Showing posts with label fuel duty. Show all posts
Showing posts with label fuel duty. Show all posts

Tuesday, 12 April 2011

How does inflation hurt us?

Inflation has fallen to 4%, but it's still high and eating up our ability to afford what we need.

This is what drivers at a petrol station in Wednesbury in the West Midlands had to say about it:

"You ain't got the money to spend on anything else because you got to keep mobile to keep your job."

"It's costing me twice as much just to get to work, but you don't have increases in your wages or anything, so it's really hitting me in the pocket."

"I haven't really got that much spare cash to do anything else. Holidays go out the window and it's really difficult."

And here's a thought from a pensioner, surviving on a fixed income, who's been hit by the rising cost of fuel, heating and food:

"Even though I have a good police pension, and my wife has a small pension, it's being eaten into by the rising costs. So we're having to go to savings and of course you don't get any interest on the savings. So that's not building, it's being eaten away."

No wonder the British Retail Consortium has just reported the biggest monthly fall in sales since it started collecting the stats.

Shoppers are reluctant to borrow. They're paying back debts if they can.

So unless they dip further into savings, High Streets could be in for a difficult summer.

Monday, 7 March 2011

Brace! Brace! Tax impact coming

Whatever happens in the Budget in a fortnight's time, plenty of tax and benefit changes are already set to be implemented in April. Tick them off as they arrive...

National Insurance. Employees pay 12%, an extra 1%.

Threshold for 40% tax. Reduced from £43,875 to £42,475, dragging 750,000 onto the higher rate.

Duty on alcohol. Up by inflation plus 2%. Possible 5p on a pint.

Tax credits. Faster reduction as earnings rise.

Benefits and tax credits increased by CPI not the higher RPI.

Baby element of Child Tax Credit, worth £545, is removed.

£500 Sure Start maternity grant restricted to one child.

5% stamp duty on £1m homes.

Inheritance tax threshold frozen at £325,000.

Child benefit rates frozen.

Fuel duty, the one to watch in the Budget.
Rise of inflation +1% is pencilled in. But expect some or all of it to be postponed.