Meddle away ...the ‘JAMS’ do need help

ALL eyes will be on Philip Hammond this Wednesday when he delivers his debut Autumn Statement as Chancellor of the Exchequer.

Although he has already intimated he is not a lover of the Autumn Statement and would prefer to meddle with our taxes in the spring Budget (a view shared incidentally by the International Monetary Fund), meddle he will.

He simply has no choice. It is his first opportunity to dictate the direction of both tax and spending travel after the Brexit vote and the political upheaval in the Government’s ranks which saw him walk into No11. He needs to stamp his own mark on the Treasury, distancing himself from the George Osborne era.

As is the way of all Autumn Statements and Budgets, some of the detail has already leaked out from under the front door of No11. Given Theresa May’s determination to transform the country into one that works for everyone, priority will be given to the so-called JAMS – people who are ‘just about managing’ and who have been hit hardest by globalisation. It would be a smart move, confirming the Prime Minister’s desire for a more inclusive economy.

So, it is likely fuel duty will be frozen again while air passenger duty could be cut to mitigate the rising cost of foreign holidays caused by the pound’s weakness. There is also a chance that further help will be given to mothers paying for childcare so that they can go back to work. For many mothers, the high cost of childcare makes a return to work an unviable option.

It also inhibits their ability to save independently for retirement, a point highlighted by last week’s ‘women & retirement’ report published by insurer Scottish Widows. One of its main conclusions was that childcare costs are taking precedence over saving for the future.

Other announcements may be in the offing. There could be another overhaul of stamp duty on property purchases (Scotland has an alternative land and buildings transaction tax).

Although the old ‘slab’ way of charging was rightly done away with in December 2014 – a system that meant properties varying in price by a few pounds attracted widely different tax charges – its replacement is no better.

The rates now charged on purchase prices above £925,000 are borderline pernicious (10 per cent, rising to 12 per cent), even more so if it is a second home you are buying (top rate is 15 per cent).

The Institute of Economic Affairs recently called for stamp duty to be scrapped – among a raft of other taxes it wanted given the heave-ho. At the very least Hammond has to make this dreadful tax less punitive.

I trust he will not tinker any more with pensions, an Osborne speciality. Fiddle again and he is in danger of killing the pensions savings habit. Certainly, any further reduction in the lifetime allowance, the maximum permitted amount that a pension fund can grow to before draconian tax penalties are imposed, would be catastrophic.

Currently set at £1million – compared with £1.8million in 2010 – the current limit penalises prudence. It should be scrapped.

Wednesday. I can’t wait. ONE Autumn Statement measure that was confirmed yesterday concerns pension cold calls. They are to be banned next year with big fines for firms that fall foul of the rules.

The clampdown is a victory for The Mail on Sunday, which has campaigned for action to stop fraudsters scamming hardworking people out of their funds. It is also a feather in the cap for Derby-based financial adviser Darren Cooke, who took time out of his busy schedule to launch a petition to Parliament urging a ban.

The quicker these fraudsters are driven out of business, the better. Personally, I would lock them up, but financial crime does not carry the same stigma as a burglar breaking into your home – even though both are robbery.

I trust Hammond will not tinker with pensions...he must not damage the savings habit

VODAFONE has spent a fortune in the past few days bragging about it being voted number one – along with rival EE – by P3 (who’s P3, Ed?) for the quality of its UK network performance. Joint first out of four.

Indeed, a friend who lives in London received a text from the mobile giant saying the same thing. ‘This will make you laugh,’ she said. I howled like a banshee.

Apparently, the award was based on various measures – voice-call quality, mobile video performance and download speed. But not on customer service. If that most crucial of yardsticks had been factored into P3’s tests, Vodafone would not have got a look-in.

There is only word to describe its customer service. Woeful.