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Tag: finance
Credit Union merger: Special General Meeting on Thursday
North Edinburgh Credit Union announces merger plan
North Edinburgh Credit Union is to merge with Castle Credit Union and Water of Leith CU, doubling the existing membership and giving the new organisation a stronger financial base.
In a letter to members, North Edinburgh Credit Union Chair Ron Carthy explained: “The Board of North Edinburgh Credit Union is committed to maintaining a strong CU presence in North Edinbyrgh and to offer the range of services our members expect. Therefore, the Board has agreed to merge with Castle Cedit Union and the Water of Leith CU study group as a major step in this process. This wiill not only double the size of our existing member base but also gives us a stronger financial base upon which to expand and sustain a viable credit union.
He continues: “The new Head Office for the merged credit union will be in our exisiting office in Wardieburn Drive. As part of our palans for the new merged credit union we will extending (sic) our opening times and be introducing access 24/7 via a new website for members to check balances, apply for loans and see how their savings are growing. We will also be offering a wider range of savings and loan products.”
NECU is holding a meeting at the Wardieburn office this Thurday at 6.30pm (business starts 7pm) to share information about the ‘exciting new plans’. All members welcome.
For further information call 0131 466 5006
or email committee@necu.co.uk
Lloyds Bank shares to go on sale next Spring
We bailed it out and basically bought it – and now we can can buy it all over again!
HM Treasury has announced today that a retail sale of Lloyds shares will be launched next spring, with applications available online and by post.
The taxpayer – you and me – saved Lloyds from collapsing at the height of the financial crisis in 2008 with a £20.5bn bailout, leaving the UK government with a 43% stake.
The Treasury has since recouped almost three-quarters of public funds used to rescue the bank by selling shares to institutional investors, and now it has announced plans for a public sell-off.
In a statement, HM Treasury said: “It is the government’s intention to fully exit from its Lloyds shareholding in the coming months, and as part of this at least £2bn of shares will be sold to retail investors. Members of the public will be offered a discount of 5% of the market price, with a bonus share for every 10 shares for those who hold their investment for more than a year. The value of the bonus share incentive will be capped at £200 per investor. People applying for investments of less than £1,000 will be prioritised.
All proceeds from share sales are used to pay down the national debt.
Military personnel and their spouses stationed overseas will be able to participate in the sale, where possible. This is in line with the government’s armed forces covenant, which ensures that members of the armed forces should not face disadvantage in the provision of public services.
HM Treasury has also launched a dedicated campaign webpage for potential investors, where members of the public can pre-register and receive email updates about the sale. This can be found at www.gov.uk/lloydsshares.
As always, share sales are dependent on market conditions.”
Carry on at your convenience!
Community ownership for public toilets?
Toilets at Granton Square and Canonmills will be among the first tranche of public convenience closures, it has been confirmed. The local public conveniences are among ten that will close over the summer, saving £300,000.
Ross McEwan, administrator of Granton Improvement Society, has called for the local public toilet to be acquired as a community asset.
It’s not a cr*p idea: in other areas across the country enterprising local communities have formed Trusts to save local assets – including public toilets.
One group in Devon successfully took over the running over their village toilets when faced with council closure. Not only did they save the facility, they upgraded it – with the help of Lottery funding, the villagers of Barbrook refurbished the toilets and added a community information room next door too!
During Edinburgh’s budget process in 2011, the Council agreed to reduce the budget of the Public Conveniences service by £300,000, a saving that was delayed until the 2015/2016 financial year.
Earlier this year an initial list of toilets proposed for closure was selected based on the number of people using the facilities, the conditions of the buildings, alternative facilities available in the local area and the potential for a Community Toilet Scheme.
Prior to final closure of these facilities, consultation has been undertaken with the wider community to establish views on the proposed closures and identify any steps that could be taken to lessen the effects of losing these facilities.
The results of this survey can be found here .
Following consideration of the feedback, the decision has been made to close the following toilets:
· Ardmillan – end of July 2015
· Canaan Lane – end of July 2015
· Canonmills – end of July 2015
· Currie – end of July 2015
· Granton Square – end of July 2015
· Joppa – end of August 2015
· Juniper Green – end of July 2015
· London Road – end of August 2015
· St John’s Road – end of August 2015
· Tollcross – end of August 2015.
Two other public conveniences have been spared – at least for now. The toilets at Hawes Pier and Middle Meadow Walk will not be closed at this time, while the options for these sites are reviewed.
To lessen the impact of the closures, the Council is establishing a Community Toilet Scheme with interested businesses across the city.
This would result in participating businesses allowing members of the public to use their toilet facilities without expecting them to make a purchase, in exchange for an annual payment from the Council.
A number of businesses have already expressed an interest in participating through the public toilets survey and some businesses in identified areas have also been approached with information about the Scheme.
A council spokesperson said: “The decision to close these toilets has been a difficult one and it is appreciated that there will be some impact following these closures. To help mitigate this, there have been over 60 additional toilet facilities identified in Council buildings around the city that are available for the public to use.
“These are located in various Libraries, Community Centres, Edinburgh Leisure facilities and Neighbourhood Offices; information about these toilet facilities is available here on the Council’s website.”
Nearly 20 public toilets will remain open.
If you would like to make an enquiry about public toilet closures, please call 0131 529 3030 or email public.toilets@edinburgh.gov.uk.
If you do choose to call the telephone number, be prepared for a lengthy wait … might be worth going for a pee before you call!
