The main budget announcements from the five-year plan set out by Chancellor of the Exchequer George Osborne yesterday set out actions to reduce the budget deficit, to introduce a 'fairer' tax system, encourage enterprise and support long-term growth in the economy. The Coalition Government's three core values of responsibility, freedom and fairness are the basis for the Budget intentions to help rebalance the economy and provide conditions for sustainable growth.
In order to reduce the deficit the Chancellor has set a fiscal mandate to achieve a current balance by the end of the five-year period 2015-16; a target for debt to ensure sustainable public finances; spending reductions of £31.9bn/year by 2014-15 and tax increases of £8.2bn; £29.8bn of savings from current expenditure and £2.2bn from gross public investment; increase in VAT to 20%; indurance Premium Tax to 6%; a two year pay freeze on public sector pay (except those on less than £21,000pa who will get an additional £250).
Conditions for enterprise and sustainable growth were also set out to make UK more competitive by reducing regulation and providing tax breaks. Corporation tax rates will be reduced from 28% to 24%; the small profits rate will be reduced from 21% to 20%; NICs holiday for new businesses in certain areas; an increase in the Enterprise Finance Guarantee and a new Enterprise Capital Fund; a Regional Growth Fund in 2011-12 and 2012-13 for increases in business employment and growth.
The deficit reduction burden will be shared, the Budget says, by refocusing the tax and benefit framework and 'protecting the most vulnerable in society'. The Government want to encourage people to take personal responsibility, work hard and save responsibly. The personal allowance for under 65s will be increased by £1,000 to £7475 in 2011-12 taking 880,000 out of income tax; capital gains tax increase from 18% to 28% for higher rates and an extension of the 10% rate for entrepreneurial activites from first £2m to first £5m of qualifying gains made over a lifetime; a council tax freeze; a levy on banks balance sheets from January 2011. The basic State Pension will be uprated by a triple guarantee of earnings or 2.5% whichever is highest, from April 2011; reduction in tax credits for those with household income over £40,000 from £50,000; reducing annual allowance of pension tax relief; indexing benefits to the CPI instead of the RPI to reflect more fairly benefits claimants experiences.
The Government added that the Budget measures will pay for the past and plan for the future. They represent a first step in the transformation of the economy, rebalancing growth and lead to sustainable, private sector led growth.
Showing posts with label pensions. Show all posts
Showing posts with label pensions. Show all posts
Wednesday, 23 June 2010
Friday, 29 January 2010
Overseas Share Of UK Stock Market Increased In 2008
The ONS survey of the distribution of beneficial ownership of ordinary shares in quoted companies in the UK showed that the UK stock market was valued at £1,158.4bn at the end of 2008 and that 41.5% of shares, amounting to £481.1bn, were owned by overseas investors. At the end of 2006 it weas 40%.
UK individuals owned 10.7% of ordinary shares worth £117.8bn. In 2006 it was 12.8% and when the survey began in 1963 the proportion was 54% which contrasts with the proportion owned by overseas companies at that time which was 7% and went down to 3.6% in 1981.
Insurance companies owned 13.4% worth £154.9bn, down from 14.7%. Pension funds owned 12.8% worth £148.8bn. The proportion they owned when the survey began was 6.4%. They greatly increased their percentage during the 1980s and 90s. Banks have also increased their share ownership in recent years. Their proportion increased to 3.5%, worth £40.6bn, their highest proprtion since these records began in 1963. Other financial institutions increased to 10%, worth £115.3bn, from 9.6%.
Public sector holdings have risen due to Government interventions in financial companies during the financial crisis of 2008 including the recapitalisations of RBS, Lloyds TSB and HBOS. The proportion has risen to 1.1% or from £2bn to £13bn. It had reached 3.6% in 1975.
FTSE 100 companies continue to dominate the UK stock market. Funds invested in FTSE 100 companies varied from 64.9% for individuals to 96.5% for private non-financial companies and 84.6% of investment in quoted companies was in FTSE 100 companies.
Of the 41.5% of UK ordinary shares owned by the rest of the world, 30% are owned by companies from North America, European companies owned 34% in 2008 compared to 38% in 2001, 17% by Asian companies and 15% by African companies whose percentage has increased since 2004. Australasia and Oceania now has 3% from 1% in 2004.
UK individuals owned 10.7% of ordinary shares worth £117.8bn. In 2006 it was 12.8% and when the survey began in 1963 the proportion was 54% which contrasts with the proportion owned by overseas companies at that time which was 7% and went down to 3.6% in 1981.
Insurance companies owned 13.4% worth £154.9bn, down from 14.7%. Pension funds owned 12.8% worth £148.8bn. The proportion they owned when the survey began was 6.4%. They greatly increased their percentage during the 1980s and 90s. Banks have also increased their share ownership in recent years. Their proportion increased to 3.5%, worth £40.6bn, their highest proprtion since these records began in 1963. Other financial institutions increased to 10%, worth £115.3bn, from 9.6%.
Public sector holdings have risen due to Government interventions in financial companies during the financial crisis of 2008 including the recapitalisations of RBS, Lloyds TSB and HBOS. The proportion has risen to 1.1% or from £2bn to £13bn. It had reached 3.6% in 1975.
FTSE 100 companies continue to dominate the UK stock market. Funds invested in FTSE 100 companies varied from 64.9% for individuals to 96.5% for private non-financial companies and 84.6% of investment in quoted companies was in FTSE 100 companies.
Of the 41.5% of UK ordinary shares owned by the rest of the world, 30% are owned by companies from North America, European companies owned 34% in 2008 compared to 38% in 2001, 17% by Asian companies and 15% by African companies whose percentage has increased since 2004. Australasia and Oceania now has 3% from 1% in 2004.
Thursday, 10 December 2009
Wealth Distribution In Great Britain
The 'Wealth of Great Britain' report published by the ONS tells us that the net wealth of private households totalled £9 trillion in 2006-8. It also tells us that it is not distributed very evenly. The wealthiest 20% of households accounted for 62% of the total wealth while the least wealthy 10% had negative total net wealth.
The median household net wealth was £204,500 which means that 50% have more and 50% have less than that figure. The Wealth and Assets survey also tells us that 39% of the total of private net wealth is in property and private pensions and 11% is in things like cars and antiques.
Wealth also varied according to location. The South East of England was the wealthiest area with a median wealth of £287,900 and the lowest median was in Scotland with £150,600.
Some people have never saved. A total of 35% of people reported that they had never saved with 21% saying they were likely to save in future. Many people do save and 50% reported that they had saved in the 12 months preceding the survey and 37% saying they had saved in the preceding month.
The majority of people, a total of 83%, expect a state pension and 59% expect an occupational or private pension. The survey also reported that 40% of men and 32% of women were contributing to a private pension.
The median household net wealth was £204,500 which means that 50% have more and 50% have less than that figure. The Wealth and Assets survey also tells us that 39% of the total of private net wealth is in property and private pensions and 11% is in things like cars and antiques.
Wealth also varied according to location. The South East of England was the wealthiest area with a median wealth of £287,900 and the lowest median was in Scotland with £150,600.
Some people have never saved. A total of 35% of people reported that they had never saved with 21% saying they were likely to save in future. Many people do save and 50% reported that they had saved in the 12 months preceding the survey and 37% saying they had saved in the preceding month.
The majority of people, a total of 83%, expect a state pension and 59% expect an occupational or private pension. The survey also reported that 40% of men and 32% of women were contributing to a private pension.
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