Wednesday, 8 July 2015

First response to budget

The "living wage" is going to reap the headlines, but it seems to me that it is not a major advance on the national minimum wage. It could, however, nudge general pay in the private sector upwards, higher than the 1% annual rise which civil servants, nurses etc. are going to be restricted to for four years.

Following on from the slow-down announced by Network Rail, the re-hypothecation of Vehicles Excise Duty marks a distinct switch from rail to road. This cannot be good for the UK's commitment to green policies. It is also not good value for money if the chancellor is looking to improve industrial. infrastructure.

Paul Lewis, having delved into the Red Books for Radio 4, also reveals a mean little twist which was not announced by George Osborne: sportsmen's testimonials may be routinely taxed. This may be justified in the case  of players at high-profile football clubs which have a huge captive audience, but is hard on people at struggling league clubs like Cardiff or below. It would be even worse for cricketers, who have traditionally not been paid as much as footballers and rely on testimonials to cushion their retirement.

1 comment:

Frank H Little said...

A lucid and more considered response to the "living wage" has been posted by Nick Thornsby.