Tag: Chancellor George Osborne

IFS warns of tough times for UK households

IFS warns of tough times for UK households

A report by the Institute for Fiscal Studies (IFS) has warned that households will be squeezed for the next decade as they suffer from the harsh spending cuts introduced by the Government. It said households are suffering one of the worst attacks on their finances since the Second World War and that the impact of [...]

September 12, 2011 | 0 Comments More
ICB final report recommends ring-fencing

ICB final report recommends ring-fencing

The Independent Commission on Banking’s (ICB) final report has been published today and is recommending that UK banks should ring-fence their retail banking operations. According to the report, ring-fencing would protect banks from riskier investment banking divisions and would “make it easier and less costly to resolve banks that get into trouble”. The ICB, which [...]

September 12, 2011 | 0 Comments More
UK interest rates remain on hold

UK interest rates remain on hold

The Bank of England’s Monetary Policy Committee (MPC) has today elected to keep UK interest rates on hold at the historically low level of 0.5%, as widely expected. Interest rates have now been at this low level since March 2009 – when the economy was in the midst of recession. Recent figures show the economy [...]

September 8, 2011 | 0 Comments More
NIESR: UK economic recovery to remain sluggish

NIESR: UK economic recovery to remain sluggish

Recovery of the UK economy is to remain sluggish, with GDP slowing to 0.2% in the June to August period, the National Institute of Economic and Social Research (NIESR) predicts. This compares with a 0.6% rate in the three months to July. The influential think tank believes if the weakness continues, the Bank of England [...]

September 8, 2011 | 0 Comments More
Chancellor warns of tough and long recovery ahead

Chancellor warns of tough and long recovery ahead

Speaking in the House of Commons today, Chancellor George Osborne has warned that the UK can expect a long and tough recovery. His speech came as he defended the Government’s tough spending cuts, which many have been critical about – even suggesting they could push the UK back into recession. However, the Chancellor believes that [...]

August 11, 2011 | 0 Comments More
UK public sector borrowing higher than forecasts in June

UK public sector borrowing higher than forecasts in June

The Office for National Statistics (ONS) has today revealed UK public sector borrowing rose last month. According to the ONS, public sector net borrowing rose to £14 billion last month compared with £13.6 billion June 2010. The figure was higher than analysts’ expectations and was attributed to a fall in income tax receipts. The figure [...]

July 21, 2011 | 0 Comments More
Mansion House Speech – ring-fencing, Northern Rock sale and inflation

Mansion House Speech – ring-fencing, Northern Rock sale and inflation

At last night’s annual Mansion House speech, Chancellor George Osborne received some support for his suggestion to ring-fence banks’ retail operations so they are protected from losses from investment banking. After the speech, Barclays Chief Executive Bob Diamond said: “Retail ring-fencing would not be our first option, but we can see ways it would work, [...]

June 16, 2011 | 0 Comments More
Chancellor to announce Northern Rock sale

Chancellor to announce Northern Rock sale

In his Mansion House speech later this evening, Chancellor George Osborne is to announce plans to sell off state-owned Northern Rock. The crisis-torn bank, which collapsed on the eve of the credit crisis, is expected to be auctioned off and will raise around £1 billion. The Chancellor will say he hopes to find a buyer [...]

June 15, 2011 | 0 Comments More
IMF provides assessment for UK economy

IMF provides assessment for UK economy

The International Monetary Fund (IMF) has today published its annual assessment for the UK economy and is estimating growth of 1.5% this year, down from 1.7% in April. The estimate is roughly in line with other forecasts for the UK economy with the British Chambers of Commerce expecting growth of 1.3%, the Organisation for Economic [...]

June 6, 2011 | 0 Comments More
Concerns for UK economy as many call for “Plan B”

Concerns for UK economy as many call for “Plan B”

Some of Britain’s top economists are calling for Chancellor George Osborne to come up with a plan B for the UK economy. It has been suggested that the Chancellor’s massive spending cuts are too harsh for the fragile economy and a plan B on economic policy is required. The comments come shortly after the OECD’s [...]

