Browse content similar to 19/03/2014. Check below for episodes and series from the same categories and more!
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ahead of their first match of the tournament against New Zealand on | :00:00. | :00:00. | |
Saturday. Welcome to our look ahead to what | :00:00. | :00:20. | |
the papers will be bringing us tomorrow. With me are the political | :00:21. | :00:25. | |
editor of the Sun on Sunday and the financial commentator Louise Cook. | :00:26. | :00:30. | |
As you can imagine, the Budget is dumb and 80 many of them. The | :00:31. | :00:33. | |
Financial Times says the Chancellor's reforms to tension is a | :00:34. | :00:41. | |
revolution. `` the Chancellor's reforms to pensions is a revolution. | :00:42. | :00:50. | |
The Telegraph says George Osborne has placed savers at the heart of | :00:51. | :01:00. | |
the economic recovery. The Metro has a more traditional tabloid look and | :01:01. | :01:09. | |
feel about it. The Daily Mirror does not lead on the Budget, it focuses | :01:10. | :01:12. | |
on the new lead in the Madeleine McCann case. The Guardian is calling | :01:13. | :01:18. | |
the Budget a blatant attempt by the Conservatives to stem defections to | :01:19. | :01:22. | |
UKIP. We can have a nutter about that one, without a doubt. The Daily | :01:23. | :01:29. | |
Telegraph, Louise, the fact is, savers and pensioners, they have | :01:30. | :01:33. | |
paid an additional price, haven't they, for the Government's attempts | :01:34. | :01:39. | |
to cut the deficit and deal with the economic problems, because of low | :01:40. | :01:45. | |
interest rates? Savers have borne a very large cost. As we know, five | :01:46. | :01:51. | |
years ago, interest rates were cut 20.5%. For the first couple of years | :01:52. | :01:56. | |
in the crisis, inflation was running substantially above that. `` cut to | :01:57. | :02:06. | |
.5%. So you were actually getting hit in terms of the purchasing power | :02:07. | :02:11. | |
of your money, year`on`year. Within the first 60 seconds, Osborne had | :02:12. | :02:17. | |
mentioned saver, savour and savour, but we did not get the details until | :02:18. | :02:21. | |
the very end. It was his grand finale. Interestingly, last year was | :02:22. | :02:31. | |
all about house`buying, the house buyer, and this year it is all about | :02:32. | :02:36. | |
the saver. And David? Pensioners, of course. One of the big problem is | :02:37. | :02:40. | |
that they have suffered over the years, and savers in general, is | :02:41. | :02:44. | |
that interest rates have been so low. While it has been good for the | :02:45. | :02:48. | |
borrowers, and let's be honest, borrowing is what has put the | :02:49. | :02:52. | |
country is in this mess, it might be good for growth, but people who are | :02:53. | :02:56. | |
saving for retirement, particularly those in their 50s, 15 years away | :02:57. | :03:03. | |
from retirement, do not know what to do with their money. Saving it is | :03:04. | :03:06. | |
not a good option at the moment. Though this might give some added | :03:07. | :03:12. | |
incentive. The Daily Telegraph, its readers tend to be slightly older | :03:13. | :03:16. | |
and so on, so, if you have got money that you want to put in and I say, | :03:17. | :03:20. | |
you can put more money into that now, and you can mix it up with | :03:21. | :03:25. | |
shares all`cash, one or the other? Yes, he has announced lots of things | :03:26. | :03:30. | |
for savers. He has said you can put ?15 a year `` ?15,000 a year into | :03:31. | :03:37. | |
ISAs. He also announced a pension bond, with up to 4% interest. The | :03:38. | :03:46. | |
key thing, as you said earlier, was the reform to the pension industry, | :03:47. | :03:52. | |
which came as a massive shock to the financial services industry. Some of | :03:53. | :03:57. | |
the stock price reactions are quite dramatic. Legal and general, it is | :03:58. | :04:01. | |
as enormous company, its stock price was down 9%. Essentially, what | :04:02. | :04:07. | |
Osborne is saying is, you have saved for your pension all your life, you | :04:08. | :04:12. | |
can make the decision as to what you want to do with it. In the past, you | :04:13. | :04:16. | |
have been forced to buy annuities, which, with interest rates at .5%, | :04:17. | :04:22. | |
you have been absolutely screwed. If you have retired over the last five | :04:23. | :04:27. | |
years, you have been screwed by this .5% interest rate. Now, finally, you | :04:28. | :04:30. | |
can choose what you want to do with your money. You can buy a house if | :04:31. | :04:35. | |
you want to and went it out, you can keep your money in the stock market. | :04:36. | :04:39. | |
You can choose what to do with your pension pot, and that is a very, | :04:40. | :04:44. | |
very big change. Clearly from the stock price reactions from some of | :04:45. | :04:47. | |
the big pension providers, the view is, they have made a lot of money | :04:48. | :04:51. | |
