The Financial Ombudsman Service has said the number of financial complaints received in the first half of 2024 rose by over 40%.

FOS received a total of 133,019 complaints between 1 January and 30 June, compared to 93,114 in the same period last year.

The complaints were made against 242 businesses including banks, insurance and investment firms.

Banking continues to top the tables, with 101,031 banking and credit complaints registered in the first six months of 2024.

These include disputes about credit cards, unaffordable lending and car finance, as well as fraud and scams.

FOS said over half of all banking and credit complaints were brought by professional representatives.

Other sectors that received a large number of complaints include general insurance/pure protection (22,489), decumulation life and pension (3,369), and investments (2,305).

FOS upheld 35% of complaints in favour of the consumer, compared to 37% in the first half of 2023.

FOS chief executive and chief ombudsman, Abby Thomas, said: “Businesses should put consumers at the heart of their service but the high level of complaints we receive shows that’s not always the case.

It’s vital that businesses are open and transparent with their customers, treating them with fairness and understanding.

“While professional representatives have an important role to play, they must ensure that their cases are well evidenced and have merit.

“If people don’t feel they’ve been treated fairly by their financial provider, they can come directly to our service and we’ll see if we can help.”

Lead consultant at wealth management consultancy firm Simplify Consulting, Dom House, described the complaints data as “extremely disappointing”.

“Complaint volumes across all FCA-regulated firms have continued to increase over the last 10 years but now, around 18 months into the Consumer Duty, it seems the industry is still to move the dial significantly on complaints,” he said.

“Firms should now be looking at their complaints data to understand how they can reverse this trend and consider whether the changes they’ve made for the Consumer Duty have had the impact intended.

“Consumers expectations have been raised as new technology becomes mainstream in the financial services industry, and firms need to get a grip by addressing the imbalance between prevention and cure by focusing on the root cause and prevention of complaints before they are raised.”

The government will change its self-imposed debt rules in order to free up billions for infrastructure spending, the chancellor has told the BBC.

Chancellor Rachel Reeves said that there will be a technical change to the way debt is measured which will allow it to fund extra investment.

She said this was being done “so that we can grow our economy and bring jobs and growth to Britain”.

However, Reeves’ first Budget next week is still expected to mean some cuts to public services.

The government has committed to get debt falling as share of the economy in five years’ time.

The wider debt measure is expected to allow for up to £50bn more borrowing for investment, although not all of this is expected to be allocated at the Budget.

The chancellor signalled that she intends to reverse what she called “the path of decline” that she says she inherited from the Conservatives.

She suggested this would have seen a fall in government investment from 2.6% of the share of the economy last year to 1.7% by 2028-29 or £20bn a year in cash terms.

“If we continued on that path, we’d miss out on other opportunities, and other countries would seize them” she said.

The Treasury had already signalled that a rule change was likely ahead of the Budget on 30 October.

The chancellor cited top economists as backing the move including Mark Carney and Andrew Haldane, as well as former Conservative Treasury minister Jim O’Neill.

She also referred to the words of a top International Monetary Fund (IMF) official overnight.

The organisation’s first deputy managing director Gita Gopinath backed greater investment, speaking to the BBC: “I just want to emphasize again, that public investment is needed in the UK.

“If you compare the UK to G7 countries, investment has fallen short, and so that spending will have to take place alongside having the kind of rules that stabilizes debt over the next five years.”

It is understood the extra room for manoeuvre will not be able to be used for extra day-to-day spending or to reduce planned Budget tax rises.

A CITY in Portugal is one Brits may have never heard of – but has been named one of the cheapest to visit.

Silves in Portugal used to the be capital of the Algarve.

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Sadly, most of the city only dates back to the late 1700s as most of it was destroyed in a huge earthquake.

What has remained is the Moorish Castelo de Silves, the largest in the Algarve.

But now, most people skip the city in favour of the nearby beaches, making it a quiet – and affordable destination to visit during the off-peak season.

A study conducted by Lisbon Tickets & Tours analysed the average cost of hotels, food, beer, taxis and flights from the UK.

And coming out on top as the most affordable spot in Portugal was Silves.

The average price of a hotel was around £73, while a beer costs as little as £2.50.

And flights from the UK were under £50, on average.

Visit during August for the annual Silves Medieval Fair, with live reenactments and markets.

Lisbon Tickets & Tours’ travel expert Magdalena Petrusic said: “Portugal offers a range of affordable destinations to visit during the off-peak season, making it a great choice for budget-conscious travellers.”

Silves is a great day trip destination for the Algarve, especially if staying in Lagos of Albufeira.

The cobbled streets are lined with independent shops and cafes, serving handcrafted gifts and ceramics.

