Latest news with #rates
Daily Mail
a day ago
- Business
- Daily Mail
GRAHAM GRANT: With ideas so barmy even Lord Sugar would sack her, next year Scots voters will have their own chance to tell Kate Forbes and the SNP...'YOU'RE FIRED!'
Kate Forbes showed off her renowned business acumen last week when she said businesses could avoid hefty rates by setting up in cupboards. It's a barmy idea which would see her kicked off The Apprentice – irascible Lord Sugar wouldn't put up with her weapons-grade nonsense. For bar and restaurant owners desperate for respite from a punitive rates regime, Ms Forbes's less than sage counsel was particularly galling. Operating from the confines of a cupboard is a non-starter for them, but then they've long been little more than an afterthought for the SNP. Some of them had fallen for the Deputy First Minister's act as someone who understood the needs of entrepreneurs and business owners. She was seen as the acceptable face of insular, Left-wing nationalism, as she seemed to realise that thriving firms lead to a stronger economy. After the SNP joined forces with the anti-capitalist Greens in a pact which ended in disaster, Ms Forbes was viewed as a breath of fresh air, at least by those who thought growth was a good idea. The scales fell from the eyes of those who had been hoping in vain that she would re-build bridges with Covid-battered businesses, many of them still clinging to survival, after her cupboard advice. For those who missed it, Ms Forbes was taking part in a Holyrood debate when she was asked whether the rates burden prevented companies from expanding. Ms Forbes, who is also Economy Secretary, if you can believe it, said the 'rates system often does not take into account the fact that some of the most profitable businesses are the smaller ones'. She said: 'A start-up can be launched from a cupboard, where there are no rates, while a large and perhaps less profitable business has to pay them.' Ms Forbes did concede that the rates system is 'based on an older version of the economy, in which the size of properties was linked to profitability, and that is just not the case in our new, tech-driven environment'. She might have vowed to reform the system, of course, but then it's easier just to tell people to move into cupboards, even if it does raise questions about her relationship with reality, and whether she has one. An incredulous Murdo Fraser, the Tory economy spokesman, said Ms Forbes 'might as well have claimed Narnia is at the back of the cupboard', while Glasgow-based businessman Donald MacLeod accused her of 'mind-boggling stupidity'. That's an understatement, given that Scotland is the only part of Britain not cutting business rates for shops this year. The SNP government Budget unveiled in December means retailers in Scotland are receiving less support than those in other parts of Britain. Shops will pay £9.1million more than those south of the Border, while offices will pay an additional £6.4million and hotels face an extra £2.5million bill. In its 2021 manifesto, the SNP promised to ensure that 'the largest businesses pay the same combined poundage in Scotland as in England'. Many firms are also struggling with the UK Government's hike in National Insurance employers' contributions, which began in April. For some, Ms Forbes's bizarre statement triggered flashbacks to the dark days of the Covid era when Nicola Sturgeon said the bottom of classroom doors could be sawn off to boost ventilation. Back in 2019, Ms Sturgeon had claimed Scotland remained 'imprisoned' in the UK and Boris Johnson was effectively locking the country 'in a cupboard' by refusing another referendum on breaking up Britain. Cupboards loom large in Nationalist ideology, but Ms Forbes is just as much of a true believer in independence as John Swinney and his colleagues, and everything she says about the economy must be seen through that prism. We shouldn't forget that she once described former SNP Commons group leader Ian Blackford as a pensions 'expert' after he pumped out a stream of blatant disinformation about the UK Government's supposed liability for bankrolling Scottish pensions in the event of independence. What does that say about Ms Forbes's judgment, or lack of it? She was happy enough to stand by as these distortions and untruths circulated on social media – so why should we trust anything she says now? As we reported last week, Ms Forbes also questioned why we seem to be fixated with income tax rates in Scotland. Following a keynote speech at economic think-tank Adam Smith House, she said: 'In Scotland there seems to be an obsession with income tax as though it's the only tax businesses and individuals have to grapple with.' That supposed 'obsession' shouldn't be hard to figure out, given that her party has ramped up income tax to the highest level in the UK, helping to drive away hard-working professionals. Scots economist Smith himself wrote that 'every tax ought to be so contrived as both to take out and to keep out of the pockets of the people as little as possible over and above what it brings into the public treasury of the state' – anathema to the SNP. Smith also warned that high taxes 'frequently afford smaller revenue to government than what might be drawn from more moderate taxes'. The SNP's tax-grabs are all in the name of what shamed former Finance Secretary Derek Mackay once confusingly called 'progressivity' - but the only thing the economy is progressing towards is an abyss of the SNP's own creation. Mr Mackay is remembered mainly for quitting hours before the Scottish Budget in 2020 after it emerged he had bombarded a teenage boy with inappropriate online messages. But he also admitted he'd never heard of the Laffer Curve, which dictates that revenues can go up if taxes are cut. Luckily, Tory MSP Mr Fraser was on hand to explain the concept. There's little evidence that anyone in the Cabinet has a better grasp of the basics than Mr Mackay, including Ms Forbes. Yet there's no shortage of guidance from the phalanx of spin doctors on the SNP government payroll. The average £100,000 bill for each of its 17 special advisers was slipped out under cover of the Hamilton by-election last Thursday – amounting to nearly £2million in the last financial year. Which one of them helped to craft Ms Forbes's bilge about cupboards, assuming any of them did, is unknown, but they did provide some entertainment – even if it was a blend of black comedy and high farce. The bleak punchline is that we are being led by a combination of the clueless and the incompetent. But at the Scottish election next May we'll have the chance to tell Ms Forbes and her cohorts what Lord Sugar would doubtless say, with some gusto: 'You're fired!'
