which they will need to do to also pay the shareholders.
Drastic cost cutting measures need to be made, starting at national and local government levels, followed by an overhaul of the benefits system in the way of who gets what and how much.
I could go on but feel my temperature rising. (-:
since they already make a bundle by excessive bank charges which mostly penalises the less well of and are still able to pay large bonus sums and golden handshakes to employees irespective of wether they have earned it or not. Not even counting the no doubt excesevly comfy pension plans that most ordinary pepes dream of. I deal with local goverment on a daily bassis and most of them you can never get hold of cus their on blooody flexi time or on holiday

Brite Spark, Titchfield says...
10:14am Tue 22 Jun 10

No doubt those who shirk work will not be affected, those who choose living off benefits as a way of life will still find cash from the rest of us to have their rent and councile taxes paid, and to top up on cigarettes and lager even though buying those things gets more costly every budget.

Paramjit Bahia, Southampton says...
10:56am Tue 22 Jun 10

In democracy people get what they vote for.

Those who are or will be moaning should have thought bit more carefully before voting for these ultra right puppets of the rich.

DCM, Southampton says...
11:11am Tue 22 Jun 10

Paramjit Bahia wrote:
In democracy people get what they vote for. Those who are or will be moaning should have thought bit more carefully before voting for these ultra right puppets of the rich.
Indeed - we should have voted for the party who wants the state to do everything for us. No, wait, we just voted them out - shortly before they were due to bankrupt our country!!!

Saint Bean, Totton says...
11:21am Tue 22 Jun 10

Brite Spark wrote:
No doubt those who shirk work will not be affected, those who choose living off benefits as a way of life will still find cash from the rest of us to have their rent and councile taxes paid, and to top up on cigarettes and lager even though buying those things gets more costly every budget.
Indeed. along with prob 80% false asylum claims and international students who arnt students. VAT dodgers. Football clubs who dont stump up there tax. The get pregnant get a council house brigade.Tax haven dodgers. NHS tourists. and a whole load of other spongers and do gooders that the last lot was incapable of dealing with.

Cyber-Fug, Hampshire says...
11:32am Tue 22 Jun 10

DCM wrote:
Paramjit Bahia wrote:
In democracy people get what they vote for. Those who are or will be moaning should have thought bit more carefully before voting for these ultra right puppets of the rich.
Indeed - we should have voted for the party who wants the state to do everything for us. No, wait, we just voted them out - shortly before they were due to bankrupt our country!!!
You just took the words out of my mouth DCM

StEmmosfire, Woolston says...
12:27pm Tue 22 Jun 10

Bloody hell you lot, there all rich! We all knew this was coming so get a grip and deal with it.

Mental Micky, Tatchbury says...
3:06pm Tue 22 Jun 10

DCM wrote:
Paramjit Bahia wrote:
In democracy people get what they vote for. Those who are or will be moaning should have thought bit more carefully before voting for these ultra right puppets of the rich.
Indeed - we should have voted for the party who wants the state to do everything for us. No, wait, we just voted them out - shortly before they were due to bankrupt our country!!!
So Paramjit, does being rich make someone become "ultra right wing" whatever that means, or do you mean that everyone who is "ultra right wing" is already rich? Are you trying to tell us that just because someone earns a lot of money they suddenly want to kill immigrants and introduce mob rule? If you post any more stupid nonsense like that people will start to treat you like Southy.

B. L., Springfield says...
8:33pm Tue 22 Jun 10

Saint Bean wrote:
Brite Spark wrote:
No doubt those who shirk work will not be affected, those who choose living off benefits as a way of life will still find cash from the rest of us to have their rent and councile taxes paid, and to top up on cigarettes and lager even though buying those things gets more costly every budget.
Indeed. along with prob 80% false asylum claims and international students who arnt students. VAT dodgers. Football clubs who dont stump up there tax. The get pregnant get a council house brigade.Tax haven dodgers. NHS tourists. and a whole load of other spongers and do gooders that the last lot was incapable of dealing with.
You are both so very close to the truth, why did you not stand at the last election, you have some valid campaign points which could probably have swept you into power. :)

Hantslad, Ocean Village says...
12:29am Wed 23 Jun 10

B. L. wrote:
Saint Bean wrote:
Brite Spark wrote: No doubt those who shirk work will not be affected, those who choose living off benefits as a way of life will still find cash from the rest of us to have their rent and councile taxes paid, and to top up on cigarettes and lager even though buying those things gets more costly every budget.
Indeed. along with prob 80% false asylum claims and international students who arnt students. VAT dodgers. Football clubs who dont stump up there tax. The get pregnant get a council house brigade.Tax haven dodgers. NHS tourists. and a whole load of other spongers and do gooders that the last lot was incapable of dealing with.
You are both so very close to the truth, why did you not stand at the last election, you have some valid campaign points which could probably have swept you into power. :)
;-)

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