Budget 2014

[beorhthelm]

its pretty sad that a penny on beer make the news, let alone crow about it. it not as if most punters will see the change as pubs/bars swallow it up.

 

[dougdeep]

Ending annuities is the best part. Give me the lolly!

 

[NODC]

As this is a natural budget, have they announced what they are either cutting or rising to cover the "good news" they announced yesterday?

 

[NODC]

As this is a natural budget, have they announced what they are either cutting or rising to cover the "good news" they announced yesterday?

I meant balanced budget

 

[trueblue]

Not harsh at all. Everyone would be delighted and going to bed thinking of the profit they are making instead of worrying and moaning about how much the prices are going up. Any sane person would hope the price would double from 18% to 36%, I would if I had a flat/house.

Of course you only see that money if you sell the house. And if you're looking to buy a "better" house, chances are that the rapidly rising market will do you no favours. But you can push the boat out and end up screwed when the bubble bursts as interest rates rise and repossessions flood the market.

The increases recently have been ridiculous. Looked at a place this month which was in a poor state compared to 2 neighbouring properties which sold in October. Allowing for house price inflation it was 'worth' about £408k. But on the market at 450k. Who is buying these places to drive prices up that fast? You've either got to be seriously rich (and using some of Gordon's tax breaks for a nice little place by the sea for holidays/rental income) or mortgaged up to the eyeballs.

A lot of people have done well out of rising property prices but it always surprises me that we seem to celebrate an economy built on rampant inflation in one important area of the market, as if that's a good thing when in fact it just makes owning a home impossible for so many.

Oh - and the poster that said something along the lines of "what would you like them to do that puts money in your pocket right now?". That's the point. It's not all about putting money in people's pockets, even though that's the basic greed all politicians pander to. How much difference do any of those headline grabbing moves really make to most people's daily lives? Maybe they can afford a meal out once a fortnight. Or buy 400 beers and get one free. Nice. But when they need cardiac treatment after years of all that rich food, they shouldn't moan about waiting months for an appointment because the NHS has collapsed. A good Government should look to help all of its citizens have a better life, not just those that it cherry-picks.

 

[hans kraay fan club]

Ummmmm...

When I saw this yesterday, I laughed, thinking it was a spoof.

But incredibly, it's real.

Amazing.

What a bunch of patronising, selfish, ignorant twats.

 

[dazzer6666]

When I saw this yesterday, I laughed, thinking it was a spoof.

But incredibly, it's real.

Amazing.

What a bunch of patronising, selfish, ignorant twats.

This. 'Let the poor people enjoy themsleves a bit more'. Patronising in the extreme.

That said, the annuity law change was a complete bolt from the blue, and very, very welcome (unless you work for Aviva, L&G, Prudential etc or any of the specialist providers that have been providing pi*spoor product at high cost for years), as was the ISA change - taken together give individuals far more scope to make choices. Potentially a long-term social issue though - how many people will drawdown their pension pots and act like lottery winners when they retire, then have to rely on the state ?

 

[ditchy]

Ending annuities is the best part. Give me the lolly!

But you will still pay tax on getting your lolly ?

 

[maltaseagull]

I'm a bit embarrassed to be slightly out of touch with this kind of thing - mainly because I work for an asset management company. We have fantastic income funds. I think when I get closer to retirement I will swot up on how to structure everything post-retirement - checking out the optimum funds is quite an interesting thing to research if you have the time.

From one who did..... Don't leave it too late!

 

[mejonaNO12 aka riskit]

I don't own anything or have children and my ashes will be scattered on the pitch within 10 years. But I agree that children will find it near on impossible to buy their own place. I can see it all going pear shaped sooner rafter than later. Prices keep going up but the bubble will burst and it'll be bigger than the 80s.

Right. So because I owned a property and had the view that prices are rising at a mad rate, I was "moaning" and you jumped down my throat.

But not owning a property and stating the same thing is OK and is just casually observing?

I'm delighted to have got on the ladder but surely that doesn't mean I can't have the same view as someone who's not on it yet when it comes to rising prices? It's the same as saying someone who has a job is not allowed to have any views on unemployment.

And as others have pointed, it's not like I can sell me house, buy another and have the original 15% profit sitting in my account. All other properties are increasing at the same if not more than mine. I worry for those wanting to upsize (start a family etc) and those wanting to get on the ladder.

 

[LamieRobertson]

But you will still pay tax on getting your lolly ?

but at least at 20 and not 55%....and not perhaps be taxed on the income the annuity paid...given that the ISA allowance is now 15k a year that would be a great place to transfer the money to...but it all depends on the individual ..there circumstances and understanding of all these financial products ..i can see more being introduced as these ''annuity'' companies will need to fight back ...but 20 million towards this face to face consultations is peanuts ...who will be giving this advice is going to be very interesting

 

[LamieRobertson]

Agree 100%. But the problem the kids down here have at the moment is that they feel they HAVE to get on the property ladder now, for fear of missing out, and not being able to buy a property.

