Odd system, it is odd because it rewards them for keeping their money outside the uk, which we think is the opposite of what we should do. What has changed with that . What has changed with that . What has changed is that any weird concept of domicile has been abolished, there will be a simple definition based on how many years you have been resident in the uk, which is sensible, and a complete exemption from tax on the foreign assets of someone who has recently arrived in the uk, which is simpler, and i think federer. It will only last forfour years. For a last for four years. For a professional person arriving to the uk from abroad gives the four years in which they can sort their Foreign Affairs and learn to live in the uk, but it is much less useful for the very wealthy. We have got jake here who has written and, as a young person, soon to on slightly above average income, what are the longer term effects of the budget, will i be better off . I will come to the longer term peace in a second. Over the course of the next year you will feel slightly better off because of that headline cut in National Insurance. As a result of yesterdays cut in National Insurance, £549 more in their pockets. We have really seen a cat in National Issues this year, by the end of the year, about £1000 more there. That is the good news. The flip side is that Tax Thresholds for all of as are frozen, over the long term this is what is going to hit us, and, sadly, many of us over the longer term start to feel worse. We have all got a personal allowance, we can all earn up to £12,570, anything up to that amount we dont pay a penny of tax on. Everything over that, you will pay basic rate income tax. As Inflation Pushes wages up, more of as i going to pay more in income tax, so we might feel, we got a cut from National Insurance, but on the other hand you are paying more in income tax. Overthe hand you are paying more in income tax. Over the long term i am afraid you are going to feel a bit squeezed, like most of as. Peter has asked, i would like to know how accurate have Budget Forecasts been in recent budgets . Those forecasts come from the office for budget responsibility, it was set up back in 2010 to get a report on sustainability of finances, it has to be impartial. It is carried out work to assess just how accurate its forecasts have been. It shows over time that the Borrowing Forecasts tend to be more biased and less accurate over to, three, four years, the head, however they are more accurate than external forecast is for one year ahead. Over the period since it was established, the uk forecast for growth, gdp, are relatively more biased upwards, with a tendency to overestimate output, and it also looks back at its forecasts during the pandemic, at the outset of the pandemic, and it said that while no forecast accurately predicted the huge hit to economies and the shock from covid, the obr was quicker than external forecasters to recognise the likely scale of the shock to growth, output. There wasnt any growth at all, was there, it was a massive contraction . Add the massive growth of borrowing. But it underestimated the speed of the recovery. It is heartening to know that the independent forecaster does regularly check the accuracy of its forecasts. Staying with you, you are talking to us about the obr, we have another question on them. Elizabeth writes, why does the obr, according to the chancellor, said a 30 drop in Employee National insurance will lead to an increase of 200,000 people in work . You might have heard National Insurance is referred to by some as a tax on work. What the obr does is that it estimates the impact on people actually taking home more take home pay. By reducing the amount of tax that people have to pay, take home pay will rise, so it should act as an incentive to get more people into work. But also it is taken into account with all these figures, the effect of the Child Benefit taper, but also Childcare Expansion as well. Taking all of these into consideration, it estimates that these measures could or should boost the Labour Supply by 300,000 people. So, incentives to get people back into work. But, fiscal drag. This is the frozen personal Tax Thresholds that will drag people into paying more income tax, and they forecast that this will offset these incentives by around one third. That is how they have come up with this 200,000 figure. But of course it is not an exact science. There are lots of other factors weighing on exact science. There are lots of otherfactors weighing on it. Which is why the obr could never completely get its forecast right. There are factors such as, the long term sick, nhs waiting times, that may also be a factor in stopping people returning to the Labour Market quite so quickly. Let us go back to dan, one question, i also want to ask kevin about this, how has the budget helped all pensioners who dont pay National Insurance . That is a question came in anonymously. Dan . We are having problem with your sound, dan. Kevin mrmac dan . We are having problem with your sound, dan. Kevin mr mac similar question. I see nothing in the budget that will benefit retirees, have i missed something . M0. Budget that will benefit retirees, have i missed something . No, you