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Thursday, December 11, 2003
BBC NEWS | Business | Manufacturing recovery hopes rise: "Manufacturing recovery hopes rise
Is a recover on the horizon for beleaguered manufacturers?
The UK's hard-pressed manufacturing sector has improved once again, underlining hopes of a recovery.
Business leaders said conditions were slowly getting better for the sector, with order books at their highest levels since June last year.
The CBI's total order books balance rose from minus 24 last month to minus 19 in December.
There was also optimism about the future with output expected to grow for the first time in almost a year.
The balance of plus 5 percent compared with minus 2 last month is the best level since October 2002.
Exports improve
The figures underlined hopes that a manufacturing recovery is slowly taking hold.
They echoed last week's figures from the Office of National Statistics which showed factory output grew at the fastest pace since the summer of 2002.
CBI head of economic analysis Doug Godden said: 'Manufacturers are still facing a really tough uphill battle with over a third saying order books remain below normal. But the survey suggests conditions are slowly getting better.'
Meanwhile, exports orders neared three-year highs, with a reading of minus 21 the highest since January 2001.
However, it was not all good news. The CBI survey also found that stiff levels of competition will continue to depress prices over the next three months.
But, the pace of the falls is expected to be the slowest rate since January 2001. "
Is a recover on the horizon for beleaguered manufacturers?
The UK's hard-pressed manufacturing sector has improved once again, underlining hopes of a recovery.
Business leaders said conditions were slowly getting better for the sector, with order books at their highest levels since June last year.
The CBI's total order books balance rose from minus 24 last month to minus 19 in December.
There was also optimism about the future with output expected to grow for the first time in almost a year.
The balance of plus 5 percent compared with minus 2 last month is the best level since October 2002.
Exports improve
The figures underlined hopes that a manufacturing recovery is slowly taking hold.
They echoed last week's figures from the Office of National Statistics which showed factory output grew at the fastest pace since the summer of 2002.
CBI head of economic analysis Doug Godden said: 'Manufacturers are still facing a really tough uphill battle with over a third saying order books remain below normal. But the survey suggests conditions are slowly getting better.'
Meanwhile, exports orders neared three-year highs, with a reading of minus 21 the highest since January 2001.
However, it was not all good news. The CBI survey also found that stiff levels of competition will continue to depress prices over the next three months.
But, the pace of the falls is expected to be the slowest rate since January 2001. "
BBC NEWS | Business | Q&A: The pre-Budget report and you: "Q&A: The pre-Budget report and you
Good and bad news for taxpayers
The chancellor was characteristically upbeat about the state of the British economy, and may not be losing sleep over it, but will you? BBC News Online unpicks his pre-Budget statement - and tells you what it will mean for childcare, pension and tax credits.
I'm on tax credits. Will I get any additional help?
Probably yes.
The chancellor is pumping an extra �1bn into tax credits, his pet project.
Families with children who receive the Child Tax Credit could benefit.
The amount someone may get could rise by as much as �3.50 a week or �180 a year.
However, not all will benefit as some elements of both the Working Tax Credit and Child Tax Credit are being frozen at this year's rates.
What about my pension?
It is bad news for those pensioners who want their basic state pensions restored to the earnings link.
The chancellor has once again ruled out restoring the link, which ensures the state pension keeps up with the rate at which salaries are rising.
He says it would be too expensive, and it would increase deficits by 3% a year, which would undermine stability.
But there could be some better news for executives who are worried about a tax cap on their pension savings.
The chancellor said he was deferring a decision on creating a �1.4m cap on pension savings.
He has asked the National Audit Office to review the consequences of the proposals.
Under the original concept any savings above this cap would be taxed at 60%.
However, an Inland Revenue paper published to coincide with the pre-Budget report suggests this charge should be reduced to 55%.
He also plans to simplify the tax rules on pension investing, offer more fle"
Good and bad news for taxpayers
The chancellor was characteristically upbeat about the state of the British economy, and may not be losing sleep over it, but will you? BBC News Online unpicks his pre-Budget statement - and tells you what it will mean for childcare, pension and tax credits.
