In raising the income tax rate by £1000 they have pro rate to reduce the minimum rate for the high earners. This will bring some people who currently earn less than the high rate into being taxed at 40%.

This is going to hit some people hard........??? (MikeL2)

Sorry to seem a bit thick, Mike, but I'm not sure what your point is there. Have they brought down the 40% threshold, and by how much? I seem to have missed that, but I'll not exactly lose any sleep over it..

Interesting post from Graham Bradshaw - I didn't realise any of that, though as I said earlier, I reckon NewLab would have done about the same with VAT. It certainly isn't aimed at the 'poor', as some would claim. If the budget had been intended to disproportionately hit the 'poor', they'd have increased the duty on fags and booze, same as they always do. Increasing VAT is a fairer way of raising revenue than most.

The main problem seems to be that too many people have expectations way beyond their means - a situation which has been actively encouraged by both main parties for many years. It worries me that more people couldn't/can't/wouldn't/won't see through the scam. True, no-one wants to be poor, but an illusion of wealth is no substitute for the real thing, and sooner or later there has to be a reckoning.