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.

How To Get The Best Car Finance Deals

New car sales may have slowed in recent years, with the economy, emissions scandals and Millennials all being cited as the root cause at one point or another. But the number of people choosing to use credit as a means of driving away in a new car continues to rise, according to figures from the Finance & Leasing Association which shows that the new car finance market grew by 15% in July 2018 when compared to the previous year.

Published on 8 Oct 2018 by Kiah Phillips

Full Article

We're Now More Likely To Be Borrowers Than Savers

UK Households are now more likely to be borrowers than savers, with savings at their lowest since 1963, according to a study by the Office for National Statistics. Households are increasingly borrowing more – by taking out loans, car finance, and mortgages – than they are collectively depositing into savings accounts.

Published on 5 Oct 2018 by Sam Griffin

Full Article

The Credit Crunch 10 Years On: What’s Changed?

For many people, especially the those lucky enough to not have been old enough to be directly affected, the economic downturn of 2007-2009 seems like a distant memory. The first iPhone had launched a mere two months before the recession hit, and since then they’ve rebooted the Spiderman film franchise not once, but twice. But more importantly, has enough time passed for the borrowing/lending market to revert to its old tricks?

Published on 26 Sep 2018 by Jamie Mackenzie Smith

Full Article

The Limitation Act 1980 and Debt Time limits

The majority of credit consumers believe that once a debt has been acquired, that debt will remain until the full balance has been cleared regardless of the length of time passed. This may not be the case though, thanks to a little-known piece of legislation known as the Limitation Act 1980.

Published on 19 Sep 2018 by Erika Bone

Full Article

UK Households More Likely to be Borrowers Than Savers

UK Households are now more likely to be borrowers than savers, with savings at their lowest since 1963, according to a study by the Office for National Statistics. Households are increasingly borrowing more – by taking out loans, mobile phones, car finance, and mortgages – than they are actively depositing into savings accounts.

Published on 3 Sep 2018 by Sam Griffin

Full Article

Wonga Administration: What it Means For You

On Thursday 30th August the payday lender Wonga filed for Administration, following a spike in compensation claims and increased pressure on the payday loans industry. This follows a steady decline in this form of lending since the FCA began introducing stricter regulations 2013 in the name of protecting consumers.

Published on 31 Aug 2018 by Jamie Mackenzie Smith

Full Article

How a Baby Name Can Affect Creditworthiness

A lot of preparation (and usually arguing) goes into choosing a baby name – books, ‘top 100’ lists, place names, family names – the list of possibilities is endless. The trouble is, most parents don’t give much thought to the long-term impact of the name they decide on, beyond checking to make sure it doesn’t sound ridiculous when paired with the last name or that when put into initials it doesn’t spell something unfortunate.

Published on 19 Aug 2018 by Jamie Mackenzie Smith

Full Article

The Advantages & Disadvantages of Store Cards

There are a number of reasons you might take out a store card: whether you’re just waiting in-line at the shop and find out you can save on today’s shopping or they offer the promise of making money in the future, these cards regularly find their way into wallets (or phones via an app). Most big retailers offer their own cards, which allow you to take your purchases home – often with a nice discount applied – without having to part with a penny at the till.

Published on 10 Jul 2018 by Tom Blandford

Full Article

What Happens To Your Credit Report When You Move Country?

Moving from one country to another results in a lot of changes and new things – a new place and culture, new job, new people and in some cases even a new language. However, one thing lots of people do not realise is that you will also be starting afresh when it comes to your Credit Report. Credit Reports and the information they contain are country-specific and do not follow you from one country to another.

Published on 27 Jun 2018 by Kirstie Day

Full Article

What To Do If You’re a Victim of Data Breach

Another day, another high-profile data breach, with the morning news bringing word of another leak of personal information that affects millions of consumers. This time it’s the turn of Dixons Carphone - the company behind PC World, Currys and Carphone Warehouse.

Published on 14 Jun 2018 by Jamie Mackenzie Smith

Full Article


We are rated number 1 for customer service on