Financial matters

[SteveH]

This will affect a lot of home owners, who have worked hard to save something to pass onto their children...........

The government is planning to increase the amount of money it raises in inheritance tax at the Budget, the BBC has learned.

It is not known how many people are likely to end up paying more, nor how much more they would pay.

It is understood the prime minister and the chancellor are considering multiple changes to the tax, which currently includes several exemptions and reliefs.

Inheritance tax is charged at 40% on the property, possessions and money of somebody who has died above the £325,000 threshold.

It raises about £7bn a year for the government.

cont https://www.bbc.co.uk/news/articles/c8el3z910r9o

[SteveH]

An announcement in the upcoming budget of a continued freeze on income tax thresholds beyond 2028 would not constitute a breach of Labour's election manifesto promise, government sources have insisted.

In the run-up to June's general election, both leader Sir Keir Starmer and the soon-to-be Chancellor Rachel Reeves pledged to "not increase taxes on working people".

But a threshold freeze could allow the chancellor to raise an estimated £7bn by bringing more people into the tax system........https://www.bbc.co.uk/news/articles/c79npj3eqdlo

[SteveH]

What is inheritance tax, who pays it and will it change?

The prime minister and chancellor are considering changes to inheritance tax in order to raise more money, the BBC understands.

It is not known how many more people would pay the tax, or how much they would pay, under the changes planned as part of the 30 October Budget.

But who pays the tax now and how much does it raise?

What is inheritance tax?
Inheritance tax is charged at 40% on the property, possessions and money, external of somebody who has died, above a £325,000 threshold.

It is only charged on the part of the estate that lies above the threshold. For example, on an estate worth £335,000, the tax would apply to the additional £10,000.

cont https://www.bbc.co.uk/news/business-36014533

[SteveH]

Water bills will go up by more than initially expected over the next five years to fund higher costs and more investment, the BBC understands.
The regulator, Ofwat, is in the process of deciding how much customer bills will be allowed to rise.

In July, Ofwat provisionally agreed to allow bills to rise by an average of £19 per year between 2025 and 2030 - totalling a £94 increase, or a 21% rise, over that period.

It is unclear by how much more bills will rise instead, but the watchdog will make its final decision at the end of the year.
cont https://www.bbc.co.uk/news/articles/c8elewdzy59o


Labour's plans to upgrade workers' rights will cost businesses up to £5bn a year to implement, according to the government's own analysis.
The new measures would have a disproportionate impact on smaller businesses, responsible for employing 13 million workers, the impact assessment report found.

However, the £5bn represented a "modest" amount, less than 1.5% of the total amount spent by businesses on employing staff, the report said.
cont  https://www.bbc.co.uk/news/articles/cvgdgx8vze8o

[SteveH]

When signing up for a new savings account you might be tempted to go for the first one that takes your interest.

But it can often be worth taking a few extra moments to fully understand what the account has to offer, including two key details.

Savings accounts help you save money while gaining interest and are separate from spending accounts.

To help you know you are signing up for the right savings account, Simon Holland, Chief Product Officer at Wealthify shares the two most important things to look for...............

cont https://www.northwalespioneer.co.uk/news/24668812.expert-shares-2-things-look-savings-account/

[SteveH]

The world economy could contract by the size of the combined French and German economies, if there is a broad-based trade war between the world’s major economies, the International Monetary Fund (IMF) has told the BBC.

It comes as concerns are heightened ahead of the possible re-election of Donald Trump.

Trump says he plans to introduce a universal tax or tariff of up to 20% on all imports into the US, while the European Union is already planning retaliation if Washington goes ahead with the new levy.

https://www.bbc.co.uk/news/articles/c1lg5reqlpyo

[SteveH]

The government will change its self-imposed debt rules in order to free up billions for infrastructure spending, the chancellor has told the BBC.

Rachel Reeves said that she would make a technical change Juggling comes to mind to the way debt is measured which will allow it to fund extra investment.

She said this was being done "so that we can grow our economy and bring jobs and growth to Britain".............

https://www.bbc.co.uk/news/articles/cvg745ggn3no

[DVT]

Bovine extraction.

