This week saw consumer confidence drop to its lowest level for 15 months, it also saw the pound falling against the US Dollar as investors became nervous about the state of the world economy.Consumers are perhaps worried about the level of disposable income they will have over the months ahead and the emergency budget and inflationary pressures such as rising food and petrol costs are adding to this worry.
How long till the economic outlook will be considered “normal”?
Bank of England governor Mervyn King believes it will be a long time before the economic outlook will be considered “normal”. Wider economic problems around the world underline the fact that we cannot be confident that the recovery in demand, output and employment in the UK will be sustained. The fiscal tightening measures proposed by the Government will not choke off recovery, but it will slow economic growth over the next two years.
Emergency money lending – where to turn when you need cash
Apart from the obvious one for those still blessed with the option of the ‘Bank of Mum and Dad’, who do you turn to for a quick, short-term loan?
Capital Gains Tax – where are we now?
- Pre-Budget Report, 9th October 2007 – CGT flat rate of 18% for gains on non-business assets made on or after 6th April 2008.
- 6th April 2010 – income tax rate of 50% for those with incomes in excess of £150,000.
This all adds up to a differential of 32% for those individuals. Was this sustainable?
VAT – Budget rise in sales tax was ‘unavoidable’ says Chancellor
We all pay it and we’ll all feel it. The increase in the rate of VAT to 20% from 4th January next year will bring in £13 billion of extra revenue over the lifetime of the current parliament.
Rise in Capital Gain Tax UK could hit basic rate taxpayers
The rise in Capital Gains Tax will hit some middle income earners who have invested in assets such as property over many years, tax experts have warned.
Financial regulation in the UK
On 16th June 2010, George Osborne gave his first Mansion House speech as Chancellor of the Exchequer. In his speech, he announced radical changes in the UK’s financial regulations, which includes the abolition of the current tripartite system.
Latest inflation figures
And so, inflation continues to alter. In the UK price inflation, as measured by the Consumer Prices Index (CPI), has dropped to 3.4% for the year to May with falls in the prices of food, non-alcoholic drinks and petrol. This is a fall from 3.7% and is bigger than expected.
CPI annual inflation – the Government’s target measure – was 3.7% in April, up from 3.4% in March. The largest factors to the change in the CPI annual rate between March and April came from the rise in prices for clothing and footwear, food and non-alcoholic beverages and alcoholic beverages and tobacco.