Boris Taxes

October 2021 Forums General discussion Boris Taxes

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    I noticed this from that newsfeed;

    Johnson claims Brexit is leading to pay rises in low-wage sectors.

    Back in the Commons Boris Johnson told MPs a few minutes ago that wages are now going up in low-income occupations “in exactly the way that those of us who campaigned for Brexit hoped”.

    I don’t remember them promising that but, if that was at the back of the minds of the financiers who funded the Brexit campaign, then they didn’t mind going against the interests of the employing capitalists.

    Of course Johnson says anything and everything but, if wages in the low-wage sector do go up, many won’t benefit because their tax credits (the subsidy that the government pays low-wage employers) will go down, leaving them no better off. All that will change is the proportions of their income that come from the state and from their employer.

    HGV drivers, on the other hand, who are not on the lowest pay, will be better off. Good luck to them.


    I think the claim has always been that immigration and mobility of labour from Eastern Europe were encouraged by businesses to acquire cheap labour and increase the numbers in the job market.

    Now that the available numbers in the reserve army of the unemployed have dropped, workers momentarily have stronger leverage in pay bargaining.

    In due course, the balance of power will return to management, perhaps by the mass re-training of HGV. I recall before the arrival of Eastern European plumbers, women were actively being given apprenticeships. Personally, lacking the tools and knowledge, I remember I could never get a plumber to do very simple tasks such as fit a washing machine. It wasn’t worth his time.

    I blogged a Scottish farmer who complains that because of labour shortages because of fewer seasonal workers from Europe, he now has to pay overtime to get the crop picked. His complaint is that his workers by earning extra money through overtime means don’t stay.

    “The fear is that these workers will head home earlier than required due to reaching their financial target,” he said. “They are actually starting to disappear off farm already, where historically we have relied on workers finishing the fruit season and migrating over to field veg in the months of September and October.”

    He didn’t recognise that the previous situation was that poverty wages tied workers to the fields just like a serf in olden times


    Again personally, when the 1.25% tax on income is fully in force will I find my pensions taxed to support the NHS which as a non-UK resident I no longer have free access to.

    How many Brit ex-pats will be paying for a service they are denied?

    As I’m already excluded from the annual rise in pensions so the suspension of the triple-locked pension leaves me unaffected


    Are you sure that’s right? According to the papers, the new tax is going to be paid only by people in work including any pensioners who are:

    “The tax will begin as a 1.25 percentage point rise in National Insurance from April 2022, paid by both employers and workers, and will then become a separate tax on earned income from 2023 – calculated in the same way as National Insurance and appearing on an employee’s payslip.
    This will be paid by all working adults, including older workers.”

    So you should be alright. This is a chance to make a distinction between the view that “workers don’t pay taxes” (a view sometimes attributed to us) and that “taxes are ultimately a burden on profits”. Workers do pay taxes out of their pockets but in so far as this increases the cost of living will tend to be passed on to employers in the end as higher money wages. However, this doesn’t apply to pensioners and others in receipt of a non-work income.


    “HGV drivers, on the other hand, who are not on the lowest pay, will be better off. Good luck to them.”

    “In due course, the balance of power will return to management, perhaps by the mass re-training of HGV.”

    Up to 50,000 more HGV driving tests will be made available each year by shortening the application process and the tests themselves,

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