have i missed something . No, you have not missed have i missed something . No, you have not missed something. Have i missed something . No, you have not missed something. The. Have i missed something . No, you i have not missed something. The key announcement in this budget was of course about National Insurance, a cut in National Insurance, and that is for 27 million employees, and the other man to benefit from that, and then for the self employed there was a cut also. Some of the Think Tanks Reporting today looking at how pensioners have been affected. Of course they dont get the benefits of that National Shoes catch, they dont pay National Insurance. But as has been mentioned, the effect of freezing of Tax Thresholds means more people will be paying more in income tax. The reason we are all talking about it is because it is so important. There are about 60 of pensioners who pay income tax. They are going to be feeling the effect of that. According to the Institute For Fiscal Studies, they say that over the course since 2021, when frozen until 2027, they are going to be losing about £650 per year, pensioners, as a result of that. That is why there has been some chatter today from Pension Groups and pensioners themselves about how they feel as though they may have missed out. Ministers say, we cant take this in isolation, there has been lots of support for pensioners, the State Pension going up in april, and Cost Of LivingPayment Support for them also. I think we have your sound back, pensioners and how they stand to benefit and otherwise . Benefit and otherwise . National insurance. Benefit and otherwise . National insurance, despite benefit and otherwise . National insurance, despite the benefit and otherwise . National insurance, despite the myths i benefit and otherwise . National. Insurance, despite the myths that some politicians and carriage, it is just a tax on income by another name, it is not clear why a pensioner should pay less tax on income than someone of working age, particularly the case given in the last 20 years we see the average pensioner having higher Disposable Income than the average working family. I can see that pensioners may feel that it is disappointing from perspective of the country it is a rational policy to be reducing National Insurance. We have got a question here from len, he says, we have had two good for the workers on the receiving end, i would like to know how this affects nhs and pensions which are financed through this, at a time when the nhs is seriously underfunded, and we are told we are going to have to retire later and later due to a lack of funds . Yes, you might remember that back in april 2022 the government increased National Insurance, at the time it said it was to fund the nhs and social care. That was then reversed in november that year. Then we have had these two successive cuts to National Insurance coming into force this year. Jeremy hunt says it is not going to affect current nhs spending. That this move has still provoked criticism from the likes of the National College of nursing which is pointed out that giving away billions in tax cuts in place of Health Spending is not welcome, given that the nhs has this multi billion pound deficit at the moment, and they want to see more investment in staff. And they say, really they need a concerted effort to invest in staff. And that actually is 2p in the Pound Tax Cat is not going to touch the sides, when it faces this recruitment and retention issue. And it also points out that these tax cuts, National Insurance, was enough to cover Student Loans of nurses for the next four decades. During the budget yesterday, the chancellor did deadstock quite a lot about the nhs, particularly with in relation to this boost from introducing ai across systems. This ai productivity boost. But Nursing Leaders point out that while technology is of course transformative in health care, you still need enough staff around to know how to use it. While you were talking, dan, you look at you wanted to say something. Tell us what your reaction is. It is a common belief that National Insurance funds nhs, funds pensions. It doesnt. Itsjust insurance funds nhs, funds pensions. It doesnt. Its just tax, insurance funds nhs, funds pensions. It doesnt. Itsjust tax, it insurance funds nhs, funds pensions. It doesnt. Its just tax, it all goes together. There is no difference between cutting National Insurance in katic income tax in terms of the effects on government finances, in terms of effect on nhs spending. None at all. This is still to do with national assurance. What is going to happen to the State Pension if no National Insurance contributions from workers are being made . I guess he is alluding to the idea that this might be phased out over time, that the chance hinted at. I have to wait until 67, she says, which i am aggrieved that, because i have worked since i am 17, i was well paid for 35 years plus. If it is abolished, how do people then qualify, especially of choosing not to work and contribute to a country, orfor people not to work and contribute to a country, or for people that do work, it is stressful enough, she says, having to wait until 67, i and the moderate majority people need their State Pension, how will