Pre-budget blues for the UK

2:11pm Wednesday 9th December 2009

Alistair Darling announced his Pre Budget Report plans in Parliament today. The statement comes after a year of financial & economic gloom.

Sean Wilson of Independent Financial Advisers AP Financial Services in Swindon said: “ It was a deliberately boring, business like Pre Budget Report. There were few major headline changes.

“It was a clever performance & the idea was to make the Shadow Chancellor George Osborne sound rather shrill. It was undoubtedly a pre-planned ambush.

“As predicted there is a short term 50 per cent supertax on fat cat city bonuses. The tax will be on the banks rather than employees, so they are being given an ultimatum, “make the money available to customers or lose money in tax”. More money is raised by cutting tax relief on pensions for the richest earners.

“A bigger change for the man & woman in Swindon is a cut in the amount the government contributes to public sector pensions in the future. This pre-empts predicted massive changes from a future Conservative government and the first of many such changes. Public sector pay rises will also be capped.

“Public spending will be cut £5 billion although the details are extremely vague.

“Value Added Tax will return to 17.5% next year. Whatever government is in power, they are likely to hike it further as politicians are too scared to put up income tax. National Insurance goes up, which is a sneaky way to bring in more money.

“The stamp duty holiday on house purchases will again expire at the end of the year, the result is that house buyers can expect to be hustled & pestered by Estate Agents in the next few weeks.

“In conclusion, the Chancellor has put off making major changes until the Budget in March/April 2010, which is likely to be weeks before an election.

"The pain will only happen after the election particularly those which affect public spending.”

For further information please call Sean on Tel: 0800 0432 710 / 07763 216 277

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