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 time to fix that mortgage rate?
As the UK mortgage sector, at least on the surface, starts to show signs of life many people believe it is time to take professional advice regarding fixing your mortgage rate. A number of experts have stepped forward to suggest that those who do not consider fixing their mortgage rates by the end of July stand to increase the future cost of fixing their mortgage by £1000. This potentially costly...Read More
How long before the government disinvests bank share stakes?
Even though the UK government is looking to dispose of a number of share stakes in the likes of Lloyds bank, Royal Bank of Scotland, Northern Rock and Bradford & Bingley prior to the next general election, there are creeping suspicions that this may not be possible. The very fact that the potential sale of substantial share stakes has already leaked into the marketplace has in many ways put a cap...Read More
OFT concerned that state owned banks may distort the market
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How Can The Public Influence The Cost Of Employing MPs?
Over the last couple of years there has been a growing debate about the cost of employing MPs in the UK and the massive expenses they are allowed to claim. As each and every sector of the UK public continue to struggle we are hearing more and more stories about massive expenses claims, MPs employing members of their own family and taking rental payment from the public purse to work from home.
Public sector workers confused over salary
Despite the fact that Alistair Darling confirmed there would be 1% cap on salary increases in the public sector, many public sector workers still appear to expect a "same again" salary increase in the New Year. In many ways this is a sector of the UK economy which has been removed from the pain of the UK economic downturn but is now starting to realise it is not "in a world of its own". Quite w...Read More