As people in the UK recover from the excesses of the Christmas and New Year celebrations, they are faced with the painful reality of a 2.5 percent increase in VAT. January 4th saw VAT rise to its highest level as the government looks to address the massive budget deficit.
This is just one of the austerity measures initially announced by the Chancellor of the Exchequer, George Osborne last year. It is hoped that the increase to 20 percent will raise more than £13billion per year by the end of parliament in …

There is good and bad news for the U.S economy according to the chairman of the Federal Reserve. Ben Bernanke offered the good news that there is evidence of self-sustaining recovery. The bad news is it could take up to five years for the jobs market to normalise.
The views of Bernanke were delivered to the Senate Budget Committee as the country’s jobless figures showed the largest one month fall since April 1998. There were 103,000 jobs created in December, which was lower than the forecast of 145,000 to 175,000.
Bernanke told …

Just when we thought the controversy over bankers’ bonuses was over, it seems that pay outs could run to billions in 2011. Given the calls from government and the public at large for UK banks to scale back the huge bonuses, it seems they are determined to pay large sums of money in order to retain their best staff.
As the banking sector sat on the verge of collapse in 2008, members of the public were outraged at the huge bonuses being paid to some bank workers. The feeling being banks …

Concerns are growing in the UK about the growing number of bankruptcies amongst all age groups, but in particular pensioners. After a torrid time experienced by the British economy over the last couple of years it has emerged that bankruptcies have risen over the last 10 years.
Whilst the problem has been more prevalent among 35 to 44 year olds, charities are more concerned about the plight of pensioners. In fact pensioners are the fastest growing group of bankrupts according to the UK Insolvency Service. The problem is that the elderly …

The standard rate of VAT has risen from 17.5% to 20% in the UK as the government looks to cut the deficit from the recession.
Business groups have warned that retailers will be hit hardest by the rise, while opponents of the rise have said the poorest will be the hardest hit.
The coalition government says the increase is essential to assist in bringing down the UK’s high budget deficit.
Chancellor George Osborne said the shift was more “progressive” than a hike in income tax or National Insurance.
Items which have no VAT are …

Nationwide building society has announced that a survey they have completed show that UK house prices have ended 2010 a little higher than they started.
The survey shows that house prices have increased 0.4% over the year leaving the average cost of a UK home at £163,000.
The Nationwide House Prices Index can be found here.
What about 2011?
Although 2010 house prices have ended slightly higher it is not good news for the near future, Nationwide’s chief economist Martin Gahbauer says “… house prices have fallen in four out of the last six …

Republicans in the United States House of Representatives recently blocked that would have provided two hundred fifty dollar checks to recipients of social security. These senior citizens now face a second consecutive year with no increase for cost of living. The President and Democratic representatives called for the one time payment because, according to them, many senior citizens are having a tough time making ends meet because of the missing annual increases.
Republicans, on the other hand, insisted that the fourteen billion dollars that these payments would cost the nation are …

A temporary extension of Bush tax cuts for all tax payers is in the works, which would include a retroactive extension of unemployment benefits for America’s jobless. Details are being hashed out, including those pertaining to the White House’s insistence on middle class and low income tax credits. Still the possibility is that a deal will be made within days, despite some democratic objections to continuing  tax cuts for the nation’s highest earners.
If Congress fails to act by the end of the year, 2011 tax rates will increase for all …

Both US and European markets are mostly trading sideways lately as the debt crisis in Europe looms over them. Recently, the sixteen ministers of finance from the euro zone’s member nations got together to talk about ways they could stabilize their currency union while avoiding more unpopular bailouts. Once  potential new device they haggled over has been referred to as a “European Stability Mechanism.” Such a mechanism would include new rules that would force losses upon private investors in some cases of bailout.
Market confidence is down dramatically in recent weeks, …

Most Americans love to travel, whether it’s by plane, train or automobile.  About 42.2 million of americans were out and about this past Thanksgiving.
Here are some money savings tips and tricks that are offered for your next travel adventure, there not just for americans too, you can use these from wherever you live.

Book early.  Theme parks and cruises have distinct advantages when you book early.  Your family will be able to sit together at dinner and then go off to do their own thing on a cruise.  Group rates are …