It might appear impossible, but many consumers succeed in living
their entire lives without any debt. People of a variety of ages and
income levels have made this choice. It’s not an easy feat, but if it’s
something you truly want, don’t let naysayers talk you out of it. Some
dedicated savers have even seen results after committing to a spending fast or spending diet, in which participants set limits on how much money
they can spend on certain needs and wants. There are countless methods
out there for consumers looking to cut spending, pay back debt, or avoid
it all together. The important thing is to select a system that works
for you. You know what your weaknesses are, so choose accordingly.
The Urban Institute found 35% of American adults
have a report of debt in collections. This can include non-mortgage
debt that is more than 180 days past due, such as a credit card balance,
medical bill, or utility bill. There are a number of ways to find
legitimate debt assistance or helpful strategies for coping with debt.
This article’s primary focus is the practical lifestyle choices that
will help consumers avoid accruing debt in the first place. While this
commitment requires tremendous discipline, you may find that it is well
worth it to revel in the knowledge that not a dime of your hard earned
money is being wasted on paying interest. Whether you’ve held debt in
the past or not, it is within your power to keep it out of your life
going forward. Here are six ways to completely avoid incurring debt.
1. Build a large savings
Working toward a sizable savings account is difficult, but it’s also
the most important way to stay out of debt. Think of your savings as
preparation for unexpected expenses. This way, when medical bills or car
repairs pop up, you won’t bat an eye. Saving is also essential for
long-term expenses you might not even be planning for yet, such as a
child’s education or a new home. Your savings will come in handy for
more enjoyable purchases as well, such as an impromptu trip. But without
a hefty balance in your savings account, life’s unexpected costs will
sneak up on you, posing a threat to your debt-free lifestyle. Keep in
mind that by living a life without loans, you will be cutting out a lot
of monthly payments that other consumers take on, creating more room in
your budget to maintain a healthy savings.
2. Pay off credit card transactions immediately
Pay off credit cards | iStock.com
It’s not necessary to deal exclusively in cash in order to avoid
debt. For some, it helps to use physical currency to avoid making
impulse buys or running up a huge credit card balance. A credit card
makes certain things easier, such as traveling, renting a car, or making
hotel reservations, but charging purchases isn’t the only way to build credit.
If you know yourself, and a credit card isn’t something you can handle,
don’t get one. Otherwise, don’t be afraid to use credit cards to your
advantage for rewards points and/or cash back. If you decide to have a
credit card or even more than one, make it a strict rule to pay off each
purchase you make on the same day. Never wait for the monthly bill.
This will force you to actually think about how much money you have in
your budget before you swipe.
3. Buy a cheap used car
Car lot | Saul Loeb/AFP/Getty Images
Most middle class Americans can’t afford to buy new cars outright, so
many opt to take on a car payment. No one needs a car loan. There are
plenty of reliable used cars out there. There is risk involved in
purchasing a used car, but there is also risk in dealing with crafty
salesmen at dealerships, who often upsell you on expensive and
restrictive warranties. Do your research on reliable car models, find a
good mechanic, and use your best judgment when buying your vehicle. You
might just get a great deal on a car that will last for years with
relatively little maintenance. Public transportation can be an
affordable choice as well, depending on your location, but in rural
areas a car could very well be a necessity.
4. Go to community college
save money at community college | iStock.com
As far as higher education is concerned, students willing to take out
loans certainly have more options, and many wisely choose to go this
route. However, that doesn’t mean you have to borrow money to get a
great education. Many students save thousands by starting at a community
college before transferring to a more prestigious university.
Scholarships and grants also go a long way. No one can be blamed for
choosing to take out student loans, especially for medical school or
other specialized programs. But with student loan debt in the U.S. now
exceeding credit card debt, many wise students are choosing to slowly
work their way through college instead.
5. Rent
For rent sign | PAUL J. RICHARDS/AFP/Getty Images
Renting for life sounds like a nightmare to some people, but real
estate is not cheap. If you are committed to staying debt-free, housing
will likely be your biggest challenge. That said, saving up for a modest
home is totally plausible for most middle class Americans (provided you
aren’t living somewhere like Southern California). Yes, it could take a
long time, depending on your income level, but spending a number of
years renting and saving could ultimately be a rewarding experience.
Long-term renters know that this lifestyle has its challenges and
frustrations, but there are fair landlords out there, and renter’s insurance is affordable.