out of the fact that you have had no choice. Interestingly, it used to be | :04:52. | :04:56. | |
the case that we had no idea what was in the little red box when the | :04:57. | :04:59. | |
Chancellor came out, but now, of course, we get titbits. This, on | :05:00. | :05:06. | |
pensions, that could not be leaked. That would have completely messed | :05:07. | :05:09. | |
things up for the insurance companies. They kept a big lid on it | :05:10. | :05:15. | |
this year. One job I have to do is to try to get the leaks. I got quite | :05:16. | :05:23. | |
a bit right. But nobody got a sniff of the pensions. I was getting some | :05:24. | :05:27. | |
people from certain industries ringing me, texting me last night, | :05:28. | :05:31. | |
as late as this morning, asking me, have I got a sniff of what was | :05:32. | :05:37. | |
happening in their particular field? And nobody knew. Louise was | :05:38. | :05:42. | |
talking about stocks and shares going up. I'll tell you who's stock | :05:43. | :05:46. | |
has gone up today, that of George Osborne. There is a piece in the | :05:47. | :05:51. | |
Telegraph, which says, an improving Chancellor. If you turn the clock | :05:52. | :05:58. | |
back two years to the Omni shambles, it was a disaster. George's stock | :05:59. | :06:04. | |
went through the floor, he was regarded as a no hope Chancellor, | :06:05. | :06:07. | |
the pasty tax and everything. Now, he is growing in confidence. He is | :06:08. | :06:11. | |
leaving going out once a week and meeting people! I hear the reason it | :06:12. | :06:23. | |
was kept so quiet was that essentially, it is inside | :06:24. | :06:25. | |
information. Regarding the stock price, if you did that, there could | :06:26. | :06:34. | |
be criminal charges. Moving onto the Guardian, you talked, David, about | :06:35. | :06:40. | |
Mr Osborne's stock going up. Attention, he would say, and the | :06:41. | :06:44. | |
Tory half of the coalition would hope, that all their stock is up, | :06:45. | :06:52. | |
with the election next year. Hence the Budget being aimed at older | :06:53. | :06:55. | |
people, savers and pensioners, people who vote. Is that what the | :06:56. | :07:02. | |
photo is about? I thought it was a printing error. What I want to know | :07:03. | :07:08. | |
is what you would have to vote to go back to blonde again. That is what I | :07:09. | :07:21. | |
want to know. Now, this is an attempt to get back some of the core | :07:22. | :07:24. | |
Conservative vote who have fled to UKIP. They are the people, probably | :07:25. | :07:30. | |
in their 50s, who are fed up with the Conservative Party and David | :07:31. | :07:35. | |
Cameron generally. And verily holding this out. It is also savers, | :07:36. | :07:40. | |
as we said, younger people saving up, those who want ISAs, those | :07:41. | :07:44. | |
coming up to retirement, and those who are retired. He is giving savers | :07:45. | :07:49. | |
the chance to claw the moneyback. So, we have got a guaranteed | :07:50. | :07:56. | |
referendum, 2017, under the Tories, pensioners have been helped, savers | :07:57. | :08:00. | |
have been helped, he has sorted it out, hasn't he, as far as his base | :08:01. | :08:06. | |
is concerned? The trouble is, he has so little fiscal room to move. This | :08:07. | :08:11. | |
is the problem. It still lasted 15 minutes, however long it was, but he | :08:12. | :08:18. | |
did not actually say that much `` 50 minutes `` in terms of impact on the | :08:19. | :08:25. | |
economy. That is Labour's point. The government is so indebted, he cannot | :08:26. | :08:30. | |
do very much. And so, there was quite a lot of typical rallying | :08:31. | :08:36. | |
cries, Thatcher rallying cries, it is your money, we will give it to | :08:37. | :08:40. | |
you. Attach any, many Tory backbenchers want him to cut | :08:41. | :08:44. | |
spending a lot faster and to cut taxes. `` actually. But he is not in | :08:45. | :08:50. | |
the position to be able to do it. So, the Thatcher rallying cries may | :08:51. | :08:55. | |
have been there, but the debt position is dire and remains dire. | :08:56. | :09:01. | |
The bottom of the front page of the Financial Times also talking about | :09:02. | :09:08. | |
pensions revolution, with Osborne wooing the silver haired, and the | :09:09. | :09:13. | |
savers. At the bottom, he says, a totem for Thatcher's ageing | :09:14. | :09:18. | |
children. This idea that it is about you having control of your pension, | :09:19. | :09:23. | |
being able to save more. You are the agent of your own destiny, | :09:24. | :09:26. | |
basically. One wonders why Thatcher did not have this revolution, or | :09:27. | :09:30. | |
even Tony Blair, who apparently was advised to have these pension | :09:31. | :09:36. | |
changes? Well, to me, it shows the lack of financial knowledge, that | :09:37. | :09:42. | |
nobody could get out a financial calculator and work out the damage | :09:43. | :09:45. | |
to annuity rates done by .5% interest rates and ?370 billion of | :09:46. | :09:53. | |