Budget reaction
Reaction to George Osborne’s summer budget:
This is a Budget for the whole of the UK. It rewards work, backs aspiration and ensures fairness for taxpayers across the UK. We’re moving towards a lower tax, higher wage and lower welfare economy. And within the welfare system, we continue to protect the most vulnerable.
The economy is growing. We are taking more people out of tax. Jobs are being created. The deficit is coming down . Our economic plan is working.
The UK currently has 1 per cent of the world’s population, but 7 per cent of the world’s welfare bill. That cannot be right and is not sustainable.
Work is the best route to a secure future, and the peace of mind which that brings . We are making sure we have a welfare system which always rewards work, while making sure the most vulnerable are protected.
The National Living Wage is an essential part of the move from a low wage, high tax, high welfare society to a higher wage, lower tax, lower welfare society. It ensures that work pays, and reduces reliance on the State topping up wages through the benefits system.
There is no sensible person who suggests the deficit we inherited should not be tackled. Even our opponents agree with us on that. It would be wrong to burden our children and grandchildren – the next generations – with debt run up by previous governments in this generation.
This is part of being a responsible, responsive Government.
David Mundell MP, Scottish Secretary
The Chancellor is giving with one hand and taking away with the other. Massive cuts in support for working people will hit families with children hardest.
The Chancellor has finally woken up to the fact that Britain needs a pay rise. The TUC has long campaigned for the minimum wage to rise faster and the Chancellor has listened to us at last.
For young people, it was all bad news as they will not get the minimum wage boost and will suffer from cuts to higher education grants and housing benefit. And it was not a one-nation budget for public sector workers who will face years more of cuts to real wages.
Massive tax cuts for the wealthiest show the Conservatives are still the party of the inheritors, rather than the workers.”
TUC General Secretary Frances O’Grady
This is a double edged Budget for business. Firms will welcome measures to balance the books and boost investment, but they will be concerned by legislating for wage increases they may not be able to deliver.
Firms have been unwavering in their support for the Chancellor’s deficit reduction plans and will welcome the clarity that the new fiscal rules provide. Other standout measures include making the Annual Investment Allowance permanent at £200,000, which the CBI called for, as well much-needed investment in our roads network.
The further reduction in corporation tax is a welcome surprise but tax reductions for employers don’t appear to match the businesses most affected by a rise to £7.20 in the National Minimum Wage next April – a 7% increase.
The CBI supports a higher skilled, higher wage economy, but legislating for a living wage does not reflect businesses’ ability to pay. This is taking a big gamble that the labour market can absorb year-on-year increases of an average of 6%.
Firms want to play their part in training up more apprentices but an apprentice levy is a blunt tool. A volunteer army is always better than conscription but the CBI will work with the Government to make the best effect of this measure.
These new (fiscal) rules strike the right balance between getting down our national debt as share of GDP and ensuring we can respond to future shocks in the economy.”
On the introduction of the National Living Wage:
Small shops, hospitality firms and care providers are the businesses that will face real challenges in affording the National Living Wage.
Delivering higher wages can only be done sustainably by boosting productivity. Bringing politics into the Low Pay Commission is a bad idea.
On changes to Corporation Tax:
The Chancellor has provided clarity on the future direction of corporation tax rates for the remainder of this Parliament. Combined with a welcome commitment to publish a business tax roadmap in April 2016, which was called for by the CBI, this must provide businesses of all sizes with the certainty they need to invest.”
On the apprenticeship levy:
In the past, the training delivered by levy approaches has often been costly and not linked to the needs of businesses and learners. The real solution to more quality apprenticeships lies in giving greater control over content to businesses working together in partnership.”
On reducing the bank levy and introducing an 8% surcharge:
By phasing out the bank levy, the Chancellor has tackled an issue that was making the UK uncompetitive for global banks headquartered here. But the proposed new banking profits surcharge will need careful examination to avoid unintended consequences and ensure it doesn’t stifle choice in the banking sector.”
On further tax avoidance measures:
We support efforts to counter tax avoidance and evasion, such as increasing HMRC resources, and we look forward to consulting closely with the relevant authorities on a number of matters to ensure they are well designed.”
On transport and energy commitments:
The Chancellor is right to address the £8bn black hole in the existing road budget through the creation of the new Roads Fund. However there’s more to do to reverse rather than simply halt the decline in road funding.
The CBI has long argued that the current business energy efficiency regime is far too complex and burdensome and so we welcome the review announced. Better designed green taxes and regulation will drive business investment.”
On boosting local growth:
New enterprise zones, city and county deals, smart transport investments and science and innovation audits provided further detail on the Northern Powerhouse agenda. Business wants to work with Government to ensure new powers boost job creation and business investment.”
On further pensions changes:
The Chancellor is right to tread carefully in reforming the taxation of pension saving. Previous mis-steps in this area have damaged our savings culture. Any future measures should not damage the attraction of saving in a workplace pension for employees –this remains the best way of preparing for retirement.
John Cridland, Confederation of British Industry (CBI)
(On the announcement that automatic entitlement to housing benefit is to be cut from 18-21 year olds): This is a youth tax and a shameful decision which is unjustified and cruel. It completely removes the safety net that is in place to protect young people whose circumstances often prevent them from staying in or returning to the family home.
Whether it’s someone fleeing an abusive relationship or thrown out of their home, or someone caught between jobs a long way from home, we have a duty to support young people.