Something on the news about people with investments are not working class, so they're going to get hit with taxes.  I put my redundancy and work pension lump sum into investments (which have done nicely) but I have already paid tax on those items and what will be left after my demise is intended for my kids ... I suppose I should have spent it on expensive items and not have anything to leave.

Strangely, I cannot find anyone who voted labour at the last election.

[Hugo]

DVT       The system is unfair but I can't see any political party doing anything to change it
If you have worked hard all your life, bought your own house and saved your money then you are shafted by whatever government is in power.     You certainly find out the older you get.
The rich people can afford to hire good accountants to hide their wealth in tax avoidance schemes while those people who do not own their own homes and have no savings will receive all the benefits available to them.   That applies to people who have never done a days work in their life and even asylum seekers too
Meanwhile the rest of us have to continue to support the others even if we don't think it's fair

[SteveH]

The chancellor is set to increase the National Insurance rate for employers to boost funding for public services including the NHS.

Rachel Reeves is also expected to use Wednesday's Budget to lower the threshold for when employers start paying the tax - with the two measures combined to raise about £20bn.

https://www.bbc.co.uk/news/articles/c9wrkngvyx4o

[DaveR]

Bovine extraction.

Something on the news about people with investments are not working class, so they're going to get hit with taxes.  I put my redundancy and work pension lump sum into investments (which have done nicely) but I have already paid tax on those items and what will be left after my demise is intended for my kids ... I suppose I should have spent it on expensive items and not have anything to leave.

Strangely, I cannot find anyone who voted labour at the last election.

A lot of turkeys apparently voted for Christmas at the last election!

[Ian]

A lot of turkeys apparently voted for Christmas at the last election!

You mean instead of voting for yet another legendary fantasist...

[SteveH]

British Gas is writing to millions of UK pensioners, urging them to take up pension credit amid the axing of winter fuel payments to those not on benefits.

The giant will write to around two million people of pension age and above to encourage them to take up the help if they are eligible.

This comes as the company announces that it will be reopening its annual winter scheme, providing financial help to customers with measures like matching debt repayments and support grants.................https://www.leaderlive.co.uk/news/24684595.british-gas-urges-pensioners-take-pension-credit/?ref=rss&IYA-reg=49560bcd-5a9c-47f0-8fc5-ba2e71710589

[SteveH]

The government will change its self-imposed debt rules in order to free up billions for infrastructure spending, the chancellor has told the BBC.

Rachel Reeves said that she would make a technical change Juggling comes to mind to the way debt is measured which will allow it to fund extra investment.

She said this was being done "so that we can grow our economy and bring jobs and growth to Britain".............

https://www.bbc.co.uk/news/articles/cvg745ggn3no

Update...
There have been a lot of news stories about Labour wanting to change how debt is measured. This is so it can meet its own rule which is to have debt falling as a share of the economy in five years’ time.

The idea is it will allow Labour to borrow more to spend on investment in the UK. So what does this mean?

Think of it this way: You lend a chum £10,000. You then decide you’d like to get a loan from a bank. You could borrow against your home but then think you’d like a bit more money. You know you’re going to get that 10 grand back so you borrow against your home and the money you lent your friend.

For the government, that means it will now borrow against things like student loans which graduates pay back over many years. And it means, Rachel Reeves could potentially borrow up to £50bn more.

https://www.bbc.co.uk/news/live/cp9zrg128get

[SteveH]

Budget 2024: key points at a glance
Rachel Reeves is announcing her financial update –

Rachel Reeves says the UK voted for change, and the Labour government has a mandate for a decade of “national renewal”.

Reeves pledges “more pounds in people’s pockets” and improved living standards. The only way to drive economic growth is to “invest, invest, invest”, she says.

The government must “restore economic stability and turn the page on 14 years” of Conservative government, Reeves says. The Labour party has rebuilt the UK economy before, and will “rebuild Britain once again”.

Reeves says this budget will raise taxes by £40bn.

Here are the main points, with political analysis........... https://www.theguardian.com/uk-news/2024/oct/30/budget-2024-key-points-at-a-glance