VAT will decrease to 15% from 1 December but people planning to hit the shops this weekend could still be able to find a bargain or two thanks to a price war between the major retailers.
The chancellor Alistair Darling says the government is doing everything it can to increase the supply of mortgages following last month’s recapitalisation of the major banks.
The chancellor has quietly announced that the pension lifetime allowance will be frozen at £1.8 million for five years from 2010/11 – a measure that could penalise individuals by up to £275,000.
Alistair Darling has promised an extra £100 million to help people insulate their homes, as part of a range of new measures designed to help people struggling to meet the cost of rising energy bills.
Despite repeated calls for action to help the housing market, Alistair Darling did little more than announce the launch of a new lending panel in his pre-Budget report.
Pensioners are set to receive a financial boost as early as January 2009 after chancellor Alistair Darling pledged to pump up benefits and the state pension.
The UK’s highest earners are perhaps the biggest losers from the pre-Budget report, with those on £150,000 or more set to see income tax increase to 45%.
