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What can savers expect in the forthcoming budget?

As Gordon Brown and Alistair Darling continue to suggest that UK savers will be "looked after" in the forthcoming budget many people are now wondering exactly what is in store. As UK base rates have fallen from over 5% to the current level of under 1% we have seen savings rate in the UK collapse. This has led to many people having to dig deep into their deposits even though just 12 months ago many were living off their interest. So what exactly can UK savers expect in the next budget?

As the Tories suggested some time ago, it is highly likely that will see some kind of new tax allowance for pensioners to ensure their tax burden is produced and they are able to retain more money for their day-to-day needs. With base rates as low as they are it is impossible for banks to pay a "decent rate" until base rates start to climb as and when the UK economy starts to recover. While any short-term assistance from the government will be well received, we will not see any major improvements for UK savers for some time to come.

As we approach the next general election in 2010 even Gordon Brown will be unable to pull any rabbits out of the hat and deliver any tax giveaway budgets between now and the general election date, whenever that may be.

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