Home computer loans blow
Gordon Brown's Budget has withdrawn tax break support for the Home Computer Initiative. From April 6th employers will no longer be able to offer "loan" computers to their staff as a tax-free benefit. The scheme, which was has enjoyed tax breaks since 1999, has proven popular with workers and has played a key role in encouraging the use of IT within the home.
The initiative has helped around 500,000 people purchase a computer. However, it is estimated that the scheme could have cost the government around £300 million in lost tax revenues over the next three years if it continued to maintain the same level of appeal.
Intellect, a trade body for the IT, telecommunications and electronics sector raised concerns that the government's decision to withdraw funding would undermine any future growth in home-acquired computing skills.
Tom Wills-Sandford, deputy director general of Intellect, told BBC News that:" The Treasury should have taken the opportunity to engage in a formal consultation process to fully assess the benefits of this scheme.
"To date, the initiative has successfully driven uptake of home computers and has played a useful role in widening digital inclusion."
Nemo´s typical rate is 9.0% APR variable. A NEMO LOAN IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. The initiative has helped around 500,000 people purchase a computer. However, it is estimated that the scheme could have cost the government around £300 million in lost tax revenues over the next three years if it continued to maintain the same level of appeal.
Intellect, a trade body for the IT, telecommunications and electronics sector raised concerns that the government's decision to withdraw funding would undermine any future growth in home-acquired computing skills.
Tom Wills-Sandford, deputy director general of Intellect, told BBC News that:" The Treasury should have taken the opportunity to engage in a formal consultation process to fully assess the benefits of this scheme.
"To date, the initiative has successfully driven uptake of home computers and has played a useful role in widening digital inclusion."