I'm on tax credits. Will I get any additional help?
Probably yes.
The chancellor is pumping an extra �1bn into tax credits, his pet project.
Families with children who receive the Child Tax Credit could benefit.
The amount someone may get could rise by as much as �3.50 a week or �180 a year.
However, not all will benefit as some elements of both the Working Tax Credit and Child Tax Credit are being frozen at this year's rates.
What about my pension?
It is bad news for those pensioners who want their basic state pensions restored to the earnings link.
The chancellor has once again ruled out restoring the link, which ensures the state pension keeps up with the rate at which salaries are rising.
He says it would be too expensive, and it would increase deficits by 3% a year, which would undermine stability.
But there could be some better news for executives who are worried about a tax cap on their pension savings.
The chancellor said he was deferring a decision on creating a �1.4m cap on pension savings.
He has asked the National Audit Office to review the consequences of the proposals.
Under the original concept any savings above this cap would be taxed at 60%.
However, an Inland Revenue paper published to coincide with the pre-Budget report suggests this charge should be reduced to 55%.
He also plans to simplify the tax rules on pension investing, offer more fle"
FT.com / Your money: "Brown 'plays for time' over lifetime pension funds
By Kevin Brown, Personal Finance Editor
Published: December 10 2003 14:37 | Last Updated: December 10 2003 14:37
Gordon Brown on Wednesday ordered a review by the National Audit Office of the number of people who would be affected by controversial proposals for a �1.4m cap on lifetime pension funds.
Mr Brown told the Commons in his pre-Budget report speech that the NAO would be asked to report before the Budget in March on the Treasury�s estimate that only about 5,000 people would be affected when the limit was introduced.
The Conservatives have claimed that many more people would find their pensions limited by the ceiling, which would reduce the amount available to buy an annuity in retirement.
Independent experts have said that as many as 600,000 people could be affected in the medium term.
Mr Brown said the NAO review need not affect the planned introduction of the new rules - part of a wide-ranging simplification of the eight existing pensions taxation regimes - on the scheduled date of April 2005.
�The chancellor is playing for time and ensuring that the number of people who will be affected are absolutely firm before the system is introduced,' said Jonathan Rice, a partner at Deloitte�s private client practice.
�He may end up increasing the �1.4m limit a bit, but I don�t think it means he is backing down on the principle.'
Mr Brown�s other main announcement was an injection of �1bn a year into child tax credits, which will increase payments made to parents of 7m children by �3.50 a week. Maximum help for a first child will rise to �58 a week, and parents of two children will receive �100 a week.
Child tax credit"
By Kevin Brown, Personal Finance Editor
Published: December 10 2003 14:37 | Last Updated: December 10 2003 14:37
Gordon Brown on Wednesday ordered a review by the National Audit Office of the number of people who would be affected by controversial proposals for a �1.4m cap on lifetime pension funds.
Mr Brown told the Commons in his pre-Budget report speech that the NAO would be asked to report before the Budget in March on the Treasury�s estimate that only about 5,000 people would be affected when the limit was introduced.
The Conservatives have claimed that many more people would find their pensions limited by the ceiling, which would reduce the amount available to buy an annuity in retirement.
Independent experts have said that as many as 600,000 people could be affected in the medium term.
Mr Brown said the NAO review need not affect the planned introduction of the new rules - part of a wide-ranging simplification of the eight existing pensions taxation regimes - on the scheduled date of April 2005.
�The chancellor is playing for time and ensuring that the number of people who will be affected are absolutely firm before the system is introduced,' said Jonathan Rice, a partner at Deloitte�s private client practice.
�He may end up increasing the �1.4m limit a bit, but I don�t think it means he is backing down on the principle.'
Mr Brown�s other main announcement was an injection of �1bn a year into child tax credits, which will increase payments made to parents of 7m children by �3.50 a week. Maximum help for a first child will rise to �58 a week, and parents of two children will receive �100 a week.
Child tax credit"