Some of the best restaurants include Churrasqueira Valdemar, named one of Tripadvisor‘s Travellers Choice Awards and known for its authentic peri peri chicken.

And the Segredo dos Mouros bar has been named a “hidden gem” for great value tapas and drinks.

most of the central hotels are B&Bs and even riads you are likely to see in Morocco.

Casa Riad Yasmin has its own indoor swimming pool, while Hotel Colina dos Mouros is a more affordable three-star option with rooms as little as £37.

To get to Silves, he best way is to fly to Faro with easyJet and Ryanair offering bargain flights.

Ryanair has £14.99 flights from Birmingham, Bristol, Leeds, Manchester and London Luton, while the cheapest easyJet flights are also £14.99, from London Luton, London Gatwick and Liverpool.

Silves is then a 45 minute drive, or a one hour bus.

The Sun’s Deputy Travel Editor on why a holiday to the Algarve can’t be missed

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The Sun’s Deputy Travel Editor Kara Godfrey visited the Algarve, after it was named Europe’s best beach destination.

I visited the Algarve just before the peak season and could definitely see why it is often winning praise.

Praia do Camilo is one of the popular beaches and lives up to the hype with bright blue water and fewer crowds due to the steep 200 steps to the bottom.

And off the coast are some amazing unknown islands – there is Barretta Island, uninhabited but home to amazing restaurant Estamine, the slightly more built up Isla de Armona.

Make sure to stay at 3HB Faro, the first five-star hotel in the city.

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The Sun recently visited the W Algarve – here’s what you can expect.

And we’ve rounded up the best hotels in the Algarve with waterparks.

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PENSIONERS could be owed money by HMRC as thousands have been over charged.

Anyone from the age of 55 who takes money out of a workplace or personal pension as a lump sum could be owed money back.

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New figures from HMRC today reveal that almost £44.3million was refunded to retirees between July and September 2024 alone.

This comes after the record £57million that was refunded last quarter.

In that same period, more than 12,000 claims were processed in total.

It works out that the average reclaim payment was £3,691 per person.

However, how much you overpaid could be higher or lower based on individual circumstances.

Why are pensioners overtaxed?

This is part of a long-running issue caused by emergency tax codes applied to pension withdrawals under the pension freedoms introduced in 2015.

Since the changes, anyone over 55 can access their pension flexibly, but HMRC often taxes large withdrawals as if they will be repeated monthly, resulting in overpayments.

Jon Greer, head of retirement policy at Quilter, expressed concern about the system’s flaws.

He noted that while there has been a slight drop in the number of overpayments this quarter, the issue remains significant.

John said: “The PAYE system is designed for regular income and struggles with the complexities of flexible pension withdrawals.

“As a result, many pensioners are overtaxed, and the refund process can be frustratingly slow.”

For many pensioners the tax bill can come as a unsavoury surprise.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “The tax bill can come as a nasty surprise for people expecting to access their savings without a hitch and can throw off financial plans.”

How to get your cash back

For those hit by the tax trap, the process of getting their money back involves filling out specific forms as quickly as possible.

You can wait for HMRC to review your tax code at the end of the tax year and it will process a refund, but obviously, this means you could be waiting a while.

To get the cash back faster, you can fill in one of three forms: a P55, P53Z or a P50Z which can all be found on the Government’s website.

Which form you need to fill out will depend on how you have accessed your retirement pot:

• If you’ve emptied your pot by flexibly accessing your pension and are still working or receiving benefits, you should fill out form P53Z,
• If you’ve emptied your pot by flexibly accessing your pension and aren’t working or receiving benefits, you should fill out form P50Z,
• If you’ve only flexibly accessed part of your pension pot then use form P55.

To avoid having emergency tax deducted in future, try taking smaller amounts out rather than one lump sum.

Provided you fill out the correct form HMRC says you should receive a refund of any overpaid tax within 30 days.

More than £1.3billion has been refunded since the pension freedoms began in 2015, highlighting the scale of the issue.

Experts are urging savers to proceed with caution, especially with speculation around potential changes to pension tax rules in the upcoming budget.

Financial advisers are recommending that anyone considering a withdrawal seek professional advice to avoid falling into this tax trap.

Jon said: “It is vital that those considering pension withdrawals amid these budget rumours seek professional financial advice.

“Advisers can help structure withdrawals effectively, ensuring savers do not fall foul of the tax system’s pitfalls.

“Until the system is changed, we are likely to continue seeing many savers caught out and forced to reclaim significant sums of money.”

With proper planning, pensioners can ensure they don’t face unnecessary tax bills or delay in getting their money back.

