Budget of hot air?

Will Wednesday's 2012 Budget be full of anything but hot air?.

I doubt anyone is enjoying the rumours and all the LibDem kite flying that is preceding next week’s event. Did Vince convince Nick to press Dave to introduce his mansion tax in return for dropping the 50p top rate of income tax? Did Nick dream up his tycoon tax all by himself. Is George listening to the siren voices that want to see the end of higher rate relief on pension contributions? Is there a way to resolve the problems surrounding the withdrawal of child benefit from higher rate taxpayers?

My prediction is that Mr Osborne will produce some eye catching headlines, but that there will really be very little in the Budget. Those of us dreaming about all income being taxed at the same rate, and about the phased abolition of all reliefs - just think, no more ISAs, no more pensions – can dream on. The current policy which has all party support is to screw the prudent to spare the profligate. Expect no change.

Confusion heaped upon confusion

We have had regulators for nearly 25 years. All of them have said that consumers are confused.

A premium bond is a bet with The Treasury. An investment bond is a single premium life policy, which may be written offshore or onshore. A distribution bond is an investment bond where your money is in a particular type of fund. A Bank or Building Society bond is – usually – a deposit account with a fixed term. An income bond is the same as a deposit account, except that it does not have a fixed term and is offered by National Savings. A plain bond is an iou issued by a sovereign country. It is also an iou issued by a corporate entity. A greek bond is a turkey. The tax treatments of these vehicles are as different as the vehicles themselves.

I could go on. My word is my bond, and my word is that the regulator could help by forcing everyone to sort out this messy nomenclature.

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