More austerity needed to hit borrowing goal December 5, 2012 BRITAIN’S economic growth forecasts were slashed yesterday, as the spending watchdog warned the budget deficit will be higher than expected in the coming years, meaning the government will miss its key debt target and must extend the fiscal squeeze by another year. Output will shrink 0.1 per cent this year, not grow 0.8 per cent [...]
Osborne’s axe on pensions tax relief extends beyond wealthy December 5, 2012 GOVERNMENT plans to limit tax-free pension saving could hit a wide swathe of society, not just the wealthiest, industry experts warned. The maximum amount a saver can put into a pension over their life, without facing tax, will be sliced from £1.5m to £1.25m in 2014-5, having already been cut from £1.8m. And the annual tax [...]
Consultation launched on plan for flat-rate state retirement pot December 5, 2012 A CONSULTATION on replacing the means-tested state pensions with a simpler universal flat rate system will be launched this month. This announcement in the Autumn Statement brought a key part of the coalition’s pension reform closer to being realised, though it will likely be months before the end of the consultation. A paper from the Department [...]
Private hiring far exceeds public firing December 5, 2012 STRONG private sector jobs growth means 500,000 more people are now employed than the government thought in March, meaning the benefits bill could be lower than feared, while public sector job losses have not had as severe a social impact as expected. Employment rose to 29.6m in the three months to September, well above the [...]
2012’s deficit reduction goal only saved by £3.5bn 4G auction December 5, 2012 THE DEFICIT is falling this year – but only because the government has been bailed out by the transfer of Royal Mail pension assets, the cash surplus from quantitative easing (QE) and a 4G windfall. The state borrowed £121.4bn in the financial year 2011-12. The headline figure shows it is on track for a deficit [...]
Corporation tax cut to 21pc following surprise reduction December 5, 2012 CORPORATION tax will be reduced to 21 per cent from 2014, following a surprise decision to cut the business rate even further than previously announced. The tax currently stands 24p in the pound and was already scheduled to drop to 22p in 2014. Yesterday’s announcement means it will instead drop even further on that date, giving [...]
Benefits squeeze means payouts will rise below rate of inflation December 5, 2012 WORKING age benefits will rise just one per cent over the next three years, well below the projected levels of inflation calculated by the government’s budget watchdog. The real-terms cut suggests that chancellor George Osborne brushed off strong opposition to the move from Liberal Democrats Nick Clegg and David Laws and work and pensions secretary [...]
Business cheers hike in tax-free spending limit December 5, 2012 SMALL businesses yesterday cheered a temporary increase in tax relief on plant and machinery purchases up to £250,000 designed to encourage companies to go on a New Year spending spree. The Annual Investment Allowance will rise from January 2013 for two years, up from the previous threshold of £25,000 to help encourage small businesses to [...]
Croaking chancellor squeezes past stumbling Balls December 5, 2012 BRITAIN is “on the right track,” George Osborne said yesterday. Unfortunately, given yesterday’s snowfall, the track was somewhat obscured, forcing the chancellor to spend an hour in the Commons chamber spreading financial breadcrumbs so we mere plebs can follow his route through the forest to the promised land of economic growth. But first – in [...]
Small firms get funding boost from ISA plans December 5, 2012 SMALL FIRMS could enjoy a lending boost, depending on the results of a consultation announced yesterday. The government consultation will consider allowing savers to invest in firms on the alternative investment market (AIM) via their stocks and shares ISA. This came in tandem with a hike in the yearly individual tax-free savings limit – bringing it from [...]
