CUT TAXES TO BOOST LABOUR MARKET, REED CHAIRMAN URGES.
The chairman one of the UK’s biggest recruitment agencies has said high taxes are deterring people from returning to the labour market after the exodus of workers during the pandemic. James Reed, the chairman of Reed, said at an event in London: “For a lot of these sort of people in their 50s, who are thinking about whether to go back to work or not, if the marginal rate of taxation on a lot of jobs is high, it is going to put them off.” Mr Reed called on the Chancellor to cut National Insurance as a way of boosting the labour market: “That might encourage people back to work, or make it more attractive. I think anything that can make work pay more, like using taxation, and other policy levers, is a good thing because it will encourage more people to come back.” Mr Reed went on to warn that the tightness in the labour market is starting to recede, increasing the likelihood of a recession. Reed data shows job vacancies dropped by 25% in April and 22% in May. “That alarm bell is sounding a bit more loudly than it was,” Mr Reed said.
The Daily Telegraph
IHT IS PUSHING FAMILIES INTO HIGH-RISK INVESTMENTS.
Some families are feeling pressured to move assets into risky investments to avoid paying inheritance tax, the Telegraph reports. Aim IHT Isa portfolios – which are managed by investment managers – are made up of certain shares which qualify for Business Property Relief. This means that after being held for two years, the value of any qualifying shares will be excluded from IHT. However, the Aim market is often volatile – returns can be meagre and the risks are high. Former pensions minister, Steve Webb, said: “It would be a risky strategy to give a high allocation to this kind of investment, especially if you would be in a difficult position financially in the event of a market downturn, for example. Any adviser – or salesperson – who promotes investment in Aim shares for tax purposes should be very clear about the associated risks.”
A poll by Martin Lewis reveals that 72% of people are against the divisive death duty on principle. The Money Saving Expert founder’s Twitter survey of over 113,000 people found that 44% of those aged 40 and over were against inheritance tax, compared to 16% in favour of it. Among those under 40, 28% of those polled said they did not support the levy and 12% were against it. The Telegraph is also campaigning for an end to the tax. In a follow-up poll, Lewis asked Twitter users how often they believed inheritance tax was paid. Out of over 43,500 respondents, the majority (63%) said they believed at least 10% of deaths resulted in an inheritance tax bill. The figures come as over 50 MPs have lent their support to scrap inheritance tax.
The Daily Telegraph
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