Parents gain choice on savings


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Parents gain choice on savings

Parents gain choice on savings
Under Budget proposals parents will be able to unlock more than £4bnworth of children’s savings trapped in low-interest accounts and transfer them to higher-paying Junior Individual Savings Accounts (Jisas).
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 14

Savers in search of inflation-proof haven must wait
National Savings & Investments said yesterday that it has no plans to sell index-linked bonds this year, following Treasury instructions not to seek new money from savers.
The Times Budget 2013, p. 5

Flat-rate pensions to be introduced in 2016
The new flat-rate state pension will be introduced a year early, the Chancellor has confirmed. The flat rate accompanies reforms introducing automatic enrolment into workplace pensions to encourage more people to save for their retirement.
Daily Express, p. 5

Osborne tightens grip on welfare spending
In yesterday’s Budget a new cap on welfare spending was announced to stop the cost of benefits spiralling out of control. In future, George Osborne wants to control the rising cost of state handouts by imposing limits on parts of the national budget where no controls exist. The Chancellor announced that the Coalition will demand curbs on so-called ‘annually managed expenditure’ which covers welfare, pensions and debt interest payments.
Daily Mail, p. 5

Families and Pensions
Effects of the Budget on families and pensions. Hundreds of thousands of families will get a child care tax break of up to £1,200 a year from late 2015. A flat-rate pension, set at £144 a week in 2011/12 prices, will start a year earlier than planned in 2016. The cap on social care costs will come in a year earlier.
Evening Standard London, p. 7

Compensation for 9,000 Equitable Life
In Wednesday’s Budget, the government announced that it will extend compensation payments for up to 9,000 pensioners who suffered losses following the near-collapse of Equitable Life in 2000.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 15

Cyprus seeks new sources of cash to aid in bailout
Scrambling to placate international lenders, Cyprus late Wednesday proposed to nationalize pension funds from state-run companies and conduct an emergency bond sale to help raise the €5.
International Herald Tribune, p. 1-14

Osborne gives £5,000 to Equitable Life victims because ‘it’s the right thing to do.” ‘
Victims of the demise of Equitable Life who have been excluded from a compensation scheme will receive £5000 each, the Chancellor announced.
The Daily Telegraph, p. 5

£130bn pledge to bankroll mortgages
Millions of families will be helped on to and up the housing ladder as the Chancellor announced a multi-billion pound boost for the property market. Under the Help To Buy scheme, those with only a 5pc deposit will be able to buy a newly-built house worth up to £600,000 with loans from the taxpayer worth up to 20pc of the value.
Daily Express, p. 2-3

Home buying boost for builders
Builder’s shares went through the roof after a major new scheme was unveiled to kickstart Britain’s housing market, writes David Shand. Coal fired power station Drax Group climbed 14½p to 605p after the Government reduced from four to two the number of proposed carbon capture and storage projects it will consider for £1bn funding, with Drax’s coal plant in North Yorkshire one of the preferred bids.

Daily Express, p. 54

Housebuilders enjoy boost
House builders Taylor Wimpey saw its shares go up by 2.25p to 90.85p, while Persimmon gained 38.5p to 1010p, and Barratt Developments was up 15.8p to 255.6p, after George Osborne outlined his Help to Buy scheme.
Daily Mail, p. 71

Housing market strong, say lenders
Despite another drop in mortgage lending last month, banks and building societies have insisted that the housing market is in its best shape since 2008. Loans worth an estimated £10.5billion were advanced in February, marking a 1% increase on the same month in 2012 but 8% lower than the lending figure recorded for January, the Council of Mortgage Lenders (CML) said. The CML put February’s decline in lending down to a seasonal slowdown following a “better than expected” result for January.
Daily Mirror, p. 58

Cyprus readies plan B in bid to secure bailout
The President of Cyprus is today expected to present a so-called “Plan B” to avoid a financial meltdown after the island rejected the terms of an EU bailout. Proposals expected to be included are potentially nationalising pension funds and the issuance of an emergency bond based on future gas revenues, trying to raise €5.8bn (£4.9bn) as a condition for securing a €10bn bailout from the European Union.
City AM London, p. 7

Bankers’ bonus cap to start from 2015
European bankers will have one final bonus season before they are barred from awarding themselves payouts worth more than their salary, EU lawmakers agreed last night, paving the way for the first cap of its kind globally.
City AM London, p. 9

Barclays ‘buries’ £40m payout to 9 fat cat bosses
Barclays bank has been accused of “burying bad news” by choosing Budget Day to pay nine executives a total of nearly £40m in shares. The bank, which had promised reforms in the wake of the Libor raterigging scandal, paid £17.5m worth to a single individual, investment boss Rich Ricci.
Daily Express, p. 13

Now let’s go for growth says new Bank governor
The Bank of England was yesterday handed sweeping new powers to kick-start the economy – following talks with its new Canadian governor. In a shake-up of monetary policy, the Chancellor said the central bank should focus on boosting jobs and growth and not just controlling inflation. The Chancellor said the new remit gives the rate-setting monetary policy committee greater flexibility to support the economy rather than just target inflation.
Daily Mail, p. 7

Cash point
Tesco Bank has joined the long-term balance transfer frenzy as it launches a 25-month 0% deal on its Clubcard credit card. The card charges a competitive 2.9% fee, which matches the 25-month deal from Barclaycard, and just beats Halifax’s 25-month deal which has a 3% fee. If you have a £2,000 balance on a credit card with an average 18.9% APR and pay £80 each month, over 25 months you would pay £503 in interest and you’d still have a further eight months’ payments to make and more interest to cough up before the debt is cleared.
Daily Mirror, p. 58

$3 billion Visa Europe sell-off to Americans is on the cards
Visa Europe’s owners are considering selling the credit-card company and setting up a rival system across the continent. A consortium of 3700 banks including Barclays, Lloyds Banking Group and Royal Bank of Scotland own the business. Visa Europe was offloaded by Visa in 2004.
Evening Standard London, p. 43

UK gilt sales to fall after BoE moves bond profits to Treasury
UK government bond sales will fall by 8. 4 per cent in the next financial year as the transfer of the Bank of England’s bond buying profits reduces the state’s borrowing requirement.
This abstract from the Financial Times was produced by Kantar Media
Financial Times Companies and Markets, p. 51

Cheers! Budget boost for millions
George Osborne has raised hopes that better times are on the way at last with a Budget to help families, businesses and home buyers. The Chancellor has defied gloomy economic forecasts to deliver tax cuts for millions worth more than £2bn a year. Noting that a 3p-a-litre fuel duty increase due next September was cancelled and a penny cut from a pint of beer.
Daily Express, p. 1-2-3

We needed more help to fire up growth, say business leaders
The British Chambers of Commerce said there was “much for business to welcome” in the Budget, including a review of the Bank of England’s remit, a further cut in corporation tax to 20pc – which means large companies will pay the same rate of tax as small businesess – and a reduction of up to £2,000 in national insurance contributions for small businesses. However, the BCC warned that Britain faced an “unprecedented moment in economic history” and the Government “should be doing everything in its power to get the economy moving”.
The Daily Telegraph Business, p. 5

The above articles appeared on 21/03/13 reproduced with the kind permission of Kantar Media UK. All rights reserved.

Charterbridge Private Financial Planning, Independent Financial Advice, Thornbury, Bristol.