RNZ News
5 days ago
- Business
- RNZ News
Wellington mayoral hopeful Ray Chung promises to slash council jobs
Photo: Supplied / Facebook Wellington mayoral hopeful Ray Chung wants to eliminate rates increases altogether by cutting costs - starting with council employees, despite an admission he does not know what "a lot of these people do". Chung, councillor for Wharangi/Onslow-Western Ward after topping the ballot in the 2022 local elections, is running for mayor on the 'Independent Together' (IT) ticket. The frontrunner is likely former Labour leader Andrew Little, who has the backing of the city's outgoing Green-affiliated mayor, Tory Whanau. Chung insists the city should steer clear of party politicians. "I've never belonged to any political party, so I don't have any affiliation with any of the parties. I just think that we should be looking at things that make financial sense, make things that work for everyone." IT's five key policies include having no party politics in local government. "The media are very fond of saying that we're 'right' when we first announced IT. Even some of my colleagues came out and said that, 'Oh, we are a right-wing party,' but we aren't, and I don't even know what any of the people, any of the candidates that we actually have, I don't even know what their political affiliations are." The party's headline policy was zero rates increases for three years - not zero after inflation, but zero at all - and after that only increase rate to match inflation. That was despite the city's potential billion-dollar problems with its water infrastructure and projected double-digit increases for years to come . Asked on Morning Report on Friday if zero rates increases would mean cuts, Chung replied "absolutely". But when it came to what exactly would get the chop, he said "a good close look" at things that "aren't our core business" would be needed. "The thing is, when cutting, when looking at cutting rates, the rate cuts have to come from [operating expenses]. They don't come from [capital expenditure] - a little bit comes from [capital expenditure], but very little… "Anything that we need to borrow money for to actually build or to do, then that comes out of [capital expenditure]. So that doesn't affect your rates, except for the interest on the money that you're borrowing. "So where the big cuts are coming is out of operating expenses. So we've got to take those out because they have a direct effect on rates. So these are the things that we're focusing on to try and get out." Pressed further, he ruled out cuts to "core council activities" including "parks, swimming pools, libraries, community facilities". But said the size of the council's payroll was a problem. "Our staff numbers have just gone up exponentially and really, I have no idea what a lot of these people do." According to Wellington City Council's latest annual report , the headcount has actually been relatively flat over the last few years - 1970 in 2022, 2065 in 2023 and actually dropping to 1939 in 2024. Each year, between a quarter and a third of employees were casual or part-time. In 2017, the council had 1762 employees, percent3D&keywords=2017&type=all&utm_source= its archives showed . Other pillars of IT's policy platform included scrapping "wasteful projects", reinstating "lost" carparks and increasing surveillance in the CBD to prevent anti-social behaviour. At his own campaign launch, Little called Chung's campaign pitch of no rates increases not credible . "I don't think that's at all credible, and I know look, I'm the first to say rate rises of 30 percent over two years is not acceptable. That's not credible either, and so the council has to be doing what it can to manage those rates rises." Voting in this year's local elections begins in September. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
25-05-2025
- Politics
- RNZ News
Local councils and the battle for money
Lower Hutt Mayor Campbell Barry speaking at the opening of Te Ngaengae Pool + Fitness. Barry became a councillor at 19, and New Zealand's then-youngest mayor at 28. Now, at 34, he's leaving politics for something different. Photo: Supplied / Hutt City Council / Elias Rodriguez When you vote in this year's local body elections - and you should vote - be wary of the candidate who promises zero rates increases. "Zero rates increases are of course possible," says Lower Hutt Mayor Campbell Barry, "but they do have serious consequences on local services and infrastructure delivery. The low rates approach - and our council suffered from it for a couple of decades - is the reason we're in the infrastructure deficit we have now. "Across the country, I think it's about $52 billion in backlog of infrastructure deferrals that have happened, and those candidates who