News round up… March
W/C 28th March
Cable announces end to 50p tax rate
Vince Cable has confirmed the end of the 50p tax rate and unveiled plans for a ‘mansions tax’. The business secretary’s decision to reveal the plans comes a day after half a million people took to the streets to demonstrate against the government’s proposed cuts. Cable re-iterated George Osborne’s comment that the 50p tax rate would ‘do lasting damage to our economy if it were to become permanent.’ Cable told BBC One’s Politics Show, ‘I and George Osborne agree that we have to move away from extremely high marginal rates of tax on income’.
Charity Commission issues warning over donations
The Charity Commission has issued a warning to a charity that donated half a million pounds to the Taxpayers’ Alliance campaign group. The Politics and Economics Research Trust gave the TPA, which campaigns for lower tax and public spending, £505,000 which accounts for 93% of all its grants. The report issued the Charity Commission warned, ‘Trustees should also be aware of the objectives and purpose of the non-charitable organisation and whether association with the organisation could impact negatively on the charity's independence or perceptions of its independence.’
W/C 21st March
Council tax to fall in 2011
Average council tax bills will fall across England over the next year, according to a survey by the Chartered Institute of Public Finance and Accountancy (CIPFA). Local authorities have been able to put a freeze on council tax after receiving a £650m ‘incentive fund’ from the government. The survey found that 60% of councils had ‘fully or largely developed’ plans to deal with budget cuts, which include reductions in ‘back office’ as well as frontline services. Steve Freer, Chief Executive of CIPFA said, ‘The government and councils have a shared interest in avoiding a public relations disaster of local people paying more for reduced services.'
Plans for 1p fuel duty is scrapped
Small businesses and families are among those to benefit from the government’s decision to scrap the scheduled 1p fuel duty rise. The Treasury has decided not to go ahead with the increase amid ongoing troubles in the Middle East. Prime Minister David Cameron said, ‘I know how difficult it is for motorists, and particularly for small businesses and families, when they are filling up at the pumps and paying more than £1.30 a litre.’ The average price per litre has reached 130.03p for unleaded and 135.44p for diesel, with tax now accounting for 63% of the pump price.
W/C 14th March
Work longer for lower pensions
Lord Hutton’s independent review into public services pensions would see millions of workers in the public sector work longer for lower pensions. In his review, Lord Hutton said the changes amounted to ‘comprehensive reform’. He continued, ‘These proposals aim to strike a balanced deal between public service workers and the taxpayer.’ Unions have condemned the plans, with Dave Prentis, general secretary of the Unison union, said, ‘This will be just one more attack on innocent public sector workers who are being expected to pay the price of the deficit, while the bankers who caused it continue to enjoy bumper pay and bonuses.
Huge crackdown on internet VAT dodge
George Osborne will announce plans to crackdown on the increasing amount of online retailers dodging VAT. The large scale VAT avoidance involves some of the biggest names in British retailing, and last year was estimated to have cost the exchequer £130m in lost tax revenues. A loophole in the online sales of goods including CDs, DVDs, memory cards, vitamin pills and contact lenses has been widely blamed for pushing small, independent companies out of business. Last week HMV became the latest retailer to announce job losses and store closures amid escalating debt.
W/C 7th March
Celebrating woman in law on International Women’s Day
Tuesday 8th March marks the centenary of International Women's Day. To celebrate, the Guardian has compiled a list of the top 100 women, which includes six prominent figures in the legal field. These are US Supreme Court judge Sonia Sotomayor; ground-breaking lawyer, Gareth Peirce; the only female justice of the UK Supreme Court, Brenda Hale; human rights advocate, Jayshree Satpute; and human rights lawyers Helena Kennedy and Louise Arbour. For more women on the list, visit International Women’s Day Top 100 Women.