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Weekend reading: Bashing the budget

Good reads from around the Web.

Chancellor Philip Hammond says Wednesday’s controversial [1] Spring Budget will be the last (and not just for him). The Spring Budget is set to become the Autumn Budget, while the Autumn Statement will be reborn as a Spring Statement. Oh, and the Spring Statement won’t really be a Stealthy Second Budget, supposedly. Meanwhile for now we all get Summer Off.

According to the BBC [2], this kerfuffle is aimed at giving us more time to prepare for tax changes and the like ahead the new tax year, which begins in April.

Well, maybe. Because does that seem to have been any motivation for governments in the past decade?

On the contrary I suspect Hammond may be secretly planning to launch a 24/7/365 Budget. One long unending rollercoaster of financial meddling, streamed on Facebook and pithily summarized via hourly Tweets.

So relentless have been the changes to pensions, taxes, and whatnot in recent years, it must be a drag for them to have to sit around waiting for another Budget to come along before they can have a fiddle again.

Instead, why not just get the latest wheezes out the door pronto?

We’ve had Just in Time manufacturing for years. Let’s have Just in Time policy! It can’t take long to get the back of a fag packet typed up.

(Lifetime ISAs, I’m looking at you…)

Dividends for dummies

Seriously, I have had colds that have hung around for longer than the shiny new Dividend Allowance was left unmolested.

I’d only recently updated Monevator to explain the ‘new’ dividend taxation regime, and now the Allowance has been slashed to £2,000. Annoying enough for me – imagine the hassle writ large across the financial services industry.

I mean, if the £5,000 Dividend Allowance is really so grossly ‘unfair’ then why wasn’t it unfair less than a year ago when this government introduced it? If we’re going to tax investments outside of tax shelters harder, then let’s get it all changed at once so we know where we stand, rather than hiking dividend tax rates, then introducing a new clunky complication to the system with the Dividend Allowance, and then immediately begin chipping away at it. Its policy by Frankenstein.

Ditto the NIC hikes the chancellor has slapped on the self-employed.

Hammond said [3] he’s asked Matthew Taylor, chief executive of the RSA, “to consider the wider implications of different employment practices.”

That review is due to report in summer, but heck, why wait for Taylor’s considered conclusions? Let’s just get some NIC hikes rolled in now, ahead of the review, and keep everyone on their toes! They will likely be rolled back by a Tory backlash anyway, before being rolled back in again as a result of Taylor with the Autumn Budget.

And they wonder why people find this stuff so vexing?

More on the omNICshambles [4] Budget:

Sorry I’m a bit late with the links this week. Reasons!

Have a great rest of weekend.

From the blogs

Making good use of the things that we find…

Passive investing

Active investing

Other articles

Product of the week: The Spring Budget saw Philip Hammond confirm a new NS&I savings bond will launch in April. ThisIsMoney [33] is rightly underwhelmed. The three-year product will pay 2.2% – not even a market-beating rate – and you can only put in £3,000. Atom Bank [34] pays the same, and will take £100,000. (Remember the FSCS [35] limit though.)

Mainstream media money

Some links are Google search results – in PC/desktop view these enable you to click through to read the piece without being a paid subscriber of that site.1 [36]

Passive investing

Active investing

Other stuff worth reading

Book of the week: Barel Karson was disappointed [54] by passive guru Larry Swedroe’s The Incredible Shrinking Alpha [55], noting:  “[The authors] seem only interested in one dimension: linearly factoring historical returns, and implicitly assuming these don’t change going forward.” Anyone read the book [55] and care to comment?

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  1. Note some articles can only be accessed through the search results if you’re using PC/desktop view (from mobile/tablet view they bring up the firewall/subscription page). To circumvent, switch your mobile browser to use the desktop view. On Chrome for Android: press the menu button followed by “Request Desktop Site”. [ [60]]