The Israeli military appears to have dug a trench at least 7km long tracking the border between the Israeli-occupied Golan Heights and southern Syria since mid-August, satellite imagery shows.

Iranian-backed militias including Hizbollah are present in southern Syria, creating another potential front as Israel fights in Gaza and Lebanon.

Israel’s defensive reinforcements come as it prepares to see off any potential threats from civil war-torn Syria after expanding its offensive against Hizbollah in Lebanon. Israel is also preparing to retaliate against Iran’s ballistic missile bombardment earlier this month.

Geir Pedersen, the UN special envoy for Syria, told the UN in New York that the regional peacekeeping body, the UN Disengagement Observer Force (UNDOF), had seen “construction activity” by the Israeli military near the demilitarised so-called area of separation.

“In the Golan, some construction activity has been carried out by the Israel Defense Forces in the vicinity of the area of separation,” Pedersen said on Wednesday. “During this activity, UNDOF observed an Israeli battle tank and excavators cross the ceasefire line into the area of separation.” Pedersen did not specify exactly where the diggers had been seen.

Another person with direct knowledge said that the UN peacekeepers had noticed Israel strengthening its defensive positions in the occupied Golan. Three UNDOF positions are located less than 1.5km from part of the freshly dug earthworks. UNDOF, which is tasked with monitoring the border area, did not respond to a request for comment.

“It appears that Israel has reinforced its defences along its frontline with southern Syria,” said Haid Haid, a consulting fellow with London-based Chatham House.

A Financial Times analysis of satellite imagery found that the trench was 20 metres wide in places. At the earthwork’s northern end, tracks or markings stray across the border into Syrian territory.

Israel has occupied the Golan Heights since capturing it from Syria during the 1967 Six Day war between Israel and several Arab states. Fourteen years later, Israel annexed more than 1,000 sq km, although its claim to sovereignty over the area is not recognised by most of the international community.

Israel has long targeted Iranian-backed groups in Syria, including Hizbollah, fearing they would use the shattered country as a staging post to launch attacks on the Jewish state.

With Israel on the offensive against Hamas and Hizbollah, escalation in Syria would pose a fresh risk to Bashar al-Assad’s embattled regime, whose rule is buttressed by Russian military advisers and air power, Iran and Iran-backed militants.

Charles Lister, director of the Syria and countering terrorism and extremism programmes at the Middle East Institute in Washington, said concerns had grown “that despite the fact that until now Bashar appears determined to keep the Syrian state out of direct involvement in regional hostilities, that may not be possible to sustain forever”.

Israeli Prime Minister Benjamin Netanyahu “may actually choose to involve Syria more directly . . . almost forcing Syria to become part of the equation, in which case defensive lines on the Golan will be vitally important”, added Lister.

Asked about Israel’s operations and objectives in Syria, an Israeli military official said: “Assad should choose sides.”

With the Syrian army hollowed out after 13 years of brutal civil war, and the country in a continuing economic crisis, analysts assess that Assad — with stretched military resources — would prefer to avoid inviting severe Israeli retribution. 

But Syria is already under fire. According to Pedersen, the Syrian government says Israeli raids have killed more than 100 people in at least 116 air strikes since October 7 last year, when Hamas triggered the Gaza war with a devastating attack on Israel.

These include a spate of Israeli air strikes in the upmarket Mazzeh area of Damascus in recent weeks. Syrian state media reported Israeli strikes on Wednesday night in a residential area of Damascus, and a military site in Homs.

“Unquestionably, the intensity of Israel’s actions has surged in recent months,” said Lister.

Israel rarely comments on its actions in Syria, and its military did not respond to comment requests on its defensive build-up in the Golan.

Southwestern Syria, which abuts the occupied Golan and where the country’s minority Druze sect is concentrated, has a complex security landscape. Previously a hotbed of opposition to the Assad regime, Russian and regime forces have sought to pacify the region with a reconciliation deal. But organised crime has proliferated and individual warlords have become powerful, destabilising the area.

Israel will be most concerned about the local factions linked to Iran. “Many of these groups, particularly in [the area of] al-Quneitra, are aligned with Iran and Hizbollah,” said Haid. “This affiliation has allowed Iran to sustain its influence in the region, even with a limited direct presence.”

Hizbollah has been able “to mobilise its allies to launch attacks against Israel from Syrian territory, despite the Syrian regime’s efforts to avoid entangling the country in the axis of resistance’s skirmishes with Israel”, said Haid. 

However, Russian and Syrian regime forces have this week conducted military exercises on the Golan Heights border, according to London-based war monitor the Syrian Observatory for Human Rights, which has noted Russian military observation posts and patrols being set up in southwestern Syria in recent weeks.