June 6, 2011 | 1 Comment More
Flat-rate state pension confirmed in Budget

Flat-rate state pension confirmed in Budget

In today’s Budget, Chancellor George Osborne confirmed that the new flat-rate state pension will be brought in but will take many years to come into force. According to the Government, the new pensions system should make pension planning easier to understand – stripping out the current complex means-tested payments system and will move towards a [...]

March 23, 2011 | 0 Comments More
Chancellor Osborne delivers 2011 Budget

Chancellor Osborne delivers 2011 Budget

Chancellor George Osborne has delivered his Budget speech today, what he has described as a “Budget for growth”. Firstly, Mr Osborne unveiled a scheme aimed at helping 10,000 first-time buyers purchase new-build flats and houses. The buyer would have to fund 5% of the cost, while the Government and home builder would both put up [...]

March 23, 2011 | 0 Comments More
Budget 2011: Osborne to target growth

Budget 2011: Osborne to target growth

Chancellor George Osborne will deliver his Budget speech today at 1230 GMT, which will be aimed at boosting growth amid the fragile recovery. Mr Osborne is describing it as a “budget for growth” despite the tough austerity measures which threaten to push Britain back into recession, according to some economists. However, many believe the Chancellor [...]

March 23, 2011 | 0 Comments More
Report reveals £8bn windfall for Government

Report reveals £8bn windfall for Government

A report by the Ernst & Young Item Club has suggested the Government could be in line for an £8 billion windfall this year due to a rebound in tax revenues and a cut in public spending. The Item Club is estimating public borrowing for the financial year to the end of March to be [...]

March 21, 2011 | 0 Comments More
Budget may see freeze in fuel duty

Budget may see freeze in fuel duty

There is speculation that the Government may delay the 1p rise in fuel duty - planned for next month. The move is believed to be announced in this week’s Budget and comes as the price of petrol has surged to more than £1.30 a litre, due to concerns about the ongoing civil unrest in Libya [...]

March 20, 2011 | 0 Comments More
CBI calls for economic growth focus

CBI calls for economic growth focus

The Confederation of British Industry (CBI) is urging Chancellor George Osborne to provide a “relentless focus” on economic growth and job creation when he presents his annual budget later this month. In a letter to the Chancellor, the business lobby group said action must be taken in order to boost the economic recovery. Over recent [...]

March 7, 2011 | 0 Comments More
Bank of England presents Quarterly Inflation Report

Bank of England presents Quarterly Inflation Report

Presenting today’s Quarterly Inflation Report, the Bank of England’s Governor, Mervyn King, said inflation will continue to stay high in the first half of 2011. Mr King warned inflation might even reach 6% but it will fall back next year. The Bank’s report comes just a day after the Office for National Statistics (ONS) announced [...]

February 16, 2011 | 0 Comments More
Banks pledge to lend £190bn this year

Banks pledge to lend £190bn this year

After weeks of tense negotiations, Britain’s largest banks have agreed to lending targets and pay restraints. Chancellor George Osborne today announced that under the so-called Project Merlin, banks will lend around £190 billion to businesses this year - including £76 billion to SMEs. Last year, banks loaned £179 billion to businesses. The four financial institutions [...]

February 9, 2011 | 0 Comments More
Government will maintain levy on bank profits

Government will maintain levy on bank profits

Chancellor George Osborne has confirmed he is maintaining the levy on banks, raising an additional £800 million this year and £2.5 billion in the coming years. In a radio interview, he said he wants to ensure “banks make a fair contribution to closing the deficit”. Initially, Mr Osborne said the Government’s new bank levy would [...]

February 8, 2011 | 0 Comments More
Bonus meeting delayed by bad weather

Bonus meeting delayed by bad weather

A meeting between Business Secretary Vince Cable, Chancellor George Osborne and the bosses of the UK’s top five banks has been delayed after Mr Osborne is stranded in the US due to bad weather. The meeting, scheduled for this afternoon to discuss the controversial issue of bonuses, had to be cancelled due to transport problems. [...]

December 20, 2010 | 0 Comments More