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 Europe becoming a vital subject for the next election?
Today's news that European Union leaders are looking to oversee all EU member country budget deficits is causing concern within political circles. Despite the fact that the UK government has denied that the proposed changes to the European Union set up, which would see the introduction of a new "economic government of the EU", would not apply to the UK because it has not adopted the euro, there ar...Read More
George Osborne announces multibillion pound supertax
George Osborne has today hit the ground running with confirmation that the UK government will put in place a multibillion pound supertax for the UK banking sector. In what has been put forward as "payback time" for funds lent by UK taxpayers to the UK banking industry there will be major changes although how the increased charges will ultimately be funded remains to be seen. While the idea of p...Read More
UK taxpayers vent fury at Chancellor Of The Exchequer
Alistair Darling, the Chancellor of Exchequer, has set himself on a collision course with UK consumers after his comment that "UK consumers should learn to live within their means". This comment comes at a time when the UK government is literally wringing every penny it can out of the UK tax system to bail out the UK bank system and increase the U.K.'s funding to the IMF. However, does Alistair Da...Read More
Citizens advice bureau is 70 years old today
The citizens advice bureau is 70 years old today having survived wars, recessions, house price crashes and an array of other major issues and it still remains a key element of the UK welfare system!
The bureau has given advice to literally millions upon millions of UK consumers and businesses many of which have been desperate with nobody to turn to. While many older financial-based...
Another day another final salary pension scheme closes
It has been revealed that Whitbread is the latest UK company to close its final salary pension scheme to existing members. The move, which has been under consideration for over four months, will affect around 3% of Whitbread's workforce and see their pension fund assets transferred to "defined benefit schemes". In effect this will take away the guarantee of a fixed pension upon retirement and leav...Read More