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.
Airline industry hit by new collapse
Budget airline SkyEurope has today cancelled flights for the foreseeable future after filing for bankruptcy. While the company is based in Slovakia it has significant operations from Luton and Manchester and has attracted a great number of UK travellers. Even though there is an industry compensation package in place there are growing concerns that refunds may not be available for a great number of...Read More
MPs committee set to take on mortgage lenders
A Treasury Select Committee is looking into the possibility of cross examining the U.K.'s mortgage lenders amid concerns regarding liquidity shortages and increased repossessions continue to mount. It is no secret that the UK mortgage market is still fairly illiquid even though many of the headline grabbing rate cuts would appear to show otherwise. There is also a growing trend for the repossessio...Read More
Does Alistair Darling want to come clean over spending cuts?
There is growing pressure on Alistair Darling today to step forward with a definitive plan for the reduction of the UK budget deficit which is forecast to be around £175 billion from the tax year 2009/10. There is also a growing belief that Alistair Darling wants to step forward with detailed plans, some of which will not be attractive to UK voters, but he has been stopped in his tracks by the Pr...Read More
Insurance fraud costs the UK consumer
As the UK recession continues unabated, with sporadic signs of improvement, we have seen a massive increase in the number of fraudulent insurance claims in areas such as home insurance and car insurance to name but a few. This is a common pattern as and when the UK economy goes into recession and is something which the insurance companies have attempted to control and reduce over the years but hav...Read More
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