Mortgage News Budget 2009Will It Help The 63 Per Cent Of Brits Whose Finances Are Being Stretched 3239
Budget 2009: Will it help the 63% of Brits whose finances are being stretched?
21 April 2009 / by Rebecca Sargent
Recent research from Fairinvestment.co.uk* found that 63 per cent of Brits are feeling their finances being stretched since the beginning of the credit crunch.
Of those who are feeling the pinch, worryingly 10 per cent are struggling to pay their mortgage, while seven per cent have been made redundant.
But what could Alistair Darling and his Budget do to help these people?
Commenting, Sharon Bratley, chartered financial planner at Fairinvestment.co.uk said: “To make a real difference to these people, Darling would either have to make a significant reduction in taxes, guarantee all UK jobs, or hand out money on the streets to those who need it!
“Unfortunately the reality of this Budget will tell a different tale, and instead of helping people who are struggling to keep their heads above water, it is likely to add to their problems.
“Public debt and spending has spiralled out of control, and the only feasible way to end this is to increase taxes in some way, and whether it will be alcohol, petrol or cigarettes, any increase is bound to have an adverse affect on households.
“Measures expected to be announced include the extension of the stamp duty holiday for properties costing £175,000 or less, and the implementation of the Homeowner Mortgage Support Scheme (HMSS), both of which are temporary measures that will not solve the long term problems for struggling households.
“10 per cent of people whose finances are being stretched are struggling to meet their monthly mortgage payments, despite the fact that for many, mortgage payments have been significantly reduced by falling interest rates – This shows the full extent of the financial strain being felt by many households, as the cost of living continues to increase.
“If the Chancellor were to guarantee jobs and offer job security in times when seven per cent of workers are finding themselves made redundant, spending and confidence – both essential to a recovery – may well resume.
“Unfortunately, I can’t see that the Chancellor will be in a position to make any such proposals – his long term goal has to be restoration of public finances.”
* Research conducted by OnePoll for Fairinvestment.co.uk with 2,000 respondents