Cutting this vital lifeline for many thousands of young people is simply wrong and I fear that, despite Shelter Scotland and other support service’s best efforts this will cause very hard times and lead to a rise in homelessness among young people.
Short-sighted cuts like this do nothing to fix the root cause of the housing benefit bill – which has grown due to the chronic shortage of affordable homes, a growing reliance on the private rented sector and sky-high rents. That’s why the reduction in the benefit cap doesn’t make sense as it will drive those affected by it out of their homes for not being able to pay their rent, in effect, clearing out people who rely on housing benefit from high rent areas.
In Scotland, we need to build at least 10,000 new homes for social rent each year for the foreseeable future to tackle the shortage of affordable housing. By investing in affordable housing, not only would this bring hope to the 150,500 households on council waiting lists, it would also gradually reduce the housing benefit bill, which in turn would leave more funds available for investment in housing.
Graeme Brown, Shelter Scotland
There was further support to reduce corporation tax, fix the annual investment allowance and boost regional growth, where investment in roads will be particularly well received. We agree with the focus on productivity but need to see the details to raise skills through the apprenticeship levy on large firms. Planning reforms are also critical to raising productivity and again we look forward to seeing the proposals on Friday.
However, even though offset by a welcome increase in the employment allowance, some will find the new National Living Wage challenging. Changes to the treatment of dividends will also affect many of our members.
Commenting on specific areas detailed in the Budget:
The National Living Wage
The introduction of a new National Living Wage for over 25 year olds, set at £7.20 an hour from next April, will pose significant challenges for many small firms, particularly those in the hospitality, retail and social care sectors. We have been supportive of gradual increases in the National Minimum Wage in recent years, to reflect the
improvement in the economy. However, we believe annual increases should be set according to the recommendations of the independent Low Pay Commission (LPC). We support the idea of giving employers a clearer indication of where minimum wages are heading in the medium term, but we note this move risks undermining the independent
status of the Commission.
Employment Allowance
The increase in the Employment Allowance to £3000 is welcome although, for many small businesses, it is unlikely to fully off-set the increase in costs brought by the new over 25s National Living Wage rate. FSB’s research shows that in the past the Employment Allowance has enabled members to increase wages and spending on staff
training. Going forward we expect the allowance to primarily be used to meet higher wage costs, as a result of the new National Living Wage.
Annual Investment Allowance
The Annual Investment Allowance has been an important incentive for people investing in the future growth and productivity of our small businesses. We have long called for the Allowance to be set permanently and at a reasonable level. Small firms will therefore
welcome the move by the Chancellor to do just that by setting the Allowance permanently at £200,000.
Introduction of an apprenticeship levy
The increasing focus on vocational on-the-job training is the right approach but we must not let the drive for greater numbers come at the expense of quality. Encouraging small businesses to take on an apprentice is the only way to deliver the Government’s
target of three million apprenticeships. While we welcome the exclusion of small firms from the proposed apprenticeship levy, we urge Government to talk further with businesses about the wider implications and implementation of the levy.
Productivity and infrastructure
Closing the productivity gap is the best way to boost the long term health of the UK economy. It’s the key to reducing the budget deficit, delivering higher wages, and improving living standards. Solving the productivity puzzle requires long-term effort and focus, and we look forward to seeing the Chancellor’s thinking when he publishes his
productivity plan later this week. Among the range of measures we will be looking for are proposals to address longstanding planning issues, ending delays in infrastructure investment, and giving young people the skills businesses really need to grow and for them to have successful, rewarding careers.
The new road fund announced today will be particularly welcome for small businesses which are heavily reliant on the road network for the success of their businesses.
Tax simplification
Working out just what tax you owe can be a huge headache for small businesses. Getting it right costs unnecessary time and money. Businesses want a much simpler system, which is why they will welcome the greater resources and new statutory footing
awarded to the Office of Tax Simplification (OTS) and the greater resources to support its work. To deliver simplification, it is critical Ministers implement the recommendations the OTS has already made. Working with stakeholders, they also need to present a clear
roadmap on how they will take simplification forward in the future. This should be done with a clear regard to boosting productivity and growth.
Fuel duty
Small firms, especially those in rural areas are disproportionately hit by the cost of fuels. Continuing to freeze fuel duty will be welcomed by small firm still struggling with the cost of fuel at the pump.
John Allan, Chairman, Federation of Small Businesses
For the first time the Chancellor has finally admitted that his attack on the poorest and most vulnerable people in our communities isn’t actually about tackling the deficit. It’s all part of his push for a low tax low welfare society.
This is the work of an economically-illiterate Chancellor who is dead set on cutting, freezing and scrapping welfare to reach his target of £12bn cuts.
He’s demonstrating a cruel disregard for the impact this will have on hundreds of thousands of people’s lives. The sad truth is that far too many people can’t afford to feed and clothe themselves and their families, or keep a roof over their heads.
Taking money from the pockets of our poorest people will only plunge them deeper into poverty and increase inequality which will be a drag on the economy.
Setting the new statutory living wage at £7.20 for next year when the recommended living wage is currently £7.85 is just a headline-grabbing con. Combined with tax credit cuts it means that people will be worse off and only the Treasury will benefit.
The Chancellor and Prime Minister’s war on tax credits will back fire and will worsen poverty levels in the UK. We’re a rich country. It’s utterly senseless that we’re treating people like this.
