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.
EasyJet pulls back on growth numbers
Budget airline EasyJet has today announced a halving of its forecast growth rate from 15% to 7.5% with founder Sir Stelios Haji-loannou said to have been a prominent figure behind the scenes. It seems as though the founder, who still controls 38% of the airline shares, had become very concerned about over expansion in a recessionary period.
While there is no doubt that the original...
UK construction sector still under pressure
A report today by the Chartered Institute of Purchasing and Supply's has confirmed that the UK construction sector is still under immense pressure and the workforce has reduced yet again for the 14th month in a row. While there is no doubt that business is still tough, the Chartered Institute of Purchasing and Supply's managers index showed that business levels are falling at their slowest rate fo...Read More
Have we seen the top of the sporting market?
For many years experts have been concerned that sporting salaries, especially in the field of football, have risen far too quickly to levels which for many teams would eventually lead to commercial suicide. The English Premier league brand-name for one has continued to grow and grow despite these reservations although it appears that the collapse of Setanta has injected a sharp dose of reality int...Read More
House prices rise again
A Nationwide report regarding UK house prices has shown a 1.3% rise in July making it three consecutive monthly rises in a row. The average house in the UK is now valued at £158,871 and is only 6.2% down on the value 12 months ago. The marked turnaround in the UK property market has surprised many and there are indeed many sceptics who cannot as yet believe the figures are some strong.
Surprise jump in UK unemployment
UK unemployment has risen to nearly 2.4 million with a jump of over 280,000 in the three months to May 2009. These figures are way above what analysts had expected, with some pencilling in a rise of 140,000, and do not bode will have a future. The overall rate of unemployment in the UK now stands at 7.6% and with the figure expected to top 3.2 million sometime during 2010 the situation is turning...Read More