The Tory Pledges – in Translation:
We sensed a Tory win might be in the offering (honest). But, like most, we too were surprised by just how strong a win it was. Within moments of a Conservative majority being announced, personal finance started to improve. It was a reassuring sign that the political chaos Britain has been embroiled in since the Referendum result, may now be nearing an end. Assuming this is the case, we’re going to take a look at what the Tory pledges might mean for you.
First things first
Boris Johnson’s manifesto included Tory pledges not to increase the rate of national insurance, VAT, or income tax. So, if they are true to their word, there should be few (if any!) surprises on these taxes cutting into your money. It will come as good news, especially to higher-rate taxpayers, who will be relieved that the 40% they already pay is not going to soar under new party leadership.
What to expect…
On the back of the uncertainty surrounding Brexit, businesses have largely held off investing. As it now looks certain the UK will leave the EU come 31st January, we are hoping that they may regain their confidence in UK plc. If they do, we may see an improvement in wage growth and job security as 2020 progresses.
The Tory pledges included promises to help small and medium-sized businesses manage rising labour costs and living wage increases. So, this could be financially rewarding for much of the UK’s workforce.
Yes – predictably we were always going to talk about pensions!
The Conservatives were quite clear they would keep the triple-lock system for pensions. So, it’s good news for those who have already retired. They will continue to see the value of their pension rise by whichever the highest figure out of the rate of inflation, average earnings growth, or 2.5%.
It’s not quite so good news for those of us not yet retired because the pension age is set to continue to rise, with the current plan to set state pension age at 67 by 2028. Then secondly, to 68 by 2039.
As with all election pledges, the proof will be in the pudding. Coming (hopefully!) out of a political climate that has been dominated by Brexit, the hope is that the Conservatives will deliver on some long-awaited promises, and fast!