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.
Government pension initiative will attract 2% initial charge
When the UK government announced plans to introduce a personal pension scheme for those in the UK without access to a quality employer pension scheme there was much applauds from all areas of business. Initially it was thought that fees would be kept to a competitive 0.3% per annum, which is well below the pension industry average, but it now emerges that a 2% initial charge will be introduced whi...Read More
FTSE 100 set for new record winning streak
Today's rise of 9.52 points in the FTSE 100 index, which now stands at 4586.13, was the 11th consecutive rise in the index which equals the record. If the index was to end in positive territory tomorrow this would be an all-time record 12 consecutive days of increases. But what is actually pushing the index ahead?
There is no doubt that the last couple of weeks have seen a gradual i...
Allen Stanford faces court in America
Flamboyant billionaire Allen Stanford is tonight staring at a potential 375 year jail sentence if found guilty of a range of alleged offences by the US courts. He stands convicted of fraud, money laundering and obstruction of justice in relation to an alleged $7 billion pyramid scheme. Stanford gave himself up to federal agents earlier today and will take the dock along with five other executives...Read More
Bank of England announces additional £50 billion to help economy
The Bank of England has today shocked market observers with news of a £50 billion increase in the quantitative easing program. This takes the figure to £175 billion, £25 billion higher than the UK government's former limit which does not bode well for the immediate future of the UK economy. The situation is made even worse by the accompanying downbeat statement regarding the UK economy and an a...Read More
Are we now paying the price for tax rises over the last decade?
While there is no doubt that the ongoing recession was brought about by the collapse in the US banking system, which subsequently spread to around Europe and the rest of the world, is a recovery in the UK economy being held back by the ever-increasing number of taxes on everyday life?
The last decade in particular has seen a massive number of stealth tax introduced to the UK as well...