Category Archives: Money

UK recruiter emerges from insolvency for third time, avoiding millions owed in tax

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Hampshire business seems to have benefited from ‘phoenixism’, which costs the taxpayer about £800m a year

A UK recruitment business has been acquired out of administration for a third time in four years as part of a succession of deals that left some of the former management team in place and millions of pounds owed to the public purse.

The chain of insolvencies appears to contain more examples of phoenixism – a process when companies are liquidated and directors are able to rise from the ashes with a new entity, free of debts.

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‘Geopolitical uncertainties’ amid Iran war could slow fall in mortgage rates, says Halifax

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UK house price growth slowed in February as value of typical home rose 0.3% to £301,151

Halifax has warned that the US-Israel war on Iran could slow mortgage rate decreases this year, as it said that house price growth eased dramatically in February.

Halifax, which is part of Lloyds – Britain’s biggest mortgage lender – said the conflict in the Middle East was likely to affect global economies, stoke inflation and reduce the likely rate of interest rate cuts that influence borrowing costs for homebuyers.

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Half-truths and no truths: Trump’s latest claims on the UK factchecked

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From the Chagos Islands to ‘windmills’ and sharia law, the US president’s comments do not bear much scrutiny

Donald Trump has been opining about the UK again, saying on Tuesday that Keir Starmer was “not Winston Churchill” and repeating his complaint about the deal to hand sovereignty of the Chagos Islands to Mauritius. Here are some recent things the US president has said about British issues, and how they compare with reality.

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Premium bonds: odds of a win to get worse from April

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Likelihood of winning to decrease after NS&I cut the proportion of the total invested amount paid out in prizes

There was some bad news this week for Britain’s 22 million-strong army of premium bond holders: the odds of winning a prize are to get worse.

National Savings and Investments (NS&I) says it is cutting the proportion of the total invested amount paid out in prizes from 3.6% to 3.3% a year with effect from April’s draw.

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Switching energy deal can save £200 as price cap falls, say experts

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Households on a default dual-fuel tariff in Great Britain could cut costs by moving to a fixed deal

Experts have told households whose energy bills are pegged to the price cap not to “rest on their laurels” as they could save more than £200 a year on a fixed deal.

This week, Ofgem said the price cap in Great Britain would drop by 7% from April. This usually only matters if you are on a default tariff, but this time the reduction applies to everyone because the government is removing green charges from bills.

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Survivor of financial abuse invited to advise ministers after Guardian report

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City minister Lucy Rigby acts after woman faced repossession of house burned down by controlling husband

A woman who was nearly killed by her abusive husband has been invited to advise the government on measures to support victims of financial abuse after the Guardian highlighted her story last weekend.

Francesca Onody was left homeless and penniless when her husband doused their cottage with petrol while she and her two children were inside. Her husband, Malcolm Baker, died when the property exploded.

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Britons living in Europe face repayment hikes amid Reeves student loans row

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Exclusive: UK graduates in Germany, Belgium and possibly other countries informed of rises as salary threshold is cut

Britons living in some European countries face a huge rise in their student loan repayments later this year, the Guardian can reveal, in a move that threatens to trigger a fresh backlash for Rachel Reeves.

UK graduates working in Germany and Belgium – and possibly other countries – have been told that their monthly repayments will increase from April, the Guardian can reveal.

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Household energy bills in Great Britain forecast to fall by £117 a year

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Consultancy’s prediction comes after Rachel Reeves said green subsidy costs would be removed from domestic bills

Household energy costs in Great Britain are expected to tumble by an average of £117 a year from April after Rachel Reeves announced in November’s budget that the cost of green subsidies would be removed from domestic bills.

The government’s quarterly cap on energy bills is forecast to fall after the chancellor’s decision to shift the levies used to support renewable energy projects into general taxation, and scrap a bill payer-funded energy efficiency scheme, according to Cornwall Insight, a leading energy consultancy.

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People deriving income solely from state pension won’t be taxed, says chancellor

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Clarification creates prospect of two-tier system for retirees solely on new state pension and those on private schemes

People who rely only on their state pension for their income will not have to pay tax on it, the chancellor, Rachel Reeves, has said, creating the prospect of a two-tier system for those in retirement.

The new state pension is poised to rise to £241.30 a week next April, putting the annual income for someone receiving the standard payment at £12,547 – just below the personal tax allowance of £12,570 a year.

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Rachel Reeves targets UK’s wealthiest in £26bn tax-raising budget

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Chancellor axes two-child benefit cap and cuts energy bills paid for by mansion tax and freezing tax thresholds

Rachel Reeves targeted Britain’s wealthiest households with a £26bn tax-raising budget to fund scrapping the two-child benefit policy and cutting energy bills.

On a chaotic day that involved key details of her budget accidentally being released early by the Office for Budget Responsibility (OBR), the chancellor defended the measures, saying she was “asking everyone to make a contribution to repair the public finances”, but that she wanted the wealthiest to pay the most.

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Reeves’s plan to cut cash Isa limit could raise mortgage rates, say finance bosses

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Building societies fear consumers will be put off from saving if chancellor’s budget announces a 40% reduction

Rachel Reeves’s plan to slash the annual cash Isa limit by 40% could lead to higher mortgage rates and deter consumers from saving, finance bosses have said.

