Banking News Election 2010 What Will The New Coalition Do For Your Finances 18470823


Banking News Election 2010 What Will The New Coalition Do For Your Finances 18470823 Fair Investment
Banking News Election 2010 What Will The New Coalition Do For Your Finances 18470823 Fair Investment

Election 2010: What will the new coalition do for your finances?

12 May 2010 / by Lois Avery

As David Cameron settles into Downing Street Britain is waiting with bated breath to see what his new coalition government with the Liberal democrats will do for the UK economy in order to cut the deficit and speed up the recovery.

Several cabinet appointments are still to be announced and the amalgamation of Nick Clegg and David Cameron’s manifestos are being finalised but several key points have already been announced as priorities.

Firstly, an emergency budget will be held within the first 50 days of the new government so new Chancellor George Osborne can outline their financial plans for the next year.

Already we know that this will include proposed public spending cuts of £6 billion in an effort to accelerate a reduction of the national debt.

The budget is also likely to include plans to shake up the banking sector with plans to implement a new banking levy and an independent commission to look at separating retail and investment banking.

The proposals from the new administration also include a substantial increase in the capital gains tax (CGT) from its current 18 per cent to a figure likely to be around 40 per cent. This is so they can fund a cut in income tax for lower earners offering a relief on the first £10,000 of earnings.

But there is speculation that this could mean a hike in VAT from 17.5 per cent to 20 per cent in order to pay for the income tax cuts.

The Lib Dem plans for a tax on homes worth more than £2million has also been scrapped, and in a compromise the Conservatives have dropped their pledge to raise the inheritance tax threshold to £1million.

The news that a government has now been formed will offer relief to investors, after mounting fears that political indecision could have disastrous effects on the UK economy.

Yesterday, as coalition talks continued five days after the general election,  the pound and the FTSE 100 took a hit and the price of government bonds jumped.  

But the news that talks had broken down between Labour and the Lib Dems yesterday afternoon and that a Lib/Con coalition was likely saw an increase in sterling, which has continued to rise and now sits one cent up against the dollar and 0.17 per cent higher against the euro.

As he entered Number 10 last night new PM David Cameron said: “We have some deep and pressing problems, a huge deficit, deep social problems and a political system in need of reform.  For those reasons, I aim to form a proper and full coalition between the Conservatives and the Liberal Democrats.  I believe that is the right way to provide this country with the strong, the stable, the good and decent Government that I think we need so badly.”

He went on to say: “I want to make sure that my Government always looks after the elderly, the frail, the poorest in our country.  We must take everyone through us on some of the difficult decisions that we have ahead.”

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  Product Name ISA Option Income Yield More Info
Investec FTSE 100 Income Deposit Plan Banking News Election 2010 What Will The New Coalition Do For Your Finances 18470823 Fair Investment

3.50%

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6 year capital protected deposit plan paying a potential income of 3.50% annually or 0.28% monthly. Also available for Cash ISA and Cash ISA transfer.
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Seeks to achieve a target yield of 7% to generate a quarterly income, whilst offering the potential for some long-term capital growth. Save 100% on Initial Charges.
Monthly Income Plus Fund Banking News Election 2010 What Will The New Coalition Do For Your Finances 18470823 Fair Investment
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Popular monthly income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. 100% discount on initial charges.
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Strategic Bond Banking News Election 2010 What Will The New Coalition Do For Your Finances 18470823 Fair Investment
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Investing in higher yielding assets which will include most types of fixed interest securities, this fund aims to deliver a quarterly income to investors. Save up to 97% on Initial Charges.
Invesco Perpetual Corporate Bond Fund Banking News Election 2010 What Will The New Coalition Do For Your Finances 18470823 Fair Investment
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This highly popular investment fund aims to achieve a high level of overall return with relative security to capital. Income Paid to you twice yearly. Up to a 100% Discount off the Standard Initial Fund Charge.
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Artemis Income Fund Banking News Election 2010 What Will The New Coalition Do For Your Finances 18470823 Fair Investment
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One of the leading UK Equity Income Funds. The Fund managers hunt out companies with strong free cash flow and solid balance sheets. Income is paid to you twice yearly. 100% Discount off the Standard Initial Fund Charge.
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Invesco Perpetual High Income Fund Banking News Election 2010 What Will The New Coalition Do For Your Finances 18470823 Fair Investment
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One of the UK’s most popular income funds, the Invesco Perpetual High Income has delivered consistently good long term returns through a variety of market conditions. Income is paid to you twice yearly. Up to a 100% Discount off the Standard Initial Fund Charge.
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M&G; Corporate Bond Fund Banking News Election 2010 What Will The New Coalition Do For Your Finances 18470823 Fair Investment
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The M&G; Corporate Bond Fund is a conservative ‘blue chip’ sterling fund that aims to produce a higher return than UK government bonds. Income is Paid to you Quarterly. 100% Discount off the Standard Initial Fund Charge.
Jupiter Merlin Income Portfolio Banking News Election 2010 What Will The New Coalition Do For Your Finances 18470823 Fair Investment
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The Jupiter Merlin Income Portfolio fund aims to achieve a high and rising income with some potential for capital growth. Income Distributions are made to you quarterly. 95% Discount off the Standard Initial Charge.
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The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below.

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Written by Editorial Team