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.
Now the government wants to charge you to park at work!
In a move which further justify the anger of many motorists around the UK, the local council in Nottingham have taken advantage of government regulations introduced in 2000 which allow a levy to be placed upon workplace parking. In effect employees will be charged to park their cars in their office car parks and factory car parks with the fee expected to start at £250 a year.
The Bank of England set to explain quantitative easing to the public
Charlie Bean, deputy governor of the Bank of England, will this week embark upon a whistlestop tour of the UK during which time he will seek to explain the intricacies of quantitative easing and other financial strategies used by the Bank of England. The headlines, in relation to quantitative easing, have contained figures such as £125 billion and given the impression that money is being created...Read More
How do you tackle your debt issues?
The vast majority of people in financial trouble across the UK will have mortgage debt, credit card debt, loans outstanding and other overdue payments. While it can be very difficult to know exactly where to start when tackling these problems it is essential that you protect your home first and then look to pay off the higher interest debt.
If you're up-to-date with your mortgage pa...
Is Alistair Darling hiding further public sector cuts?
The Institute for Fiscal Studies has identified a potential black-hole in Alistair Darling's financial plans from 2011 onwards. While he has identified there is a need for up to £36 billion of savings from the public sector budget from 2011 onwards, £15 billion of these potential cuts have yet to be identified and will no doubt take in a number of "frontline" services which are supposed to be pr...Read More
Brown hits back at Tory 'con artist' jibes
Gordon Brown has defended the small print of his 11th and certainly final Budget amid accusations by the Conservative party that the chancellor has pulled a "tax con not a tax cut".The prime minister elect surprised MPs and commentators in the denouement of his announcement to the Commons yesterday by reducing the basic rate of income tax by 2p in every pound.But the Tories said last night that he...Read More