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Everything is going up except our income.

(237 Posts)
gillybob Wed 22-Mar-17 13:34:06

I take my dad shopping a couple of times a week. He tends to buy the exact same things on a weekly basis. For example;

A small chicken, loaf of his favourite seedy bread, a small tub of Lurpak, a small pack of mince, bananas etc.

We have noticed that the prices for these fairly basic items is rising at an alarming rate and added to recent council tax rises and (his)local authority rents etc. things are becoming very difficult for a lot of people.

I am not retired (probably never will due to changes in rules) but I haven't had a wage rise in over 5 years. My council tax has risen dramatically and I wonder how ordinary people are supposed to make ends meet?

I know they blame Brexit for rising supermarket prices and the increased cost of elderly social care for council tax rises, but I wonder are we all just being conned big style?

gillybob Wed 22-Mar-17 16:31:33

We do own and run a business Norah so your apologies are not necessary. We are not self employed though as I pointed out earlier. We pay NI and PAYE just the same (and at the same rate) as everyone else.

gillybob Wed 22-Mar-17 16:29:07

My "free" choice would be to work for someone else Norah believe you me this is no fun. DH working 15 hours a day for less than our lowest paid employee. However our only REAL alternative would be to go onto permanent sickness benefits.

Norah Wed 22-Mar-17 16:28:41

gillybob I'm sorry, I thought you owned and ran a business, thus self employed by definition.

Norah Wed 22-Mar-17 16:24:30

Elegran point being IF small enterprises can't make ends meet, one need to earn a living somewhere else OR not complain. It's a choice freely made.

gillybob Wed 22-Mar-17 16:21:47

FYI I am not self employed Norah. My DH and I run a small business and we are both on the payroll and pay PAYE just like anyone else. It's fine changing employment when you are young and healthy but both DH and I have serious ongoing health problems which is the ONLY reason we started the business in the first place. The alternative could/would probably be sickness benefits.

For the record the band A council tax in our borough is £1025.44 and the band D is £1538.16. In Kensington & Chelsea it's £708.01 (A) and £1062.02 (D).

Elegran Wed 22-Mar-17 16:16:05

That was for Norah

Elegran Wed 22-Mar-17 16:15:35

That doesn't do anything to increase the number of healthy small businesses in the country though, the little acorns from which grow the big oak trees of manufacturing and commerce. It just increases the gap between employed and employer. all those global enterprises which we so deplore as monopolies are there because people like gilly and her husband have been squeezed out of being independent manufacturers.

We can't have it all ways, either we want giant monopolies or we want independent enterprises. If the independent enterprises can't make ends meet, we will get nothing but the Exxons and Trumps of the world.

janeainsworth Wed 22-Mar-17 16:12:58

Rigby
Council tax is not an income tax, it's a tax on the value of property.
There's no need to feel guilty about your less-well off neighbours as they won't be paying as much income tax as you, will they? It's also quite possible they make greater use of council services than you do.

What about VAT? Is that unfair too? Poor people pay the same as rich people, when they buy goods and services.
There are going to be winners and losers in any form of taxation.

SueDonim Wed 22-Mar-17 16:12:01

£3.25 for butter? It's £1.09 in Tesco.

I have a limited choice of supermarkets unless I travel 20+ miles but I haven't noticed prices going up much.

Norah Wed 22-Mar-17 16:10:05

gillybob if wages are a problem, get a different job. There must be something that keeps you self employed rather than seeking outside employment. Make the jump IF you truly are unhappy. My husband moved up in employment quite often, worked for him instead of complaining.

paddyann Wed 22-Mar-17 16:04:48

the Scottish government raised council tax on band e and above that puts about £30 a month on my bill .I'm happy to pay as we earn a reasonable living...we dont have to worry about heating or eating ...like some.But the amount of abuse on the SNP website about it amazing,people I know who are earning a very good living complaining that after a 10 year FREEZE of council tax they'll need to pay a wee bit more than folk who can barely make ends meet.I wonder how they think services should be paid for ,I know SNP said they abolish council tax and they haven't and thats mainly because people dont want a local income tax...well not the people who would have to pay it.

angelab Wed 22-Mar-17 16:04:12

Gov statements on changes in cost of living reflect what goes into the 'basket of goods':

" Both RPI and CPI measure inflation. Both of them do it by taking a basket of goods – food, clothes, petrol - looking at what they cost last year, looking at what they cost now, and finding the proportional difference.