If you are single and living alone is out of your budget, perhaps due
to living in a metropolitan area, consider renting a room or subletting
until you can find an unusually good deal.
6. Buy only what you need
Buying too much stuff | KENZO TRIBOUILLARD/AFP/Getty Images
Impulse shoppers won’t like this one, but it’s amazing the amount of
money that can be saved by practicing one straightforward strategy:
Think before you buy. In some cases, think very far in advance of
buying. Research the best deals and practice listening to the little
voice in your head that asks, “Do I actually need this?” You don’t have
to live off the grid or be a hermit to practice minimal consumerism.
Life costs money, but you can learn to have fun without spending a
fortune. Like anything, it takes practice. If you know you are going to
require strict guidelines to stay in the money-saving mindset, make an
actual budget on paper and set reasonable rules for yourself.
Exercising his powers as Acting
President Prof. Yemi Osinbajo last night made his first set of
appointments since President Muhammadu Buhari embarked on a medical
vacation to the United Kingdom.
Osinbajo, according to an announcement
made by the Presidency on its Twitter handle, @NGRPresident, about 7pm
last night, approved the appointments of Dikko Aliyu AbdulRahman as the
Chairman, Governing Board of the Bank of Industry (BoI) and Olukayode
Pitan as the Managing Director of the bank. Pitan replaces Mr. Waheed
Olagunju, who hitherto was the acting managing director.
He also appointed Ali Usman as the
Chairman of National Pension Commission and Funso Doherty as the
Director-General of the commission.
Osinbajo also appointed Manase Benga, who now joins Ben Oviosun, Zaki
Magawata and Nyerere Ayim, who had been previously appointed Executive
Commissioners by Buhari but had yet to go through senate confirmation.
Doherty was previously appointed PenCom chairman.
In the same vein, Emeka Nwakpa was appointed as the Chairman, Governing
Board of the Consumer Protection Council (CPC). The tweet added that
besides the pension commission’s appointments, which were subject to
Senate’s approval, all other appointments took immediate effect.
The tweet announcing the appointments
was followed with a statement from the Office of the Secretary to the
Government of the Federation signed by the Director of Press, Chris
Okeke.
The appointment of a new DG for PenCom
has laid to rest controversies surrounding the sack of the former DG of
PENCOM, Mrs. Chinelo Anohu-Amazu.
Anohu-Amazu, who was sacked by Buhari on
April 19, this year, was initially replaced with Dikko, but she was
subsequently asked to hand over to Aisha Dahir-Umar in acting capacity
pending Senate confirmation of Dikko, whose appointment has now been
changed to chairman of BoI Chairman.
In another development, the acting
president yesterday told the G7 Summit in Italy that Africa was
confident of a prosperous future as a result of its current investment
in education, good governance and an accountability system.
Osinbajo, who was invited to Italy by
G7, a group of seven largest economies of the world, arrived Sicily in
Italy in the early hours of yesterday and returned to the country later
in the evening.
The acting president had been invited
along with presidents of five other African nations, viz: Guinea,
Tunisia, Niger, Ethiopia and Kenya.
Addressing the summit on the platform of
G7 Summit Special Outreach Forum on Africa, the acting president said
apart from the current investment in education, good governance and
accountability, the productive talents and creative prowess of African
youths in recent times had rekindled hopes of a prosperous Africa in
future.
The acting president, according to a
statement by his media aide, Laolu Akande, said Africa was undeterred by
failure of the past but was rather motivated by “the incredible energy
and talents of its bustling youthful population.” He described emerging
innovation and technology as the tools being employed by leaders to
bring about the Africa of their dream.
“Africa is confident of the future
because we have learnt,… we are investing more in education, insisting
on good governance and holding ourselves to account. But the greatest
reason for our optimism is in the incredible energy, talent and
creativity of our young people, male and female, who are completely
undeterred by the failures of the past and are daily taking advantage of
innovation and technology bringing about the Africa of our dreams,”
Osinbajo was quoted as saying.
The statement further said the acting
president pledged to the G7 countries of Africa’s increasing
collaboration in trade, counter-terrorism and strengthening of democracy
as never before.
He also commended the seven largest
economies of the world for their support to Nigeria in the fight against
terrorism, especially the United States, France and the United Kingdom.
Also describing them as effective
partners in Lake Chad Basin, Osinbajo recalled what he described as the
successes of “our joint intelligence unit,” which he said had provided
useful and timely intelligence in the war against terrorism.”
