The Bank of England yesterday opted to cut interest rates down to 4 per cent in a positive mood for homeowners, borrowers and businesses - but with the threat of inflation still lingering higher than would be liked and expected to rise further, Rachel Reeves remains in a tricky position.
With the chancellor needing to find anywhere between £30bn and £50bn in savings or taxes by autumn, it is no surprise to hear of plans to change the way savings are taxed, with banks set to tell HMRC directly when savers have passed their allowed thresholds on interest payments so that they can pay tax accordingly - straight from workers’ pay packets.
