Why Your Mortgage Might Stay High Despite the Government’s New Savings
You might have hoped that lower government debt would lead to immediate tax cuts or lower interest rates on your credit cards. Instead, rising tensions in the Middle East are threatening to keep your monthly bills high just as the UK's financial situation was finally starting to look stable. While the government is celebrating a smaller deficit, the cost of living for your household remains stuck in a holding pattern due to events happening thousands of miles away. What's Going On The UK government just finished its financial year with a smaller hole in its pocket than most experts predicted. They borrowed about £120.7 billion, which is actually the lowest amount they have needed to borrow in three years. This happened because the government collected more money from citizens through taxes like VAT and income tax. Even though tax rates did not technically go up, as people earned more money to keep up with rising prices, they naturally fell into higher tax brackets. This gave...