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UK Discloses Home Purchase Subsidy As Part Of Its Latest 2013 Budget
Today the UK did something the US hasn't done in years: it disclosed its 2013 budget. Some of the details as per the BBC:
- Income tax threshold to be raised to £10,000 by next year
- Public sector net debt will fall by 2017/18, the Office for Budget Responsibility forecasts
- Beer duty cut by 1p a pint
- Planned fuel duty rise scrapped
- The first £2,000 to be taken off all employers' National Insurance bill
- Chancellor George Osborne promises £3bn for infrastructure
- Economic growth is forecast to be 0.6% this year
- Service personnel to be exempt from public sector 1% pay rise cap
More details via Bloomberg:
Deficit
- 2013-14 budget deficit seen at GBP108b
- 2014-15 budget deficit seen at GBP97b
- “Deficit continues to come down”
- Budget measures to be fiscally neutral overall
Growth
- GDP forecast to rise 0.6% in 2013 vs previous est. 1.2%
- GDP forecast to rise 1.8% in 2014 vs previous est. 2%
- Govt slowly fixing economic problems
- We “must hold to the right track” in U.K. budget
- Budget to focus on schools, skills, infrastructure, industry
Tax
- U.K. to cut corporation tax rate by 1% in 2015
- Corporation tax rate to fall to 20% in 2015
- Govt to introduce a single-rate of corporation tax
- To increase country’s bank levy rate to 0.142%
- Pledges clampdown on tax avoidance
Needless to say, spending and debt will increase even more than expected, likely forcing more downgrade of the UK but at this point who cares.
Most importantly, the UK announced something quite dramatic - a government-funded housing subsidy. The government will to commit GBP 3.5 billion of capital spending over the next three years to shared equity loans. The Loans will be up to 20% of the value of a new-build home. The government will also offer mortgage guarantee to lenders to help them provide more loans to people who can’t afford big deposits. Guarantees will be sufficient to support GBP130b of mortgages, Osborne says. "These guaranteed mortgages will be available to all homeowners, subject to the usual checks on responsible lending,” Osborne says.
In other words, when all fails, the government will step in and reflate the housing bubble on its own, much like the US has been desperately trying to do for the past four years.
For anyone confused about the process, here is a quick cartoon explaining it all:
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I'd like my castle with 3, no no wait, 4 turrets.
Larry Motherfucking Fink is personally guarranteeing all the mortgages
tourette symptoms?
What could go wrong?
Fucking Keynesians. They can never get enough of their "superior" intellect. They're legends in their own minds.
Sounds to me like a solid, well thought out plan to help the struggling serfs....what could possibly go wrong?
God save the queen....
Groundhog Day.
Sounds to me like a solid, well thought out plan to help the struggling serfs....what could possibly go wrong?
God save the queen....
LOL!!
Brilliant!! Now the govies get stuck with the houses!!
When they default, will the government still pay the taxes to themselves and maintain the property?
As part of our "responsible lending" protocol, I must ask, "Are you currently able to supply archers for four turrets, or do you feel like you might be able to do so at sometime in the future?"
Additionally, have you considered upgrading to a four-car garage, granite countertops, and hardwood floors? We must be able to market "our" castle should you default.
lmao ... "It's never been a better time to buy a trebuchet, nicely equipped."
you're forgetting the stainless steel appliances....
and with a vault for my PM's please
"I'd like my castle with 3, no no wait, 4 turrets."
FYI. You'll need 4 turrets to have adequate crossbow coverage in all directions to repel the marauding hoards.
Everything is going to end up on the taxpayers plate. PERIOD.
"Everything is going to end up on the taxpayer's plate. PERIOD." - fixed, Based on how "paper wealth" has been flowing since 1971, one is left to wonder what person/corporation that "plate" will belong too.
I believe his name is Rothschild.
Well then, the Windsors, Rockellers, etc. won't be happy about that.
Sevice personnel exempt. Gotta keep the drones solvent in order to keep the plebes at bay.
In Germany, we say; Kaufen Den Verdammten Dip
In France they call it, "Royale with Cheese".
I want an exact copy of Waddesdon Manor, fully-furnished like the original. I'll deed it to the National Trust (like the original), so I can live in part of it, tax-free, while the UK taxpayer pays for the rest of the upkeep costs.
Just like America, one has to wonder if there actually are any true "taxpayers" left that are not getting any or all of their income through some government source (what, you really think all those no-bid contract workers in the military industrial complex are not government workers? stupid fucking sheep).
Why tax? It's so unpopular. Why tax when you can print, and no one will see it happen?
Worked for Germany during and after WWI. oh wait...
Right, because there is no real "cost" for creating capital out of thin fucking air < sarc off > Weimar 2.0 indeed. The cognative dissonance of the western world is at another all time high.
The more fingers they stick in this pie the more disgusting it gets.
Goodie, goodie....handing out houses (and loans) to people who cannot afford them. Sounds like a Bailout plan for banks, not really the people.
Yep, trying to blow up another housing bubble
The UK has never come out of the first bubble, FFS.
You can't blow something up that is already inflated.
Just ask the bloke that owns the most expensive house in the UK on the market at the moment, he just cut the asking prince by a cool 35M.
