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Secured Loans > Election 2015: Conservative and Labour clash over top taxation rate
Chancellor George Osborne has said that the Conservative Party has no plans to lower the top taxation rate should they win the next election. The Labour Party accused him, however, of refusing to rule such a move out.
Labour called on the government to promise that it will not cut the highest rate of taxation, which is currently 45 per cent for those who earn more than £150,000 per year. The Coalition government reduced the top rate from 50 per cent to 45 per cent in 2013.
Ed Balls, the shadow chancellor for the Labour party, criticised Osborne’s refusal to say categorically that he will not cut the top rate.
George Osborne was speaking to Sky News when he said that it is not ‘our plan’ to introduce a five per cent cut to the highest taxation rate. When asked if he was prepared to rule out such a cut explicitly, he replied that the Conservative Party planned to increase the tax free personal allowance to £12,500, so that people who work full-time for the minimum wage will not have to pay tax. He also said that his party intends to increase the amount people must earn before they pay the higher tax rate of 40 per cent, to £50,000. It is currently at £42,400.
David Cameron said that a cut to the top rate is not part of their policy or plan. The Labour Party has made a commitment to re-introduce the 50 per cent top taxation rate, should it win the next election, for people earning more than £150,000. It has also pledged to cut and then freeze taxation rates for small businesses.
Both the Liberal Democrats and Labour have promised to introduce a mansion tax on homes with a value of more than £2 million.
Representative 22.93% APRC variable.
For a typical loan of £26,600 over 180 months with a variable interest rate of 19.56% per annum, your monthly repayments would be £484.00. This includes a Product Fee of £2,660.00 (10% of the loan amount) and a Lending Fee* of £763.00, bringing the total repayable amount to £87,030.00. Annual Interest Rates range between 11.7% to 46.5% (variable). Maximum 50.00% APRC. *Lending Fee varies by country: England & Wales £763, Scotland £1,051, Northern Ireland: £1,736.
Think carefully before securing debts against your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