QE. Anybody who has retired in the last five years has bought an | :09:54. | :09:57. | |
annuities at rates which are unheard`of, which means that their | :09:58. | :10:01. | |
pension is affected for ever. They have bought that annuity, end of. | :10:02. | :10:10. | |
You are done. And so, to me, they could have done with some financial | :10:11. | :10:14. | |
brains in there, going, if we are cutting rates 2.5%, then the people | :10:15. | :10:19. | |
who are really going to get shafted is those retiring right now. This | :10:20. | :10:22. | |
should have been done as soon as the rates were cut. It wasn't, it has | :10:23. | :10:28. | |
taken them five years. I am really sorry for anybody out there who has | :10:29. | :10:31. | |
retired in the last five years. Because now, you would not have to | :10:32. | :10:39. | |
buy an annuity. One person sent in an e`mail question ` can it be | :10:40. | :10:45. | |
retrospectively applied? It can't. We were talking about going grey and | :10:46. | :10:51. | |
pensions. It's ` the "grey vote" is more likely to turn out. 76% of over | :10:52. | :11:00. | |
65s voted in the last election. This is clearly a vote`winning strategy. | :11:01. | :11:05. | |
This is clearly... It is. This is clearly, you know, savers ` I said ` | :11:06. | :11:11. | |
I predicted help for savers. I thought it might come through | :11:12. | :11:15. | |
monetary policy ` interest rates are going to go up before the general | :11:16. | :11:19. | |
election rather than this. There was no chance of that. It could still | :11:20. | :11:27. | |
happen. He knew he had to do something for the savers. It looks | :11:28. | :11:31. | |
like he's done it through fiscal policy. Let's go on to the Metro. In | :11:32. | :11:41. | |
the pub landlord did budgets, Osborne rewards... LAUGHTER This is | :11:42. | :11:53. | |
a traditional tabloid red top ` blue top in this case. He did talk about | :11:54. | :12:01. | |
scrapping above`inflation rises for wine, freezing duty on whisky ` a | :12:02. | :12:06. | |
boost for the Scottish economy. He called it a great British export! | :12:07. | :12:12. | |
Indeed. Cut beer tax by 1p. Indeed, Mr Grant Shapps of the Conservative | :12:13. | :12:16. | |
Party, he put out a tweet this evening and he said, "Budget 2014 ` | :12:17. | :12:32. | |
cuts ` bingo, and beer tax." The implication for some people is is | :12:33. | :12:37. | |
that all hard`working people interested in ` beer and bingo? | :12:38. | :12:42. | |
Grant Shapps is trying to show he is a man of the people! I don't think I | :12:43. | :12:46. | |
have seen him with a bingo pen in his hand. I did tweet an Al Murray | :12:47. | :12:52. | |
line ` a glass of wine for the lady. Some of my Twitter followers didn't | :12:53. | :12:59. | |
get it was an Al Murray joke. Clearly, as far as savers are | :13:00. | :13:03. | |
concerned, pensioners, it seems like it is good news. The devil is in the | :13:04. | :13:07. | |
detail. That is what the Labour Party are saying. This stuff on | :13:08. | :13:11. | |
bingo and beer and wine and that kind of stuff, is that an obvious | :13:12. | :13:15. | |
attempt to rope in another section of society? Let's not underestimate | :13:16. | :13:21. | |
this. Yeah. A lot of people do enjoy a pint. They do have their | :13:22. | :13:25. | |
cigarettes and cigarettes did go up 23p, I think it was. Still above | :13:26. | :13:29. | |
inflation. They do have their pleasures in life. These little | :13:30. | :13:33. | |
things are important. People look out for that. You can't | :13:34. | :13:42. | |
underestimate that. I would say there were a lot of frivolities like | :13:43. | :13:47. | |
the cut in bingo hall tax, but in terms of the British economy and the | :13:48. | :13:52. | |
big picture, how much wealth we generate, that is irrelevant. When | :13:53. | :13:56. | |
we are so indebted, he can't do that much. Let's get back to what Ed | :13:57. | :14:02. | |
Miliband and why he has been so successful ` the cost of living | :14:03. | :14:06. | |
crisis. Everybody is feeling the squeeze as wages are going down, or | :14:07. | :14:11. | |
being frozen and the cost of living is going up. That's why knocking a | :14:12. | :14:17. | |
penny off a pint hits you directly, or people can feel the benefit and | :14:18. | :14:22. | |
understand that. A lot of people don't understand the fiscal big | :14:23. | :14:25. | |
picture and growth. Growth means nothing to a lot of people unless | :14:26. | :14:28. | |
they can feel it in their pocket. That will be the central issue when | :14:29. | :14:33. | |
it comes to the election. You will be back in an hour's time. Stay with | :14:34. | :14:40. | |
us for that. So, here, now on BBC News, it is time for Sportsday. | :14:41. | :14:54. | |
Hello and welcome to Sportsday ` I'm John Watson. On the way this | :14:55. | :14:58. | |
evening: Relief for David Moyes, as | :14:59. | :15:01. | |
Manchester United qualify for the quarterfinals of | :15:02. | :15:02. |