Furthermore, the statement said Osinbajo
briefed the summit on massive increase in rice production in Nigeria in
the past two years as well as the distribution of fertiliser subsidies
to farmers whom he said had also benefited from an e-wallet system,
which guarantees the delivery of subsidies to the farmers.
He was also said to have told the group
that the administration’s N-Power programme which had engaged “some of
the up to 50,000 young previously unemployed graduates instalmentally as
teachers, agricultural extension workers and public health
professionals is a breakthrough in mass post-tertiary education.”
The statement added that Osinbajo
disclosed that participants in the N-Power programme were recruited
online from all states of the federation using mobile phones adding that
participants soon received their electronic tablet devices and could
access an N-Power portal containing required training materials for
acquisition of more skills to carry out their duties.
It listed other participants at the
summit to include: the Chairman of the African Union and Guinean
President, Alpha Conde, and heads of international agencies such as
United Nations, Organisation for Economic Co-operation and Development,
International Monetary Fund, African Development Bank and World Bank.
The acting president was accompanied to
the summit by the Minister of Foreign Affairs, Mr. Geoffrey Onyema;
Special Adviser to President Muhammadu Buhari on Economic Matters, Dr.
Yemi Dipeolu; and the Nigeria Charge d’ Affairs in Italy, Mrs. Bisi
Meshioye. Osinbajo returned to Nigeria Saturday evening.
Thisday
Friday 26 May 2017
‘Increase retirees’ enrolment in contributory pension scheme’
The Interim Chairman of the Management Committee of the First
Guarantee Pensions Limited Comrade Issa Aremu has called on the new
management of the National Pension Commission (Pencom) to increase
contributory pension scheme enrollment figure. He made this call at a
news conference in Abuja.
Aremu, who is also the General Secretary of National Union of
Textile, Garment and Tailoring Workers of Nigeria, noted that the
current enrolment of less than seven million subscribers in the National
Pension Commission was inadequate compared to the over 80
million workers in the country.
He said: “The over six million workers already captured under the
reform is commendable. But this number is a far cry from over 80 million
potential work force in Nigeria.
“The N6.5 trillion funds contributed so far can hardly meet the
future income adequacy of retirees, which underscores the need for an
intensified effort on the part of the incoming leadership.”
He stressed the need for all retirees under the scheme to be paid their benefits as at when due.
Aremu said under the previous management, pension assets grew from
N2.9 trillion in 2012 to over N6.5 trillion in 2017, due to the efforts
of the past leadership of the Pencom.
He recalled that Pencom set up the management with the mandate to
superintend over the affairs of the Pension Fund Administrators (PFA)
under the direct supervision of the commission after the former
management was dissolved “for unsound corporate governance practices,
which had significant adverse implication for the pension assets under
the management of the PFA”.
Nation Newspapers
Thursday 25 May 2017
Britain stops sharing information with US over leaks of Manchester bomb pictures
A series of leaks has sparked ‘disbelief and astonishment’ (Picture: PA)
Police hunting the terror network behind the Manchester Arena bombing
have stopped passing information to the US on the investigation as a
major transatlantic row erupted over leaks of key evidence in the US,
according to a report.
The police, Downing Street and the Home Office refused to comment on
the BBC report, but Theresa May will confront Donald Trump about the
leaks – including crime scene photographs – when she meets him at a Nato
summit in Brussels on Thursday.
The leaks included suggestions that bomber Salman Abedi’s family had warned security officials he was dangerous.
There were also reports Abedi’s parents were so worried about him
being radicalised in Manchester that they got him to join them in Libya
and confiscated his passport. It was apparently returned when he said he
wanted to go on a pilgrimage to Mecca.
Home Secretary Amber Rudd has admitted Abedi, 22, was known to the security services ‘up to a point’.
But further details have emerged about the UK-born bomber’s
radicalisation, and the warnings that were sounded, which will raise
questions about why he was not more closely monitored.
Responding to the leak in the New York Times of crime scene photos
showing bomb fragments and the backpack used by Abedi to conceal his
device, the National Police Chiefs’ Council said it ‘undermines our
investigations and the confidence of victims, witnesses and their
families’.
But in the US, politicians were openly briefing the media on what
they had been told about Abedi and his ‘cell of Isis-inspired
terrorists’.
US congressman Mike McCaul, Republican chairman of the House Homeland
Security Committee, said the bomb was of a ‘level of sophistication’
that might indicate its maker had foreign training.
