Do they think we are stupid?

 Labour continue to call Landlords greedy. Let's do some basic calculations on who the winners and losers are. Let's assume someone who is earning £50,000 per year (20% tax payer) decides to become  a landlord in order to save for the future and invest in property.  They have £25k saved as a deposit for the property. Great Yarmouth looks a good place to invest.  Yields are 6.13% and property prices are such that it's possible to buy the property with the £25k deposit. So a property is bought for £100k (plus a bunch of other costs eg stamp duty, conveyancing charges etc which are treated as capital).  Purchase price:     £100,000 Deposit :               £25,000 Mortgage:               £75,000 BTL Mortgage rate from HSBC: 7.6%  The property is let for £650 per month (£7,800 per year) = 7.8% yield - a very good yield. There are annual costs for running the property: Insur...

 Angela Rayner has attacked "greedy landlords" because the tax payer is forecast to be paying private landlords £13Bn in housing benefit by 2028. The amount paid to landlords in 2019-2020 was £9.9Bn and rose to £12.1Bn in 2022-23. However the number of claimants has increased.  In 2019-20, the number of Housing Benefit claimants was 1.5m and has risen to 1.8m in 2022-23 So let's divide the spend by the number of claimants: 2019     £6,600 per claimant 2022     £6,722 per claimant So these "greedy landlords" are getting and additional £122 per year for each claimant. If I plug £6000 into the Bank of England inflation calculator, it would be £7,449 in 2022.  So rent payments per claimant have not increased in line with inflation - they have dramatically fallen behind by £727!  So it looks like the "greedy landlords" are not as greedy as the narrative that Labour wants you to believe. The real message from this data is not Landlords but the Benefit B...

Well we have a new Government in the UK. Only 1 in 3 people voted for Labour yet they have a massive majority.  The majority of the 65% of the population who didnt vote Labour will not have much patience or support for our new Government. Labour have yet to do anything but  I thought it would be useful to capture this moment in time before Rachel Reeves and Bagpipe Starmer (he does drone on) start making excuses and blaming his predecessors.  It's all too easy to create a false narrative so here's my snapshot of what Labour are acutally inheriting before this snap-shot in time is lost or droned out by the spin machine. The Economy Well it's fair to say Labour are not inheriting a fabulous economy.  The outgoing far left conservatives have hardly been frugal with State spending or setting low taxation. However is the economy in as bad shape as Labour will claim? Certainly the conservatives coming into power 14 years ago inherited a pretty big economic mess left b...

 It looks pretty much certain Labour will win the election on 4th July and Starmer will be our new prime minister. Assuming Labour is not lying completely -  they have promised not to "increase taxes, national insurance, or VAT".  Their mantra is "Labour will not raise taxes on working people". Reading "Labour will not raise taxes on working people " literally that means Labour will tax: Businesses because they are not people Any passive "non earned" income eg pensions, savings, dividends, rental income, capital gains Labour have already said they will add VAT to private school education. That's one thing that Brexit has allowed.  It's illegal to charge VAT on education in Europe.  Maybe the next step is VAT on University education? Logically Labour are therefore also likely to impose VAT on other legally exempt things.  Private Healthcare.  Since private Healthcare is actually a form of insurance it's likely that some kind of "I...

 Britain is far from Great anymore. The economy seems incapable of growing. Productivity is stagnant and Britain isnt keeping pace with our competitors eg the USA.  We are getting relatively poorer. Our leaders are weak and feeble.  Rishi comes across as an accountant auditor. Starmer the lawyer that does know how to run a business. At least our leaders are under retirement age and not about to drop dead from old age. So what can we do to change the fortunes of the country? Historically the City of London was the power house of the economy.  That's far from true anymore.  The Stock Market is a shadow of it's former self. There are very few new listings.  Increasingly companies are moving into private ownership.  When there is an opportunity for new listings, companies elect to be listed elsewhere eg Nasdaq because the UK stock market is seen as boring and low growth. For example the UK based tech company ARM listed on Nasdaq rather than the LSE in orde...

Well it's the 6th March 2024 and in a few hours we will find out what the Chancellor has in store for us.  It seems that much of the budget has already been leaked. 2p off National Insurance is the headline. This follows a 2p reduction in employee National Insurance last year which took effect in February this year. So what is National Insurance?  Well the question should be "what is it supposed to be?". Originally it was intended to be funding for State Pension. In other words our National Insurance contributions would be paid back to us in old age.  Apparently we are all living longer and with an ageing population the burden of more non economically productive Old Age Pensioners surely should mean we should be saving more for old age - not less? Well not according to the Chancellor.   The problem really is that successive Governments have treated National Insurance as general taxation.  In other words the basic rate of tax is not 20% but currently 30%. an...

From the 1st April 2024, the UK minimum wage will increase from £10.42 to £11.44 - a massive 9.8% increase - far in excess of current inflation circa 4%. I accept it is hard to live on the minimum wage however this increase is inflationary. It also means the Government doesnt have to stump the cash - employers do. So lets look at the numbers and why the government wants to increase the minimum wage by so much - the answer is tax revenues of course.... How many people are on minimum wage in the UK? The Low Pay Commission estimates there are about 1.6 million people on minimum wage. Although they have not provided any data, they suggest workers typically work 24 -30 hours per week. Workers are entitled to 5.6 weeks statutory paid holiday per year (28 days).  This is pro rata for part-time work. So let's work out an example.  Let's assume someone works 24 hours (3 days) per week and they work for 1 year. In one year they will have 156 paid days and actually work 139.2 days. ...