John Downie, Director of Public Affairs, Scottish Council for Voluntary Organisations (SCVO)
“Britain deserves a pay rise and Britain is getting a pay rise”
“The Budget today puts security first. The economic security of a country that lives within its means. The financial security of lower taxes and a new National Living Wage.
“The national security of a Britain that defends itself and its values. A plan for working people. One purpose. One policy. One nation. And I commend this Budget to the House.” – Chancellor of the Exchequer George Osborne
Every Chancellor loves a little drama; that opportunity to produce a rabbit from a hat and wrong-foot political opponents and leave them floundering. George Osborne took centre stage today, delivering the first Conservative budget since 1996, and in the finest traditions of vaudeville conjurers he kept something up his sleeve, saving the best ’til last – the big finish.
Yes, there was the expected £12bn cut to welfare – although over a longer time frame – and there were small giveaways here and clawbacks there, nothing too remarkable or unexpected. And then …
“In the last five years we’ve taken the tough choices to drive down our borrowing, make our business taxes competitive and reform welfare.
“It’s because we’ve taken these difficult decisions, and overcome the opposition to them, that Britain is able to afford a pay rise.
Because let me be clear: Britain deserves a pay rise and Britain is getting a pay rise.
I am today introducing a new National Living Wage.”
Now you can call it a new National Living Wage if you want, or just an increase to the National Minimum Wage if you prefer, but whatever you choose to call it, it’s a sizeable hike: more than either Labour or the SNP offered in their respective manifestos, the government has set it to reach £9 an hour by 2020.
Working people aged 25 and over will receive it, starting next April, at the rate of £7.20p.
Along with the slashing back of public expenditure through swingeing cuts to the welfare budget, the setting of a compulsory ‘National Living Wage’ is clearly designed to get the message out that this government intends to make work pay. The announcement delighted the massed Tory ranks, with architect of the benefits reforms Iain Duncan Smith (below) particularly enthusiastic. Rarely has the ‘quiet man’ been quite so animated!
Responding for the Labour Party, acting leader Harriet Harman said: “When you’re in opposition, the temptation is to oppose everything the government does – and believe me, I feel that temptation. But we best serve this country by being a grown-up and constructive opposition.
“So while we will fiercely oppose policies that hit working people, and we will expose policies that are unworkable, where the government comes forward with ideas that are sensible we will be prepared to look at them.”
On Scotland, Mr Osborne said very little: “But what really drives this government, is building up other parts of our United Kingdom, as a balance to London’s strength.
“For Scotland, we’re now delivering – as promised – major devolution of tax and welfare powers.
“The Scottish Government will soon have to answer the question; “you’ve got the powers, when are you going to use them?””
And that was it.
Scotland’s Deputy First Minister John Swinney called the Budget a ‘con trick’ which particularly hits low income households and young people.
He said the announced freeze in working age benefits and cuts to tax credits will see the most vulnerable in our society continue to be hit the hardest whilst the revised minimum wage fails to deliver a real living wage.
Mr Swinney said: “The reality is this budget is an attack on the low paid, the young and those entering the jobs market. This budget is a series of con tricks to try and hide the fact that individual households will now bear the brunt of austerity cuts.
“I support a meaningful living wage paid for by business – one that pays what people need to live, not one that fails to compensate for cuts to valuable tax credits.
“The Chancellor has not even promised to meet the current living wage of £7.85 and under 25’s will face the brunt of cuts but receive no increase in wages.
“As the Resolution Foundation – cited by the Chancellor – make clear the real living wage is based on people receiving tax credits and housing benefit so any new living wage must be far higher to compensate for it. The Chancellor’s con trick does not come close to meeting those costs.
“The Chancellor is cutting from the poor whilst paying out to the rich, he is short changing those on low incomes whilst giving tax breaks to the better off.
“There has been no easing up on austerity – he has simply shifted some of the balance from public services to the public themselves. The Scottish Government has faced a 10% cut in our overall budget for the last five years and the Chancellor today said deficit reduction would take place at the same pace in the future. Overall the scale of austerity being imposed by this UK Government remains unchanged.
“Despite revising down productivity and export figures in each of the next four years there was little in this budget to boost productivity or to set out a strategy for growth.
“The reality is that in delivering his emergency budget the Chancellor has simply exacerbated the emergency situation faced by many on low pay and low incomes.”
The Budget in summary:
1. Introducing a new National Living Wage of over £9 an hour by 2020
From April 2016, a new National Living Wage of £7.20 an hour for the over 25s will be introduced. This will rise to over £9 an hour by 2020.
2. The government will run a surplus in 2019-20
The deficit will be reduced by around 1% of GDP (the value of the economy as a whole) on average in each year, which is the same pace as over the last 5 years. This means a surplus (where more tax is raised than is spent) will be achieved in 2019-20, and debt will fall in every year. Included in this is:
- £12 billion by 2019-20 through welfare reforms
- £5 billion by 2019-20 from measures to tackle tax avoidance, planning, evasion, compliance, and imbalances in the tax system
Plans for the remaining savings will be set out in the autumn following the spending review.
3. The tax-free Personal Allowance will be increased from £10,600 in 2015-16 to £11,000 in April 2016
The tax-free Personal Allowance – the amount people earn before they have to start paying Income Tax – will increase to £11,000 in 2016-17.
Increases to the Personal Allowance since 2010, when it was £6,475, mean that a typical taxpayer will be £905 a year better off in 2016-17.
