Interest Rates

enthusiasticsaver

You must be the first MSEer who says they aren't making enough cuts.[/QUOTE]

Allow me to be the third who agrees that we are not on top of our deficit and still spending too much and on the wrong things.

The government's monetary policy has destroyed savings and is keeping interest rates due to the high level of personal indebtedness. My father taught me live within your means and save so you are reliant on no one, not even the state. That has not worked out well when you cannot even find savings rates which match inflation.

Bad management by banks and governments have destroyed our economy and it is going take a little more than "salami slicing" to fix it.

Blackdog

I also agree that cuts are required. NHS and education also need to be included, they are huge budgets and more needs to be done to make sure they are being run as effectively and efficiently as possible. This may mean less managers and administrators allowing capacity for more front line workers so doesn't mean it has to be bad news.
Anyway back to interest rates, my view is they won't go up for a year or two and then by only a small amount. Expect low rates for the next 5 years, great for mortgage payers but not so good for savers.

Linton

Perhaps those in favour of more cuts could suggest some options. It's too easy to choose cuts that only affect other people, so only those cuts that directly disadvantage the proposer please - the greater the impact the better.

Masomnia

Linton wrote: »

Perhaps those in favour of more cuts could suggest some options. It's too easy to choose cuts that only affect other people, so only those cuts that directly disadvantage the proposer please - the greater the impact the better.

Interesting, because the people that are against cuts never seem to suggest tax rises that will affect them!

Ark_Welder

Linton wrote: »

Perhaps those in favour of more cuts could suggest some options.

Masomnia wrote: »

Interesting, because the people that are against cuts never seem to suggest tax rises that will affect them!

Remove the tax relief on ISAs...:silenced:

redbuzzard

Linton wrote: »

Perhaps those in favour of more cuts could suggest some options. It's too easy to choose cuts that only affect other people, so only those cuts that directly disadvantage the proposer please - the greater the impact the better.

Probably need to look at the NHS. Healthcare is tacitly rationed anyway because its a bottomless pit. Put a cap on treatment cost.

Stop HS2.

The rules prevent me suggesting much as I don't claim housing or other benefits and I'm not a civil servant.

I did have a brilliant but not entirely thought through idea recently. Just share out a big chunk of the debt. Every adult cops say £20000. If they can pay it off they have that option. If not they are charged interest at the rate of inflation. Benefit claimants have interest suspended but have 10% deducted and knocked off their capital.

Taxes are the other side of it. We probably need a property tax.

coastline

Ark_Welder wrote: »

Remove the tax relief on ISAs...:silenced:

another shocker....tax relief on pensions...£20bn a year....it could be said why do people need help when they've already got money...

http://www.telegraph.co.uk/finance/personalfinance/pensions/9658795/Top-earners-are-pocketing-pensions-tax-relief-worth-25000-a-year.html

gadgetmind

coastline wrote: »

tax relief on pensions...£20bn a year....it could be said why do people need help when they've already got money...

Help? People are just wanting to save for their old age without being taxed twice. You pay tax on the way out with a pension so surely it makes sense to let people save what they want (when they want) without paying tax?

In reality, pensions tax relief probably has a net benefit to HMG rather than being a net cost.

talexuser

Linton wrote: »

Perhaps those in favour of more cuts could suggest some options.

6.75 % grab on savings less than 85K, 9.9% above !! :eek:

novice-saver

talexuser wrote: »

6.75 % grab on savings less than 85K, 9.9% above !! :eek:

Is that in addition to the slow motion robbery provided by interest rates way below inflation, and devaluation of the UKP (down about 25% against the euro)?

I'd swap your figures for the losses on the value of savings since 2008/9 and be a lot better off.