He described it as ‘a classic explosive device used by terrorists’,
using the same substance as the one used in the deadly November 2015
attacks in Paris and the March 2016 attack in Brussels.
Mr McCaul said evidence so far suggests ‘we’re not dealing with a
lone wolf situation’, adding: ‘There’s a network – a cell of
ISIS-inspired terrorists.’
Interior minister Amber Rudd had described the leaks as ‘irritating’
early on Thursday, after details about bomber Salman Abedi, including
his name, first appeared in U.S. media, adding that Britain’s allies
were perfectly clear that it ‘shouldn’t happen again’.
Greater Manchester Police chiefs today condemned the release of
potential evidence while inquiries were ongoing, and said that the leaks
represented breaches of trust which undermined their investigation.
In a statement released by the National Police Chiefs’ Council, a
spokesman for National Counter Terrorism Policing said: ‘We greatly
value the important relationships we have with our trusted intelligence,
law enforcement and security partners around the world.
‘These relationships enable us to collaborate and share privileged
and sensitive information that allows us to defeat terrorism and protect
the public at home and abroad.
‘When that trust is breached it undermines these relationships, and
undermines our investigations and the confidence of victims, witnesses
and their families.
‘This damage is even greater when it involves unauthorised disclosure
of potential evidence in the middle of a major counter-terrorism
investigation.’
The disclosure is regarded as ‘completely unacceptable’ by Britain,
because of the distress it may cause families of those killed or injured
and because of the risk it could complicate investigations.
The row – which goes to the heart of the close intelligence-sharing
relationship between the transatlantic allies – provides an awkward
backdrop to the Prime Minister’s meeting with President Trump at the
Nato summit in Brussels.
A Whitehall source said: ‘We are furious. This is completely unacceptable.
‘These images leaked from inside the US system will be distressing for victims, their families and the wider public.
‘The issue is being raised at every relevant level by the British authorities with their US counterparts.’
The new pictures show torn scraps from a blue rucksack as well as
screws and nuts used as shrapnel and a metal item which the newspaper
suggests could have been part of the bomb’s detonator.
The NYT described them as ‘law enforcement images’ but did not make clear how they had been obtained.
The nature of the photographs – one of which includes a ruler placed
alongside the detonator – left no doubt that they were taken as part of
the forensic investigation of the scene, and were not snapshots taken by
members of the public.
The paper also published a map showing the location of the victims of
the bombing, positioned in a circle around the site of the explosion in
the arena foyer, as well as what is thought to be Abedi’s torso some
distance away.
Speaking on Wednesday morning, before the publication of the photos,
the Home Secretary said she did not believe the Americans had
compromised the investigation with the early release of information
including the numbers of casualties, the name of the bomber and
suspicions he was not acting alone.
But she added: ‘Quite frankly, the British police have been very
clear that they want to control the flow of information in order to
protect operational integrity, the element of surprise, so it is
irritating if it gets released from other sources and I have been very
clear with our friends that that should not happen again.’
Greater Manchester metro mayor Andy Burnham said that a decision had
been taken early in the investigation to be cautious about putting
information into the public domain.
He tweeted: ‘Complained to acting US Ambassador about leaks out of US
and was assured they would stop. They haven’t. Arrogant, wrong and
disrespectful to GM (Greater Manchester).’
Congressman Adam Schiff, a senior member of the House Intelligence
Committee, said: ‘If we gave up information that has interfered in any
way with their investigation because it tipped off people in Britain –
perhaps associates of this person that we identified as the bomber –
then that’s a real problem and they have every right to be furious.’
Britain’s intelligence links with the US are among the closest in the
world, and information is routinely shared by security and intelligence
agencies as part of the special relationship between the transatlantic
allies.
Home
Secretary Amber Rudd said Salman Abedi was known "up to a point", and
warned it seemed "likely" the 22-year-old bomber "was not doing this on
his own"
Manchester bomber was known to intelligence services
Manchester bomber Salman Abedi was known "up to a point" to the intelligence services, the Home Secretary has confirmed.
Amber
Rudd spoke after police named the 22-year-old as the bomber who killed
22 people as young as eight at the Manchester Arena.
She also warned "it seems likely, possible, that he wasn’t doing this on his own" after the terror threat was raised to critical.
Ms Rudd said today: "We do know he was known up to a point to the intelligence services.
"I’m sure we’ll get more information about him over the next few days."
But she would not confirm whether Abedi was on a specific terror watch list.