The government has an ambition to increase the Personal Allowance to £12,500 by 2020, and a law will be introduced so that once it reaches this level, people working 30 hours a week on the National Minimum Wage won’t pay Income Tax at all.
4. Protecting defence spending
The Ministry of Defence’s budget will rise by 0.5% (above inflation) each year to 2020-21. Up to an additional £1.5 billion a year will also be available by 2020-21 to fund increased spending on the military and intelligence agencies.
The government will meet the NATO pledge to spend 2% of national income on defence every year of this decade.
5. Reforming the welfare system to make it more affordable
The welfare system will be reformed to make it fairer for taxpayers who pay for it, while continuing to support the most vulnerable. Changes include:
- working-age benefits, including tax credits and Local Housing Allowance, will be frozen for 4 years from 2016-17 (this doesn’t include Maternity Allowance, maternity pay, paternity pay and sick pay)
- the household benefit cap will be reduced to £20,000 (£23,000 in London)
- support through Child Tax Credit will be limited to 2 children for children born from April 2017
- those aged 18 to 21 who are on Universal Credit will have to apply for an apprenticeship or traineeship, gain work-based skills, or go on a work placement 6 months after the start of their claim
- rents for social housing will be reduced by 1% a year for 4 years, and tenants on higher incomes (over £40,000 in London and over £30,000 outside London) will be required to pay market rate, or near market rate, rents.
6. Reforming Dividend Tax
The dividend tax credit (which reduces the amount of tax paid on income from shares) will be replaced by a new £5,000 tax-free dividend allowance for all taxpayers from April 2016. Tax rates on dividend income will be increased.
This simpler system will mean that only those with significant dividend income will pay more tax. Investors with modest income from shares will see either a tax cut or no change in the amount of tax they owe.
7. Taking the family home out of Inheritance Tax
Currently, Inheritance Tax is charged at 40% on estates over the tax-free allowance of £325,000 per person. Married couples and civil partners can pass any unused allowance on to one another.
From April 2017, each individual will be offered a family home allowance so they can pass their home on to their children or grandchildren tax-free after their death. This will be phased in from 2017-18.
The family home allowance will be added to the existing £325,000 Inheritance Tax threshold, meaning the total tax-free allowance for a surviving spouse or civil partner will be up to £1 million in 2020-21.
The allowance will be gradually withdrawn for estates worth more than £2 million.
8. The amount people with an income of more than £150,000 can pay tax-free into a pension will be reduced
Most people can contribute up to £40,000 a year to their pension tax-free. From April 2016, this amount will be reduced for individuals with incomes of over £150,000, including pension contributions.
9. The higher rate threshold will increase from £42,385 in 2015-16 to £43,000 in 2016-17
The amount people will have to earn before they pay tax at 40% will increase from £42,385 in 2015-16 to £43,000 in 2016-17.
10. Corporation Tax will be cut to 19% in 2017 and 18% in 2020
The main rate of Corporation Tax has already been cut from 28% in 2010 to 20%, in order to boost UK competitiveness. It will now fall further, from 20% to 19% in 2017, and then to 18% in 2020, benefiting over a million businesses.
11. The annual investment allowance will be set at its highest ever permanent level at £200,000
The annual investment allowance, which has previously been increased temporarily, will be set permanently at £200,000 from January 2016.
The allowance means businesses can deduct the full value of certain items, including equipment and machinery, up to a total value of £200,000 from their profits before tax. This helps them with cash flow because it means the full tax relief is given in the year items are purchased, rather than over several years.
This permanent increase will help businesses plan their spending on longer-term investments.
12. The Employment Allowance will increase by a further £1,000 to £3,000
Businesses will have their employer National Insurance bill cut by another £1,000 from April 2016, as the Employment Allowance rises from £2,000 to £3,000. The Employment Allowance gives businesses and charities a cut in the employer National Insurance they pay.
This means, next year, businesses will be able to employ 4 people full time on the National Living Wage and pay no National Insurance at all.
13. The standard rate of Insurance Premium Tax will increase to 9.5%
From November 2015 the standard rate of Insurance Premium Tax will be increased from 6% to 9.5%. Households’ insurance prices are falling and the standard rate remains lower than that of many other EU countries.
14. Clamping down on nuisance calls from claims management companies
The amount that can be charged by claims management companies – such as those that encourage claims for payment protection insurance (PPI) or personal injury insurance – will be capped, reducing nuisance calls to potential customers.
15. Restricting tax relief for wealthier landlords
Currently, individual landlords can deduct their costs – including mortgage interest – from their profits before they pay tax, giving them an advantage over other home buyers. Wealthier landlords receive tax relief at 40% and 45%. This tax relief will be restricted to 20% for all individuals by April 2020.
In addition, from April 2016, the ‘wear and tear allowance’, which allows landlords to reduce the tax they pay (regardless of whether they replace furnishings in their property) will also be replaced by a new system that only allows them to get tax relief when they replace furnishings.
16. Ending permanent non-dom status
Non-domiciled individuals (non-doms) live in the UK but consider their permanent home to be elsewhere. The UK rules allow non-doms to pay UK tax on their offshore income only when they bring it into the UK.
Permanent non-dom status will be abolished from April 2017. From that date, anyone who’s been resident in the UK for 15 of the past 20 years will be considered UK-domiciled for tax purposes.
