Here at MRM HQ we like to keep you up to speed on all interesting media news and personal finance reports, and this week is no different. However, unless you’ve been living under a rock of late, you are probably already aware of the impending election. What may not be so clear, however, is what each party has planned with your personal finances. Fear not though because luckily the weekend papers were on hand to help you plan for the election.
The Independent on Sunday Money section led with a double page spread outlining what might be in store for your finances post-election: Labour has pledged to increase the annual ISA allowance, which currently stands at £10,200, by the rate of inflation each year. It has pledged to maintain child trust funds and will contribute £100 a year to CTFs opened for disabled children, with £200 going to the severely disabled. The Conservatives are mooting “green ISAs”, which would give special tax breaks to savers who invest in green or low carbon enterprises. They would cut child trust funds for all but the poorest families and those for disabled children. The Lib Dems have no specific ISA policy. They would stop contributing government money to child trust funds and spend the money saved on education.
The Independent on Sunday and the Observer took a very neutral stance on the issue, making no indication as to their favoured policy, the Mail on Sunday however was quick to attack Labour’s poor history on savings, whilst showing support for the Tories and warming to the Lib Dems.
If, however, you don’t get quite as excited about savings accounts as we do at MRM, why not take a peek at the Sunday Times’ take on how to invest with different governments. Fascinating research from Skandia Investment Group [an MRM client. ahem] has found that the average market gain under a Labour government since 1935 has been 32%, while under a Conservative regime the average growth is 52%. Analysts are certainly hoping for an outright Tory win as this is more likely to have a reassuring affect on the markets. An outright Labour win, whilst likely to create some certainty in the market according to Gareth Evans of Deutsche Bank, could generate some volatility as Labour lacks an urgency in its deficit reductions plans.
Scores across the board this week were as follows: