Liberal Democrats will propose emergency wealth tax

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The Liberal Democrats led by Nick Clegg have called for a review of the current taxation system to provide a greater fairness. The proposed system would introduce a 0.5% tax on the assets of the wealthy, modelled on the French system.

Tax experts suggest that introducing a tax one year only to abolish it the next could damage the stability of the UK’s tax regime.
George Osborne immediately raised his concerns that this new tax may prompt rich entrepreneurs to flee ...

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UK economy remains firmly in a double-dip recession

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A report published by the Office for National Statistics (ONS) has revealed that the UK economy only shrank by 0.5% in the second quarter, rather than the 0.7% first estimated.

Despite the data showing levels less than anticipated, the UK remains in the longest double-dip recession since the Second World War.

The fall in Gross domestic product (GDP) of 0.5% from April and June was in line with economists’ expectations who had revised their estimations last month. Spending dropped by 0.4% in ...

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Cost of purchasing a home falls to a record low

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According to a report published by the banking chain Halifax the cost of buying a home has fallen to its lowest level in 15 years. A typical UK mortgage now costs the consumer 26% of take-home pay, compared with 48% at peak levels in 2007. This data has been released at the same time the UK has seen a further decrease in house prices.

With the price of housing decreasing and low interest rates many parts of the country are very ...

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Britain's richest gain most from quantitative easing

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The Bank of England have released a report that shows the richest 10% of households in Britain have seen the value of their assets increase by up to £322,000. This was a result of the Bank of England’s £375 billion quantitative-easing (QE) programme, under which it has been buying government gilts for cash since 2009.

Despite this news the Bank has commented that, “Without the Bank’s asset purchases, most people in the UK would have been worse off.”

“Economic growth would have been ...

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Young adults forced to return to the family home

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A report by Aviva has shown that more and more families are discovering the financial benefits of intergenerational living as high house prices, increased unemployment and care issues impact.

The report states that around three-quarters of people in the UK have lived with other family members after turning 18, with some returning to the parental home three times as their circumstances change.

Director at United for All Ages Stephen Burke said, “We are likely to see more households sharing space, costs and ...

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An end to free banking is on the horizon

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A call made by regulators and consumer groups for more transparent charges may see us all paying for banking. A report by financial comparison site Moneyfacts.co.uk states that there are around 56 packaged current accounts which charge a monthly fee in the UK up from 35 in July 2007. This number is soon to rise as both Marks & Spencer and Nationwide are soon to launch new chargeable products.

Chief executive of Which? Peter Vicary-Smith said, “It’s a disgrace that the ...

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Government urge local councils to sell most expensive social housing

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Housing minister Grant Shapps has applauded a report from thinktank Policy Exchange that suggests social housing in expensive places should be sold to fund housebuilding in areas that are cheaper.

By selling the highest-value properties the government could generate £4.5 billion to build up to 170,000 social homes a year.

Grant Shapps described the report from Policy Exchange as, “blindingly obvious,” and that only, “a perverse kind of leftwing dogma,” was discouraging local authorities from implementing it.
Despite the strong backing from ...

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Have you been mis-sold a Payment Protection Insurance policy?

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The mis-selling of payment protection insurance is on course to be the costliest financial scandal in British history. The cost to the banks is approaching £10 billion with five of the largest banks (HSBC, Lloyds, Barclays, RBS, and Santander) having a combined compensation fund of £8.8 billion.
The PPI policies were designed to cover debt repayments for borrowers, who suddenly lose income due to unemployment, illness or an accident. However banks were selling the product to people who would never ...

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Bank of England anticipate cuts to UK growth forecasts

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The Bank of England’s quarterly inflation report due shortly is likely to cut growth forecasts from the 0.8% predicted in May. As the double-dip recession intensifies it is predicted that we will not see any growth during 2012 compared with the original 2% prediction.

Amidst growing pressure Governor Sir Mervyn King is expected to be questioned about the interest base rate and the continuing Eurozone, “storm.”

The UK recession has worsened over the past few months with output falling by 0.7% between April ...

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Treasury plans to name and shame tax avoiders rejected

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Tax experts have dismissed the government’s plans to “name and shame” tax avoiders to attempt to reduce the problem. Despite the negative reception they have clearly warned that anyone involved in tax avoidance schemes could face up to five years of sleepless nights as loopholes are closed.

Tax manager at Lerman Jacobs Davis chartered accountants in Elstree, Mitch Young said, “The Treasury believes it has to act, which is why it has re-emphasised its promise to crack down on tax avoidance. ...

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