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.
What is more important than the financial market White Paper?
As we covered in one of our earlier posts, the UK government has this week delayed yet again the publication of the White Paper on the future regulatory framework of the UK financial markets. Claiming there are two other financial White Papers to be released over the next few days many people cannot believe that these other White Papers have taken precedence over the financial sector. So what exac...Read More
Council of Mortgage lenders reduces repossession forecast
The Council of Mortgage Lenders (CML) has this evening issued a statement suggesting that UK repossessions in 2009 could be significantly lower than originally forecast. The CML had forecast around 75,000 repossessions in the whole of 2009 although this figure has now been reduced to 65,000, still a significant increase on the 40,000 repossessions last year. It is also worth remembering that the 6...Read More
EC moves on tax evasion
The European Commission (EC) is seeking to eradicate tax evasion through an amendment to the Savings Taxation Directive, the organisation announced yesterday (November 13th).Loopholes which are exploited by tax evaders will be closed by adjustments to the directive, the EC said after accepting a proposal on the change.It is to be improved so that interest payments which come through intermediate t...Read More
Bank Of England hold UK base rates
As expected, the Bank of England MPC committee has today confirmed that UK base rates will remain on hold for the sixth consecutive month. This came as no surprise to the UK market, with many expecting the move, although there was a small surprise with regards to the quantitative easing program which has been ongoing for some time.
Many had expected the Bank of England to put on hol...
Alistair Darling challenged to curb city remuneration
The last few days have seen the Chancellor of the Exchequer Alistair Darling move out of the shadows and take up the mantle regarding excessive pay in the city and huge bonuses. However, Alistair Darling was today challenged to rubberstamp the creation of a new "High Pay Commission" which would effectively oversee the City of London and regulate remuneration packages and bonuses. So how did the Ch...Read More