Doom III

[_V_]

http://www.guardian.co.uk/money/2008...-credit-crunch

British consumers are borrowing their way out of the credit crunch while on the continent they are switching to saving, according to a report yesterday by accountants PricewaterhouseCoopers.

Total borrowing reached £1.5tn in the year to September, driven mainly by a 6% growth in unsecured lending on credit cards and loans. PWC said: "Levels of unsecured borrowing in credit-hungry Britain far outstrip those of any established European market." Unsecured borrowing in Britain amounts to 17% of national income. It averages 7% to 13% across the rest of the continent.

http://www.guardian.co.uk/business/2...ufacturing-pmi

A sharp slump in new orders has pushed Britain's struggling manufacturing industry to its lowest point in at least 16 years.

The latest purchasing managers index, published this morning, sent shares falling in London, weakened the pound and fuelled speculation of a hefty cut in interest rates.

The PMI manufacturing data for November showed that activity in the sector shrank to its lowest point since the survey began in 1992. The headline figure plunged to 34.4, down from 40.7 in October, making November the third month in a row to see a record decline. This is also the biggest monthly drop on record since the Chartered Institute of Purchasing and Supply began the series in 1992. Any figure below 50 indicates a contraction.

[Doggy Styles]

British consumers are borrowing their way out of the credit crunch while on the continent they are switching to saving, according to a report yesterday by accountants PricewaterhouseCoopers.

We used to be a nation of savers.

I remember the days when friends would be interested in PEPs (now ISAs), best savings account rates, pensions, paying off mortgages, and even share prices.

But for the last 10 years there's been none of that. It's been all about new cars, remortgaging the house, exotic holidays, expensive gadgets, and house extentions. I now realise that a lot of those people must be up to their necks in debt.

The whole culture changed in a few years.

[AtW]

The whole culture changed in a few years.

Was there a tax on interest earned on your savings before Labour Govt?

IMO this tax is a big put off, practically theft especially considers that high tax rate payers would have to pay extra tax on top.

[Purple Dalek]

We used to be a nation of savers.

I remember the days when friends would be interested in PEPs (now ISAs), best savings account rates, pensions, paying off mortgages, and even share prices.

But for the last 10 years there's been none of that. It's been all about new cars, remortgaging the house, exotic holidays, expensive gadgets, and house extentions. I now realise that a lot of those people must be up to their necks in debt.

The whole culture changed in a few years.

Basically everyone realised that if they saved anything then the snotgobbler would steal it anyway and they'd actually be worse off come the bust.

[expat]

Was there a tax on interest earned on your savings before Labour Govt?

IMO this tax is a big put off, practically theft especially considers that high tax rate payers would have to pay extra tax on top.

Yes, there always has been.

[Doggy Styles]

Was there a tax on interest earned on your savings before Labour Govt?

IMO this tax is a big put off, practically theft especially considers that high tax rate payers would have to pay extra tax on top.

On ordinary savings accounts, yes, interest was taxed as it is today.

But not in PEPs, where capital gains used to be tax free. They were also tax free in ISA funds when they first replaced PEPs but, like pensions, not any more.

[AtW]

But not in PEPs, where capital gains used to be tax free. They were also tax free in ISA funds when they first replaced PEPs but, like pensions, not any more.

Was there a limit on PEPs like there is on ISAs? I never put any money into latter as I did not like the idea of my savings being tied up in this scam scheme of Labour (cash ISAs were okay but the max allowed amount was laughable).

[Doggy Styles]

Was there a limit on PEPs like there is on ISAs? I never put any money into latter as I did not like the idea of my savings being tied up in this scam scheme of Labour (cash ISAs were okay but the max allowed amount was laughable).

Yes, there was a limit on PEPs. I can't remember what it was when they were abolished, but probably about £5K a year. I think ISAs are £7K.

If you'd used your full limit every year since PEPs/ISAs came out (1990?), with the compound growth you'd have a very decent fund by now.

[expat]

On ordinary savings accounts, yes, interest was taxed as it is today.

But not in PEPs, where capital gains used to be tax free. They were also tax free in ISA funds when they first replaced PEPs but, like pensions, not any more.

AIUI capital gains are still tax-free in an ISA (and never were in a pension), what has changed is that the notional dividend tax credit can no longer be reclaimed in an ISA or a pension.

[Doggy Styles]

AIUI capital gains are still tax-free in an ISA (and never were in a pension), what has changed is that the notional dividend tax credit can no longer be reclaimed in an ISA or a pension.

Thanks for clarifying that. I didn't mean to imply that the pension situation was the same, only that its reliefs were also raided.