300,000 are forced into 40p tax band as limits are altered March 21, 2012 MORE than 300,000 people will be pushed into the 40p tax band to help subsidise a tax cut for the lowest-paid workers. While the personal allowance, or the amount that workers can earn before they have to pay income tax, is rising, those with higher incomes will not benefit significantly from the change because the threshold [...]
OBR: Osborne on track to hit debt targets March 21, 2012 THE ECONOMY should grow quickly enough for the government to hit its borrowing targets, the Office for Budget Responsibility reported yesterday – though it stressed risks remain from instability in the Eurozone and rising oil prices. GDP should start growing strongly into 2014, inflation is expected to stabilise in 18-months time and the deficit will [...]
Billions saved by planned 2015 Afghan withdrawal March 21, 2012 BRITAIN’S spending on its military mission in Afghanistan will be £2.4bn less than expected in the years leading to 2015, George Osborne announced yesterday. “In line with the process of transition to Afghan-led security and the government announcement that UK combat operations in Afghanistan will cease by the end of 2014, the Special Reserve provision [...]
Another £10.5bn welfare cut may hurt pensioners March 21, 2012 PENSIONERS stand to take a hit to the tune of billions in future years as the chancellor said that the government will have to find welfare savings of £10.5bn per year in order to keep to its deficit reduction goals. The cuts are not yet detailed but are likely to fall mostly on pensioners because [...]
Public pay may vary by region March 21, 2012 GEORGE Osborne wants public sector pay levels to vary by region, reflecting the local labour markets and the cost of living in each area. The move is intended to reduce costs to the taxpayer and increase flexibility, while giving workers in the same jobs similar standards of living across the country. However, unions disagree on [...]
Joblessness to drop from 2013 onwards March 21, 2012 UNEMPLOYMENT is set to peak later this year before falling sharply in the years to 2016, the Office for Budget Responsibility (OBR) reported yesterday. However, smaller departmental budgets mean the number of state sector employees will fall 730,000 from 2011 to 2016 – 20,000 more than the 710,000 forecast in November, and 330,000 above the [...]
FACTCHECKER WITH TIM WALLACE March 21, 2012 GEORGE Osborne told the Commons the 50p top rate of income tax “raises at most a fraction of what we were told, and may raise nothing at all,” while causing “massive distortions,” justifying, he said, cutting the rate to 45p from next year. Can it be true that high tax rates raise so little? If [...]
WHAT DOES THE CHANCELLOR’S BUDGET MEAN FOR YOU? March 21, 2012 CATHERINE GANNON, 50,MANAGING DIRECTOR OF LAW FIRM GANNON Catherine lives with her children, aged nine and 11, in a home she owns with a mortgage. She set up her firm nine years ago and worries about red tape and taxes. When travelling to meet clients, she uses the tube. She earns over £100,000, and has [...]
VAT hike on chicken and sausage rolls March 21, 2012 THOSE WHO enjoy tucking into supermarket rotisserie chicken, toasted sandwiches or sausage rolls bought on the high street may find they are about to pay more dearly after the chancellor clamped down on loopholes allowing shops to avoid paying VAT on hot food. From October, supermarkets and other retailers such as Greggs will be forced [...]
North Sea oil wins subsidies March 21, 2012 THE GOVERNMENT has tried to make up for last year’s oil and gas tax raid by promising to help out explorers in parts of the North Sea and clear up tax rules on decommissioning. Shares in North Sea explorers spiked yesterday lunchtime as George Osborne unveiled a £3bn subsidy for drilling in the West of [...]