Yeah, but actually giving a loan to the sheeple instead of hand the cash directly to the banksters is heresy...I hope Lord Rothschild doesn't hear about this
I almost threw up on the "as usual responsible lending" line. Paging Angelo Mozilo. We have an underwriting position open
azz, they'll probably bring in Orange Mozillo as a consultant.
+1 I nearly threw up when you put a vision of Angelo Mozillo in my head ;)
Whats up with freddie, fannie and Ambac stock?...............
So the British call a deficit of GBP100B year in and year out austerity? That sounds familiar. Thank god they have a printer.
End Game!
Just try being on the receiving end of a 30% Devaluation when you import FOOD, ENERGY, FUEL and see how you like Austerity. See what it looks like to face natural gas prices rising 20% annually or watching water prices rise 5% annually or rail fares or face increased property taxes when you have had no pay increase for 4 years
Lowering the beer tax YEE HA.
Funded by the bedroom tax on the poor no doubt
The question is: will it create demand? - sounds like a shitty deal to me, folks needing this support would be better of renting and maintaining some flexibility in where they earn their livings. Not getting tied to some shitty, poorly built shoe box of a `property`
They want more debt slaves to work all their lives so at the end when they have paid off the mortgage they will steal the house to pay for care (care that was promised to them and they also paid into as well throughout their lives)
Demand? LMFAO! There is 7+ billion people on the planet competing for a better quality of life, Ask yourself, what sort of conditions do the majority of those people live in? There is plenty of demand retard.
You bet.
About a billion of those people are on a bus to the UK right now.
Agreed.
Have you seen some of these new builds. Utter garbage. Paper thin walls, tiny rooms, handkerchief gardens. What a crock.
Off topic. It looks like the precious metals are in lockdown today, likely going to get bombed, or a big rally.
Other than the penny off beer which is nice, and will reduce the price of a pint from £3.20 to £3.19, there was one genuinely good measure, which was to exempt employers of the first £2000 of their National Insurance bill. This is a tax on employment where employers pay 13.8% on salaries over a threshold of about £7700 p.a.
Good for employing your first minimum wage assistant.
Beer Duty in the UK does not go on the price per pint but on the Wort. That is why it hurts because it does not allow for production shrinkage. It is levied further up the production chain than in the rest of the EU so it probably has more than 1p effect at the consumer stage with VAT etc
So this is how Brits do "austerity" eh?
Oh and no increase on the 64% tax on fuel that is at record highs, yeah great.... :(
our masters are kind indeed (sarc)
A home that is 20% more expensive brings 20% higher property taxes. Great for the government. Bad for the serf, er, homeowner. But shit, who needs affordable housing?
Taxpayer gets 10% of the gain but 100% of the loss when it all goes tits up.
Still a better deal than the US's 0% gain, 100% loss model.
Ponzi needs new meat.
>"These guaranteed mortgages will be available to all homeowners, subject to the usual checks on responsible lending,” Osborne says.<
In other words, if you can f'n breath, you're approved.
Correct, the real collateral is you and your labor, not the home. Slavery, be it by chains or by debt.
Let's recap. The government will give 20% of the cost. To get a decent interest rate on the mortgage you need 70% downpayment. So still 10% required by the buyer.
In these parts you'll need £350,000 for a family house, so if you've got £50,000 in your back pocket (10% plus costs), we've got a shitty house for you.
Alternatively, rent until the massive UK housing bubble bursts, buy £50k worth of PMs and buy the house of your dreams outright in a year or two!!!
You are assuming that the "markets" will allow for a true price discovery in PMs. Good luck with that, oh yeah, and fuck you junk monkey!
That day will come... ;)
+1 on the Junk Monkey, it must be George Osborne.
Strange, there's a whole lotta -1 votes to almost all of these comments.
Surely, it isn't just one voter, whose wife didn't make it home last night from that bachelorette party.
they just can't let this fucker deflate can they?
Another government, another year, same farce. Why fvck even bother.
Lunatics are running everything.
Baby-boomers own half of Britain's wealth and it's all about their wealth preservation. We Are So Fucked.
Government puts its big stupid feet in it once again. Every well-intenioned government intervention into the private sector ends in totally wasted money. Why couldn't they just raise the threshold for income tax?
They said they would help old folks nursing home costs, and as soon as they did, the nursing homes doubled their charges.
They said they would help subsidise kiddie playgroup fees, so they are going to double.
They now say they are going to help shared ownership mortgages, so new entry-level housing (and they have a huge shortage of it) is going to go boom-time.
-and worst of all, the cost of managing this money sucks even more value out of it. Even more uncivil servants for UK
england will go back to the days they stuck their ass out the window to take a dump in the street....
*edit:...make that arse and shite for all you limey bastards. (i kid i kid)
If the government owns 20% of your house, do they get to pick the paint colors?
they actually already do. the EPA sets regs that govern the paint....ever been to foreign countries that still use 'old fashioned' paints....much brighter and deeper pigmentation. the paint sold in the usa is just filler.....just like our food really.
how about letting houise prices go to their fair market valoue by stoppi ng manipulating the market then people can afford the deposit
what stupid idea can these cunts come up with next
obscene