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.
U.K. mutuals on course for more mergers
Over the last few months we have seen problems with the West Bromwich building society, the Dunfermline building society and more recently the Chelsea building society. While a number of operations have been taken over or merged with larger partners, there is a feeling, at least in the offices of KPMG, that more mergers in the sector are inevitable. The financial sector in the UK is changing and t...Read More
FTSE 100 rebounds on Greek hopes
The FTSE 100 has today rebounded slightly after a strong performance on Wall Street overnight amid hopes that the European Union will step in with a financial package to save the Greek economy. Only 24 hours ago there had been growing concerns that the Greek issue would not only transfer to the likes of Portugal and Spain but could also bring in other EU states which have struggled during the econ...Read More
Phones 4U in 11th hour rescue plan
18/09/2014 Phones 4U, who look set to go bankrupt due to a loss of key suppliers, could be offered a final reprieve by the company’s creditors. The company recently lost contracts with both Vodafone and EE, which essentially meant the business is no longer commercially viable. However, the companies creditors, who own £430m of senior bonds in the company have put pressure on mobile ope...Read More
CBI expects 30,000 financial jobs to go in next six months
In a bitter blow to the UK financial sector the CBI has revealed expectations that 30,000 jobs could be lost over the next six months. When added to the 40,000 job cuts last year across banks, building societies, insurers and investment managers, this does not bode will have the future of one of the U.K.'s largest service sectors.
The CBI is also suggesting that profits and business...
George Osborne attacks Labour government spending
Speaking at the CBI annual dinner, Chancellor of the Exchequer George Osborne launched a ferocious attack on the former Labour government's "reckless spending" in the last few months of office. The new coalition government has announced a review of all Labour spending decisions over the last few months with speculation that a number of senior civil servants were unhappy at the rate at which funds...Read More