A girl is comforted outside the scene of the deadly attack (Photo: Cavendish Press/Pat Isaacs)
Armed police on the streets will soon be joined by troops (Photo: WENN.com) Pressed for more information and how he was known she told
Sky News: "I can’t be drawn on that at the moment because it is an
ongoing investigation.”
Later she stressed "the security services will know a lot of people" but it does not mean they should arrest all of them.
But she admitted: "It was somebody they had known before."
Ms Rudd insisted investigators should be given space to do their work.
"Our intelligence services do a remarkable job. They have foiled 13 plots since 2013,” she said.
The terror threat was raised to 'critical' last night for the first time in a decade and troops on the streets have been authorised amid fears Abedi was part of a wider network.
The Home Secretary insisted the move should be “temporary”.
She pointed out the only two times the terror level has reached critical, it was only for a few days.
Thousands gather for a vigil to remember victims of the Manchester Arena attack (Photo: Getty) "We expect it to be temporary,” she told Sky News.
And
she insisted soldiers are only out to ease pressure on investigators
"so the police can go out and continue to do what they do best.”
She added: "It is an ongoing operation. The investigation is continuing to find leads. It is an active operation.
"Until
we can be reassured… it is entirely safe around this operation, it is
right that we are at this heightened state of alert.”
Hassan Rouhani hit back (Picture: AFP/Getty Images)
The president of Iran has hit back at Donald Trump, calling him ‘intellectually unstable’.
Hassan Rouhani, a 68-year-old cleric and political moderate within
his country, said relations with the US would be ‘a curvy road’.
He added that Iranians were ‘waiting for this [American] government to become stable intellectually’.
‘Hopefully, things will settle down… so we could pass more accurate judgments,’ Rouhani said.
President Donald Trump used his speech at the Arab Islamic American Summit to denounce Iran, which was not present (Picture: AP)
‘The Americans do not know our region, that’s what the catch is,’ the Iranian president added.
‘Unfortunately, Americans have always made mistakes in our region.
‘When they attacked Afghanistan [and] Iraq, when they made sanctions
against Iran. In Syria, they made mistakes, and also in Yemen.’
In a speech delivered to state leaders in Riyadh, Saudi Arabia, Trump called for middle eastern nations to further isolate Iran.
Iran has been a long-standing political rival of the Kingdom of Saudi Arabia.
Trump then reiterated his strong criticism of Iran during a trip to Israel today.
Characters from Breaking Bad sleep on a pile of money | Source: AMC
Where do you keep your money?
If you’re like 29% of Americans, it’s hidden in an old shoe box, buried
under the towels in your linen closet, or tucked away in your sock
drawer. An alarming number of people, including 41% of millennials, are
keeping their savings at home, a 2015 American Express survey found, and more than half of savers have their cash squirreled it away in a “secret” location.
The old-school under-the-mattress savings technique appeals to people
who use an envelope system for budgeting, as well as those who don’t
trust banks. But it comes with risks, including the possibility your
money will go missing.
“Hiding cash in a secret location is never a good idea,” Coleen
Pantalone, associate professor of finance at the School of Business at
Northeastern University, told Main St.
You may forget where you put your money, or you could die, leaving
behind clueless heirs who inadvertently sell the box with your savings
at a garage sale.
Hidden in your home isn’t the only place where your money isn’t as
safe as you think, especially if the savings vehicle is the wrong fit
for your goals. Certificates of deposit (CDs) may seem secure because
they earn guaranteed interest and are FDIC insured, but they’re the
wrong place for a young person to put their retirement savings, because
your return will be likely so low you’ll actually lose money to
inflation. A 401(k) is good for retirement savings but a terrible place
to keep your emergency fund because you can’t easily get at the money
and you’ll pay penalties for early withdrawals. While the best place to keep you money depends on your
situation, there are some places where it rarely, if ever, belongs. Here
are four places where you shouldn’t keep your money.
1. Under your mattress
Money stuffed under a mattress | Source: iStock
Before there were banks on every corner, many Americans had no choice
but to keep their savings at home, but those days are long gone. While
having some cash on hand for emergencies is smart, stashing your life
savings under your mattress or in an old coffee can is a recipe for
disaster. Money left moldering under your bed is actually losing value,
since you’re not earning any interest to keep up with inflation. Not to
mention the risk of losing your nest egg to theft, fire, or some other
disaster. If you must keep your savings in cash, at least put it in a
safe deposit box (though most banks discourage this). Or take a cue from Walter White and hide it in a storage locker.
