What caught my eye this week.
Nobody really needs more than a couple of articles about the Spring Budget. Alas for me, I only concluded this after reading dozens of them.
For all the noise, this wasn’t a Budget that will move the dial for most people. Even the welcome reduction in National Insurance won’t really be felt as such, given it just blunts the impact of ongoing higher taxes due to fiscal drag.
The coincident OBR figures [1] paint a sobering picture too. What good news it has will mostly arrive next year – apparently.
Those of us who have followed every Budget and Autumn Statement for the past few years can only ask: “Are we there yet?” We’ve heard we’re close before.
The following graph from Martin Wolf in the FT [2] [search result] doesn’t tell us anything new – but wow it’s striking:
[3]
Wolf – an economic commentator who attract critics mostly on the back of being right – warns:
To put it bluntly, the British policy process and the institutions in charge of it are broken. Yes, that is true elsewhere, too. But that is not an excuse.
Can one plausibly imagine that stagnation on this scale can continue without dire consequences for the stability of our society?
The Spring Budget didn’t – and probably couldn’t – do much about any of that. And with Labour 25% ahead in the latest polls [4], the man delivering it knows he almost certainly won’t be around to see the consequences.
Time will tell if the opposition can do any better – it hasn’t got much to play with. I still think Hunt could have made a good Chancellor in another era. Unfortunately for him and us, this is the one we’ve got.
Still, there are actions to take. In particular, make sure you’re paying attention to the Child Benefit threshold changes. Many more should be able to claim that. Consider making pension contributions if it helps you qualify.
Spring Budget announcement roundups
What changes did Chancellor Jeremy Hunt announce? – Which [5]
Really nice roundup, especially re: non-doms – JP Morgan [6]
What you need to know – Be Clever With Your Cash [7]
What does the Budget mean for you? – BBC [8]
Biggest budget winners revealed – This Is Money [9]
Hardcore economic action
Five things we learned from the Spring Budget – IFS [10]
The Office of Budget Responsibility’s latest data and forecasts – OBR [1]
National Insurance cut by 2p
National insurance calculator [with new rates] – Which [11]
How much will the new NI rate cuts save you? – This Is Money [12]
What is National Insurance and should it be scrapped? – Guardian [13]
New UK ISA and British Savings Bond
Does it pay to be patriotic with your savings? – Which [14]
Some investors are keen to use the UK ISA – This Is Money [15]
British ISAs are a gimmick that won’t move the dial – Guardian [16]
Do we really need another Isa allowance? [Search result] – FT [17]
NS&I to offer three-year fixed-rate ‘British bonds’ – NS&I [18]
Property matters
Property tax and stamp duty changes – Which [19]
Hunt hands buy-to-let landlords a CGT tax cut – This Is Money [20]
Child benefit and loose ends
What the child benefit threshold rise to £60,000 means to you – This Is Money [21]
A parent earning up to £80,000 can now still benefit – BBC [22]
Spring Budget small print – Which [23]
Rich non-doms ‘dismayed’ by Hunt’s decision [Search result] – FT [24]
Verdicts
Why fix a tax trap when you can kick it down the road? – This Is Money [25]
Pensioners and wealthy big losers from Tory government, say think-tanks [Search result] – FT [26]
The IFS response – IFS [27]
Hunt was hamstrung by Britain’s sickly finances – This Is Money [28]
Have a great weekend.
From Monevator
How to read an equity fund web page – Monevator [29]
Introducing the UK ISA: Don’t panic! – Monevator [30]
From the archive-ator: Fund ratings and Best Buy lists are useless for passive investors – Monevator [31]
News
Note: Some links are Google search results – in PC/desktop view click through to read the article. Try privacy/incognito mode to avoid cookies. Consider subscribing to sites you visit a lot.