the State Pension be funded . For those people listening, just to recap on the rules of State Pensions, which are confusing for most of us, elizabeth mentioned 35 years, the basic rule is we need to have paid National Insurance for 35 years to qualify for the full new State Pension. From april, that is going to be £221 per week. We have to have, this contributory benefits, we have to have paid in, in order to qualify for the State Pension. She also mentions, and i presume therefore she was born after 1960, that you have to be 67 years old now to get your State Pension, that is going to inch up gradually to 68 years old. I would say, dont worry about the mechanics of funding your State Pension. As our computers have said, it is all tax by another name, it goes into a common pot there. The chancellor is suggesting, and he said this yesterday, that he would like to think about gradually reducing down, possibly facing out, National Insurance. He is desperate to get people back into work, he doesnt want to be seen to be overly taxing workers. However, there is this concept in this country that we have a contributory system, people will still have the attacks is used to fund a future State Pension. So i would say to elizabeth, no one likes to feel that their State Pension is being messed around with, but i wouldnt be alarmed by what you have heard yesterday, that State Pension will still be there when you are 67 years old. I know it is longer than many of us would like to wait. Kevin, a question, is the increase in child Family Allowance from 50,000, to 60,000, and 60,000 to 80,000, forany 50,000, to 60,000, and 60,000 to 80,000, for any parent, or worked out on both parents and come added together . It is out on both parents and come added touether . ,. ,. ,. , together . It is unclear. It is to do with one parent, together . It is unclear. It is to do with one parent, the together . It is unclear. It is to do with one parent, the highest together . It is unclear. It is to do i with one parent, the highest earning parent. The change in Child Benefit was one, perhaps the only, surprise, in yesterdays budget. There were two elements to it. The way it works, i will walk you through it, if you can have at the moment to parents earning, that family will get the entire amount of Child Benefit. You may have a single parent, or a single earner, earning more than that. But they may find that they dont get any Child Benefit. What the chancellor said is two different things. They are going to in the longer term try and move towards a system of household income, judging on household income, notjust one highest earning period. And they say that would come in by april 2026. And they say that would come in by april2026. In and they say that would come in by april 2026. In the meantime, the thresholds at which you Child Benefit effectively starts being taken away, that would go up from £50,000 per yearfor one parent, to £60,000 peryear. I £50,000 per yearfor one parent, to £60,000 per year. Iwas £50,000 per yearfor one parent, to £60,000 per year. I was at that point that it starts to be taken away, pay some of it back through the tax system. Then it will go entirely once you are earning £80,000 per year, entirely once you are earning £80,000 peryear, ratherthan £80,000 per year, rather than £60,000. £80,000 peryear, ratherthan £60,000. It will mean that more families will receive more Child Benefit, but some of the complexities will remain, and some of the perceived unfairness will remain, untilat least of the perceived unfairness will remain, until at least 2026. I think you will try to come in on this issue was mack yes, as kevin says the complexities of this are horrendous. But says the complexities of this are horrendous says the complexities of this are horrendous. �. ,. ,. ,. , horrendous. But one point to add for our horrendous. But one point to add for your listeners. Horrendous. But one point to add for your listeners, it horrendous. But one point to add for your listeners, it is horrendous. But one point to add for your listeners, it is really your listeners, it is really important who at the moment claims the Child Benefit. There is a tendency, that many staff in a relationship is done by the person who is currently in employment, but for Child Benefits we have been talking about the State Pension, talking about the State Pension, talking about the State Pension, talking about making those contributions to fund a future pension, it is important that the not working parents, if that is applicable in your household, is that one claiming the Child Benefit, because that means you will be earning National Insurance contributions, which will qualify you for a future State Pension. It is something that is often overlooked, and the really important thing for families to find out about. Question for dan. Why cant the government to do a staggered percentage were the more you are in, the more you pay, rather than our one shoe fits all approach . I am assuming he is talking about general taxes, or National Insurance, not entirely clear. Entirely clear. What you make of that question . Entirely clear. What you make of that question . We entirely clear. What you make of that question . We do entirely clear. What you