2. In a savings account
Savings, piggy bank | iStock.com
Saving regularly is a responsible money move, but stashing your cash
in a traditional savings account may be causing you to lose money. The
average savings account was earning a measly 0.06% in interest in July
2016, according to the FDIC. Even at today’s relatively low inflation rates, that’s still not enough for your savings to keep up.
While savings accounts are a fine place to keep relatively small
amounts of cash you’ll need in the short-term, they’re not a great place
to keep your entire nest egg. For retirement and other long-term goals,
you’ll need to look for investments that generally offer better
returns, like stocks. But you do want some money in an easily accessible
account so you can cover unexpected expenses like an emergency car
repair. To earn a better return on your savings, look for higher-interest accounts from credit unions and community banks, or find a high-yield checking account.
3. Collectibles
Beanie Babies sit on a store shelf | JOYCE NALTCHAYAN/AFP/Getty Images)
Remember the Beanie Baby craze? In the late 1990s, people were so
wild about these little stuffed animals that they bought them by the
thousands, and rare beanies sometimes sold for thousands of dollars. One
father “invested” more than $100,000 in Beanie Babies,
only to see his savings vanish when the fad petered out. It’s a
reminder that while collecting may be a fun hobby, it’s a risky place to
keep your life savings.
“[T]he only way to make money investing in collectibles is to find
someone who is willing to pay more for them than you did,” Gus Sauter, a senior consultant to Vanguard Group, told the Wall Street Journal.
That can be a lot harder than it sounds, especially if the market for
your collection dries up (see Beanie Babies). Plus, if you have an
emotional attachment to your collection, selling it when you need cash
can be difficult. That doesn’t mean you shouldn’t spend your money on
rare comic books or signed first editions, but you should realize what
you’re doing isn’t an investment. “Buy what you like because you might be holding it a long
time. When you do sell, consider yourself lucky if you make a profit,”
Rick Ferri, the founder of Portfolio Solutions, told the Journal.
4. Penny stocks
Wall Street sign, stock market | STAN HONDA/AFP/Getty Images
Buying penny stocks has never been a smart investment. These bargain-basement stocks in small companies trade for under $5 a share.
Information about the companies and their financials is hard to come
by, and the stocks are usually sold over-the-counter, which means they
don’t have to meet the same requirements as stocks sold on exchanges
like the NYSE, Investopedia explained.
While the prospect of snapping up thousands of cheap shares before a
stock takes off makes penny stocks tempting, they’re a high-risk
investment. The chances of the company whose penny stock you’re buying
turning into the next Google are slim, and they can be difficult to
sell. Worse, scammers sometimes talk up an ultra-cheap stock to
artificially inflate the price, then sell their overvalued shares just
before the stock’s value collapses, a scheme known as “pump-and-dump.”
“Investors in penny stock should be prepared for the possibility that they may lose their whole investment,” the SEC warned.
Jeremy Corbyn
has been accused of planning to “bankrupt Britain” with a manifesto
that would ramp up debt by £250 billion and stage the biggest tax raid
the country has ever seen.
The Labour leader announced plans for £48.6 billion of extra
annual spending commitments paid for by high earners and businesses
that would saddle the country with its biggest tax burden since 1950.
His manifesto pledges were immediately picked apart by one
of the country’s leading economists, who suggested the tax plans might
only raise £20bn, leaving a £28.6bn annual shortfall.
Mr Corbyn, who revealed he would nationalise the UK’s water
companies, in addition to the railways, Royal Mail and National Grid,
admitted he could not give any figures for how much his 1970s-style
nationalisation project would cost.
Journalist booed by Corbyn supporters at manifesto launch after asking about leader's popularity
01:25
The
124-page manifesto, titled For the Many, Not the Few, claims to use a
tax and spend model developed by “world-leading economists”, but a
footnote reveals that one policy - an offshore company property levy -
relies partly on calculations by the satirical magazine Private Eye.
And the official launch of the manifesto - a week after a draft copy was leaked - descended into farce as Mr Corbyn appeared to invent a new policy on the hoof and his shadow chancellor John McDonnell gave an incorrect figure for the size of the deficit.
The Conservatives described the document as “nonsensical”, while the Centre for Policy Studies thinktank said it was “economically crazy”.
Meanwhile, Len McCluskey, the boss of the Unite union and
one of Mr Corbyn’s closest allies, wrote off Labour’s chances of winning
the election and said holding on to 200 seats - a loss of 29 seats and
its worst result since 1935 - would constitute “a successful campaign”.
