Conservative plans for the economy

Posted by Amy Flower in Personal Finance on 18 May 2015 - Amy is a Senior Credit Analyst at checkmyfile

David Cameron and the Conservatives have spent the last 5 years in coalition with the Liberal Democrats, making cuts and getting the economy in the position we are in today. The next 5 years in office has also been planned and has a lot in store for our finances, from income and inheritance tax to pensions; to housing and household bills.

The Conservatives have looked at income tax and decided that this allowance should increase from the current rate of £10,600 to £12,500 by 2020. They are also planning to increase the bracket for higher earners paying 40% tax from £42,385 to £50,000. They have also promised to legislate against increasing income tax, VAT and National Insurance within this parliament.

Inheritance tax plans are to allow a personal allowance to increase by an extra £175,000, which brings a couples allowance to £1m. This would be exclusively for their home with no duties to pay upon their death. If there any shares or additional finance to sort this would then be subject to the laws in place.

The current ‘Triple Lock’ arrangement in place for pensions will remain and this is to keep a 2.5% rise based on inflation, wages or earnings, whichever is the highest. The not so good news is for the wealthiest pensioners who are earning over £150,000, who will have their savings allowance reduced from £40,000 down to only £10,000. The lifetime allowance will be reduced also in April 2016 from £1.2m to just £1m.

There is now speculation over selling annuities and the rules that were introduced by the Coalition. Now being in full control, the Conservatives could decide to reverse this decision so we will wait to see what plans they have.

Housing was and still is a major issue, especially for first-time buyers and affordable housing. The Conservatives have made a pledge to get at least double the amount of first-time buyers into a home they can afford, in an area they want to live in, by the end of their term in Government.

They plan to extend their Help to Buy scheme with the new Help to Buy ISA, announced in this year’s budget from George Osborne. The ISA offers a payment of £50 per £200 saved towards a house deposit. If the saver has saved £12,000 themselves they will receive the maximum of £3,000. For low income earners who live in council or Housing Association property, the Tories have extended the Right to Buy Scheme, allowing them to purchase their rented council property and giving them the first step onto the housing ladder.

Finally household bills; there are no plans in this Government’s term to cap energy suppliers’ bills, which is not great in terms of making savings and being able to budget long term. However, there are still some good fixed rates deals to be had. There is a proposal to enable a one day switch service, so that changing suppliers is a quick and easy transaction.

Commuters have had their rail fares frozen and regulated fares will be capped to stay in live with RPI. There is another element of train fares, that allows a rail line to increase their fares by 5.5% but this still has be remain lower than RPI’s 1%. Meanwhile, fuel duty is still frozen and has been since March 2011, although a planned rise in line with RPI was predicted for September and has since been scrapped.

Why Don’t Millennials Take Out Credit?

As a millennial, it can feel like my generation is besieged with criticisms on a daily basis, and not all of them are entirely fair (though lots are). We are frequently told that as a generation we are entitled, we have it so much easier than our elders and arguably, worst of all: we buy too many avocados. While I don’t buy avocados, I do have access to credit, which makes me a minority among my age group.

Published on 16 May 2018 by Beth Jennings

Full Article

Why Is My Loan Balance Wrong On My Credit Report?

One of the single most important pieces of information to appear on your credit file is the information relating to your credit agreements and how you repay them - with this information lenders can see your borrowing history across the last six years and use it to help them decide whether or not to offer you finance.

Published on 7 May 2018 by George Coburn

Full Article

How long do closed accounts appear on my credit report?

Some people believe that as soon as a credit agreement is settled and closed, it will no longer be reported to the UK’s Credit Reference Agencies and therefore will no longer have an influence on future credit applications. However, this is a popular misconception, one that could affect your ability to get credit if not correctly understood.

Published on 2 May 2018 by Tom Magor

Full Article

How to Save Big in the Bank Holiday Sales

Bank holidays may not guarantee a day of sun-soaked fun, but as is British tradition, we’d probably be quite happy barbecuing in the snow if it came to it. But no matter what your plans are, if you want to grab a bargain, you can use the Bank Holiday sales to save some serious money.

Published on 26 Apr 2018 by Kiah Phillips

Full Article

Should I Buy or Finance an Aston Martin Valkyrie?

We’ve all been there. £3 million burning a hole in your pocket and a track-going version of Aston Martin’s latest hypercar sat in front of you. But as a shrewd, savvy business-type, you know that dropping £3m in one go on a 1,100bhp car could be considered a questionable, perhaps even ‘baller’ move. But what about putting it on finance?

Published on 13 Apr 2018 by Jamie Mackenzie Smith

Full Article

How to Build Credit History Without a Credit Card

When it comes to the best way to build up a credit history, conventional wisdom is to take out a credit card and use it for everyday purchases, while paying it off (on time) at the end of every month. There’s plenty to support this advice too, as a credit card allows you to spend as much or as little as your limit will allow, while building a history in a reasonably short amount of time.

Published on 26 Mar 2018 by Jamie Mackenzie Smith

Full Article

Which Credit Report Information Can Landlords See

Whenever you rent a property, you will be required to pass some checks set by the landlord or letting agent to prove that you will be a good tenant and that you’ll be able to afford to rent the property.

Published on 19 Mar 2018 by Kevin Pearce

Full Article

Do Student Loans Affect My Ability to Get Credit?

For many people, a student loan is the single largest chunk of borrowing they ever take out, second only to a mortgage. With course fees alone now coming to more than £9,000 per year and then the added maintenance loan on top of it, you can easily end up borrowing £40,000 during your studies.

Published on 8 Mar 2018 by Jamie Mackenzie Smith

Full Article

How Far Back Can I get my Credit History?

For your recent payment history information, your credit file has everything you need; that’s why it’s given so much importance by lenders whenever you apply for credit. But if you’re looking for information that’s six years old or more, it’s probably not be the best place to start.

Published on 7 Mar 2018 by Jamie Mackenzie Smith

Full Article

Are Car Insurance Premiums Calculated Fairly?

Recently news stories have emerged alleging that a “John” might be more likely to get a cheaper car insurance quote than a “Mohammed”, and that someone with a Gmail account could be offered a lower premium than someone with a Hotmail email address.

Published on 12 Feb 2018 by Jamie Mackenzie Smith

Full Article
keyboard_arrow_left

keyboard_arrow_right

We have loads of great customer reviews