Will hard workers deliver wealth in Hertfordshire and the wider UK?
In our last article, our Hertfordshire financial planners showed how five years of the Conservatives in office across Hertfordshire will deliver a decisive local government budget, stronger local economy, 15,000 new jobs, better commuter transport services and greater financial security.
Here, we extend this to the rest of Great Britain, examining – broadly – how the Tories might shape the UK’s personal wealth landscape over the next political term.
Redistributing national wealth
While it’s clear that London is the primary economic force in the UK, the Chancellor is clear in his ambition to redistribute wealth across the nation through various infrastructure schemes like HS2, the Northern powerhouse, and better commuter links to and from London.
This means that aspirational people across the country will have a strong opportunity to build a strong future for themselves and their families. Whether first-time buyer, business owner or pensioner, a Tory government will see your living standards go up if you work hard.
Increasing your take home pay
For those on low and middle incomes, tax thresholds are about to be raised. Low earners will see the yearly tax-free personal allowance rise from £10,600 to £12,500. Meanwhile, higher earners will see an increase of the 40% threshold from £42,386 to £50,000.
Buying your own home
Purchasing a home has been a challenge over recent years, as a result of dwindling housing stock and inflated property prices. However, the Tories have promised to extend their ‘Help to Buy’ scheme through a ‘Help to Buy ISA’ that top up £50 for every £200 saved towards a house deposit.
Lifting people out of inheritance tax
For those looking to pass on their home to their children, the government will increase the inheritance tax threshold to £1m, and offering a new £175,000 allowance to help people leave their homes to their loved ones tax free.
It is vital to the Conservatives’ plan that hard working people are rewarded, and those who have had a strict personal finance routine in place should be rewarded by allowing them to pass on their homes to their loved ones free of tax.
Increasing the state pension
In a pledge to make Britain the best country in which to grow old, David Cameron has announced a rise in the basic state pension, to £7,000 by 2020. This is a commitment the Tories made in their ‘Pensioners’ Manifesto’ and sits on top of their existing pension arrangements.
The Conservatives have just made some of the most radical changes to the UK’s pensions in a century with the new pension freedoms, and this increase in the state pension demonstrates they are on the side of those who work hard.
Freezing the rail fairs
One of the challenges to those that commute to London for work is the cost of travel. With some commuters paying over £6,000 for a season ticket, rail fairs are a real issue for those looking to save.
The Conservatives have promised to freeze rail fares for 5 years, potentially saving commuters around £400 by 2020, putting money back into the bank accounts of those working hard and driving the economy forward.
To see how you can maximise your own financial potential, contact one of our Hertfordshire financial planners and we will advise you professionally on how to make your money work best for you and your family.