Interest rates stay down, no help for savers in the budget
Anybody with a tracker mortgage will no doubt be happy that the Bank of England has kept interest rates at their all time low of .5% today, but there’s no light at the end of the tunnel for anybody hoping to get a good return on their savings. The media is reporting that Alistair Darling has thrown cold water over Gordon Brown’s plans to help savers in the next budget.
There’s little hard detail on what exactly Brown was proposing, but it all seemed like fairly wishy-washy stuff such as increasing the amount of money you can hold in a Individual Savings Account (ISA) – which would largely be pointless because putting an extra £1,000 into an ISA that’s earning a paltry amount of interest will make absolutely no difference to most people’s savings. We much prefer the Tory’s proposal of abolishing the basic rate of income tax on savings altogether – that would at least send a message that the government wants to encourage people to save, if nothing else.
But the Telegraph reports that Darling believes encouraging people to save at this stage will deter them from spending money, which he thinks will slow down an economic recovery. So, just as we’ve been saying all along, the government really doesn’t want people to put their money in savings and investments, they want us all to keep borrowing and spending, because that’s the only plan they ever had for the economy; to turn us into a nation of debt slaves. The very idea that people might want to live within their means and put aside money to build a secure financial future for themselves, instead of spending their lives owing money to the banks, seems to horrify the government.