BRITAIN: ‘ GEORGE OSBORNE’S AUTUMN STATEMENT KEY POINTS ‘

#AceFinanceNews – BRITAIN – Dec.03 – Well the Chancellor has updated us on the state of the economy since his last statement: Here it is in key points courtesy of BBC UK reporting live. Read More and Share: Editor.    

' Key points of 2014 Autumn Statement: At-a-glanceScreenshot from 2014-12-03 14:57:24

‘ Key points of 2014 Autumn Statement: At-a-glanceScreenshot from 2014-12-03 14:57:24

State of the economy: 

UK fastest growing economy in the G7

3% growth forecast in 2014, up from 2.7% predicted in March

2.4% growth forecast in 2015, followed by 2.2%, 2.4%, 2.3% and 2.3% in the following four years

500,000 new jobs created this year. 85% of new jobs full-time

Unemployment set to fall to 5.4% in 2015

Inflation predicted to be 1.5% in 2014, falling to 1.2% in 2015

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For sale signs

Stamp duty: 

Reform of residential property stamp duty so that rates apply only to that part of the property price that falls within each band

0% paid for the first £125,000 then 2% on the portion up to £250,000

5% up to £925,000, then 10% up to £1.5m; 12% on anything above that, saving £4,500 on average priced home

Changes to come into effect at midnight on Thursday, 4 December

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Pound coins and paper money

Public borrowing/deficit:

Deficit ‘cut in half’ since 2010

Borrowing set to fall from £97.5bn in 2013-14 to £91.3bn in 2014-15.

Deficit projected to fall to £75.9bn in 2015, £40.9bn in 2016, £14.5bn in 2017 before reaching a £4bn surplus in 2018

By 2019-20 Britain will have a surplus of £23bn

Debt as a share of GDP to rise from 80.4% this year to 81.1% next year before falling in every year. reaching 72.8% in 2019-20

Tax receipts up to 2017-18 forecast to be £23bn lower than predicted

World War One debt to be repaid

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Traffic seen in wing mirror

Energy and fuel:

Fuel duty to be frozen

Sovereign wealth fund for north of England to keep benefits of shale gas exploration

Immediate reduction in oil industry supplementary charge from 32% to 30%

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Union Jack piggy banks

Savings and pensions:

ISAs to be transferrable to partners tax free

ISA threshold increases from £15,000 to £15,240 next April

Tax free annuities for dependents of people who die under 75

Commitment to complete public service pension reforms, saving £1.3bn a year

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Gatwick

Personal and business taxation:

Air Passenger Duty to be scrapped for under-12s from 1 May next year and for under-16s the following year

Personal tax allowance to increase to £10,600 next April

World War One debt to be repaid

Inheritance tax to be cut for families of aid workers who die in course of duty

55% death tax passed on to loved ones abolished

Libor fines to support Gurkhas and their families

Higher rate income tax threshold to rise to £42,385 next year

VAT paid by hospices and search and rescue organisations to be refunded

Introduce 25% tax on profits generated by multi-nationals that are shifted out of the UK, set to raise £1bn over five years

Bank profits which can be offset by losses for tax purposes to be limited to 50%

New £90,000 charge for non-doms resident in the UK for 17 of the past 20 years

Inflation-linked increase in business rates capped at 2%

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Man pushing buggy

Welfare:

Welfare spending to be £1bn lower than forecast in March

Two year freeze in working-age benefits (first announced in October)

Migrants to lose unemployment benefits if they have “no prospect” of work after six weeks

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Graduation

Health and education:

£2bn extra every year until 2020 for the NHS

GP services to get £1.2bn in extra funds from bank foreign exchange manipulation fines

Employment Allowance extended to carers

£10,000 loans for postgraduate students studying for masters degrees

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Factory

Business and science:

Business rates to be reviewed

Theatre tax break extended to orchestras

Research and development tax credit increased for small and medium-sized (SMEs) firms

Support extended to small businesses with £500m of bank lending plus £400m government-backed venture capital funds which invest in SMEs

New tax credit for children’s TV producers

£45m package of support for exporters

Expand tax relief on business investment in flood defences

Old pacer carriages on Northern Rail and the Trans-Pennine Express replaced with new and modern trains

National Insurance on young apprentices abolished

Britain awarded the lead role in the international effort to exploreMars

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Flags

Scotland, Wales and Northern Ireland:

Agreement reached on full devolution of business rates to WelshGovernment

Income tax to be devolved in full to Scottish Parliament

Corporation tax devolved to Northern Ireland if the Stormont executive can manage the “financial implications

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Housebuilding

Housing/infrastructure/transport:

£1.5bn for 84 roads projects in England

£2bn for flood defence schemes in England

Tendering for Northern Rail and Trans-Pennine Express franchises to replace pacer carriages with modern trains. 

Source: 

#ANS2014 

#borrowing, #economy, #fuel-duty, #health, #pensions, #public-debt, #savings, #stamp-duty, #taxation, #welfare

BRITAIN: ‘ WONGA’s Lack of Affordability Checks Writes-Off £220 Million in Customers Debts ‘

#AceFinanceNews – BRITAIN – October 03 – Payday lender  Wonga says it is writing off £220m of debts for 330,000 customers after putting in place new affordability checks.

The company,  which has faced criticism for its high interest rates and debt collection tactics, made the changes after discussions with regulators.

Customers in arrears whose loans would not have been made under the new checks will have their debts written-off.

A further 45,000 customers in arrears will not have to pay  interest on loans.

Affected Wonga customers will be notified by 10 October.

Wonga’s chairman Andy Haste, who joined the company in July, said a review of lending practices had shown the need for change at Wonga was “real and urgent”, and new stricter lending criteria would mean “accepting far fewer applications from new and existing customers”.

' Too High interest Rate to LTV causes Customer Debts to be written off for Wonga '

‘ Too High interest Rate to LTV causes Customer Debts to be written off for Wonga ‘

Back in 2013 a visit to Wonga.com, the website of the fast-growing online payday lender, is a seductive experience. “We know you just searched for payday loans – you might be glad you found us! We are different …” With Wonga, the borrower is saved the indignity of queuing at a high street store such as Money Shop or Cash Converters, or the intrusion of a doorstep lender calling at their home. “Wonga is super fast, convenient and flexible too – unlike most payday loans. You can apply online in minutes and usually get a decision promptly – no faxing, no meetings and no hanging on the phone listening to cheesy lift music … once approved we will send your money within 15 minutes.”

In some respects, however, Wonga is all too similar to other lenders targeting high-interest loans at financially stretched borrowers. In 2011 it was forced to write off almost £77m of bad loans – despite claims to be a responsible and “truly selective” lender.

Founder and chief executive Errol Damelin portrays the typical Wonga customer as a creditworthy borrower seeking speed and convenience – perhaps like Kweku Adoboli, the rogue trader who almost destroyed UBS, who, it has emerged, turned to Wonga.com to cover spread-betting lossesrather than someone at the limits of conventional sources of short-term credit such as bank overdrafts and credit cards.

On the Wonga website, Damelin tells prospective borrowers: “Part of responsible lending for us is being truly selective and making sure … we are using all the data we can possibly get to help us make the best decision as to whether you can afford the credit and whether it’s really good for you at the moment.

#AFN2014

#bad-debts, #borrowing, #britain, #debts, #lending, #write-off