The Bank Of England has decided to keep the interest rate at 0.5% for the fifteenth month in a row.

The  200 billion pounds of quantitative easing scheme remains unchanged as analysts predicted.

The freeze was expected to remain until the extent and scale of the government’s spending cuts programme is announced in the June 22 budget.

According to well-placed sources, an order to suspend HIPs (Home Information Packs) has been signed, with Parliament making an announcement later this week.
Many people think that HIPs have been a complete failure and have not helped spead up transactions like the basic remit wassupposed to do. It will be interesting to see if this will have a positive impact on the housing market.
The HIP industry is anxiously awaiting developments, and could mount a legal challenge to the suspension.

We will continue to monitor the progress and keep you informed.

The Bank of England’s Monetary Policy Committee voted on  Monday to maintain the official Bank Rate paid on commercial bank reserves at 0.5%.  Although they usually meet on the first Thurday of the month, this was changed to the 10th May due to the General Election. 

The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion.

The Committee’s latest inflation and output projections will appear in the Inflation Report to be published at 10.30am on Wednesday 12 May 2010.

The minutes of the meeting will be published at 9.30am on Wednesday 19 May.

During 2009 Aviva (formally Norwich Union) paid out 1,499 critical illness (CI) claims, totalling almost £118 million.

The average amount paid out has increased from £75,000 in 2008 to £79,000 in 2009.

Cancer remained by far the most common cause, 67% of all claims in 2009.

The number of claims declined in 2009 for non-disclosure of medical facts at the policy’s outset remained stable at 2%.

A further £151 million has been paid to the families of people who have died, or been diagnosed with a terminal illness in 2009.

This takes the total Aviva has paid out to over £1 billion pounds in critical illness and life insurance claims since 2006.

Richard Verdin, director of protection at Aviva, said: “Critical illness cover remains a crucially important solution for many. With 9 in 10 claims being paid. Collectively we owe it to customers to ensure people do realise the potential need and value of life insurance before it’s too late.”

 He stated “47% of Britons don’t have critical illness or life protection and even more worryingly 75% of single parents have no protection, which has huge implications for their families”.

 To ensure that you and your family are fully protected in the event of suffering a critical illness contact 1 STOP Financial Services for a free review. 01437 767110    www.1sfs.co.uk

1 Stop Financial Services will be attending the Harlequin Hotels & Resorts pre-opening launch of Buccament Bay Resort, at Wembly Stadium on 24^th & 25^th April 2010.

 Buccament Bay Resort, on St. Vincent & The Grenadines in the Caribbean, will open in July this year. 

 Harlequin Hotels & Resorts offer superb investment opportunities in a hotel style investment based in the Caribbean. The complex’s offer a luxurious 5 star facility which includes golf and spa investments.

 Private investors have the opportunity to invest in a commercial resort ranging from studio apartments to 6 bedroom luxury villas, off-plan at well below market value. Rewarding investors with high capital appreciation and excellent short and long term returns on investment. In addition this investment can be purchased using monies in your pensions via a SIPP.

 Andy Rees & Tim Hughes will be available at the pre-launch to speak to clients on how they can use their pension funds to invest in a Harlequin Property, via a Self Invested Personal Pension (SIPP).

 This investment opportunity offers investors:

• Full ownership of the freehold
• 10% rental guarantee for the first 2 years – followed by 50% net room rate share
• No Capital Gains Tax or Inheritance Tax
• 30 days FREE use per year (not available if property is bought through a SIPP)
• £1,000 reservation fee, followed by a 30% deposit within 56 days and nothing else to pay until completion
• The resorts in the Caribbean are managed by Oasis Hotels
• Endorsed sports academy by Liverpool FC, Pat Cash and Gary Player

To find out more about investing in a hotel resort contact 1 STOP Financial Services for a FREE consultation. www.1sfs.co.uk (01437) 767110.

According to Moneyfacts.co.uk, the Bank of England has admitted that they are concerned about the rise in inflation, which is currently at 3.4%, well above the government’s 2% target.

Recent figures revealed that inflation increased from 3.0% in February to 3.4% in March.

Minutes from the Monetary Policy Committee’s (MPC) monthly meeting revealed that inflation is likely to stay above the long term target of 2% for some time yet.

The MPC said “Given that a period of above-target inflation was in prospect at a time when monetary policy was exceptionally accommodative, this was a source of concern for some members.”

Recent research conducted by Moneyfacts.co.uk found. rising inflation is hitting savers in the pocket.

A basic rate taxpayer now needs to find a savings account paying at least 4.25% in interest to prevent their savings pot being eroded, of which there are currently just 44 available on the market.

For a higher rate taxpayer, the challenge is to locate a savings account rate of 5.64%, a return only currently available through four accounts. It comes at a time when interest rates are at an historic low, further penalising savers.

Minutes from the MPC’s meeting also revealed that the decision to freeze the base rate of interest at 0.5% – a level that level the measure has been marooned at since March 2009 – was taken unanimously.

 To review your savings and investment plans contact 1 STOP Financial Services for a FREE consultation. www.1sfs.co.uk (01437) 767110.

The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%.  

 The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion.

The base rate has not changed for over 12 months with the last change on 5 March 2009 with a reduction of 0.5 percentage points from 1.0% to 0.5%.  

A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009.  The most recent change in the size of that programme was an increase of £25 billion to a total of £200 billion on 5 November 2009.

With the timing of the General Election the next Monetary Policy Committee meeting will conclude on the morning of Monday 10 May, with the decision announced at 12 noon.  The Inflation Report will be published as originally scheduled on Wednesday 12 May.

Information on the Asset Purchase Facility can be found on the Bank of England website at http://www.bankofengland.co.uk/monetarypolicy/assetpurchases.htm.