Nationwide to buy Virgin Money for £2.9bn – BBC [32]
Eight troubling omens for the London stock exchange – CityAM [33]
Dozens of ‘major’ compliance breaches at Bank of England, NAO reports – Guardian [34]
Swiss vote to give themselves a bigger pension – BBC [35]
Revolut’s UK boss says London risks losing its crown as fintech leader… – Fortune [36]
…as fintechs gets a new industry body to champion their cause – Innovate Finance [37]
[38]
Is the gold ETF story repeating itself with Bitcoin? [Be careful…] – All Star Charts [39]
Products and services
How to save money as rail fares rise – Which [40]
The real cost of new build versus older homes – This Is Money [41]
Mobile phone contracts: spring price rises – Be Clever With Your Cash [42]
Open an ISA account with low-cost platform InvestEngine [43] and get up to £2,500 as a cash bonus (Affiliate link, T&Cs apply. Capital at risk) – InvestEngine [43]
Fixing the housing market with 30-year mortgages – This Is Money [44]
Car insurance premiums jump 50% for new drivers – Which [45]
Some Chinese electric cars ‘almost uninsurable’ in Britain – This Is Money [46]
Homes for sale with a wine cellar, in pictures – Guardian [47]
Comment and opinion
Households on more than £60,000 a year describe their financial struggles – Guardian [48]
The trillion dollar equation [Black-Scholes, nerdy, great video] – YouTube [49]
Should target-date funds allocate more to equities? – Morningstar [50]
Can the typical person become a millionaire? – Of Dollars and Data [51]
How UK private pension rule changes can disrupt retirement plans – Guardian [52]
An ex-Googler retired at 40 on a Friday. By Monday she regretted it – B.I. [53]
Retiring on your own terms – Humble Dollar [54]
New figures puts the UK middle-of-the-pack for housing affordability – K.O.I. [55]
Fit for retirement – Humble Dollar [56]
Why wouldn’t your employer remove your personal allowance when you earn £100K+? – This Is Money [57]
People who underestimate longevity save less for retirement [Research] – SSRN [58]
Fear and investing mini-special
Why you’re scared of investing – Darius Foroux [59]
Buy & Hold versus Fear & Greed – A Wealth of Common Sense [60]
Yesterday’s influence – Humble Dollar [61]
Buy the dip! Or, don’t [Search result] – FT [62]
The fear of missing out – The Irrelevant Investor [63]
Naughty corner: Active antics
Here’s your chance to not buy a painting [Search result] – FT [64]
Michael Mauboussin: cost of capital and capital allocation [PDF] – Morgan Stanley [65]
Royalties trust Hipgnosis sees portfolio value cut by 26% – Shares [66]
Another look at how much Bitcoin to own in a portfolio [Spoiler: not much] – Quantpedia [67]
Why now isn’t the time to sell investment trusts – Interactive Investor [68]
The case for owning ‘safe’ equities instead of bonds in a portfolio [PDF] – SSRN [69]
Kindle book bargains
The Success Myth by Emma Gannon – £0.99 on Kindle [70]
Eat Shop Save by Dale Pinnock – £0.99 on Kindle [71]
Lean In by Sheryl Sandberg – £0.99 on Kindle [72]
The Making of a Billionaire by John Caudwell – £0.99 on Kindle [73]
Environmental factors
Rewilding project to be awarded £100,000 for Sussex coastline – BBC [74]
Can Europe’s trains compete with low-cost airlines? [Search result] – FT [75]
Humpback whale spotted off Porthleven, Cornwall – BBC [76]
Robot overlord roundup
Aggregator’s AI risk – Stratechery [77]
Off our beat
How to survive when people are mad at you online – Will Leitch [78]
‘My IVF years’: a male perspective – GQ [79]
The dumber side of smart people – Morgan Housel [80]
The Trading Game [81]: This is how you make money… [Book extract] – NY Mag [82]
…and an interview with The Trading Game [81] author [Podcast] – Slate [83]
The 100-Year-Life [84] author on how to live well longer – Guardian [85]
Stop playing games you can’t win – The Joint Account [86]
US says UFO sightings were likely military tests – BBC [87]
The joy of not wanting things – Becoming Minimalist [88]
German guy spends £8,500 a year to live on a train – Metro [89]
And finally…
“Acknowledgment, applause, and honour are welcome and add zest to life but they are not ends to be pursued. I felt then, as I do now, that what matters is what you do and how you do it, the quality of the time you spend, and the people you share it with.”
– Ed Thorp, A Man for All Markets [90]
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