New income tax rate set at 45%
The government has today introduced the new 45% tax rate for those earning over £150,000 per year but this is not planned to come into force until 2011. This has caused obvious concern within the Conservative party and while they have not commented specifically on the new tax, for fear of falling into a government trap, there are grave concerns that Conservative supporters will demand a clear strategy for the new income tax band.
This appears to be more of a political move that a fiscal move with the new tax band only affecting the top 1% of taxpayers in the UK and said to only raise a paltry £4 billion. At the same time as introducing this new tax rate the government has also confirmed that each basic rate taxpayer will be £145 better off next year due to changes in the tax bands. It is hoped that consumers will use this increased income wisely and it should hopefully instigate some form of economic recovery.
The Chancellor has caught many people off guard with his tax changes even though a number of the main ones where already leaked to the press. The 45% tax rate band had been kept under wraps until late last night and appears to have gone down well with traditional Labour supporters.
Why is it so expensive to live in the UK?
Despite the fact that the UK has readily accessible supplies of oil, a well-developed energy network and expertise in the field of renewable energy it seems that the cost of living in the UK, especially energy bills, continues to rise. Since the privatisation of electricity, gas and water companies we have seen a conflict of interest emerge between consumers and businesses and shareholders.
Has Alistair Darling won his battle with Gordon Brown?
It is rumoured Alistair Darling is currently in the process of warning ministers and various departments in the government that they will need to reduce their public spending in the short to medium term. Despite promising that areas such as the NHS would continue to receive increased investment year-on-year, many departments will have to reduce their spending by as much as 16%! Public sector sp...Read More
Four building societies offer new 5pc mortgages
For those looking for a cheap mortgage deal, October marked a significant step in the right direction, when the second stage of the Governments’ Help to Buy scheme was launched three months early. However, four UK building societies have now launched 5pc mortgage deals, offering potentially cheaper alternatives to the Government-led initiative. All of the building societies offering the deal...Read More
Is it dangerous to cut public spending and the quantitative easing program?
As the Chancellor Alistair Darling wrestles with the problem of reducing the UK government's overdraft and addressing the issue of public services there are very few people who would like to be in his shoes at the moment. While at some stage we will certainly see a reduction in investment into the public sector and a closing of the government's quantitative easing program, but if the two were to h...Read More
The Treasury set to take larger role in UK regulation
It appears that the secret as to why ongoing UK banking regulation changes were postponed this week is out of the bag. Rumours circulate the market suggest that the Bank of England and the Financial Services Authority (FSA) will be stripped of significant power in the regulatory market which will be transferred to the Treasury.
This is a significant U-turn by the UK government and o...