The Bank will continue to purchase high-quality private sector assets on behalf of the Treasury and financed by the issue of Treasury bills, in line with the arrangements announced on 29 January 2009.

As you will be aware the Chancellor, Alistair Darling, has published his 2010 Budget. Below you will find a summary of the main announcements.

Change to Personal Allowance

No changes to basic and higher rates, however from April 2010 there will be an additional rate band of tax. In April 2009 Budget the Government announced that it would be introducing a new 50% rate of tax on income above £150,000 from April 2010.

In April 2009 Budget the Government announced that with effect from 6th April 2010 individuals receiving an income of more than £100,000 per year would face a cut in their Personal Allowance. This would reduce by £1 for every £2 of income above £100,000.

This was restated in the March 2010 Budget.

Inheritance Tax

The nil rate band of Inheritance Tax will be frozen at £325,000 until 2014/2015.

Stamp Duty Allowance

For first time buyers Stamp Duty Allowance will double from £125,000 to £250,000 (from midnight on 24th March).

This is anticipated to be funded by a new 5% band of tax being introduced in the 2011/12 tax year on properties sold for £1,000,000 +.

Capital Gains Tax

The current CGT rate remains unchanged. However, Entrepreneurs’ Relief for CGT will be extended from £1m to the first £2m of qualifying gains made over a lifetime. This takes effect from April 2010.

Annual ISA limit

As announced earlier, for savers, from April 2010 the annual ISA limit will rise from £7,200 to £10,200. Future ISA limits will be indexed by RPI.

Winter Fuel Payments

The Government will guarantee payments for another year – this will be at least £250 for pensioners (£400 for those over-80′s).

Business Rates

Business rates will be cut for one year from October for SMEs (Small and Medium Enterprises).

Tax credit

Individuals over the age of 60 will now be eligible for Working Tax Credit provided they work for at least 16 hours a week.

National Insurance

In the March 2010 Budget it was restated that employee, employer and self-employed rates of National Insurance contributions (NICs) will increase by 0.5% from April 2011 in addition to the 0.5% increase announced in 2008. However the level at which people start to pay NICs will increase in April 2011 by £570 above the level previously announced.

Personal pensions tax relief

In their April 2009 Budget, the Government announced that with effect from 6th April 2011, tax relief on pension contributions would be restricted for those with gross income in excess of £150,000. These are referred to as the ‘permanent changes’.

The Act also included ‘anti-forestalling restrictions’ to prevent higher earners from paying unusually large pension contribution to take advantage of current tax benefits prior to the permanent changes coming into play in 2011.

Alongside the March 2010 Budget, the Government has outlined its plans for introducing these changes.

In 2009 Legal & General paid 93.6% of their critical illness claims. Only 6.4% of claims were declined – one of the lowest ratios in the industry.

The average payment for a critical illness claim was £70,731. The average age of claimant was 44. The most common conditions claimed for were Cancer, Terminal illness, Heart Attack, Stroke and MS.

 Out of the declined claims, 1.8% were for non-disclosure and 4.6% were for not meeting the policy definition. In total, £152 million was paid out to 2,149 individuals and families, making their lives easier at an extremely difficult time.

Managing Director of Protection at Legal & General, Bernie Hickman, said:

“We’re in the business of paying claims and that should be the main purpose of any insurance provider. We should be there when people need us most, so to have to decline 148 claims during the course of last year is disappointing.

“We have worked tirelessly to combat non-disclosure and we have succeeded in reducing these declined claims year-on-year. However, in an ideal world, no policyholder would ever have a claim declined. If you suffer from an illness or condition that is covered on your policy and you have answered all the questions fully at the time of applying, then we will pay out. This is the way it should be for everyone.

“Protection offers added peace of mind and is good for individuals, for their families and for the State. Fully protected people are less likely to suffer financial hardship, less likely to rely on sick pay and benefits and less likely to require help and handouts from friends and family. Paying out on critical illness claims is absolutely essential to our financial well-being as a society.”

Bernie Hickman chairs the ABI committee that, in 2008, brought about the introduction of the ABI Protection claims code. The new rules resulted in a vast improvement for customers across the industry and an improvement in claims ratios from all providers. This has been a vital step in restoring consumer trust in the industry.

1 Stop Financial Services can help you evaluate the importance of protecting your lifestyle and family with Critical illness protection plans. We can establish the level of cover required and provide you with competitve quotes as to the cost of this essential cover.

Tim, Andy and their wife’s had a very enjoyable evening attending the Radio Pembrokeshire Local Hero Awards on Thursday 25^th February. 1 STOP Financial Services sponsored the Volunteer of the Year and were delighted to spend the evening with the winner Jenni Blair.

 It was very humbling to be at the presentations where local people of all ages were presented with the following awards:

Contribution to the Community Award with Chevron, Pembroke Refinery

• Youth Group of the Year with McDonalds
• Outstanding Bravery Award with The Tenby Observer
• Young Achiever of the Year with Milford Haven Port Authority
• Good Neighbour Award with The Giltar Hotel, Tenby
• Volunteer of the Year with 1 Stop Financial Services, Haverfordwest
• Young Carer of the Year with West Wales Properties
• Adult Carer of the Year with Harris Brothers Tyres
• Contribution to Charity Award with Murco
• Adult Achiever of the Year with South Hook LNG
• Dad of the Year with Folly Farm
• Mum of the Year with Folly Farm

The evening was hosted by Ben & Gareth from Radio Pembrokehire who both done a fantastic job of keeping the evening flowing.

1 STOP Financial Services are very pleased to be associated with the awards and support the local hero’s in our community, for the hard work and dedication they provide.