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.
Does the Cadbury's offer confirm that the recession is over?
Today's £10 billion offer for Cadbury's by Kraft Foods Inc took the markets by surprise with many now under the impression this may well mark the end of the recession. This is by far and away the largest takeover offer for many months and the fact that Kraft Foods believes it can raise the funds required to take over Cadbury is also a very positive sign for investors.
However, if y...
ISA holders could lose on savings front
New regulations coming in on 6 October will increase the annual ISA allowance from £7,200 to £10,200 there are fears that those who have existing ISAs and looking to top up in the future may well miss out on the best savings rates. The amount each person is able to push into a cash ISA will increase from £3600 to £5100 but it looks as though only those taking up new plans will be eligible for...Read More
Council income under severe pressure
It has been revealed that a massive £2.5 billion of council income has been suspended by the UK's business community as the downturn continues to hit businesses harder than many had expected. We are seeing instances of large corporations contacting the councils to advise them that they are unable to pay local business taxes at the moment and would like to defer these.
While some l...
Royal Bank of Scotland announces changes to final salary pension scheme
The Royal Bank of Scotland has today announced significant changes to the company's final salary pension scheme which will see benefits reduced in the future. This comes at a time when the UK government appears to be placing more pressure upon UK banks to control their cost bases and give taxpayer's better value for money, where taxpayer's money has been used to acquire shares. New chief executive...Read More
UK government's green initiative called to account
As the UK government appears to stand on the verge of an enormous investment into the green sector a wind turbine factory on the Isle of Wight is set to go out of business with the loss of more than 500 jobs. While this operation is in no way connected to the UK government or any particular initiative underway at the moment, the Danish owners of the Vestas factory have cited little political assis...Read More