The chancellor is expected to cut the maximum amount people can put into tax-efficient cash individual savings accounts from £20,000 a year to £12,000 in Wednesday’s budget.

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Wimbledon to get exemption from ticket resale crackdown for seats that can cost thousands

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Organisers claimed proposed ban on reselling tickets for more than face value would dent investment in facilities

Wimbledon will be given an exemption from the clampdown on ticket resales for its “debenture” tickets, the Guardian understands, in what would be a victory for the organisers of the annual tennis tournament.

The championship organisers, the All England Lawn Tennis Club (AELTC), had previously said ministers’ proposed ban on reselling tickets for more than face value would prevent it from being able to reinvest debenture proceeds in maintenance of its facilities.

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Eight firms under investigation in crackdown on additional online fees

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Competition watchdog examines StubHub, Viagogo, AA Driving School and BSM Driving School and others

Britain’s competition watchdog has begun investigations into eight companies about their online pricing practices, expressing concern over additional fees and sales tactics such as “drip pricing” and “pressure selling”.

The Competition and Markets Authority (CMA) said it was looking into the ticket sellers StubHub and Viagogo; AA Driving School and BSM Driving School; the US gym chain Gold’s Gym; and the retailers Wayfair, Appliances Direct and Marks Electrical.

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Reselling tickets for profit to be outlawed in UK government crackdown

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Touts, and ordinary consumers, will no longer be able to charge anything more than price at which they bought ticket

Reselling tickets for profit is to be outlawed under plans due to be announced this week, the Guardian has learned, as the government goes ahead with a long-awaited crackdown on touts and resale platforms such as Viagogo and StubHub.

Ministers had been considering allowing touts – and ordinary consumers – to sell on a ticket for up to 130% of face value, as part of a consultation process that ended earlier this year.

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Asking prices fall as UK housing market hit by budget speculation, Rightmove says

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November drop of 1.8% is biggest for this time of year since 2012, with chancellor’s plans looming

Budget speculation has depressed the UK property market, figures from a leading property website have suggested, with asking prices slipping in the run-up to Rachel Reeves’s much anticipated fiscal set piece on 26 November.

The average new seller asking price fell by 1.8%, or £6,589, month on month in November, the figures collated by the property website Rightmove set out, taking the average price tag on a British home put up for sale to £364,833.

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‘Bereavement penalty’: people who lost partners hit by insurance premium rises

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Campaigners claim AI algorithms are behind hefty increases in renewal quotes for home and car cover

Shortly after her husband died, Kay Lawley* received renewal quotes from the couple’s home and car insurance provider, Ageas. She told the company of his death and was stunned that the quotes then increased by up to 15%.

Her car insurance quote went from £301 to £348, while her home and contents policy rose by almost 12% – from £1,039 to £1,161.

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Treasury won’t cut threshold for higher rate income tax, say sources – UK politics live

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Fallout continues over budget income tax U-turn, with Treasury saying expected fiscal gap has dropped to £20bn

This is from Helen Miller, director of the Institute for Fiscal Studies thinktank, on the market reaction to the chancellor’s reported budget U-turn.

Investors will have 2 broad concerns about news that Chancellor won’t increase income tax rates

1. Does it signal less willingness to do politically difficult things

Britain’s long-term borrowing costs were sent soaring as reports suggested the latest U-turn would leave Rachel Reeves scrambling to fill a gaping black hole in the nation’s finances just two weeks before the 26 November budget.

Yields on 30-year UK government bonds, also known as gilts, jumped as much as 14 basis points in early trading, and the yield on 10-year gilts also shot up 12 basis points – rising the most since July.

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Bots and third parties to be banned from booking driving tests in DfT shake-up

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In effort to tackle severe backlog and end resale market, only learner drivers will be able to make bookings

Bots and third parties will be banned from booking driving tests as part of a government shake-up to tackle a severe backlog of almost 670,000 learners booked in for a practical assessment.

The Department for Transport (DfT), which recently consulted on how to crack down on touts reselling test slots at inflated prices, said that only learner drivers themselves and not their instructors would be able to make bookings.

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UK to reconsider decision to deny Waspi women pension payouts

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Millions born in 1950s lost out because of government failings over changes to state retirement age, campaigners say

Millions of “Waspi women” have been given fresh hope that they might receive compensation after the UK government announced it would revisit a decision to deny them payouts.

As many as 3.6 million women born in the 1950s are said to have lost out because of government failings in the way changes to the state pension age were made, prompting the Waspi (Women Against State Pension Inequality) campaign to launch in 2015.

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Reform’s public-sector pensions plan could cost billions extra, union warns

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Prospect says proposals to make payouts less generous would damage public finances rather than save money

Reform UK’s plans to make public-sector pensions less generous could cost billions extra a year and cause a ticking timebomb in the public finances, a leading trade union has warned.

Prospect said the plans unveiled by the party’s deputy leader, Richard Tice, would damage the public finances rather than save money “and end up costing taxpayers tens of billions of pounds in the years to come”.

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