Banking Crisis And UK 2023 Budget
Summary, What You Need To Know
Another US bank bailed while Paris
burns.
3 Steps To
Success Money Management! Join me online on my free live training Wednesday
at 8.00PM. Places are limited, so register now below to
avoid disappointment. https://bit.ly/3QPp8IH
As expected, Jeremy Hunt’s first
budget did little to excite investors and the property industry.
With the country still recovering
from the events of the last two years and massive Government debt there was not
much money to give away in this budget. Chancellors usually save that for a
pre-election budget!
Jeremy Hunt
highlighted concerns about the banking sector, following the collapse of
America’s Silicon Valley Bank, Signature Bank and a further bailout by the US
banks, but reassured us that the UK banking industry is safe.
European Central
Bank supervisors see no contagion for euro zone banks from recent sector
turmoil, a source said on Friday, after U.S. lenders threw First Republic Bank a
$30 billion lifeline and tapped record amounts from the Federal Reserve.
Large U.S. banks on
Thursday were forced to rescue the San Francisco-based lender, which
was caught up in market volatility triggered by the collapse of two other
mid-size U.S. banks.
This week, Credit
Suisse went ‘cap in hand’ to the central for an emergency bank loan
of up to $54 billion to shore up its liquidity – banking terms for
having no money!
The National Residential Landlords
Association described it as missed opportunity to tackle the supply crisis in
the private rented sector and the Royal Institution of Chartered Surveyors (RICS)
said it was disappointed by the lack of housing ambition in the budget.
However, the Chancellor did
announce 12 new Investment Zones across the UK and relaxed Immigration Rules to
help the construction industry cope with staff shortages.
Most of us will be
paying more tax in the coming years due
to the ‘fiscal drag’ caused by tax allowances not rising in line with inflation
each year.
Here’s a summary of
the main points, but you can read the full budget speech at the commons library
- https://commonslibrary.parliament.uk/research-briefings/cbp-9748/
Budget main
points
·
Energy
cap limiting typical household energy bills to £2,500 a year extended to June
·
£200m
to bring energy charges for prepayment meters into line with prices for
customers paying by direct debit - affects 4m households
·
Lifetime
Allowance – the cap on amount workers can accumulate in pensions savings
over their lifetime before having to pay extra tax (currently £1.07m) to be
abolished
·
Tax-free
yearly allowance for pension pot to rise from £40,000 to £60,000
·
The 5p
cut to fuel duty on petrol and diesel, due to end in April, kept for another
year
·
Office
for Budget Responsibility (OBR) predicts the UK will avoid recession in
2023, but the economy will shrink by 0.2%? Economy shrinking but not in
recession!
·
Growth
of 1.8% predicted for next year, with 2.5% in 2025 and 2.1% in 2026
·
UK's
inflation rate predicted to fall to 2.9% by the end of this year, down
from 10.7% in the last three months of 2022
·
Underlying
debt forecast to be 92.4% of GDP this year, rising to 93.7% in 2024
·
Corporation
tax, paid by businesses on taxable profits over £250,000, confirmed to
increase from 19% to 25% making the UK a less competitive place to invest
·
Companies
with profits between £50,000 and £250,000 to pay between 19% and 25%
·
Companies
able to deduct investment in new machinery and technology to lower their
taxable profits
·
Tax breaks
and other benefits for 12 new Investment Zones across the UK, funded by £80m
each over the next five years
·
£200m
this year to help local councils in England repair potholes
·
£900m
for new super computer facility, to help UK's AI industry
·
30
hours of free childcare for working parents in England expanded to cover one
and two-year-olds, to be rolled out in stages from April 2024
·
A £600
"incentive payments" for those becoming childminders, and relaxed
rules in England to let childminders look after more children
·
New
fitness-to-work testing regime to qualify for health-related benefits
·
New
voluntary employment scheme for disabled people in England and Wales, called
Universal Support
·
Tougher
requirements to look for work and increased job support for lead child carers
on universal credit
·
£63m
for programmes to encourage retirees over 50 back to work,
"returnerships" and skills boot camps
·
Immigration
rules to be relaxed for five roles in construction sector, to ease labour
shortages
Source: BBC News
We are living in
turbulent times. Need more help with your money, finances, or debt?
I want to show you how
can you:
·
Not only survive, but thrive in a recession or
depression?
·
Get control of your finances and spending?
·
Save and invest for your future?
·
Learn about money and finance?
To help you, I am
running a free training webinar.
3 Steps To
Success Money Management!
I want to take you
to the next level, help you get control of your money, learn how to invest and
become financially free.
Join me online on
my free live training Wednesday at 8.00PM.
Places are limited,
so register now below to
avoid disappointment.
#money #savings #invest #costoflivingcrisis #inflation
#freetraining #recession #economy #financialfreedom #moneymanagement #moneymakingideas
#mortgage #interestrates #property #budget
#franceriots #parisriots #pension