But the CPI leaves the costs of your home out of the basket – so rises in mortgage payments, rents, and council tax, which in real life you pay, don’t get reflected in it. The RPI does take account of those costs."

from www.statslife.org.uk/economics-and-business/33-rpi-versus-cpi-what-s-the-difference-why-does-it-matter-will-it-make-you-poorer-or-richer

So if you still have mortgage/rent, the CPI is misrepresentative, especially somewhere like Oxford.

Norah Wed 22-Mar-17 16:01:45

chelseababy, spot on! Lovely for us, not so much for those a wee bit younger with children to raise.

gillybob Wed 22-Mar-17 16:01:27

I really pity the young ones.

gillybob Wed 22-Mar-17 16:00:45

Our council tax has gone up almost 6% ! Plus the £30 green bin charge.

gillybob Wed 22-Mar-17 15:59:19

Neither mine or my DH's wages have not gone up in over 5 years Norah !

The things that have gone up though are;

Gas, electric,fuel,bus fares,council tax, food,insurances, presciptions etc.

I (and many like me) are not in the position to be-able to "stock up". I tend to have to buy what I need weekly, as I am paid.

My dads local authority rent has also gone up quite considerably. Not sure how much his pension will have risen in order to pay the extra though.

chelseababy Wed 22-Mar-17 15:54:16

Pensions will go up 2.5% in April won't they? The CPI was 2.3% so at least something is covered - for some.

Norah Wed 22-Mar-17 15:43:16

Your Asda is certainly different than my shops, no discernible price increases. But I do stock up on offers. I find worrying about small bit of inflation tedious, food prices have been relatively stable for a few years and wages have gone up. So?

gillybob Wed 22-Mar-17 15:38:02

Our council services are being cut to the bone and we are now having to pay for green bin collections (they haven't cut the free pilates sessions for council staff though). We have been hit with huge council tax increases. Our senior council officials are some of the highest paid in the country and they have just spent millions on modernising our town hall. The councillors have voted themselves a nice rise in their expenses too.

That aside, take just the price of butter in Asda. 2 for £5 last week. £3.25 each this week. DH's favourite cereal 3 boxes for £5 a month ago £2.67 a box this week. There are plenty other examples.

POGS Wed 22-Mar-17 15:17:59

We are perhaps very lucky to live so near to most of the main supermarkets and so far I can honestly say I have not noticed an increase in prices.

As for Council Tax I think it's inevitable if wages are to be paid and services maintained then Council Tax will go up .

My problem isn't the raise in Council Tax so much as it is the 'waste' by Councils that I deplore. Why put in speed humps at the expense of social care scenario.

Norah Wed 22-Mar-17 15:07:36

Switching to income tax would be patently unfair. We pay much more now than we would on income, and we should pay as much as we do or higher to support services for everyone.

gillybob Wed 22-Mar-17 14:56:45

I don't think we have any band G properties in our borough M0nica! Have checked and we pay over £600 per year more than the same band in Kensington & Chelsea.

M0nica Wed 22-Mar-17 14:43:06

In leafy wealthy Oxfordshire we pay over £3,000 on a Band G property.

Jalima Wed 22-Mar-17 14:41:55

I just checked ours and had assumed that council tax rates would be the same across the whole County but was surprised to find that they are not, they fluctuate quite a bit.

Jalima Wed 22-Mar-17 14:40:08

Our council tax goes up to Band I here where the charges would be well over £3,000 per annum.

Highest council tax in the country is in Dorset:
www.telegraph.co.uk/finance/personalfinance/tax/11962411/The-highest-and-lowest-council-tax-bills.html