17. Reforming the way banks are taxed
Following increasing bank profits, and to reflect changes in bank regulation, the government is:
- introducing a new 8% tax on banking sector profits from January 2016
- introducing a phased reduction in the rate of the Bank Levy (which is charged on banks’ balance sheets) from 0.21% to 0.1% between 2016 and 2021
- excluding UK banks’ overseas subsidiaries from the Bank Levy from January 2021
18. 3 million new apprenticeships
3 million new apprenticeships will be created by 2020, funded by a levy on large employers. Firms that are committed to training will be able to get back more than they put in.
19. £30 million of funding for Transport for the North
Cities and counties in the North will be given even more control over local transport. Transport for the North (TfN) will be supported by £30 million in funding over 3 years, and will have more responsibility for setting out policy and investments.
20. 30 hours of free childcare for 3 and 4 year olds
From September 2017, working families with 3 and 4 year olds will receive 30 hours of free childcare – an increase from the 15 hours they’re currently offered.
21. Student maintenance grants will be replaced with loans
From the 2016-17 academic year, cash support for new students will increase by £766 to £8,200 a year, the highest level ever for students from low-income households. New maintenance loan support will replace student grants. Loans will be paid back only when graduates earn above £21,000 a year.
22. Road tax will be reformed and the money raised spent on the road network
The road tax system will be revised to make it fairer and sustainable. From 2017, there will be a flat rate of £140 for most cars, except in the first year when tax will remain linked to the CO2 emissions that cars produce. Electric cars won’t pay any road tax at all and the most expensive cars will pay more.
Existing cars won’t be affected – no one will pay more for a car that they already own. The money brought in from road tax in England will be spent on England’s roads from 2020.
The government will extend the deadline for the first MOT of new cars and motorcycles from 3 years to 4 years.
23. Public sector pay will increase by 1%
Public sector pay will increase by 1% a year for 4 years from 2016-17.
24. Making sure individuals and businesses pay what they owe
The government will continue to clamp down on tax avoidance, planning and evasion, as well as increasing resources for HM Revenue and Customs (HMRC) so they can make sure people pay the tax that’s due. This includes:
- extra investment between now and 2020 for HMRC’s work on evasion and non-compliance
- tripling the number of criminal investigations HMRC can undertake into complex tax crime, concentrating on wealthy individuals and companies
allowing HMRC to access more data to identify businesses that aren’t declaring or paying tax - clamping down on the organised crime gangs behind the illicit trade in tobacco and alcohol
- stopping investment fund managers from using tax loopholes to avoid paying the correct amount of Capital Gains Tax on their profits from the fund (this is known as carried interest)
- making sure international companies pay tax on profits diverted from the UK
- introducing a ‘general anti-abuse rule’ penalty and tough new measures for serial avoiders, including publishing the names of people who repeatedly use failed tax avoidance schemes
Sturgeon: UK Budget will hit Scotland’s poorest children
Scottish Government figures give ‘frightening indication’ of potential impact of expected tax credit cuts
Expected cuts to the value of tax credits by the Westminster Government in tomorrow’s budget will impact most on the poorest children in Scotland, First Minister Nicola Sturgeon said this morning.
Figures due to be published tomorrow (Wednesday) by Scottish Government analysts show that, if the Chancellor cuts child tax credits back to 2003 levels in real terms as has been reported, the poorest 20 per cent of Scottish families with children will lose on average nearly 8 per cent of their income – a total impact of £425 million lost across the country – with 60% of Scottish children affected by the changes.
First Minister Nicola Sturgeon described the research as “a frightening indication” of the impact of the expected cuts and warned that the UK Government’s approach will “hit Scotland’s poorest children and families hard”.
The First Minister said: “The UK Government has already warned that tomorrow’s budget will continue their austerity approach, which we are clear is not just unfair but damaging to the economy – undermining attempts to stimulate growth.
“Tax credits form an important part of the tax and welfare system, designed particularly to support working families on low incomes.
“More than 500,000 children in Scotland benefit from tax credits. Two-thirds of the £2 billion expenditure on tax credits in 2013-14 went to low-income working families with children and only 5 per cent to households without children.
“If, as we expect, the UK Government targets tax credits for cuts in tomorrow’s budget, it will hit Scotland’s poorest children and families hard. It is a frightening indication of the potential impact of the expected cuts in tomorrow’s UK budget.”
The First Minister went on to describe the austerity approach as ‘economically counter-productive’:
“We want to support people to get into work and to stay in work and the tax credit system provides important practical help to families on low pay.
“These are people who are in jobs and often working very hard for relatively little pay. It is unfair that their children are the people made to pay for the mistakes of the austerity approach – not to mention economically counter-productive.
“When people are in work, they spend their wages in the local economy, leading to a virtuous circle. Cutting child tax credits back to 2003 levels, as we expect the UK Government to do tomorrow, will risk threatening Scotland’s economic recovery.
“The deficit needs to be reduced but this should be done in a more gradual manner with more resources allocated to a programme of additional investment in our economy, rather than risking a financial body-blow to hard-working parents and their children.”
Your Credit Union needs YOU!
North Edinburgh Credit Union AGM TONIGHT!
North Edinburgh Credit Union’s annual general meeting will be held
on Thursday 12 March at 6.30pm
at NECU Office, 63 Wardieburn Drive
The Credit Union has been around since June 1986 and is getting a bit ‘tired’ – especially the current volunteers! If you want your Credit Union to continue we need volunteers who are younger and have fresh ideas to take the Credit Union forward.