come out and say they're just going to slash the rates... they need to be upfront and tell people, 'well, that also means our pipes aren't going to be renewed, we're going to look at closing libraries, we're going to obviously get rid of staff and the services they provide in local communities.' So they can't have their cake and eat it too, they need to be challenged and explain actually how they plan to do it." Barry can speak frankly because he is not standing again. Having become a councillor at 19, and New Zealand's then-youngest mayor at 28, serving two terms at the top, the 34-year-old is off to do something different. Today on The Detail he talks about local body revenue-raising options, the balance between rates rises and paying for infrastructure, and the level of central government interference in councils that is seeing the bills mount up on political whims ... while politicians rage about how much councils charge households to pay for it all. But one of the biggest problems is voter turnout. While about 80 percent of eligible voters turn out in central elections, the figure for local elections is half that. "It's such an important part of people's everyday lives, but there doesn't seem to be that level of interest," Barry says. "Voter turnout has been poor for some time. That's why we need to talk about it... people do need to take an interest and know who's representing them and making decisions of their behalf." Barry points out that ultimately New Zealand is a very centralised country - most of the decision-making does come from central government and that's where the focus is. Councils would like some of that decision-making, involving government mandates that councils end up funding, to be backed off. A classic example is traffic calming safety measures introduced by Labour, only to have National promise in the lead up to the election it would have speed bumps ripped up. "Local government is asked to deliver on such a wide breadth of issues across their local area. The unfunded mandates that we get from government are significant, they are continuously asking us to do more, and to do more while also receiving less revenue." In Lower Hutt it cost about $400,000 to implement speed calming measures - a few short years later it cost another $400,000 to take them away. The National Policy Statement on Urban Development, allowing for more intensive housing development, cost the council $700,000. "There are continuous policy changes from government which have that type of impact. And often councils look to try and just suck that cost up without putting additional burden on rates, but there is always a cost, because it means that your council officials are often having to re-prioritise and not do other things as well. "So that is a constant battle." Barry also talks on the podcast about the blunt tool that is rates, and the need to remove the restrictions on revenue-raising that would spread the burden. "All of the levers when it comes to revenue or tax relief or support, sit with government. But they refuse to have that conversation with us around how do we look to do things differently... how can local government have that tool box approach to different ways of raising revenue, more flexibility, more user-charge options. "While we had some good conversations with the previous government, nothing really happened there, and not much is happening at the moment with the current government. "That's something that needs to change otherwise we are going to have this spiral which I think is already causing major problems with trying to fund these things purely through rates." A possible change could be handing back councils the GST on rates - a tax on a tax. But "there is a $1.5 billion dollar reason the government won't do it," says Barry. "Councils across the country collect around $10b in rates each year. If they were to take that tax-on-a-tax off, it would be around about a $450 to $650 decrease in the average residential ratepayer's bill, instantly. So it would make a really big difference for councils across the country and I think it's something the government absolutely should consider." The government also does not pay rates on property it owns, such as schools and hospitals, and Auckland Mayor Wayne Brown is one of the civic leaders who've asked for that to change - for Auckland Council alone, it would put an estimated $40 million back in the coffers. In Lower Hutt the number would be $20-$30m a year. "That would make a significant difference," says Barry. Local election voting opens at the start of September and we will have new councils around the country by 11 October. Check out how to listen to and follow The Detail here . You can also stay up-to-date by liking us on Facebook or following us on Twitter .
