Osborne fails to instil confidence in consumers

Earlier this week the Chancellor of the Exchequer, George Osborne, delivered his 2011 Budget speech, which was watched by many people hoping to get a glimmer of hope with regards to their financial situations. Osborne did announce a range of measures that were aimed at trying to boost affordability for different groups such as first time buyers and drivers. However, according to the results of a recent poll many people are still facing uncertainty and are not feeling any more confident about their futures following the budget.

The chancellor announced a number of measures designed to try and help struggling consumers in the current climate, such as a new equity loan scheme for first time buyers to help them get onto the property ladder and a cut in fuel tax instead of an increase in order to help drivers cope with the soaring cost of petrol.

Despite these measures a recent poll carried out by uswitch.com has shown that many people now feel less confident about their financial situations than they did before the budget speech was delivered. The survey resulted showed that around 36 percent of consumers were less confident about their finances now than they had been prior to the budget speech. Another 20 percent of respondents admitted that they were concerned about their jobs.

Around 58 percent of the people that were polled as part of the survey said that they believed that now as not a good time to take on any additional financial commitments or make any major decision relating to finances because of the uncertainty that they faced with regards to their finances and their jobs.

One official from uswitch.com stated: “Stripping down living costs and household bills to the bare minimum will help consumers enjoy more disposable income.”

Tags: chancellor, fuel, part, loan, chancellor of the exchequer, Kenneth Clarke, additional financial commitments

Store cards forced to admit they’re bad value

Millions of shoppers across the UK will soon be told by their store card provider that they could be getting a better deal elsewhere.

An inquiry by the Competition Commission into the Annual Percentage Rate (APR) charged by store cards carried out last year found that they were too high.

This has led to store cards with an APR above 25 per cent now being told that they must provide a warning to card holders informing them that they could be getting a better rate with another product.

These warnings will have to appear on the card statement and store card providers appear happy to comply.

“Of late, some providers have already moved their rates lower,” revealed a spokesman for the Finance and Leasing Association (FLA), which represents providers.

“Providers are getting on and implementing what the Competition Commission wants. No-one has any issues with incorporating this information on statements.”

During its inquiry, the Competition Commission calculated that the UK’s 11 million store card holders are overcharged by around £55 million every year.

Tags: Credit card, card statement, George Osborne, United Kingdom, No-one, store, deal elsewhere.An inquiry, Competition Commission