We have at last updated our Rule Book and extended our Common Bond to taek in Live and/or Work in the designated map area, which has also been extended to Silverknowes, Craigleith, part of Comely Bank, Fettes, Ferry Road to Newhaven Road and down to Newhaven harbour.
The current committee has been talking to a new group called Water of Leith Credit Union (Community Bank) who have lots of new ideas (including technology) which would help take this Credit Union forward. Some of their committee will attend our AGM to give a short presentation and answer questions.
Why not join us to hear their views?
North Edinburgh Credit Union
Council agrees £22 million Budget ‘savings’
‘It’s a broken council which is failing it’s people and this budget must be rejected’ – Linda Garcia, WIG group
Councillors have set Edinburgh’s budget after a marathon meeting at the City Chambers yesterday. A raft of deputations from across the city urged the council to reject a budget package of cuts and service reorganisation aimed at saving £22 million this year, but councillors voted to approved the budget.
Leading the deputations was Royston Wardieburn Community Centre’s Women’s International Group (WIG). Royston Wardieburn was the city’s very first purpose-built community centre – it first opened in 1965. Two years ago – after years of hard work by the management committee – a brand new centre was opened, but members fear that all that good work could be undone by proposals to change the way community centres are operated.
WIG’s Anna Hutchison told councillors: “We are very concerned about these proposals. We have achieved a great deal in our Centre in recent years, but there is still a great deal of work to be done and we cannot build on our achievements when everything keep changing.
“Cutting CLD (community learning and development) staff and removing them from centres seems very short-sighted given that the Scottish Government is now requiring all councils to produce a CLD plan stating how they intend to build stronger, more influential and inclusive communities and improve life chances through learning and active citizenship.”
She warned that voluntary management committee members would ‘walk away’ if proposals to change the role of CLD staff in the running of community centres is implemented.
WIG’s Linda Garcia added: “We do not accept the proposed budget. We do not accept the way Edinburgh’s finances are being run. We do not accept that inequality, poverty and powerlessness are inevitable in our communities.
“We have been ‘trained’ to believe that no alternative (to cuts) is possible and that achieving a decent and fair society is just too damn complicated, so best not to try! We do not accept that this is the case. We want a council which puts citizens at it’s heart”.
“We believe that this budget is unacceptable to the citizens of Edinburgh. Unfortunately, despite a string of scandals, the Council seems unable to change. It is a broken Council which is failing it’s people and this budget must be rejected”.
“We demand that you join the campaign to secure additional funding from the Scottish and Westminster governments to safeguard our public services.
“We demand that you support Unite’s campaign to restructure the £1.2 billion debt owed by the Public Works Loan Board – paying £56 million in interest charges each year is completely unacceptable.
“We demand that the Scottish Parliament orders a Public Inquiry to examine the mismanagement of this Council, the numerous scandals and cover-ups by successive administrations.
She concluded: “We demand that you return power to the people.”
The group, joined by supporters in the public gallery, then serenaded councillors with a song! Based on the original Italian partisan song Bella Ciao, WIG’s words are:
The public sector is for the people
Oh bella ciao; bella ciao; bella ciao, ciao, ciao
The public sector is for the people
Not for sale to profiteers.
Oh we are singing for education
Oh bella ciao; bella ciao; bella ciao, ciao, ciao
We are singing for education
And an equal right to learn.
The rich get richer, the poor get poorer
Oh bella ciao; bella ciao; bella ciao, ciao, ciao
The rich get richer, the poor get poorer,
Unnecessary and unfair.
They cut the funding, they cut the workers
Oh bella ciao; bella ciao; bella ciao, ciao, ciao
They cut the funding, they cut the workers
Ain’t no ‘Big Society’.
Following that musical interlude, WIG were followed by a succession of deputations from across the city, each one urging the city to think again. EVOC, Edinburgh East Save Our Services, Edinburgh Tenants Federation, Edinburgh Trade Union Council, UNITE Edinburgh Not for Profit Branch, Edinburgh Anti-Cuts Alliance, Friends of the Meadows and Bruntsfield Links, UNISON and the EIS: each one advanced powerful arguments – but ultimately each one was unsuccessful as councillors voted to press ahead with the cuts.
Protecting frontline services in Edinburgh for young, old and vulnerable residents was a priority at the budget meeting, according to senior councillors. Investment in roads and pavements, investing in school infrastructure and working towards the redevelopment of Meadowbank Sports Centre and Stadium were other key priority areas.
Councillors say public opinion expressed during the recent budget consultation helped to influence key decisions as they attempted to balance the city’s books.
Cllr Alasdair Rankin, Convener of the Finance and Resources Committee, said: “Given the financial challenges all local authorities are facing over the next few years, we want to invest in the areas that are essential to Edinburgh and so it is important that the public continue to tell us what is important to them.
“This year we published the draft budget in October and 3,525 people gave us their views – five times the number of responses compared to last year. We also used a new online planner to give respondents the opportunity to express what they feel the Council’s priorities should be. The planner allowed us to show where we will incur costs in 2017/18, to demonstrate the impacts of increasing or decreasing spending in all of our services. This was extremely popular and 1,719 of those people took Edinburgh’s Budget Challenge.
Cllr Bill Cook, Vice-Convener of the Finance and Resources Committee, said: “We used the feedback received during the consultation process to help us make many key decisions such as maintaining funding for homelessness services, not increasing allotment charges and putting an extra £5m towards improving roads and pavements.”
