Pre-Budget Report: Will it add to your financial problems?

10/12/2009

Cutting public debt appeared to be top of Alistair Darling's agenda in the latest Pre-Budget Report, but many of you make be asking: 'How will it affect my own financial or debt problems'>debt problems?'

Well, a raft of measures were introduced, and many of them could be painful for those who are struggling to keep their finances in check.

First off, the good news – Mr Darling promised further investment in the Warm Front Scheme, which provides energy efficiency measures for those struggling against unmanageable bills.

On top of that, pensioners are also given to be given a higher rate of return according to the Chancellor's statement – albeit by just £2.40 a week.

However, there was plenty of bad news. It was announced that VAT will be going back up to 17.5 per cent, and this will be joined by an increase in National Insurance for those earning over £20,000.

This comes at a time when figures from Unbiased.co.uk say that 60 per cent of people feel that their tax burden is unfair or very unfair.

So all in all, not as much help as might have been hoped.

If you're still concerned about the effect that the new measures will have on your outgoings, then make sure you check out our expert budgeting advice or call us to talk about a possible debt management solution.

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