CBI Predicts End of Recession

The Confederation of British Industries (CBI) predicts that the UK will exit recession in the fourth quarter of 2009, partly due to consumer spending ahead of the VAT rise in January.

As a result, the UK’s leading business organisation predicts annual gross domestic product (GDP) growth of 2.5% in 2011, following 1.2% in 2010.

John Cridland, CBI Deputy Director-General, said:

“However, the economy will be on a fragile path of very slow growth, as we continue to feel the lasting effects of the financial crisis.

“Unemployment is expected to continue rising over the coming quarters, but peaking slightly lower than previously forecast, at just over 2.8m in 2010 Q3.

“Although the first few months of 2010 will be difficult, growth will gradually pick up and increasing confidence and demand will lead the UK into a more positive 2011.”

Growth Forecasts for the Economy in 2010:

  • 2010 will see a modest annual growth rate of 0.4%, rising to 2.3% in 2011.
  • Growth in the range of 0.5% to 0.7% is expected to be maintained through to the end of 2011.
  • Average earnings are expected to rise faster over 2011, at 3.9%.

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Lottery Scam Sees People Lose Life Savings

The Office of Fair Trading are warning the public to be on their guard against a new Jamaican-based lottery scam which has already seen some UK residents lose thousands of pounds.

Fraudulent telemarketers based in Jamaica are making unsolicited phone calls to consumers telling them they have won a sum of up to £2.5 million on a lottery sweepstake.

Conned by Phone

The victims received phone calls from operators claiming to be lawyers, bank officials or lottery organisers.

In order to ‘release’ their winnings, victims were told they must send money to pay for taxes, processing fees, insurance or customs duties, many sending their entire life savings.

Violent Threats

Victims of the scam also received repeated calls for further money, and in some cases have suffered threats of violence, arrest and removal to Jamaica if they do not pay up.

For information about how to avoid or deal with scammers, the Consumer Direct website have some useful tips.

If you are worried about your finances contact Payplan today, for free and helpful debt advice.

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Pre-Budget Report 2009 at a Glance

Latest Changes to Taxes, Benefits and Public Sector Spending for the New Year

The Chancellor’s pre-Budget report reveals that the UK Government predicts an end to recession by the close of 2009 and a growing economy in the New Year.

The Chancellor’s recent Pre-Budget speech in The House of Commons this week highlights the following:

Tax Charges

  • National Insurance up by a further 0.5% from April 2011
  • 1% cap on public sector pay in 2011-12 and 2012-13.
  • VAT will return to 17.5% from 1 January 2010
  • A 50% payroll tax on discretionary bankers’ bonuses above £25,000

Help for the Unemployed

  • Tackling unemployment will remain a top priority for the Government in the New Year.
  • All 18 to 24 year olds on Jobseeker’s Allowance for six months would be offered a job, training or work placement for at least six months.
  • From April 2011, all workers aged 65 and over will qualify for Working Tax Credit if their job is at least 16 hours a week.

Benefit Increases

  • The basic State Pension and Pension Credit for single pensioners is set to increase by 2.5%
  • Child and disability benefit to rise by 1.5% in 2010

The Public Sector

  • Estimated £12 billion of savings a year across the public sector by 2013-14
  • A further £5 billion of savings by 2012-13 to streamline public services and stop lower priority spending.

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New Energy Smart Meters Could Cut Cost of Energy Bills

Smart Readers to Reduce Costs and Carbon Emissions

All homes in Britain will have smart meters installed by 2020 according to a Government statement released earlier this week.

The Information released by the Energy Retail Association explained that suppliers will install two-way communication systems that display accurate real-time information on energy use to the consumer and back to the energy supplier.

The introduction of Smart Meters will see the end of estimated bills and home call meter readers, allowing for a more accurate reading.

The Department of Energy and Climate Change (DECC) said this would mean:

  • Customers would be empowered as they make choices on how much energy they use
  • Smart energy use will save consumers money, make electricity use more efficient and cut carbon emissions
  • The instillation of the meters will make it easier to change between suppliers

An estimated  £6 million is being invested into the smart technology and will be set for installation by 2020.

If you are struggling to afford your energy bills, contact Payplan today for free debt advice and support.

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