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Thursday newspaper round-up: Stealth tax, mortgage rates, UK credit rating

(Sharecast News) - Millions of households are facing a "stealth" tax raid under Liz Truss's government despite her promise to support workers through the cost-of-living crisis by lowering their tax bills, Britain's leading economic thinktank said on Wednesday. The Institute for Fiscal Studies (IFS) has calculated that for every £1 given to workers by cutting headline tax rates, £2 was being taken away through a freeze on the level at which people begin paying tax on their earnings. - Guardian The average rate on a new two-year fixed mortgage has risen above 6% for the first time since 2008, according to data that will intensify concern about the crisis in the home loans market. News that the typical new rate had climbed to 6.07% came the day before the chancellor, Kwasi Kwarteng, was due to meet with executives from Britain's biggest banks to discuss the impact of the financial markets turmoil on mortgages and availability. - Guardian

Fitch has threatened to downgrade the UK's credit rating in the wake of spending plans set out by Liz Truss and Kwasi Kwarteng in the mini-Budget. Fitch said the country's credit rating remained "AA-" but said there had been a "material change" which required it to update investors. - Telegraph

The Treasury will impose an additional £21bn of income taxes despite Liz Truss's "tax-cutting" mini-Budget, a detailed analysis released on Thursday has revealed. The average household will be £1,450 per year worse off as a result of the stealth raid, according to the Institute for Fiscal Studies (IFS) think tank. - Telegraph

A City solicitor who told a client to "burn" a secure messaging system in a dispute with Ocado has avoided jail after being found in contempt of court. Raymond McKeeve, a former partner at the London office of US law firm Jones Day, was yesterday fined £25,000 and ordered to pay £600,000 costs. - The Times

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Thursday newspaper round-up: Tax increases, Jes Staley, Barclay family
(Sharecast News) - Rachel Reeves has defended the £40bn in tax increases in autumn's budget as businesses brace for their impact, saying NHS waiting lists would now be higher if she had not taken action. Employers are set for a £25bn increase in national insurance contributions (NICs), which comes into force on 6 April, at the same time as consumers are being hit by a slew of increases in bills for everything from utilities to car tax. - Guardian
Wednesday newspaper round-up: Motor finance compensation, car manufacturers, Rebel Energy
(Sharecast News) - A court of appeal ruling that has left lenders fearing PPI-level compensation bills over the motor finance commission scandal "goes too far", the City regulator said on Tuesday. The Financial Conduct Authority (FCA) made the comments in a written submission to the supreme court on Tuesday, as part of a high-profile case being closely watched by the government. The Treasury, which tried but failed to intervene in the case, is concerned the standing decision could spook businesses and threaten investment in the UK. - Guardian
Tuesday newspaper round-up: Household bills, OpenAI, BBC
(Sharecast News) - Millions of households are bracing themselves for a raft of price increases across a range of bills - from energy and water to car tax and the TV licence - that take effect on Tuesday. With so many costs rising at once - prompting some to label this month "awful April" - the government is facing fresh calls to take action to limit the impact of some of the increases. The Liberal Democrats claimed ministers needed to "get a grip" on energy bills. - Guardian
JPMorgan starts coverage of Wise at 'overweight'
(Sharecast News) - JPMorgan Cazenove initiated coverage of Wise on Monday with an 'overweight' rating and a 1,242p price target.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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