Jobless Total Gives Chancellor A £1Bn Boost, But Many Give Up On Work

[interestrateripoff]

http://www.timesonline.co.uk/tol/news/uk/article7066266.ece

Alistair Darling could be fortunate enough to receive a £1 billion dividend from lower than expected unemployment figures in time for next week’s Budget, experts believe.

But the latest figures also show a sharp rise in the number of people dropping out of the jobs market altogether, prompting worries that worsening unemployment may only have been delayed and not averted.

Ministers were relieved yesterday when statistics revealed that the number of people claiming unemployment benefit had fallen at the fastest pace in 13 years last month. The wider measure of unemployment also dipped for the third month in a row.

Independent forecasts that the jobless total will peak at a lower level than expected means that Mr Darling should be able to reduce the amount he has to set aside for benefit payments by about £1 billion a year, according to Robert Chote, director of the Institute for Fiscal Studies.

Thank god the tax base isn't collapsing and those people who are no longer claiming unemployment benefit are now contributing vast sums to the tax revenue.

Excellent.

[lets get it right]

http://www.timesonli...icle7066266.ece

Thank god the tax base isn't collapsing and those people who are no longer claiming unemployment benefit are now contributing vast sums to the tax revenue.

Excellent.

Indeed. I don't know why they don't pay more attention to the tax take each month. This is a much better indicator than massaged unemployment figures. The tax take includes (by definition) the effects of people working shorter hours to hang on to their jobs.

Here's a list of tax revenues since 1963

Interesting to note that for 2011-2012 they are projecting tax receipts of 537.4 million - which is higher than the highest figure to date of 515.9 million for year 2007-2008.

They are either expecting the economy to grow significantly or they are expecting significant increases in taxation.

And, the first time that the tax take has gone down since 1963 is a New Labour achievement in 2008-2009.

Edited March 18, 2010 by Let's get it right

[co2_is-not_man_made]

i find this unbelieable !

"The number of public sector workers grew by 7,000 between September and December, while the private sector workforce shrank by 61,000 over the period. "

love this comment on the bbc website

"Wow! Vacancies at the asylum - more lunatics needed."

http://www.bbc.co.uk/blogs/thereporters/stephanieflanders/2010/03/not_lagging_but_not_leading_ei.html

[BalancedBear]

Interesting to note that for 2011-2012 they are projecting tax receipts of 537.4 million - which is higher than the highest figure to date of 515.9 million for year 2007-2008.

You are quite right about this. With so many unemployed no longer being couted as unemployed when they stop looking for work, or have not found a job in 12 months, it is no surprise that Job Seaker allowance claims fall.

The government are wrong to think the tax base will recover. Further tax increase will not result in much further income for the government and will probably cause the private sector to shrink again. I cannot see a recovery in the tax take for many years.

[talksalot81]

I don't blame people giving up. I did exactly that because there is just nothing out there for me so I have had to set up my own operation. Perhaps the government sees this as a good thing but the reality is that I will be a burden thanks to tax credits since it is very likely that it will take me time to turn a profit.

[crashologist]

What happens when a tipping point is reached when more tax is generated from the public sector workers than from private sector workers?

[Concrete Jungle]

2005 Tax take - £487 Billion

2006 Tax take

2007 Tax take

2008 Tax take

2009 Tax take

Everything else is a mere distraction.

Edited March 18, 2010 by Concrete Jungle

[Concrete Jungle]

2005 Spending - £519 billion

2006 Spending

2007 Spending

2008 Spending

2009 Spending

[Cicero]

http://www.timesonli...icle7066266.ece

Thank god the tax base isn't collapsing and those people who are no longer claiming unemployment benefit are now contributing vast sums to the tax revenue.

Excellent.

This sceptic sceptred isle is indeed wondrous!

The paradigm of the new post industrial miracle service economy donchanow?

[iLegallyBlonde]

They aren't claiming JSA and therefore on the actively seeking work numbers because if there's any opportunity at all to move them on to INCOME SUPPORT then they are doing so. If you don't have kids then it's 6 months on the figures and then you're off again whether you have found a job or not.

[council dweller]

What happens when a tipping point is reached when more tax is generated from the public sector workers than from private sector workers?