If they win the election Labour
will bring the threshold for the 45p tax rate down from £150,000 to
£80,000, with a new 50p top rate kicking in at £123,000, affecting 1.3
million workers. It will mean an average increase of £5,300 for those
who will pay it.
Corporation
tax will increase from 19 per cent to 26 per cent and an there will be a
new excessive pay levy on companies paying employees more than
£330,000.
Together with a clampdown on tax avoidance, an extension of
stamp duty reserve tax, VAT on private school fees and other tax-raising
measures, Labour claim they will raise £48.6bn, but the Institute for
Fiscal Studies puts the figure at between £20bn and £30bn, leaving a
shortfall of up to £28.6bn.
Jeremy Corbyn launches Labour election manifesto
01:33
Economists
have pointed to figures that show that increasing corporation tax (and
income tax for high earners) actually reduces the tax yield, as
companies and individuals will find ways to avoid paying.
Paul Johnson, director of IFS, said: “They are looking at
raising an awful lot from companies and high earners. The chance of
getting £50bn are pretty small. It seems to us is that if they were able
to raise that amount that would take tax burden in the UK to its
highest level in 70 years."
The tax burden - the amount of tax paid compared with total
national income - could rise to around 37 per cent under Labour by 2022,
higher than at any time since 1950, according to IFS estimates.
A Conservative source said: “Jeremy Corbyn’s plans will bankrupt Britain.”
John O'Connell, chief executive of the TaxPayers' Alliance,
said: This entire manifesto is based on the clearly absurd belief that
businesses can be repeatedly hammered with massive tax increases and
crippled with regulation without any wider impact on the economy, jobs
and investment.
“If even a handful of these disastrous ideas were implemented it would mean misery for the many and employment for the few.” During his manifesto
launch in Bradford, Mr Corbyn said during a question and answer session
that a freeze on benefits introduced last year would end under a Labour
Government - a decision the House of Commons library estimated would
cost around £14billion.
Jeremy Corbyn back-pedals on promise to axe benefits freeze
00:43
However,
the manifesto contained no such commitment and an hour later the Labour
leader was forced into an embarrassing about turn, saying the party
will not increase welfare payments across the board and would review the
Conservative Government's changes instead.
Mr McCluskey, who had enthusiastically welcomed the
manifesto when it was agreed last week, told the Politico website: “I
don't see Labour winning, I think it would be extraordinary. I believe
Labour can hold on to 200 seats or so and it will be a successful
campaign. It will mean that Theresa May will have had an election, will
have increased her majority but not dramatically".
He said the “scale of the task is immense” and there was a problem with the “imagery of Jeremy Corbyn”.
Earlier, Mr McDonnell was asked about his plans to add £250
billion to Britain’s £1.5 trillion national debt in a BBC radio
interview yesterday. Asked how big the budget deficit is, he said: “£68
to £70 billion.” The actual figure is £52 billion.
The Chairman, House of Representatives Committee on Rural
Development, Oladipupo Adebutu, has blamed corruption in the civil
service on the delay in the payment of pensions.
Adebutu made the disclosure at the weekend in Abeokuta when he paid a
condolence visit to the family of the late Nollywood actor, Samuel
Adesanya, also called “Pastor Ajidara.”
According to the lawmaker, who represents Remo Federal Constituency,
the failure to pay retirees years after their retirement, is why they
steal while in service.
The Guardian learnt that the late Adesanya was not paid his pensions,
which was estimated to be about N4million before he died some weeks ago.
Adebutu, who was accompanied by some chieftains of the People’s
Democratic Party (PDP), stressed that the failure to promptly pay
retirees was sending a wrong signal to the upcoming generations.
He urged the various levels of government to pay the pensions and
gratuities of their retired civil servants to make the country move
forward.
He said: “When people devote their lifetime to work in a system that
is pensionable, it is obligatory for the employer to honour the
contract. It is unkind for such monies to be misappropriated.”
The lawmaker expressed sadness that the late actor needed N1.3
million to have an operation for a kidney transplant and all efforts to
raise the money were unsuccessful.
“We have been told that he had an unpaid pension of N4million, but
only N1.3 million was needed to save his life, which he couldn’t
access,” he said.
He, however, donated N500, 000 to the widow, Atinuke to take care of the family
Guardian
Governor Abdullahi Umar Ganduje of Kano State has disclosed that his
administration spent over N18 million to pay pensioners from May 2015
till date.He made the disclosure yesterday at the take over of 21 houses
built by the Kano State Pension Fund Trustees (KSPFT) at Durumi
district in Abuja.
