Budget for Fall - who does Labour identify as 'working individuals?'
In the upcoming Budget 2023, the focus is on "working people," a term that encompasses employed and self-employed individuals contributing to the UK economy. This group includes full-time and part-time workers across various sectors, including the public and private sectors.
The Budget aims to discuss policies that support employment, uphold workers' rights, and address issues like income inequality and access to employment opportunities. Initiatives like the "Get Britain Working" White Paper and plans to upgrade workers' rights are designed to empower working people and contribute to economic growth.
The Office for Budget Responsibility also considers the income of working people as crucial for forecasts, focusing on wages and salaries as key components of household income. However, the specific definition used in the Budget 2023 may not be explicitly detailed but generally aligns with this broad understanding of individuals who are actively engaged in the workforce.
Among the issues expected to be addressed in the Budget are potential reforms to capital gains tax and inheritance tax. Chancellor Rachel Reeves has stated that tax rises are necessary to fill spending gaps left by the Tories.
Another issue that has been raised is the potential increase in employer national insurance. This could impact businesses and their employees, adding to the cost of hiring workers.
The definition of 'working people' has been a subject of debate among Labour ministers and the Prime Minister, with a shift towards "protecting the payslips of working people." This may impact the self-employed, who are not typically considered to have payslips.
Holly Mackay, founder of Boring Money, has warned against the unfair suggestion that working people do not own shares or property. In fact, over the past five years, the number of DIY investment accounts in the UK has increased from around 5.2 million to 10.6 million. Around one in three adults today owns some sort of investment product, not including a workplace pension.
Many hardworking people in modern Britain combine traditional employment with asset-based income, such as shares or property. This diversity in the modern workplace, including freelancers, the self-employed, full and part-time workers, those who work from home, and those who work in offices, has made it challenging for politicians to define 'working people' accurately.
Prime Minister Keir Starmer has promised not to increase taxes on working people, specifically income tax, employee national insurance, and VAT. However, the Budget is scheduled for this week, and the details will soon be revealed.
The National Residential Landlords Association (NRLA) states that 30% of landlords are employed full-time, with a further 10% working part-time. Another 28% of landlords are self-employed, and 35% are retired and rely on rental income for their pension.
Ben Beadle, chief executive of the NRLA, emphasizes that the government should focus on the lack of homes to rent to meet growing demand, rather than stoking misconceptions about who is considered a working person. The Budget 2023 is expected to address these issues and more, shaping the future of work and the economy in the UK.
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