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.
UK bankers lobby Chancellor to drop 50% bonus tax
Some of the U.K.'s most senior bankers have joined forces to lobby the UK government into dropping the proposed 50% bonus tax in exchange for a combined contribution, on a voluntary basis, of £2 billion from the UK financial sector. This is set to cause some problems for the UK government as the proposed bonus tax is forecast to bring in around £550 million in its one-off year against a proposed...Read More
Sainsbury's set to take advantage of the downturn
Sainsbury's has today released plans for a significant expansion of the company's operations which will see store space increased by 15% before March 2011. In a bold move the Sainsbury's management have decided to use problems for some of their competitors to grab a larger share of the UK grocery market. Today's announcement was followed by a £432 million fund-raising exercise which will be compl...Read More
Improving the attractions of your home with a lick of paint
Even in the current downbeat property market if you're looking to sell your home you need to ensure that it stands out from the rest and offers good value for money. While surveys and the like will show any potential structural damage or issues in this area it is well-known that the vast majority people will fall in love with their future home simply by looking around.
As a conseque...
Aldi Takes On The Major Supermarkets
In a move which is seen by many as the first real threat to the main four supermarkets in the UK, discount chain Aldi has announced plans to open a new store in the UK each week for the next five years. The cost of this move is around the £1.5 billion mark but news that the group has seen a record 20% growth in sales over the last month bodes well for the future.
It is interesting...
Is the UK car industry relying too much on the scrappage scheme?
As new registrations in the car industry rose by a further 6% to just over 67,000 in August, mainly thanks to the UK government's car scrappage scheme, there are concerns that the industry is starting to depend too much on the scheme. It is forecast that by early next year the funds put aside by the UK government will have been exhausted and the scheme will ultimately end. So what will happen afte...Read More