...don't know but as I said before I'm doing my bit. Over the past year I've switched from full-time to part-time (by choice) and I'm paying no income tax and a tiny amount of NI. The wife on the other hand started working full-time for the NHS in January after 5 years of housewifing (not claiming JSA)

Do we win a prize for taking out more than we put in?

[Cicero]

...don't know but as I said before I'm doing my bit. Over the past year I've switched from full-time to part-time (by choice) and I'm paying no income tax and a tiny amount of NI. The wife on the other hand started working full-time for the NHS in January after 5 years of housewifing (not claiming JSA)

Do we win a prize for taking out more than we put in?

Yep, called bankruptcy.

But debt is wealth donchaknow?

[RufflesTheGuineaPig]

They aren't claiming JSA and therefore on the actively seeking work numbers because if there's any opportunity at all to move them on to INCOME SUPPORT then they are doing so. If you don't have kids then it's 6 months on the figures and then you're off again whether you have found a job or not.

It's like the US which quotes the unemployment figure as "those out of work and receiving benefits" when the benefits only run for set period of time. When the benefits run out, you cease to exist apparently.

[Wahoo]

...don't know but as I said before I'm doing my bit. Over the past year I've switched from full-time to part-time (by choice) and I'm paying no income tax and a tiny amount of NI. The wife on the other hand started working full-time for the NHS in January after 5 years of housewifing (not claiming JSA)

Do we win a prize for taking out more than we put in?

I'm getting more enquiries about cash. 'How much for cash?'

Thank goodness we are going to have a give-away budget and people will have more money to spend again. This black-economy situation is no good at all!!

[Wahoo]

It's like the US which quotes the unemployment figure as "those out of work and receiving benefits" when the benefits only run for set period of time. When the benefits run out, you cease to exist apparently.

Such a good idea. 36 months of benefits in your life-time. Use it carefully. Once it's gone, it's gone.

[council dweller]

I'm getting more enquiries about cash. 'How much for cash?'

Thank goodness we are going to have a give-away budget and people will have more money to spend again. This black-economy situation is no good at all!!

"How much for cash"?

I've used the term a couple of times over the past 2 weeks, expect to use it more in future. In one case the answer was "what kind of cash". My reply was "cash cash, the folding stuff".

[council dweller]

Such a good idea. 36 months of benefits in your life-time. Use it carefully. Once it's gone, it's gone.

I don't like the sound of that, I used up my 36 months when Thatcher was still queen! Can I start with a fresh slate?

[billybong]

Just been announced that the taxpayer is being put up for even more subsidies (of nearly £1 billion) for the motor industry and Nissan now that scrappage is ending and "because otherwise there would be unemployment".

[Ruffneck]

You are quite right about this. With so many unemployed no longer being couted as unemployed when they stop looking for work, or have not found a job in 12 months, it is no surprise that Job Seaker allowance claims fall.

The government are wrong to think the tax base will recover. Further tax increase will not result in much further income for the government and will probably cause the private sector to shrink again. I cannot see a recovery in the tax take for many years.

this is based on labours insane mass immigration policies

the more people living in the UK = the more tax taken

[interestrateripoff]

http://business.timesonline.co.uk/tol/business/economics/article7066715.ece

The Government may reveal some pre-election giveaways in the Budget next week after figures indicated that the Treasury was set to undershoot its borrowing forecasts for the year.

Alistair Darling said in December that he expected to borrow £178 billion to balance Britain's books in the year to April, but official data out today shows that the Treasury borrowed less than expected in February, leading economists to suggest that the Chancellor could have about £5 billion extra to play with.

It also emerged today that January's figure was revised down sharply, showing that the Government borrowed £43 million, down from a previous estimate of £4.3 billion.

Jonathan Loynes, European economist for Capital Economics, said: "He now looks likely to have a little wriggle room in the Budget to either cut borrowing or fund a few pre-election sweeteners — we suspect that he will choose the latter.

Even better news for Darling.

Gordon's saved us all.

[billybong]

Now students and lecturers on strike about cutbacks - Sussex University.

Maybe the government will give some of the taxpayers money they said today they're going to give to the motor industry (nearly £1 billion) to the Sussex University strikers instead - maybe they could give some taxpayers money to the BA strikers as well It's a bottomless pit.