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.
Is it fair for public sector workers to see their pensions reduced?
As the number of final salary pension schemes in the UK private sector continues to fall, with many believing that final salary schemes will have gone over the next decade, the government's announcement regarding public-sector final salary pension schemes has been well received. It seems that Gordon Brown has finally realised the immense cost of funding these public-sector final salary schemes fro...Read More
Are we set for a consumer champion within government ranks?
There are growing rumours that the UK government is set to announce some kind of consumer tsar who may have the power to fight legal battles on behalf of consumers in the UK. While we still await details of the UK government's White Paper, due on 2 July, it is believed that the UK authorities are looking to increase protection for UK consumers and simplify the legal challenge process where potenti...Read More
Annuity rates have fallen at fastest rate in 3 years
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Sir Allen Stanford sees $100 million of UK assets frozen
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Gordon Brown Cool On Calls For 50% Income Tax Rate
It seems as though there is a growing call for an increase in the higher rate of tax from 40% to 50%, hitting those with annual incomes in excess of £100,000. In what many are claiming to be a call back to the Labour movement, the Unions and a number of MPs will step up demands for a change at the next party policy meeting. Challenged on the claim Gordon Brown was cool on the idea suggesting th...Read More