Latest: Economy News

BCC cuts UK growth forecast

BCC cuts UK growth forecast

The British Chambers of Commerce (BCC) expects the UK economy to grow more slowly than previously forecast and says it faces “serious challenges”. In its quarterly economic forecast the BCC forecast growth of 0.6 per cent in 2012, a slight decrease from its previous forecast of 0.8 per cent. It expects the government’s efforts to [...]

March 6, 2012 | 0 Comments More
Government on track to beat borrowing target

Government on track to beat borrowing target

The government expects to either achieve or exceed its target of borrowing no more than £127bn this year, after recording its biggest surplus for four years in January. In the tax year to date the government has borrowed £93.5bn and in January it made a net repayment of £7.75bn, excluding financial interventions. Although a surplus [...]

February 21, 2012 | 0 Comments More
Inflation down to 3.6% in January

Inflation down to 3.6% in January

Inflation fell sharply in January to 3.6 per cent on the Consumer Prices Index (CPI), from 4.2 per cent in December, according to the latest official figures. Retail Prices Index (RPI) inflation, which includes housing costs such as mortgage interest and council tax, fell to 3.9 per cent from 4.8 per cent. Although CPI inflation [...]

February 14, 2012 | 0 Comments More
Bank of England to launch £50bn economic stimulus

Bank of England to launch £50bn economic stimulus

The bank of England is expected to launch another round of quantitative easing (QE) this week, in the hope of preventing the UK falling into another recession, after the economy contracted by 0.2 per cent at the end of last year. The bank is likely to pump at least £50 billion into the economy by [...]

UK economy needs fiscal boost

UK economy needs fiscal boost

The UK economy needs a fiscal boost of £10 billion to £20 billion in order to avoid another recession, a leading think tank said today. In its annual Green Budget, The Institute for Fiscal Studies calls for Chancellor George Osborne to include a short-term fiscal stimulus in his budget. This would buffer the UK economy [...]

Britain’s national debt exceeds £1 trillion

Britain’s national debt exceeds £1 trillion

UK government debt rose to over £1 trillion for the first time in December, despite a fall in public sector borrowing. Excluding bank bailouts and other financial interventions, public sector borrowing fell £2.2 billion to £13.7 billion in December according to the latest figures from the Office for National Statistics. This was lower than City [...]

Gap between rich and poor cities to widen

Gap between rich and poor cities to widen

The economic gap between cities doing relatively well during the economic downturn and those that have been hard hit by the recession, is expected to widen. A report by the Centre for Cities, a research and policy organisation focused on improving the economic performance of UK cities, suggests that a combination of weak growth in [...]

Older people affected worst by inflation

Older people affected worst by inflation

This month’s official figures show that inflation has fallen from 4.8 per cent to 4.2 per cent but two new studies show that older age groups suffer the most from high inflation, and at 4.2 per cent it is still well above the government’s 2 per cent target. Saga’s monthly Price Index shows that since [...]

Inflation falls to 4.2%

Inflation falls to 4.2%

The rate of Consumer Prices Index (CPI) inflation fell to 4.2 per cent in December, from 4.8 per cent in November, according to the latest figures from the Office for National Statistics (ONS). This is the third consecutive month that inflation has fallen and December’s figures represents the biggest monthly fall since April 2009. Inflation [...]

UK faces stagnation but may escape recession

UK faces stagnation but may escape recession

Britain’s economy stagnated in the final quarter of 2011 and is “very likely” to contract in the first half of 2012 according to the British Chambers of Commerce (BCC). The euro zone debt crisis caused the economy to stagnate in 2011 and it has failed to improve this year, with the survey suggesting that one [...]

CBI outlines plans to re-balance economy

CBI outlines plans to re-balance economy

In its New Year report the CBI has called on UK businesses to increase their export activity to help the UK re-balance its economy. The CBI believes that this could boost the UK’s economy by £20 billion over the next eight years. The organisation is also calling on the private sector to invest £140 billion [...]

Brits losing faith in inflation strategy

Brits losing faith in inflation strategy

The Bank of England’s latest inflation attitudes survey suggests that fewer people believe inflation is being controlled effectively with interest rates. In August, when the survey was last carried out, the proportion satisfied that the Bank was doing its job to set interest rates to control inflation, versus those dissatisfied, was 16 per cent, but [...]

Inflation on downward trend

Inflation on downward trend

The Consumer Prices Index (CPI) rate of inflation fell to 4.8 per cent in November it was revealed yesterday, representing the second consecutive 0.2 percentage point monthly decline. Although the price of domestic heating and alcohol increased during the month, this was offset by a fall in the cost of food, petrol, clothing, furniture and [...]

Economists forecast deeper UK recession

Economists forecast deeper UK recession

The UK economy is expected to contract by 1.3 per cent in 2012, according to respected economists at Standard Chartered bank. Growth of 0.6% had been predicted but Standard Chartered’s latest survey, of 350 companies, points to a sharp recession in the face of the ongoing eurozone crisis. The eurozone economy is expected to contract [...]

UK isolated after eurozone summit

UK isolated after eurozone summit

Prime Minister David Cameron has used his veto to block a new EU treaty proposed by France and Germany to help restore economic stability in the eurozone. The proposed changes to the Lisbon Treaty would have imposed tougher financial regulations on all members of the European Union but Mr Cameron was unwilling to support the [...]

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Chancellor warns UK at risk if euro collapses

Chancellor warns UK at risk if euro collapses

As the leaders of the European Union’s 27 member states prepare to meet over a possible new EU treaty, the UK’s chancellor George Osborne warned a House of Lords committee that a collapse of the euro would do ‘enormous damage’ to the UK economy. Mr Osborne also stressed that the damage would be long-term. Speaking [...]

Rich-poor divide widens most rapidly in UK

Rich-poor divide widens most rapidly in UK

Developed economies are seeing the rich-poor divide widen, according to a report by the Organization for Economic Cooperation and Development (OECD), and the gap is growing most quickly in the UK. In a statement, the OECD’s Secretary-General Angel Gurria said: “this study dispels the assumptions that the benefits of economic growth will automatically trickle down [...]

IFS lost for words over economy

IFS lost for words over economy

The Independent Institute for Fiscal Studies (IFS) has warned that the income of UK households is likely to fall 7.4 per cent in three years and Britons will be no better off in 2016 than they were in 2002. The comment followed analysis of the Chancellor’s Autumn Statement yesterday. The IFS expects household income, after [...]

Chancellor says UK facing very difficult times

Chancellor says UK facing very difficult times

Chancellor of the Exchequer George Osborne admitted this afternoon that the government will not meet its Budget forecasts for UK economic growth and borrowing. In his Autumn Statement, Mr Osborne reduced forecasts for UK growth to 0.9% this year, 0.7% next year and 2.1% in 2013. In March’s Budget the independent Office for Budget Responsibility [...]

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OECD warns of UK recession and unemployment

OECD warns of UK recession and unemployment

The Organisation for Economic Cooperation and Development (OECD) has cut its global growth forecast for next year to 3.4 per cent and has warned that the UK will follow Europe into recession. The organisation also predicts that unemployment in the UK will reach 9.1 per cent by 2013. Yesterday the Ernst & Young ITEM Club, [...]