George Osborne set to target banks and property owners
In a move which will certainly upset the traditional core Conservative party support in the UK it would appear, from leaks emanating from 11 Downing St., that George Osborne is set to make UK banks and property owners pay the price for the depressed UK economy. There have been rumours for some time about a potential banking levy and the proposed increase in CGT could hit as high as 50%, on a par with the higher rate of income tax. So can George Osborne afford to hit banks and property owners?
Whether or not these "official leaks" from 11 Downing St. are correct or not remains to be seen but the proof will be in the pudding when we see George Osborne's budget release on 22 June. There is no doubt that the Chancellor of the Exchequer needs to increase UK tax income while also reducing spending in the public sector. However, these are two such actions which will anger many in the UK and ultimately could lead to a significant drop in support for the coalition government.
However, there is some speculation that the government is pushing a "worst case scenario" so that when the budget is announced on Tuesday, George Osborne can backtrack a little and reduce the pain. Whether this will be enough to placate UK voters and the UK business arena remains to be seen.
Share this..
Related stories
Bonfire of the quangos
Vince Cable, the business secretary, has this week announced plans to abolish a number of quangos looking into intellectual property, international trade and the disposal of electrical waste. While many of these quangos operate behind-the-scenes, and very rarely invite publicity, the four business quangos under review cost in the region of £8.6 million year to run. So who will replace these opera...
Read MoreCan the UK taxpayer actually benefit from the bank sector bailout?
The government has announced the creation of a new company managed by Sir Philip Hampton which will be in sole charge of the government's various bank shareholdings and direct banking operations. Not only is there a need to ensure the shareholdings in UK banks are administered on an arms length basis but there is also a need to insure that taxpayers stand as good a chance as possible of receiving...
Read MoreThe gap between public and private sector pay continues to widen
In a damning indictment of the ever-growing size of the U.K.'s public sector it has been revealed that on average workers in the public sector are paid £2,000 a year more than their counterparts in the private sector. The average public sector worker now brings in around £23,660 year compared to £21,528 year for those in the private sector. This is the first time that the gap between the two se...
Read MoreUK government under attack from economic think tank
The National Institute of Economic and Social Research has today rejected Alistair Darling's claim that he can half the UK budget deficit by 2013/14 and indeed it has also called into question his promise to reduce government debt. After carrying out a review of the government's tax and spending plans for the short to medium term the Institute believes he will fall well short of his 50% budget def...
Read MoreHM Revenue and Customs closes down scam tax websites
HM Revenue and Customs has today confirmed that nearly 200 bogus tax return websites have been close down as cyber criminals target those looking to reclaim money from their tax returns. The so-called "phishing" e-mails sent out by many of these websites have attracted the attention of consumers in the UK who are looking to reclaim money from the tax man. However, the reality is very different!...
Read More