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News & Views from Alchemis

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Call us for a chat on +44 (0)20 7836 3678 or Email Jim Piper or David Newman

There’s always a price to pay!

I always find it amusing when a political party tries to entice the public into voting for them by saying they’ll cut a little here or cut a little there in the hope of swaying public opinion in their favour. The general public is not that gullible and we recognise that one size DOES NOT fit all. What’s good for the goose is often not good for gander and when one-person benefits it is often at the expense of another.

National Insurance will be one of the key issues at the forthcoming general election as Labour plans to increase the tax by 1 percentage point for both workers and employers, raising £7 billion in total. On the reverse side of the coin, the Conservatives have pledged to counteract the impact of the rise, by promising to raise the qualifying threshholds for National Insurance, effectively cutting tax for anyone earning less than £45, 000. But how are the Conservatives able to do this without risking the economy?

It is already rumoured that £6 billion will be at risk in our already fragile economy if David Cameron pursues this plan, whereas the Labour Government have promised more improved public services with their increase; such as high standard nurses, getting to see your doctor in the evening and at the weekend, better neighbourhood policing and even child care vouchers for teachers so that they can return to work sooner after having children. By stark comparision, the Conservatives have promised a cut in child tax credits, child trust funds and education budgets, which is hardly investing in the future of our children?

David Cameron is a great PR man and I’m sure that anything he dresses up will sound appealing to the many that are wooed by paying less National Insurance contributions. However, before you decide on who is right think less about your own pocket, but the impact that raising threshholds for National Insurance contributions will have on our economy… There is always a price to pay by someone.

What are you thoughts on this subject and how will this affect you?

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