According to experts, the forthcoming VAT hike will have resulted in the purchase of big-ticket items – boosting retail sales in December and the first few days of January. However, the VAT rise from 17.5% to 20%, which kicks in tomorrow, is expected to mean consumers will cut back on their spending over the coming [...]
The National Audit Office (NAO) has published a report on the Government’s Asset Protection Scheme (APS) and concluded that it failed in its aim of boosting bank lending. The scheme, which insurers against losses arising from toxic assets, also did not charge sufficient fees to the banks which participated. The scheme was established in 2009 [...]
The Financial Services Authority (FSA) is set to publish a report on the near collapse of Royal Bank of Scotland (RBS) following an investigation into the bank. The report, to be published by the end of March, comes after the bank had to be bailed out at the height of the financial crisis in autumn [...]
A new survey by the Bank of England has revealed 51% of households are struggling to meet repayments for credit card bills and other unsecured debts. The survey, which questioned almost 2,000 households, established 90% of respondents expect to be affected by the Government’s massive spending cuts. Almost of quarter (22%) of respondents said they [...]
The British Retail Consortium (BRC) has revealed some optimism among retailers for the Christmas period. Many believe the Christmas period will be no worse than last year – despite consumers being fearful of the Government’s spending cuts and unemployment. According to the BRC’s snapshot of 17 major retailers, which represents up to 51% of the [...]
A report by the Prince’s Trust and the Royal Bank of Scotland (RBS) has found that the number of young people claiming unemployment benefit has soared – costing the economy £155 million a week. The number of 16 to 24-year-olds claiming jobseekers allowance escalated from 5,840 in 2008 to 25,800 this year, according to the [...]
The Office For National Statistics (ONS) has today revealed the extent to which the recession has had on UK households after spending fell for the first time in a decade. The data shows how households have been squeezed after spending was £455 in 2009, down from £471 in the previous year – the first fall [...]
A German newspaper has today reported that Portugal is under pressure to seek emergency aid from the EU rescue fund – something which the country strongly denies. Today, the Financial Times Deutschland reported that a number of euro zone nations and the European Central Bank were urging Portugal to follow Ireland and Greece and seek [...]
A report by the BBC has revealed that Britain’s biggest banks are understood to be in talks about reducing the amount they receive in bonuses. Bonuses have been a major issue for some time now and have sparked public outrage since many argued that excessive bankers’ bonuses reward the risk-taking culture that led to the [...]
There is speculation that Ireland is looking to its banks for emergency funding – the Irish Independent reported on Monday. The report comes as Ireland’s Government continues to reject claims that it is seeking emergency financial support via the EU rescue fund – established by European Governments and the International Monetary Fund after the Greek [...]
BDO, the accountancy firm, has today provided an optimistic report about the prospects for the UK High Street. Spending cuts and tax hikes has led many experts to suggest that consumers will rein in their spending, having a severe impact on retailers. However, BDO suggests that sales will grow by 3% over Christmas as shoppers [...]
Savers are missing out on billions of pounds in interest payments, according to a report by consumer group, Which? According to the report, by leaving money in low interest accounts, savers are missing out on a possible £12 billion. According to the consumer association, interest rates are not made clear to consumers on their bank [...]
The Observer newspaper has today reported that US private equity firm, JC Flowers, might bid for four UK building societies as part of plans to create a new “supermutual”, that could be sold via a partial flotation. It is believed that West Bromwich, Skipton, Norwich & Peterborough and Principality are being targeted. However, JC Flowers [...]
The Office for National Statistics (ONS) has today revealed UK unemployment dipped in the three months to August. The ONS said unemployment fell by 20,000 in the three month period to 2.448 million. The latest figures means the unemployment rate dipped from 7.8% to 7.7% – the lowest rate since May 2009. In the meantime, [...]
A high level of properties on the market continues to outnumber buyer demand, and this will impact negatively on house prices, according to the Royal Institution of Chartered Surveyors (Rics). This echoes many reports, which all suggest house prices are heading for a double dip. House prices slumped by around one fifth between autumn 2007 [...]