Ganduje explained that his administration is among the few states
that pay their pensioners regularly, adding that over 26, 282 retirees
were paid during the period under review
He stressed that even though his administration inherited a huge debt
from the previous regime, N5.194 billion was used to settle pensioners’
death benefit during the period.
The governor disclosed that he had directed that N300 million be
deducted monthly from the state’s coffers to ensure the regular payment
of pensions and gratuities.
He added that no fewer than 1, 270 names of non-existent pensioners
were deleted from the payroll, after a verification by some consultants
in the state. Ganduje commended the pension fund trustee for the
construction of the houses, which, he said, was in line with his
regime’s government effort to ensure a sustainable provision of shelter
to its citizenry.
The Chairman of KSPFT’s Sani Gabasawa, explained that the houses were
built in conjunction with the Urban Shelter Limited, under the Public
Private Partnership (PPP) at a cost of N1.8 billion.
The Chairman of the Nigeria Union of Pensioners (NUP), Ibrahim
Abdullahi commended Ganduje for meeting the needs of its members.He,
however, urged the governor to consider an increment in pensioners’
entitlement, in line with the extant pension law, which specifies that a
review be carried out every five years.
The
organised labour has threatened a nationwide strike if the government
failed to begin process of reviewing the workers minimum wage, saying
that Nigerian workers are hungry and legitimately angry.
The National Union of Textile Garment and Tailoring Workers of Nigeria
(NUTGTWN), an affiliate member of the Nigeria Labour Congress (NLC),
issued the threat in Kaduna on Thursday.
Addressing newsmen alongside NUTGTWN National President, Comrade John
Adaji, General Secretary of the union and Vice President IndustriALL
Global Union, Comrade Issa Aremu called on the Federal Government to
urgently constitute a committee on the review of the current national
minimum wage.
The labour union equally called on NLC and TUC to make urgent case for
workers’ control of the country’s pension industry, saying pension fund
is workers’ capital and should not be a play-ground to reward failed
politicians.
According to Aremu, "As demonstrated by workers during the May Day in
Abuja, Nigeria risks national industrial crisis except governments at
all levels give due attention to the critical issue of compensation of
workers. Hungry workers are legitimately angry workers. Nigerian workers
are not only hungry but legitimately angry.
"We commend both the Senate and the House of Representatives for their
respective facilitating roles to address the current issue of national
minimum wage. However, the responsibility lies squarely with President
Muhammadu Buhari ably being represented by Vice President Osinbajo.
"National Minimum Wage (Amendment) Act 2011 which offers the current
N18,000 was for a 5-year cycle due for review in 2015. The five-year
time limit was to avoid minimum wage stagnation and attendant seemingly
increases that follow. In UK minimum wage is reviewed yearly. Today it
is £7.5 per hour, about N37,000 per day!
"Long before the current recession, Nigeria workers have long been in
depression. With Naira devaluation and high inflation, 2010 negotiated
national minimum wage of N18,000 which was about $120 in 2010 has fallen
to below $50 in 2017 worsening income poverty. Nigeria cannot get out
of recession with poorly paid work-force", the labour leader said.
Before
the bill was passed into law, the leader of the House, Ikechukwu
Ezeugwu noted that the amended bill sought to give a life-time pension
to elected governors and their deputies, who were not impeached from
office.
The Enugu State House of Assembly has amended a law that would
henceforth enable the state governors and their deputies to receive
their salaries as long as they live.
The law amended the gubernatorial pensions bill of 2015 and other
matters passed by state Assembly. It however, provided that the governor
or the deputy must not be impeached to earn such life pensions.
Before the bill was passed into law, the leader of the House,
Ikechukwu Ezeugwu noted that the amended bill sought to give a life-time
pension to elected governors and their deputies, who were not impeached
from office.
Ezeugwu said that the amendment became necessary to accommodate
governors who had helped in the development the state from the old
Anambra State and the new Enugu State.
Responding, Paul Nnajiofor (PDP Nkanu East) said that the amended
bill was long overdue. “This law as amended will give our respected and
revered elder statesmen their dues and appreciate them for the immense
contribution to the development of the state,” he said.
Representative of Enugu South Rural, Mrs. Mary Ugwu said that the
amended bill would make future governors and their deputies to serve
with dedication and transparency.
Guardian