But by buying now, all they are doing is pushing prices further up.

I guess it just depends on when rates go up, and by how much, because they will. I'm afraid its going to end in tears for a lot of youngsters.

Thats the key ...we are after all in uncharted waters regarding interest rates...although if i were taking a mortgage out now i'd be looking at taking as long as fix as i can even if it means paying a little extra per month

 

[Curious Orange]

That said, the annuity law change was a complete bolt from the blue, and very, very welcome (unless you work for Aviva, L&G, Prudential etc or any of the specialist providers that have been providing pi*spoor product at high cost for years), as was the ISA change - taken together give individuals far more scope to make choices. Potentially a long-term social issue though - how many people will drawdown their pension pots and act like lottery winners when they retire, then have to rely on the state ?

I used to work in annuities at the turn of the century, and there was a problem even then that the yields on gilts weren't great, which when combined with people living longer meant that the annuity rates weren't as good as they had been historically - the clever and well-advised used the open market option to maximise their return. Things haven't improved in that respect since I left the industry, so enabling people to have more flexibility with what they do with their pension pots is *probably* a good idea.

There will still be a market for annuities, as having a regular income is an appealing thing for people who like to plan their lives to a predictable budget.

 

[LamieRobertson]

I used to work in annuities at the turn of the century, and there was a problem even then that the yields on gilts weren't great, which when combined with people living longer meant that the annuity rates weren't as good as they had been historically. Things haven't improved in that respect since I left the industry, so enabling people to have more flexibility with what they do with their pension pots is *probably* a good idea.

There will still be a market for annuities, as having a regular income is an appealing thing for people who like to plan their lives to a predictable budget.

A lot to my mind will depend on how this 'advice' thing is set up....in the future more and more people will be retiring on money purchase schemes...currently a lot of people don't seem to understand that you can shop around re the annuity part...so the advice they get is going to be so important

 

[Billy the Fish]

Interesting comments about the housing market at the moment. I bought my 2 bed exactly 2 years ago and looking at what others in my street are selling for at the moment I rekon I could get 40k above what I paid two years ago.

I don't really need or want to move but now seems like a good time to upscale so I'll be keeping my eyes open for some good value 3 bed places. The bubble isn't going to burst because of demand in this area and interest rates aren't going to shoot up overnight because we don't live in that world anymore, it just won't happen all the time the economy is still functioning under fiscal stimulus. (according to the experts)

I've actually just moved from a fixed rate to a tracker because the rate was 1% less that the cheapest fixed. Everyone is sh!tting it about rates going up but if you work the numbers out it's an absolute no brainer to move onto the lowest rate possible.

 

[Guinness Boy]

[TWEET]446363611972534272[/TWEET]

"Hardworking people do more of what THEY enjoy"

FFS. Man of the people Grant Shapps (or whatever his name is this week) there

Ummmmm...

Ahem...

 

[Guinness Boy]

Also this is interesting from Robert Peston on how removing the need to buy an annuity may have unintended consequences for the bond and credit markets.

http://www.bbc.co.uk/news/business-26663313

 

[Herr Tubthumper]

Don't worry folks. Just over a year and the nasty party will be out.

 

[Herr Tubthumper]

Interesting comments about the housing market at the moment. I bought my 2 bed exactly 2 years ago and looking at what others in my street are selling for at the moment I rekon I could get 40k above what I paid two years ago.

I don't really need or want to move but now seems like a good time to upscale so I'll be keeping my eyes open for some good value 3 bed places. The bubble isn't going to burst because of demand in this area and interest rates aren't going to shoot up overnight because we don't live in that world anymore, it just won't happen all the time the economy is still functioning under fiscal stimulus. (according to the experts)

I've actually just moved from a fixed rate to a tracker because the rate was 1% less that the cheapest fixed. Everyone is sh!tting it about rates going up but if you work the numbers out it's an absolute no brainer to move onto the lowest rate possible.

I kind off agree. There is very slim chance the BoE will hike interest rates to such a degree the regular working person will be struggling to pay their mortgage or worse. Makes no sense. The UK needs money and spending in the economy, an interest rate hike will remove money.

 

[BLOCK F]

Don't worry folks. Just over a year and the nasty party will be out.

Don't bank on it Tub.
Anyway,if all those who were impressed by Milliband's pathetic response to the Budget yesterday were to vote for him,he might get 2 votes......if he's lucky.
Labour haven't got a coherent economic policy and Milliband is not Prime Minister material.Two huge problems to overcome if they want to be elected.