Wall Street Journal
06-05-2025
- Business
- Wall Street Journal
Mortgage Rates Today, May 6, 2025: 30-Year Rates Rise to 6.83%
Factors influencing current mortgage rates Today's mortgage rates are influenced by economic and market conditions, as well as personal factors. The rate you're quoted by a lender might be higher or lower than the national average. Here are some of the items considered when calculating your mortgage rate: 10-year Treasury yield: Current mortgage rates, especially on a 30-year fixed-rate mortgage, are related to movements in the 10-year Treasury yield. Current mortgage rates, especially on a 30-year fixed-rate mortgage, are related to movements in the 10-year Treasury yield. Mortgage-backed securities: The rate investors earn on mortgage-backed securities also plays a role. Spreads between mortgage-backed securities and Treasury yields, as well as between what lenders offer borrowers and mortgage-backed security rates, impact current mortgage rates. The rate investors earn on mortgage-backed securities also plays a role. Spreads between mortgage-backed securities and Treasury yields, as well as between what lenders offer borrowers and mortgage-backed security rates, impact current mortgage rates. Investor sentiment: Perceptions about fiscal policy and economic conditions can affect how Treasuries move, as well as how much risk lenders feel comfortable taking on. Perceptions about fiscal policy and economic conditions can affect how Treasuries move, as well as how much risk lenders feel comfortable taking on. Personal credit history: The information in your credit report and your credit score influence your mortgage rate quote. The information in your credit report and your credit score influence your mortgage rate quote. Income: Lenders look at your income relative to your potential mortgage payment and other debts you have. If it appears you can handle your mortgage payments with relative ease, they feel more comfortable lending you money. Lenders look at your income relative to your potential mortgage payment and other debts you have. If it appears you can handle your mortgage payments with relative ease, they feel more comfortable lending you money. Down payment: Your mortgage rate might be lower if you make a larger down payment; often, the best results are when you put at least 20% down. Your mortgage rate might be lower if you make a larger down payment; often, the best results are when you put at least 20% down. Points paid: Mortgage points, also known as discount points, are fees paid upfront as a way to directly reduce your rate and lower your monthly payments. Each point, which represents 1% of your loan amount, can potentially reduce your rate by up to 0.25 percentage points. Mortgage points, also known as discount points, are fees paid upfront as a way to directly reduce your rate and lower your monthly payments. Each point, which represents 1% of your loan amount, can potentially reduce your rate by up to 0.25 percentage points. Loan term: A 15-year mortgage rate is usually lower than a 30-year rate. By choosing a shorter term, you might be able to get a lower interest rate, but your monthly payment might be higher. How to choose the right mortgage for your financial goals When considering a mortgage, review your financial situation and goals. Often, 30-year fixed-rate mortgages are chosen because they spread a large payment over a longer period of time, making monthly payments more affordable. Even though the loan costs more overall, it might be more affordable on a day-to-day basis. If your main concern is becoming debt-free sooner while paying less interest and you can afford a higher monthly payment, a shorter-term loan might make sense. Let's say you get a $350,000 loan. Here's what you might pay with different mortgage terms: 30-year loan (6.97%): Monthly payment of $2,321.51 and total interest amount of $485,744.05 Monthly payment of $2,321.51 and total interest amount of $485,744.05 20-year loan (6.74%): Monthly payment of $2,659.19 and total interest amount of $288,206.46 Monthly payment of $2,659.19 and total interest amount of $288,206.46 15-year loan (6.20%): Monthly payment of $2,991.45 and total interest amount of $188,461.10 Monthly payment of $2,991.45 and total interest amount of $188,461.10 10-year loan (6.16%): Monthly payment of $3,913.90 and total interest amount of $119,667.88 These scenarios don't include other costs, like insurance and property taxes, that you might also be subject to. It's important to consider those costs as well. For example, you might think you can afford the payments on a 20-year or 15-year mortgage, but once you add in other homeownership costs, your budget might feel tight. Don't forget other homeownership costs that might impact your monthly budget, including maintenance, repairs, utilities and other expenses that might be higher once you move into a house. When choosing a mortgage, the principal and interest payments aren't the only considerations. One strategy might be to choose a longer loan, but make extra payments to pay down the debt faster and reduce the amount of interest you pay. With this approach, you can choose to pay extra each month, but if you need to cut back due to emergency, you can revert to the required lower monthly payment with a lower risk of not being able to meet the obligation. If you lock into a shorter loan term with a higher payment, you can't scale back payments later without risking the loss of the home.
Times
06-05-2025
- Business
- Times
Will you bag a 3% interest rate in the summer mortgage sale?
Homeowners could save hundreds of pounds a year as high street lenders slash fixed mortgage rates below 4 per cent in what has been dubbed a 'full-blown mortgage price war'. Barclays, HSBC, NatWest and Nationwide Building Society have all cut fixed rates by up to 0.29 percentage points since last Friday, with rates now as low as 3.79 per cent. Halifax and Santander also have fixes available below 4 per cent. It is a welcome boost for the 1.68 million homeowners whose fixed deals will end this year and prospective buyers, who have faced an increase in stamp duty bills since April. The cheapest two-year fixed rate for homebuyers is from Lloyds — 3.79 per cent for those with a Club Lloyds bank account —
