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.
UK set to leave recession in the third quarter of 2009
Today's revision of the GDP figures between April and June were well received, even though the adjustment was minimal, and many analysts now believe the UK will move out of recession in the third quarter of 2009. HSBC is forecasting a 0.5% rise in the UK economy in the third quarter and a 0.7% rise in the fourth quarter. So will 2009 be the end of the UK recession?
While there are h...
When will we see taxes increase?
While many people will point to a reduction in public sector investment there is only one way in which to tackle the U.K.'s growing debt crisis. Income taxes will rise in the short, medium and longer term to make up the shortfall in not only the UK budget but also to reduce the ever-growing debt mountain. Those who would suggest that tax rises will be minimal are living in dreamland and will be in...Read More
CBI puts pressure on UK government to balance the books
The CBI has called upon the government to work towards balancing the budget by 2015 as opposed to a 2017 target date which was recently announced. It is no secret that the UK budget will be in deficit to at least £175 billion this year and is set to rise in the foreseeable future before turning down. However, without serious attention the budget will not be back into surplus, or at least balanced...Read More
Cash Flow Issues
For many, cash flow problems are caused by simply not keeping track of where money is being spent. Even small purchases will add up quickly so it is vital to consider what you are buying and if you really need it.
Make sure that you are always aware of what you owe and are conscious of what your income will allow. It is always worth investigating where concessions can be made...
What is happening to the UK mortgage market?
Despite the appearance of a number of new mortgage arrangements over the last few weeks it appears that the UK mortgage market is still at rock bottom. A report by Moneysupermarket.com has highlighted the fact that there are just under 2,300 deals available in the wide mortgage market, which is less than half the figure available 12 months ago and 90% below the figure available at the height of th...Read More