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Conservatives set out policy
This week the Conservative party met in Manchester for their annual conference. The shadow Chancellor George Osborne addressed the party and outlined Tory plans for if they should win the next general election. In a speech to delegates Osborne made clear that spending cuts would have to be made to try and eat into the government deficit, which is currently £805 billion. Osborne announced a raft of policy that would be implemented should the Conservatives come to power:
- Tax credits for higher earners would be stopped.
- Child Trust Fund's will only be given to the poorest third of families and disabled children.
- The 50% rate of income tax for those earning over £150,000 (as proposed by Labour) will remain.
- In 2011 there will be a pay freeze on those working in the public sector, such as doctors and teachers. Only those earning less than £18,000 a year and frontline military staff will be exempt.
- The age of retirement for men will rise to 66 in 2016, and 2020 for women.
This and other measures announced, such as cutting the cost of Whitehall by a third and reducing the number of MPs, are estimated to save £7 billion a year.
Here is a review of the other top money stories of the past week commencing 5 October 2009.
Tuesday 6th October
New car sales rise -The Society of Motor Manufacturers and Traders (SMMT) have announced that sales of new cars are 11.4% higher than they were this time last year. In September 367,929 new cars were sold. The industry has been struggling in the recession, but the car scrappage scheme seems to have boosted the number of people buying a new car. As the scrappage scheme was extended last week, the SMMT was pleased that the government is supporting the industry.
ISA limit increased – Today, the amount that savers over 50 can put into an ISA has been increased. An Individual Savings Account (ISA) allows everyone to save a certain amount each year tax-free. If you are over 50 you can now put up to £10,200 in an ISA. This is an increase of £3,000 – a sizeable sum. Savers under 50 will see their allowance increase too in April 2010. An ISA is a great way to save as it allows you to save and not pay tax on the interest accumulated. Of the £10,200 that over 50's can save in an ISA, only £5,100 can be saved as cash, the remaining £5,100 must be put into a stocks and shares ISA. moneybasics has lots of information on the importance of regular saving and Moneymadeclear from the FSA has more information on ISAs.
Here is a review of the other top money stories of the past week commencing 5 October 2009.
Tuesday 6th October
New car sales rise -The Society of Motor Manufacturers and Traders (SMMT) have announced that sales of new cars are 11.4% higher than they were this time last year. In September 367,929 new cars were sold. The industry has been struggling in the recession, but the car scrappage scheme seems to have boosted the number of people buying a new car. As the scrappage scheme was extended last week, the SMMT was pleased that the government is supporting the industry.
ISA limit increased – Today, the amount that savers over 50 can put into an ISA has been increased. An Individual Savings Account (ISA) allows everyone to save a certain amount each year tax-free. If you are over 50 you can now put up to £10,200 in an ISA. This is an increase of £3,000 – a sizeable sum. Savers under 50 will see their allowance increase too in April 2010. An ISA is a great way to save as it allows you to save and not pay tax on the interest accumulated. Of the £10,200 that over 50's can save in an ISA, only £5,100 can be saved as cash, the remaining £5,100 must be put into a stocks and shares ISA. moneybasics has lots of information on the importance of regular saving and Moneymadeclear from the FSA has more information on ISAs.
Wednesday 7th October
Job cuts announced – In the space of two days, two airlines have announced plans to cut jobs. Overall approximately 2,500 jobs will be lost, as both airlines try to weather the tough economic times. If you are facing losing your job or fear that it could happen to you in the coming months, Credit Action have a Redundancy Moneymanual which is free to download and contains all you need to know about redundancy. Click here to access the Moneymanual.
Job cuts announced – In the space of two days, two airlines have announced plans to cut jobs. Overall approximately 2,500 jobs will be lost, as both airlines try to weather the tough economic times. If you are facing losing your job or fear that it could happen to you in the coming months, Credit Action have a Redundancy Moneymanual which is free to download and contains all you need to know about redundancy. Click here to access the Moneymanual.
Thursday 8th October
Interest rates remain unchanged – The Monetary Policy Committee at the Bank of England met today and decided to leave interest rates unchanged at 0.5%. This marks the seventh consecutive month that interest rates have been at 0.5%. According to the Council of Mortgage Lenders (CML) this low rate has been estimated to help 100,000 homeowners a month who are benefiting from lower mortgage repayments.
Interest rates remain unchanged – The Monetary Policy Committee at the Bank of England met today and decided to leave interest rates unchanged at 0.5%. This marks the seventh consecutive month that interest rates have been at 0.5%. According to the Council of Mortgage Lenders (CML) this low rate has been estimated to help 100,000 homeowners a month who are benefiting from lower mortgage repayments.
Friday 9th October
Students still wait for finance – It has been revealed that of the million students that applied for student loans this year, there are many that are still waiting to receive support. The Freedom of Information Act gives anyone the right to see information held by public organisations, such as the Student Loans Company (SLC). The SLC say that 72% of the first time applications they received have been processed, but this still means that there could be up to 175,000 students who haven't received the support they have applied for.
Students still wait for finance – It has been revealed that of the million students that applied for student loans this year, there are many that are still waiting to receive support. The Freedom of Information Act gives anyone the right to see information held by public organisations, such as the Student Loans Company (SLC). The SLC say that 72% of the first time applications they received have been processed, but this still means that there could be up to 175,000 students who haven't received the support they have applied for.
