As usual, the detail is never in the speech but in the papers that follow. Blocking the use of commission to inflate investment returns will be bad news for some wealth managers.
In the last few years, the private banks have focused much of their efforts on the sale of investment bonds, where the rebate of commission into the policy or direct to the policyholder has been used to create a post-tax return in excess of the general market.
This change can hardly be a surprise but the sector must hold its head in shame. To take such a wide view of the commission taxation rules could only lead to this kind of reaction from HMRC.
Another concern arose when some insurers even tried to pay commission more than once.
For pipeline business, this will be bad news for private banks but it could serve as a warning to their clients that for real wealth management, the product and sharing the commission is not what smart financial planning is all about.90bn investment in education and skillsThe Chancellor has confirmed that the Government will commit to investing up to 90bn in education and skills by 2010/11.
Investment boosted 6%
Investment grew by 6 per cent last year, with business investment up by 7 per cent and inward investment up by 10 per cent.220,000 more people in employmentEmployment has risen in the last year, with 220,000 more people in work.
Consumption forecast to riseConsumption forecast is set to rise in each of the next two years by 2.25 per cent to 2.75 per cent and investment and exports by more than 3 per cent, meaning growth this year and next is expected to be 2.5-3 per cent.
Property fund tax rethinkThe Government has made changes to taxing property funds, with the person rather than the vehicle taxed. Investors will be taxed as they would have if they owned real property or UK Reit shares directly.