The Labor Department has revealed the world’s largest economy lost 95,000 non-farm jobs last month – nearly double the 54,000 jobs lost in August. The latest figures means the unemployment rate held steady at 9.6%. The rate has now been above the 9% mark since May 2009. The number of unemployed is hovering around the [...]
An independent commission led by Lord Hutton (the former Labour Work and Pensions Secretary) has called for a change to final salary pensions for the public sector. The 174-page report comes after Chancellor George Osborne asked Lord Hutton to carry out an investigation into where savings can be achieved. Mr Osborne has previously said the [...]
The latest report from the Recruitment and Employment Confederation (REC) and KPMG has suggested that the UK jobs market is continuing to weaken as Government spending cuts are having a major impact on employment. The permanent placement index dipped to 54.6 in September, down from 56.3 the previous month. Meanwhile, the temporary and contract staff [...]
According to the New Economics Foundation (NEF), banks could be forced to seek more support from the taxpayer next year, due to a £25 billion funding gap. The NEF has published a report on Britain’s banks entitled “Where Did Our Money Go?” and the 88-page document suggests an urgent reform of the sector is required, [...]
Phone fraudsters stealing bank card pins
Fraudsters using a phone scam to trick bank card holders into revealing their pin numbers stole £750,000 in the first four months of this year. This is the same amount stolen through this scam in the whole of last year. The fraudster telephones a bank customer, often someone elderly or vulnerable, telling them that their [...]
FSA rules out ban on interest-only mortgages
Speculation that the Financial Services Authority would ban interest-only mortgages as part of its Mortgage Market Review has proved to be unfounded. However, lenders will be required to monitor the performance of the investment product taken out by the customer to repay the mortgage at the end of its term. Investments are performing poorly because [...]
Bank of England may end free in-credit banking
A director of the Bank of England has warned that official intervention could be considered to end the ‘dangerous myth of free in-credit banking’. Andrew Bailey has already spoken out against free banking in relation to the mis-selling of financial products. In a speech made available to media, he reiterated his concern, saying that it [...]
Bank of England votes against more economic stimulus
The Bank of England voted against a further round of quantitative easing, at its latest Monetary Policy Committee (MPC) meeting. Just one member, David Miles, voted for further asset purchase to encourage growth in the UK economy, while the other eight members voted to keep the Bank’s quantitative easing programme steady at £325bn. The minutes [...]
Catalogue debt growing says helpline
Calls from people concerned about their debts with mail order catalogues accounted for more than 12 per cent of all calls received by National Debtline last year, compared with just 8 per cent in 2007. More people were concerned about catalogue debt than about payday loans, mortgage or rent, according to the Money Advice Trust [...]
Homeserve faces mis-selling investigation
HomeServe, which provides emergency insurance cover and domestic repairs to households in the UK, is to be investigated by the Financial Services Authority (FSA). Issues over the possible mis-selling of household emergency policies were uncovered last October during an internal review at the Walsall-based company. Homeserve’s call centre staff were found to be selling ‘Complete [...]
OFT warns Wonga over debt collection methods
Payday loan company Wonga used aggressive and misleading methods to collect debts from customers, the Office of Fair Trading (OFT) has found. Wonga sent letter and emails to certain customers suggesting they had committed fraud and threatening to report them to the police if they did not act in the way Wonga suggested. The company [...]
NS&I re-launches investment account
National Savings & Investments (NS&I) has re-launched its Investment Account at a higher interest rate than it previously offered. The account now offers 0.75 per cent before tax, compared with between 0.2 and 0.3 per cent previously, depending on the account balance. Deposits and withdrawals on the account can no longer be made at Post [...]
Rightmove reports property downsizing trend
Two in five property owners planning to sell in the next year are planning to ‘trade down’, compared with one in four who plan to ‘trade up’. A survey by property website Rightmove found that moving to a smaller home is the main reason for moving in nine out of the ten regions in the [...]
More people failing to save for retirement
The proportion of people with no pension savings has grown from 20 per cent to 22 per cent over the past year, according to Scottish Widows’ latest survey. The pension provider surveyed 5,200 adults in the UK, aged 30 or over, and earning at least £10,000 a year, for its annual review of pensions. Ian [...]
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