Deputy prime minister, Nick Clegg has said that he will continue to fight for a wealth tax, stating that he will not allow any further cuts until one is implemented. Clegg’s Liberal Democrat party has also proposed a 1% tax on homes worth in excel of £2m in the ‘mansion tax and has pledged to shift the tax burden from income to “unearned wealth” but he has said that he would like to take the taxes further with the new wealth tax proposals.
Mervyn King, the outgoing Governor of the Bank of England (BoE) has said that he believes the UK economy is showing signs of economic recover although progress will be slow due to the impact of the Eurozone debt crisis. Chief Economist for the BoE, Spencer Dale, echoed King’s sentiment saying that the economic situation was still “pretty challenging” but that there were encouraging signs from local businesses and access to bank finance was becoming easier giving an over all “light at the end of the tunnel”.
Pensioners invested in index-linked government bonds could receive lower incomes if inflation changes as proposed by the Office for National Statistics (ONS) are approved. The ONS has stated that they plan to consult with members of the public and produce recommendations for change in January that will take place in March 2013, however Chancellor George Osborne will most likely make the final decision, as he is legally required to approve any changes.
Data released today shows that Augusts budget deficit was the largest on record for any August since records began in 1993, at £14.41 billion an increase from £14.365 billion in August 2011.
According to a forecasting poll conducted by Reuters, house prices outside London are expected to stagnate during 2013 as unemployment remains high and bank lending is restrictive. Average house prices in the UK have continued to fall since a 2007 peak, dropping just over 1% this year.