The eight successive year’s Council Tax freeze maintains Edinburgh’s band D rate as the lowest of Scotland’s four major cities.
The council tax band levels for Edinburgh in 2015/16 will be:
A: £779.33
B: £909.22
C: £1,039.11
D: £1,169.00
E: £1,428.78
F: £1,688.56
G: £1,948.33
H: £2,338.00
The total revenue budget is £949m for 2015/16. Council Tax funds 25% of this with 75% coming from Government grants and business rates. The total capital budget (including the HRA) is £245m.
Key budget provisions:
Ensuring every child in Edinburgh has the best start in life
– Allocated an additional £5m of capital to support rising school rolls
– More than £4m invested in Early Years Change Fund for services for the very youngest children
Ensuring Edinburgh, and its residents, are well cared-for
– Maintaining funding for commissioned homelessness services
Providing for Edinburgh’s economic growth and prosperity
– Maintaining £1m to continue supporting the Edinburgh Guarantee, helping improve job opportunities for young people
– Support the Strategic Investment Fund with an additional £4.5m
Strengthening and supporting our communities and keeping them safe
– Continuing to invest in community policing
– Allocating an additional £100,000 to each neighbourhood to allow local people to have an even greater say in how their area can be improved
Investing in roads, pavements and cycling infrastructure
– An additional £5m investment in roads and pavements taking the total to £20m
– Commit 8% of the transport revenue and capital budgets for creation and maintenance of cycle infrastructure
Becoming more efficient
– Delivery of procurement transformational efficiencies
– Implementing the Better Outcomes Leaner Delivery (BOLD) programme
– Reducing the head count of the organisation by developing existing staff, revising roles and responsibilities and implementing structural change in the organisation through the ’Organise to deliver’ programme
– Maximising income
– Maximising savings through the rationalisation of the Council’s property estate
– Reducing carbon footprint and generating income through strategic energy projects
While the council argues that front line services are being protected, campaigners believe city councillors have let the capital down.
One Unite member who attended the lobby said: “This is a sad day for Edinburgh. You might have thought that a Labour-led council, supported by the SNP, would stand up for workers and communities – well, today’s vote shows you can think again. You can’t cut 1200 jobs without it having a huge effect on services and the people who will suffer most are the people in the poorest communities, the people who depend most on council services. People are angry – and rightly so, because these cuts will do real damage. Edinburgh is a rich city, yet our politicians vote through cuts on this scale? It’s shocking – they should be ashamed.”
A member of the Anti-Cuts Coalition added: “Deputation after deputation urged the council to reject this budget but it’s clear the councillors had already made their minds up. They blame Westminster, they blame Holyrood but at the end of the day our councillors have got to take a long, hard look at themselves.
“They have got to make a stand – if local councillors won’t support and fight for their communities, who will?
“Communities are being treated with contempt and remember – these cuts are just the start. We are facing another two years of austerity budgets, with more services slashed and hundreds of jobs lost – and when members of the public wake up to that it will be too late.”
Visit our Facebook page to see a webcast of the Budget meeting
http://l.facebook.com/l/PAQGWhuX2/www.edinburgh.public-i.tv/core/share/open/webcast/0/0/0/0//webcast/0/0/0
You’ll find pictures of the lobby there too
Budget cuts could be avoided, say Edinburgh Greens
‘residents are well aware of the cuts that come from the council tax freeze and general reduction in council funding’ – Cllr Gavin Corbett
Budget cuts of £28.5 million could be avoided if Edinburgh had similar powers to councils elsewhere in the UK and Europe, according to the capital’s six-strong group of Green councillors. The city council sets it’s budget tomorrow and councillors look likely to approve swathing cuts to public services.
The Greens have published an alternative budget paper which shows how £25.7 million of extra income could be raised by giving the council modest extra powers such as a visitor levy and greater flexibility with council tax.
This, say the Greens, would mean extra priority for care for older people, funding for charities and community learning as well as new investment in school conditions and sports facilities.
Green Finance Spokesperson Cllr Gavin Corbett said: “Less than a year ago the Commission for Local Democracy showed that, across Europe, councils with comparable responsibilities to Edinburgh typically control 50-60% of their income, through local taxes and charges.
“In Edinburgh, those powers have been reduced to almost nothing, with dire consequences for local services. Indeed, the council’s biggest-ever budget consultation exercise showed that residents are well aware of the cuts that come from the council tax freeze and general reduction in council funding.
“So what I propose today is modest and affordable – less than 4% of overall spending – asking for the right to put to Edinburgh residents a choice to raising a bit more income in order to strengthen budgets for swimming pools, care services, community centres, homelessness charities and schools.
“I’m confident that, given that choice, investment in services would come ahead of an austerity-driven race to the bottom.”
The City of Edinburgh Council budget is set on 12 February 2015. A package of £28.5 million of cuts or savings has been proposed from a £962 million budget. Of the£28.5 million package, £5.2 million non-frontline cuts have already been approved last October.
Services under threat include:
– £4.3 million cut to charities and other third-party service providers
– Over £5 million cut to health and social care at a time of increasing demand
– £1.4 million cut to Edinburgh Leisure which runs swimming pools and sports facilities.
– £0.6 million cut to community learning and development
Other likely cuts include the closure of public toilets, reduction in library hours, nursery and childcare funding.